Will Brazil Benefit, Economically From Olympic Games?

By Creditsafe, Special for  USDR

Creditsafe, the world’s most used provider of company credit reports, today released insightful data on the potential economic impact of the 2016 Summer Olympic Games on Rio de Janeiro and Brazil. As the first South American city to host the Olympic Games, the city of Rio de Janeiro has already made its mark in history. With more 500,000 tourists attending the 2016 Summer Olympic Games, according to the Brazilian Tourist Institute, many industries in the city of Rio de Janeiro and the country of Brazil stand to prosper as  well.

“The projected economic impact on the host city of any Olympic Games can be both positive and negative,” said Matthew Debbage, president of Creditsafe’s American and Asia-Pacific Operations.  “Once the hype of sporting achievements has died down and the closing ceremony held, the media immediately focuses its attention on the Olympic legacy.  I anticipate it will be quite the topic of discussion after these games. Estimates range from $12 – $20b, so the big question being: Do the short term and long term benefits of hosting the Olympics justify the billions of dollars spent in preparing for the 16 day games in  Rio?”

“There is no doubt the hundreds of thousands of tourists, athletes, support staff and media will bring a much needed short term cash injection to the Brazilian economy. However, I imagine we will be debating the long term economic success of the Rio games for years to come. What cannot be debated is Brazil’s announcement to the world that although it is in midst of a terrible recession, it is still very much open for business,” said  Debbage.

Facts About Rio de Janeiro and the 2016 Summer Olympic  Games:

  • Rio de Janeiro was awarded the Olympics in 2009 while the country of Brazil was in a period of solid economic growth.
  • Brazil is currently in the midst of its worst recession in 80 years.
  • In June 2016, the Governor declared a state of financial emergency and requested assistance from the Brazilian federal government.
  • 11,000 athletes from 206 National Olympic Committees are competing the 2016 Summer Olympic Games.
  • More than 500,000 tourists expected to come to Rio de Janeiro for the staging of the games according to the Brazilian Tourist institute.
  • Total number of active companies in Rio de Janeiro – 1.7M
  • 20,000 companies in Rio de Janeiro in traditional hospitality industries (Hotel, Bars & Restaurants). Eighty percent have revenues of less than $500,000 per year.
  • Rio de Janeiro hospitality companies by risk category:

Risk Category

%

High Risk

23

Medium Risk

20

Low Risk

25

Very Low Risk

32

About The Creditsafe  Group

The Creditsafe Group is the world’s most used provider of company credit reports with ten Creditsafe Group reports downloaded every second. Privately owned and independently minded, Creditsafe is looking to change the way business information is used by providing high-quality data in an easy to use format that everyone in an organization can benefit  from.

Founded in Norway in 1997, Creditsafe has offices in countries all over the world including: the UK, Germany, France, Sweden,Ireland, Italy, Belgium, the Netherlands and the United States. Globally, Creditsafe employs over 1,200 people and has more than 90,000 subscription customers. Three years ago, the Creditsafe Group opened offices in the U.S. under the name Creditsafe, Inc. Its U.S. operations are headquartered in Allentown, Pa. with another facility in Phoenix, AZ. For more information, please visit  www.creditsafe.com.

For more information, please contact  kathryn.lancioni@creditsafe.com.

SOURCE  Creditsafe

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.