The 2014 FIFA World Cup Brazil is expected to generate about 1 million jobs in Brazil, or more than 15 percent of the 4.8 million formal jobs created during President Dilma Rousseff's administration. “It is an extremely significant number that we are celebrating at this time. It is an extraordinary legacy,” highlighted Vicente Neto, President of Embratur (Brazilian Tourism Board), during a press conference held today at the João Saldanha Open Media Centre in Forte de Copacabana, Rio de Janeiro.
The data comes from a study conducted by the Economic Research Institute Foundation (FIPE) at the request of Brazil’s Ministry of Tourism. The survey cross-referenced information on the estimated impact to be generated by the World Cup with data from Brazil's General Register of Employed and Unemployed Citizens (CAGED) collected between January 2011 and March 2014.
Out of the total number of jobs generated by the World Cup, 710,000 are fixed and 200,000 are temporary (all formal), according to the President of Embratur. “These are significant numbers by any standards," said Vicente Neto.
For the tourism sector alone, 50,000 new jobs were generated specifically due to the mega sporting event, a legacy the President of Embratur considers to be very significant.
Vicente Neto announced another positive piece of data on hosting the World Cup in Brazil: the occupancy rate of the hotel sector in the 12 host cities was 45 percent higher than expected for the first week of the World Cup, according to industry analysts. As of 11 June, tourists had booked 340,000 hotel rooms in the country, 100,000 more than anticipated by the Forum of Brazilian Hotel Operators (FOHB). “The numbers are exceeding expectations,” said the President of Embratur.
According to Vicente Neto, the expectation is that hosting major events like the World Cup can help propel Brazil as a prominent tourist destination on the international stage, boosting employment and income generation in Brazil. One of the main positive results expected from hosting the World Cup is increased spending by tourists.
In total, the World Cup is expected to inject a total of approximately R$ 30 billion in the Brazilian economy, according to a survey conducted by the Economic Research Institute Foundation (FIPE) and commissioned by Brazil’s Ministry of Tourism.
At the press conference, Vicente Neto pointed out that Brazil has excelled on the world stage as a prominent venue for events. The country climbed 10 positions in the ranking of the International Congress and Convention Association (ICCA) between 2003 and 2013, jumping from 19th to 9th in the world in number of conferences and conventions hosted. The total number of events held in Brazil increased from 62 to 315 (and the number of cities hosting events increased from 22 to 54) during that period, the result of a decentralization policy adopted to attract international events.
In addition to the President of Embratur, the event was attended by Professor Pedro Trengrouse (Getúlio Vargas Foundation) and Professor Lamartine da Costa (State University of Rio de Janeiro and University of East London), who discussed the positive aspects and critical perspectives of hosting mega events. “If there is a consensus amongst researchers is that mega events are paying for their own success,” said Professor da Costa.