According to the Brazilian government some 3.7 million World Cup visitors are expected, generating an impressive US$3 billion boost for the economy. Raising its estimate of the number of overseas ticket holders attending the World Cup by 66% to 500,000, the impact of foreign tourists, who are forecast to spend the most, will be felt in particular.
Taking into consideration the average spending of tourists at last year’s FIFA Confederations Cup, Brazil’s Ministry of Tourism estimates that direct World Cup tourists will attend an average of four games, spending almost US$2,500 each, not including airfares.
Andrew Thompson, Group Sales Manager of leading Brazilian property developer Ritz Property, who himself is attending a number of World Cup games, comments: “With the slight slowdown in the Brazilian economy seen in recent months, the US$3 billion forecasted income generated by the World Cup will be most welcome. Direct spending of some US$1.83 billion by visitors is expected with another US$1.19 billion set to be spent on other events and festivities linked to the FIFA World Cup.”
The positive effects of travel and tourism on the Brazilian economy in 2014 are also echoed by the World Travel and Tourism Council (WTTC). In the WTTC’s Travel & Tourism Economic Impact 2014 – Brazil report, the total contribution of Travel & Tourism to Brazil was BRL443.7 billion, some 9.2% of GDP in 2013. This is forecast to rise by 5.2% in 2014 and by 4.1% per annum to BRL696.6 billion by 2024.
Indeed with reduction of unemployment one of President Dilma Rouseff’s priorities, the WTTC’s report prediction that the number of jobs directly supported by Travel & Tourism will rise by 2.8% in 2014 and a further 1.9% to 3,787,000 by 2024 is yet more welcome news.
“The revenue won’t all be from foreign visitors though,” addes Thompson. “Domestic spending, especially from the ever-growing Brazilian middle class is forecast to be significant. You only have to look at the consumer market where sales of TVs on Walmart’s Brazilian site have surged by 35% since the Brazilian soccer team was announced earlier this month!”
Foreign investors are active too, attracted by the country’s double digit capital appreciation and generous rental income, which Ritz argues makes buying in Brazil a “shrewd move”.