Economic Impact Of Hosting The World Cup For Brazil
Brazilian Bank Itaú predicts the 2014 World Cup will increase the country's GDP 1.5% in three years, according to Beatriz Olivon of EXAME.com. The study reveals the sectors that will benefit the most from the World Cup will be "hospitality, transportation, communications, cultural intellect and retail trade." The study also estimates that, "apart from the temporary jobs during the event," 250,000 new positions will be created by the World Cup. Furthermore, "close to 165 million potential consumers in the country should spend between $3B and $6B before 2014." The official government estimate for the total World Cup costs is R$36.5 ($18B). Another interesting note is that in the past the World Cup has resulted in a "30% increase in exportation" for the host country (EXAME.com, 6/21). MEIO&MENSAGEM reported stadium construction costs at R$7.2B ($3.5B), telecommunications R$4.2B ($2.1B) and security R$4.1B ($2B). The tourism industry should see "an increase of 3 million visitors in the next three years, or 2 million foreigners and 1 million Brazilians." The impact of the World Cup could also be seen in Brazil's "social pyramid." Until '14, Brazil's middle class "should increase by 23%, going from 114 million to 140 million people" (MEIO&MENSAGEM, 6/21).