Rio to Register R$2.7 Billion in Extra Revenues During Games

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – A study conducted by the National Confederation of Trade, Services and Tourism (CNC) shows that the Olympics and Paralympic Games, scheduled to be held in Rio de Janeiro starting next month should generate revenues of R$2.68 billion to the state’s tourism sector.

“This at a time when the tourism and all economic activities are experiencing declines in revenues,” economist CNC Fabio Bentes was quoted by Agencia Brasil as saying. According to Bentes, forecasts call for 1.4 million visitors, foreign and domestic, circulating and consuming goods in the city during the two months of the sports competitions.

The study estimates the increased revenues will mean a nominal hike of 18.8 percent over the same period last year, with foreign visitors spending the equivalent of R$3,089 during their visit to the state, a total of R$1.77 billion in August for the Olympics and R$912.4 million for the Paralympics.

Even with the a weaker Brazilian real than that registered during the 2014 World Cup, retailers in Rio are very optimistic about the inflow of revenues during the period.

The food and beverage segment should account for one-third of the revenues generated by the two events. The expectation is that bars, restaurants and cafeterias receive R$927.1 million in revenues.

Other segments that should profit from the Games are road transportation and leisure and sports activities. According to CNC, together these three segments should account for almost eighty percent of revenues during the period.

Accommodations, car rentals and airline travel should not register significant increases during the Games, since these activities are usually paid for before visitors arrive.