By Robert Haugh

Santa Clara is counting on the 2026 FIFA World Cup to bring visitors, hotel stays and new tax revenue to the Mission City.

But a new national report suggests the economic boost may not be as strong as expected.

According to a Moneywise report republished by MSN and Yahoo Finance, hotels in several U.S. World Cup host cities are cutting rates after demand failed to meet expectations. 

The report says FIFA has canceled tens of thousands of reserved hotel rooms across the country. 

That could be bad news for Santa Clara.

Levi’s Stadium will host six World Cup matches, including five group-stage games and one Round of 32 match. The games run from June 13 through July 1, 2026.

The City has promoted the event as a major opportunity for hotels, restaurants and local businesses. Santa Clara currently has more than 3,000 hotel rooms, according to Discover Santa Clara. 

Hotel stays are also important to the city budget. Santa Clara’s transient occupancy tax is 13.5 percent, meaning lower hotel rates or weaker bookings could reduce expected tax revenue. 

Santa Clara already faces major financial questions tied to the World Cup. 

The Bay Area Host Committee and the 49ers are expected to cover event-related costs so city taxpayers are not left paying for stadium events.

If hotel demand softens, it could undercut one of the biggest arguments for hosting the event. Event organizers claim that the World Cup will generate enough local economic activity to justify the disruption, security costs, and staff time.