Brazil expects $13.5 billion economic boost from 2014 World Cup
Rio de Janeiro : The 2014 FIFA World Cup in Brazil is expected to inject approximately USD$13.5 billion into the Brazilian economy, according to a survey conducted by the EconomicResearch Institute Foundation (FIPE) commissioned by Brazil’s Ministry of Tourism.
FIPE’s projection is based on a study of the economic impact of the FIFA Confederations Cup in Brazil, which took place last June in the cities of Brasília, Belo Horizonte, Fortaleza, Recife, Rio de Janeiro and Salvador.
According to the survey, last year’s tournament added USD$ 4.3 billion to Brazil’s GDP. The expectation is that the World Cup will inject three times as much, or about USD$ 13.5 billion, into the Brazilian economy.
The study examines the initial, direct, indirect and induced impact of the event on Brazil’s economy. The basis for calculation used was the sum of public and private investments in infrastructure (BRL$ 9.1 billion), spending by local tourists (BRL$ 346 million) and foreign tourists (BRL$ 102 million) and investments by the Local Organising Committee (LOC) on theevent (BRL$ 311 million). The multiplier effect in the supply chain was then calculated based on these amounts. The study included a survey of 17,000 people and an analysis of spending and investments for the event.
Brazil’s Ministry of Tourism estimates that the World Cup has generated about one million jobs in the country. The total number of jobs created by the World Cup represents more than 15% of the 4.8 million formal jobs created during President Dilma Rousseff’s administration.
Vicente Neto, president of the Brazilian Tourism Board (EMBRATUR), highlighted the job figures recently saying: “It is an extremely significant number that we are celebrating at this time. It is an extraordinary legacy, ” etn.travel reports.
July 8, 2014
