Analyst sees SEA Games hosting to boost GDP

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Metro Manila (CNN Philippines, November 29) — The Philippines' hosting of the 30th Southeast Asian (SEA) Games could lead to a boost in the economy, an analyst said.

"The cost for the SEA Games would range at least ₱7-10 billion, so it would add to around 0.1 percent GDP growth this year," RCBC chief economist Michael Ricafort said in an interview on CNN Philippines Business Roundup.

He added that the hotel, food and beverage, retail and tourism sectors would benefit from the estimated 10,000 athletes who will participate in the games, who with them brought family members, fans, and guests.

"It's a net positive, short-term and long term as well," Ricafort said.

With the gains provided by the SEA Games hosting, he agreed with previous Business Roundup guest ING Bank senior economist that the Philippines would be able to hit the tail end of its growth target for the year, which is 6 percent.

READ: Analyst expects PH economy to meet target this year

With sports infrastructure constructed and repaired for the SEA Games hosting, Ricafort said this could bode well for future bids to host other international sporting events, including the 2030 Asian Games.