Brazil is projecting that the 2014 soccer World Cup will help it break records. Certainly a World Cup victory is in sight for the Brazilian team, but there is also considerable buzz about the event’s potential economic benefits. It is expected that the amount of money spent by visitors in connection with the World Cup will be three times the amount spent in connection with the Confederations Cup, which Brazil hosted in 2013.
World Cup Tourism Will Drive Local Revenue Growth
The economic impact of the World Cup will largely be due to the number of tourists that will visit the host states throughout Brazil. The Brazilian government is forecasting that approximately 3.7 million Brazilians and international tourists will be traveling in Brazil during the soccer tournament. Of the total number of travelers, 600,000 are expected to be foreign tourists. That estimate puts Brazil on course to shatter its 2013 record of six million tourists. That record was fueled by tourists traveling to Brazil for the World Youth Journey and the Confederations Cup.
A Job Boom Is Also Expected
To handle the increase flow of tourists during the World Cup, Brazil will have to create new jobs. While estimates vary, the hotel, food, transportation, and travel industries are expected to make out the best. It’s also expected that the states hosting soccer matches will benefit the most from the job growth and spending by tourists. São Paulo and Rio de Janeiro, which will be hosting the opening and closing matches, are historically the two most visited cities in Brazil.
In 2016, Rio de Janeiro will play host to the Summer Olympic and Paralympic Games. While many in Brazil are concerned about the current economic situation, something that is being expressed through demonstrations and strikes in cities throughout the country, the government is hopeful that it will continue to enjoy the economic benefit from increased tourism for the next couple of years.