Euro 2012 in Poland – On the Right Track with Great Opportunity

In what was a shocking decision for many, the upcoming 2012 European Football Championships were awarded to Poland and Ukraine marking the first time that a major international sporting event will be held in former communist Eastern Europe since the 1980 Olympics in Moscow.

Text by Łukasz Liese

The event, which is one of the most significant in sport, is a catalyst for the building of a much needed infrastructure, and will likely soften the negative effects of the current economic crisis in Poland while providing many opportunities for both foreign and local investors in the country.
 

The decision to have Poland and Ukraine host the championships was announced at a meeting of the UEFA Executive Committee in Cardiff, Wales on April 18, 2007 and since that time, Poland and Ukraine, who beat out a bid from heavily favoured Italy and a joint bid from Hungary and Croatia, have been working hard to meet the requirements that they committed to in order to be able to host the event.

 Despite some early setbacks that resulted in a lot of speculation that the new host countries would not be able to fulfill the criteria set forth for them in terms of building the necessary infrastructure for the event and thus losing the right for its hosting, Poland is back on the right track and will very likely go on to host the event barring any major unforeseen crises. The same cannot be said of the Ukraine which has been hit harder by the current global economic situation and which through its not being an EU member, did not have the same access to EU funding as Poland. At the present time, there is an outside possibility that Poland may go on to host the Euro Cup by itself or possibly with another European country such as Germany if the planned stadium in Kiev is not built on time.

 In any case, the European Championship in 2012 represents a strong boost for the Polish economy, particularly in the tourism and construction sectors and provides a lot of opportunity for growth and investment. According to PricewaterhouseCoopers, a leading consulting company, Poland has the opportunity to have similar successes to Portugal, which hosted the event in 2004 and attracted over a million football fans to the country followed by an annual growth of 5% in its tourism industry in the following years. This will be dependent on Poland’s being able to successfully carry out the largest investment programme since the fall of communism.

 Infrastructure work will remain a source of opportunity for investors and a major challenge for Poland, which will have to build new stadiums and training facilities while renovating existing ones. Currently, Poland is moving forward with these projects with most of the work on schedule. In total, three existing stadiums will be modernized and three new stadiums will be built. Along with this, a number of new training and accommodation centers are planned for the football teams.

The matches in Poland are slated for Warsaw, Poznań, Gdańsk and Wrocław, with Kraków and Chorzów on the reserve list. In Warsaw, a new football stadium, the National Stadium, with a seating capacity of 73 000 will be built and its construction has commenced recently. This new stadium will host the opening match, two group matches, a quarterfinal and a semi-final. A general purpose indoor sports arena with seating for 15, 000 spectators and an Olympic swimming pool with seating for 4, 000 spectators will be built alongside the stadium along with a new hotel, a congress center and catering and service facilities. The National Stadium is also expected to be linked to the city centre by a new underground line which is also expected to be built in time for the games.

 In Poznań, Stadion Miejski, a multi-functional stadium which is currently used by the hometown Lech Poznań for its football matches is currently being expanded to double its capacity to allow for 40-45 thousand spectators up from 24 166. A new training field and a car park for 4000 cars will be built alongside the expanded stadium.

In Gdańsk, a new multi-functional stadium called the Baltic Arena, with a capacity for 44, 000 people will be built. Construction on the new stadium began in 2008 and it is expected to be completed by 2010. With an innovative design, the stadium’s exterior will resemble amber and by many accounts, this will be the most modern stadium in Poland and one of Gdańsk’s most distinct landmarks. Baltic Arena will be located ten minutes from the city’s center and will be visible from the entire city and from the sea.

Wrocław will also be home to a beautiful brand new stadium which is temporarily named the Stadium in Maślice. The stadium will have a seating capacity of 44, 000 and will resemble a Chinese lantern and will be able to be illuminated in different colours relevant to the home team that will be playing. The stadium’s grounds will include office space, conference halls and restaurants. Modern and innovative, Wrocław’s new stadium is expected to be a main architectural landmark for the city for many years to come.

 The reserve cities of Kraków and Chorzów will have their stadiums upgraded to be in line with UEFA guidelines. Chorzów‘s Silesian Stadium, which is currently Poland’s largest, will see its capacity increased from the current 47, 246 to over 55, 000. Further plans include the construction of a 43, 000 sqm roof over the stadium, which some claim would be the largest in the world. Kraków’s football specific Wisła Stadium will be completely revamped and will seat over 33, 000 spectators.

The largest challenges for Poland will be in transportation infrastructure improvements which will be needed to support and facilitate the event and which will be heavily dependent on government funding. New roads will have to be built and current ones upgraded in order to transport players, event staff and spectators between cities and venues. It is estimated that approximately 1600 km of express roads and 900 km of highways will need to be built or upgraded. Railway and airport networks will further have to be developed in order to accommodate a massive influx of tourists. Over 1500 km of railways are planned for modernisation and eight airports are to be expanded.

Alongside the need to overhaul the transportation infrastructure, new hotels will also have to be built and existing ones renovated to accommodate players and the expected massive crowds of spectators. By some estimates, approximately GB£ 20 billion will be spent on infrastructure in Poland leading up to the championships, much of which will come out of EU funds which are not expected to be affected by the economic recession.

In perhaps an ironic twist, according to some accounts, the current global economic crisis may even help Poland in its preparations. A significant stumbling block to Poland’s development of the necessary infrastructure came from a lack of workers, many of whom had gone to countries such as the United Kingdom and Ireland to work. Under the current economic climate, many of these workers have lost their jobs in these countries and have been returning to Poland. As a result, Poland should no longer have significant problems with finding workers who will be more willing to work and on more favourable terms. Lower prices for construction materials and less interest from developers in unrelated construction projects are further benefits for Poland which have resulted from the current state of the economy.

 Despite slow progress in the past, Poland is now dynamically moving forward with the many necessary infrastructure projects. Even in the event that some of the planned work does not pan out, the major projects vital to Poland’s not being stripped of the right to host the championships, with stadium construction in particular, are for the most part, progressing on schedule. As a result, Poland should reap a number of economic benefits tied in with EURO 2012. According to PricewaterhouseCoopers, the investment related to the event can result in a 1.5% extra growth of GDP for Poland between 2009 and 2012 which would be a great accomplishment in the current economic climate. Both Polish and foreign investors will be able to benefit from contracts related to infrastructure projects. Crucially important for investors will be continued support from the government and the European Union which will provide much of the funding. In the end, Poland stands to gain a lot not only leading up to the games, but for many years following in the form of increased tourism and infrastructure that will potentially be at par with Western European countries which will in turn, help to attract further investment in the country. With billions of Euros at stake and millions of viewers on Poland, the coming months will be vital in determining just how much Poland will be able to gain from the opportunity of hosting the 2012 European Football Championships.


 

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