How can brazil afford to host the olympics

Despite being international, the Olympics often take place in those wealthy countries that either have some existing infrastructure to accommodate the events or that are willing to front money to build some. The U. And so they would like to occupy that center stage for a while. The last time the U. The general sentiment of city residents before the games was excitement, said Stephen Goldsmith , who served as the planning director for the city at the time.

He said there was pushback from affordable housing, mobility and accessibility advocates, but small businesses were excited about the prospects of a boost in revenue from tourists. But those hopes sometimes went unrealized. Goldsmith said businesses beefed up their stocks of food and beverages, but tourists just stuck to the confines of the Olympic Village.

The Salt Lake City Olympics were not a complete bust, at least as far as debts and unused infrastructure were concerned. As long as countries have an interest in establishing or re-establishing their importance on the global stage and are willing to spend the money, bids might continue, Baade said.

While the prospect of the Olympics ever just being hosted in one particular location or being rotated between cities already with the necessary infrastructure seems unlikely to Zimbalist, he sees it as the most logical solution.

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Those capital costs the stadiums, the Olympic village, the media center, infrastructure, etc. The same underreporting of the actual costs is true for the World Cup as well, though the accounting categories differ. The other way to make up for the cost is if the physical legacy from the games sports venues and infrastructure can be turned around to produce a future stream of benefits. Economic stimulus spending can be helpful to an economy with high unemployment and excess capacity.

In such circumstances, expansionary fiscal policy can indeed create jobs, lift demand for goods and services, and promote economic growth. When governments undertake major, long-term infrastructure investment programs under these conditions, economic theory warns of overheating the economy. This appears to be what Brazil is experiencing with rising inflation, currently at over 6 percent per year despite tight monetary policy.

There is so much building going on that construction workers are fully employed. When large capital projects, such as those for the World Cup and Olympics, are under severe time pressure, it forces construction to go forward without a properly skilled work force, auguring potential problems down the road in the form of shoddy work, low-quality materials and wage inflation.

Second, planners should not count their tourism eggs before they hatch. While many tourists will be attracted to a sports mega-event, there will be others who would normally travel but are frightened away by the anticipated crowds and higher prices.

In late , Athens tourism officials estimated a 10 percent drop in summer tourism due to the Olympics. The Utah Skier Survey found that nearly 50 percent of nonresidents planned to stay away from Utah in due to the expectation of more crowds and higher prices. The Beijing Tourism Bureau projected that the number of visitors to the city in August during the Olympics would not be greater than in August Whether or not tourism increases after the Games is also questionable. While it is always difficult to untangle the impact of the economic crisis, in the case of Beijing, tourism numbers after the Games do not look encouraging.

If the World Cup and the Olympics are executed without a hitch, if there is no violence, no whiff of corruption, no reports of long traffic delays, and if the weather is appealing, then more tourists may be inclined to visit Brazil than previously. But these are big ifs. Keep in mind that Brazil is hardly a secret as an international tourist destination. Rio, for example, is the most visited city in the southern hemisphere, receiving over 2.

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