{"id":13029,"date":"2026-06-07T15:01:57","date_gmt":"2026-06-07T15:01:57","guid":{"rendered":"https:\/\/siliconvalleymovingpost.com\/?p=13029"},"modified":"2026-06-07T15:01:57","modified_gmt":"2026-06-07T15:01:57","slug":"world-cups-economic-expectations-for-the-l-a-region-wobble","status":"publish","type":"post","link":"https:\/\/siliconvalleymovingpost.com\/?p=13029","title":{"rendered":"World Cup\u2019s economic expectations for the L.A. region wobble"},"content":{"rendered":"
\n

Predictions that the FIFA World Cup 2026 games will attract more than $1 billion in spending at Southern California hotels, restaurants and tourist hotspots this summer are beginning to look a little shaky.<\/p>\n

Read more Sea to Shining Sea LBC to celebrate America\u2019s 250th with three fireworks shows at once \u2014 and more<\/a><\/p>\n

A major hotel trade group is tamping down a previously upbeat forecast, saying FIFA itself has canceled \u201cthousands of downtown Los Angeles rooms\u201d while simultaneously, geopolitical events \u2014 including the U.S. and Israel-led war in Iran \u2014 have put a damper on international travel to the area as jet fuel shortages plague flights globally.<\/p>\n

With the Iran soccer team playing in Los Angeles, the tight-knit Persian community in Westwood has lowered its expectations somewhat regarding visitors flooding their stores.<\/p>\n

An American flag hangs at the front of Mohammad Ghafari\u2019s Shater Abbass Bakery & Market along Westwood, where crates of pomegranates, oranges, watermelon and other fruit and vegetables crowd the sidewalk.<\/p>\n

The expatriate has mixed feelings about the World Cup and his homeland\u2019s team.<\/p>\n

\u201cThe soccer team belongs to the Islamic regime, and it does not represent Iranians,\u201d said Ghafari, who said he is torn between loyalty to his hometown of Mashhad and his disdain of the Iranian Revolutionary Guard Corps, which controls the country.<\/p>\n

Others are eager for a win<\/p>\n

\u201cI don\u2019t want to get political,\u201d said George Chammaa, owner of the Sunnin Lebanese Cafe across the street from Ghafari\u2019s market. \u201cI\u2019d love to see Iran win. It\u2019d be good for the area.\u201d<\/p>\n

\n<\/div>\n

For sure, travel through major airports in the area are seeing a dip in flights \u2014 some due to airlines taking cost-cutting measures tied to higher fuel costs. On June 5, American Airlines became the latest airline to temporarily suspend\u00a0some domestic routes serving Los Angeles and Ontario.<\/p>\n

The FIFA games with 48 teams vying for the World Cup will feature 104 matches over 39 days from June 11 to July 19. The tournament is taking place across Canada, Mexico and the United States, with 11 of the 16 locations in the U.S.<\/p>\n

Los Angeles is hosting eight of the matches \u2014 including two games with an Iranian soccer team that is being forced to stay in Tijuana due to visa concerns.<\/p>\n

How many people will attend, dine out and sleep in local hotels remains to be seen.<\/p>\n

\n<\/div>\n

Which flag to wave?<\/h4>\n

In Persian Square in Los Angeles, the largest concentration of Iranian-Americans outside of Iran, flags from before the Islamic Revolution of 1979 are visible in kabob restaurants, food markets and rug shops along Westwood Boulevard and Wilkins Avenue \u2014 nicknamed \u201cTehrangeles\u201d (Tehran and Los Angeles).<\/p>\n

Some of the Iranian diaspora were ready to celebrate their homeland roots while others didn\u2019t want to be associated with the Middle Eastern regime.<\/p>\n

The Iranian soccer team will play New Zealand on June 15 and Belgium on June 21 at SoFi Stadium in Inglewood. (SoFi has temporarily been renamed Los Angeles Stadium in order to comply with strict FIFA branding rules for the World Cup.)<\/p>\n

Many of the Persians interviewed in Westwood said they would likely watch the games with friends and family at home rather than gather publicly in restaurants or bars. Most cited safety concerns as their primary reason for staying home.<\/p>\n

Some shop owners who didn\u2019t want to be identified, said that a parade may be planned along Westwood if the Iran team advances. Others aren\u2019t so sure, though, with some considering protests outside the arena on game days.<\/p>\n

Torn loyalties<\/h4>\n

For sure, L.A.\u2019s huge Persian-American population is divided by their allegiance to the U.S. and their homeland.<\/p>\n

Iran\u2019s World Cup squad is to depart Saturday, June 6 from the Middle East for Tijuana while waiting out delays for their U.S. visas. The plan is for the team to make a four-hour bus ride to Inglewood to play, and then return to lodgings in Mexico.<\/p>\n

\u201cPeople here are sympathetic for the Iranian team, but they\u2019re playing for the Iranian regime,\u201d Ghafari said. \u201cI\u2019d love to see them win, but I can\u2019t say whether I\u2019d be happy or not. I don\u2019t support President Trump\u2019s war. If Trump wants to help the Persian people, he should arm the people to fight, not be hell-bent on spending billions of taxpayer dollars in destroying the oil infrastructure and the thousands who have died since the war began.\u201d<\/p>\n

Ghafari doesn\u2019t see the FIFA World Cup bringing much tourist spending to the Persian community that extends between Santa Monica and Wilshire boulevards. \u201cMy store is empty because money is too tight to buy groceries,\u201d he said. \u201cInflation is hurting my business. Nobody is walking the streets around here.\u201d<\/p>\n

The story is different for Shahrzad Tahouri, owner of a travel agency along Westwood, who was speaking Farsi on Wednesday with a client planning a trip to Los Angeles for a wedding during the World Cup.<\/p>\n

Tahouri said she her tourism business has struggled since the Iran war began Feb. 28. \u00a0Lately, that changed, she speculated, because of the World Cup.<\/p>\n

Charter bus rentals to visit local hot spots have spiked in price to as much as $2,000 per day due thanks to growing demand. That\u2019s quite a change from a near collapse in bookings after the war began, she said.<\/p>\n

\u201cToday, I\u2019ve been very busy,\u201d said Tahouri, who juggled answering her phone for \u201cglobal clients\u201d looking to make travel plans, and customers walking in off the street. \u201cGetting a charter tour bus is tough because of the soccer games.\u201d<\/p>\n

Los Angeles County is home to 86,430 people of Persian descent with another 39,700 living in Orange County, according to the Iranian Data Dashboard, which is hosted by the UCLA Center for Near Eastern Studies. Nearly a third of the 794,900 people with Persian ancestry living in the U.S. live in California.<\/p>\n

Rooms available<\/h4>\n

The American Hotel and Lodging Association, so far, reports disappointing bookings amid cancellations of hotel rooms in downtown L.A.<\/p>\n

Read more Onetime allies Inglewood, SoFi Stadium brawl over billboards, $448 million in payments<\/a><\/p>\n

\u201cInternational visitors are central to the World Cup\u2019s economic promise, yet they are not materializing at the levels initially forecast,\u201d a spokeswoman with the lodging group said in a statement. \u201cThis shortfall is particularly significant because international visitors spend roughly 1.7 times more than domestic travelers when they visit the U.S.\u201d<\/p>\n

The group cited a range of issues affecting international travel, including airfare costs and uncertainty around ticketing.<\/p>\n

The spokeswoman also said that typical summer demand\u00a0is holding in L.A., but the tournament is not delivering \u201cthe significant incremental uplift that was projected.\u201d She said that FIFA initially set aside large volumes of rooms across host markets for official use, and as those allocations were adjusted and released back to the open market, \u201cdemand forecasts built on those early commitments required significant recalibration.\u201d<\/p>\n

That anticipated demand has not translated into strong hotel bookings and local travelers are outpacing international visitors, according to an early May 2026 report prepared by the group, which surveyed 205 members covering 11 host cities.<\/p>\n

The report also found that roughly half of respondents cited \u201cvisa barriers, high labor costs, and distance from venues as meaningful constraints.\u201d \u00a0FIFA\u2019s cancellation of \u201cthousands of downtown Los Angeles rooms reflects these pressures and underscores how World Cup-related performance is proving uneven and highly location-specific, varying significantly by submarket and proximity to match activity.\u201d<\/p>\n

There are other signs of weakness brewing in parts of Southern California.<\/p>\n

International travel is lagging after consumer backlash stemming from last year\u2019s tariffs imposed by the Trump administration. Other travelers from Canada opted not to visit the region after President Donald Trump suggested the northern neighbor was to be the nation\u2019s \u201c51st\u201d state.<\/p>\n

There\u2019s also inflation to blame as gas prices linger at record highs, commercial flights have been canceled and geopolitical tensions caused some consumers to hold back on spending.<\/p>\n

At Los Angeles International Airport \u2014 which is fewer than 5 miles from SoFi Stadium \u00a0\u2014 international passenger traffic fell more than 2% in the first four months of the year. That\u2019s slightly more than the 1.6% drop in international travel seen in all of last year through the airport<\/p>\n

John Wayne Airport, some 40 miles to the southeast and close to Disneyland, saw a\u00a0 24% drop in international traffic in the first four months of 2026 and a nearly 9% drop in all of 2025.<\/p>\n

High ticket prices?<\/h4>\n

World Cup ticket prices may also be turning off soccer fans.<\/p>\n

Ticket prices range from several hundred dollars to the thousands. A check of prices on StubHub on June 2 for the June 12 match between the U.S. and Paraguay ranged from just under $1,000 in the stadium\u2019s top rows to $23,500 at midfield behind the bench.<\/p>\n

State Attorney General Rob Bonta is demanding that FIFA provide information on its marketing practices on the sale of tickets to determine if it had potentially misled consumers.<\/p>\n

With sales possibly flagging, Bonta cited in concerns raised in a recent story by the New York Times that reported the soccer organization sold tickets based on seating categories displayed on stadium maps and later altered those categorizations before assigning precise seat locations.<\/p>\n

Fans will come<\/h4>\n

Even with all the negative news, some World Cup forecasts remain optimistic.<\/p>\n

\u201cI don\u2019t see any issues with tourism because of geopolitical tensions, or crime or anything like this,\u201d said Haim Israel at Bank of America in an interview from Tel Aviv with the Southern California News Group. \u201cThe World Cup is the biggest sporting event ever, every four years, and this is going to be bigger than anything else.\u201d<\/p>\n

He pointed to the audience in general, with more than 6 billion people expected to watch the tournament and 6 million watching the games in person \u2014\u00a0a record audience.<\/p>\n

\u201cThe numbers are astonishing. That\u2019s almost 20% of the world population. It\u2019s almost 1.5 billion people watching 90 minutes,\u201d Israel said. \u201cWe keep looking at this as an economic event. This is not an economic event. This is an emotional event.\u201d<\/p>\n

A joint study conducted by FIFA and the World Trade Organization says the tournament could boost the financial health of the world by $41 billion in GDP \u2014 or gross domestic product \u2014 and create 824,000 jobs. Of these totals, the FIFA-WTO says the U.S. would get an economic jolt of $17 billion in GDP and 185,000 jobs.<\/p>\n

The March 2025 analysis also says that the World Cup games could draw 6.5 million people and generate nearly $13.9 billion in \u201cevent-related total expenditures\u201d in the tournament\u2019s 11 host cities in the U.S. The U.S. expenditures account for $11.1 billion, including $2.9 billion for FIFA, and $6.4 billion from anticipated tourism spending.<\/p>\n

Two years ago, the Los Angeles Sports & Entertainment Commission said that the economic impact of this summer\u2019s FIFA World Cup could approach $594 million and attract nearly 150,000 out-of-town visitors. The findings were cited in , a Long Beach-based research and consulting firm.<\/p>\n

In January, the nonprofit commission, which\u00a0works to attract high-profile sporting events like the Super Bowl, World Cup and Olympics to the region, said the tally would be closer to $892 million.<\/p>\n

The updated economic impact projections from Chicago-based Epsilon Economics \u2014 which changed its name after merging with Micronomics \u2014 show that the highwater mark could actually surpass $1.1 billion if $230 million from increased advertising and other media spending is added.<\/p>\n

Epilson economist Roy Weinstein, the author of the commission\u2019s two reports, said that the difference in the two projections stems from the first report assuming fewer people would be coming to the area.<\/p>\n

\u201cWe changed that initial assumption from one person coming who had a ticket \u2014 to half of the people who had a ticket would come with someone else. If you\u2019re coming from half way around the world or even someplace in the United States, you\u2019re probably not coming alone,\u201d said Weinstein in an interview.\u00a0 \u201cActually, the right assumption is probably you bring at least one person who maybe doesn\u2019t have a ticket, but who goes to restaurants with you, stays in the hotel, takes transportation and goes shopping. So that had an impact on our projection.<\/p>\n

\u201cIf I owned a big hotel chain in the Los Angeles area, or even a small one, I\u2019d be saying, \u2018There\u2019s plenty of space here, and it\u2019s not going to cost you that much.\u2019 \u201c<\/p>\n

Read more Companies are testing baby formula for heavy metals \u2014 a new bill would make them share results<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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