This Monday (07.04), the Brazilian Ministry of Tourism published an economic impact study of the Confederations Cup, which was held in June 2013 in Brasilia, Belo Horizonte, Fortaleza, Recife, Rio de Janeiro and Salvador. The results show financial transactions for the period, their effect on GDP and job generation, as well as providing input for forecasts in relation to the World Cup.
According to the study conducted by the Foundation Institute of Economic Research (FIPE), the tournament led to R$ 20.7 billion in transactions being made, R$ 11 billion of which as expenditure by tourists, the Local Organising Committee (LOC), as well as private and public investments. The other R$ 9.7 billion corresponded to income added to the Brazilian GDP. At the World Cup the expectation is that three times this value will be made in transactions, possibly reaching R$ 30 billion.
From the R$ 9.7 billion, 58% was spent in the host cities and 42% in the rest of the country. “The result shows that the tournament's impact is not restricted to host cities. It has an impact in the whole of Brazil", states the Minister of Tourism, Vinicius Lages.
The study analyses the initial, direct, indirect and induced impacts on the economy. As bases for calculation, the sum of public and private investments in infrastructure (R$ 9.1 billion) were used, in addition to how much national (R$ 346 million) and foreign (R$ 102 million) tourists spent, plus investments made by the Local Organising Committee (LOC) in the event (R$ 311 million). From these amounts, the multiplier effect on the productive chain was reached.
Lastly, the impact of the Confederations Cup on job generation was measured. The equivalent of 303 thousand jobs were created, taking into consideration the concept "equivalent man/year” -, which does not mean that the same number of new jobs was necessarily created. Part of the demand for new employees may have been met by overtime or simply, by using current employees more efficiently. From this total, 60% were in host cities and 40% in the rest of the country.
Rio de Janeiro recorded the highest number of financial transactions among host cities (R$ 6 billion), which corresponded to a R$ 2.8 billion increase in GDP for the city. In addition, it recorded the highest number of jobs generated (59 thousand) among the tournament's host cities. Together, Brazilian and foreign tourists spent R$ 117 million in Rio.
The study heard 17 thousand people and analysed expenditures and investments made in relation to the staging of the event. Investments made up to the Confederations Cup represent 77% of the total anticipated for the tournament’s six host cities in 2013 and 36% of the total predicted for the twelve World Cup host cities. Data are based on the April 2013 version of the World Cup Responsibility Matrix.