World Cup Wins Deepen Currency Pain for Football Fans

(Bloomberg) -- Football fans who traveled to Qatar knew the World Cup experience wouldn’t come cheap, but the resilience of the Gulf nation’s currency is making the trip particularly painful for travelers from South Korea, Japan and England..Everything from hotel bills to the price of Coca-Cola at the stadium are pinching tourists, who in many instances are already dealing with sky-high inflation in their home countries..The Qatari riyal is pegged to the US dollar, which has roiled markets this year with its strength. A gauge of global currency volatility is set for its highest annual average since 2016, thanks in part to aggressive rate hikes by the Federal Reserve and the war in Ukraine. .The riyal has strengthened almost 9% against the Korean won this year, which was hit by weakening exports and local housing market strains. It is up almost 17% against the yen, due in Japan’s monetary policy divergence with the US, and nearly 10% versus the pound, thanks to this year’s UK political crises..Japan, South Korea and England all made it through to the knockout stage of the tournament..“Preparing for the World Cup trip has been both physically and financially burdensome,” said Choung Jongchan, a 32-year-old electronic goods salesperson from South Korea, who started preparing for his trip a year ago. .Choung recalled the process as a series of sleepless nights. Tickets were released little by little and many fans were unsatisfied with the seats they were allocated, Choung said. He ended up reselling his tickets for better seats even though that meant higher ticket fees due to a stronger dollar and paying a 5% commission for using the official resale platform..“By then, I already had two million won ($1,538) on my credit card,” Choung said..Sticker Shock.Alcohol is heavily restricted in Qatar but visitors are able to purchase a bottle of Budweiser at designated areas for around 50 riyals ($13.60), nearly 10 times the price of the same product in a convenience store in South Korea. .For Japanese tourists more used to a deflationary environment, the sticker prices at World Cup venues are a particular shock. The yen hit a three-decade low against the dollar in October..“A small PET bottle of water at the venue costs about 400 yen ($3), and Coca-Cola is around 600 yen -- this is a big burden.” said Kazunori Takishima, 46, a real estate business owner in Tokyo. He was expecting to pay 25-30 yen per riyal during his trip, but instead has faced a rate of 35-40 per riyal instead..World Cup Interest Is So High in Japan Top Video App Can’t Cope.Qatar has placed measures to mitigate rising costs, banning any over-the-counter ticket reselling and managing accommodation costs through an official website. Public transportation and SIM cards for Internet connection are free for visitors holding the Hayya card, a fan ID for World Cup ticket holders. Still, such efforts weren’t enough to offset the force of inflation and strong dollar..“Some hotels settle payments six days prior to your stay, so even if you booked your stay months ago, you’d have to pay a bigger cost now because of higher exchange rates,” said Choung..To prevent the cost of tickets ballooning upwards in pound terms, Aminoor Rashid, a 40-year-old UK tax authority employee from Newton-le-Willows near Liverpool, asked his Doha-based friend to buy them on his behalf in July. At that point the British pound had fallen 12% against the riyal..“I was concerned because the pound sterling depreciated very heavily against the dollar,” said Rashid, who was attending his first World Cup. “I didn’t overspend, I was lucky because I stayed with a friend and the main cost is accommodation.” .Early Reservations.Im Sung Min, a 29-year-old mobile accessories international salesperson from South Korea, said while he was lucky he made most of his reservations before the dollar soared, he’s still planning to bring food and supplies to the games “in case I won’t be able to afford them on the ground.”.Of course, easing the pain to fans’ pockets is the thrill of being at the tournament..“I wouldn’t miss what could be the last World Cup for soccer stars Son Heung-min, Lionel Messi and Cristiano Ronaldo,” said Choung. .--With assistance from and ..(Corrects restrictions on alcohol in Qatar in the ninth paragraph of story published Monday. A previous version corrected the spelling of footballers’ names in the final paragraph.).More stories like this are available on bloomberg.com.©2022 Bloomberg L.P.

World Cup Wins Deepen Currency Pain for Football Fans

Football fans who traveled to Qatar knew the World Cup experience wouldn’t come cheap, but the resilience of the Gulf nation’s currency is making the trip particularly painful for travelers from South Korea, Japan and England.

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