Brazilian Ministry projects World Cup tourist spending at more than $3bn
BRASILIA / PR: Brazil’s Ministry of Tourism has announced research findings that the estimated 3.7 million people expected to travel throughout Brazil during the 2014 FIFA World Cup, including Brazilian and foreign tourists, will add R$ 6.7bn (approximately $3.03bn) to Brazil’s economy.
The number of tourists expected to travel to World Cup locations for matches and FIFA Fan Fests has been estimated at 1.9 million, including both Brazilian and foreign travelers, with expected direct spending of R$ 4.05 billion (US$ 1.83 billion). Another 1.8 million visitors will be in the country to enjoy festivities linked to the World Cup and are expected to spend R$ 2.64 billion (US$ 1.19 billion).
“The tourism spending being forecast based on the surveys conducted by Brazil’s Ministry of Tourism do not include the indirect and induced financial transactions resulting from these visitors. In other words, the total financial turnover for tourism during the 2014 FIFA World Cup may be more than double the anticipated figure if we consider the multiplier effect of these resources in the Brazilian economy,” said Minister of Tourism Vinicius Lages.
The biggest spending will be made by the 300,000 foreign tourists who will come specifically for the World Cup. These tourists are projected to attend four World Cup matches on average and to spend R$ 5,500 (US$ 2,488) each during their stay in the country, not including airfares and expenses incurred in their country of origin. The number of these visitors was calculated based on World Cup match ticket sales through the first week of April 2014.
“Tourists who come to the matches are the visitors who spend the most. This is an important audience, and we want to win them over during the World Cup,” said Minister Lages.
Minister Lages also highlighted the results of a FIFA Confederations Cup Brazil 2013 tourism survey, which revealed that more than 70 percent of the foreign tourists interviewed expressed a wish to return to Brazil this year.
The World Cup projections take into consideration the average spending of tourists at last year’s FIFA Confederations Cup, and the proportion of people staying with relatives and friends during the event. The base for the projections is a survey conducted by Brazil’s Ministry of Tourism in partnership with the Economic Research Institute Foundation (FIPE). FIPE’s previous metrics on Domestic Tourist Demand and International Tourist Demand were also used to project average spending by Brazilian and foreign tourists, respectively.
According to a recent study on the FIFA Confederations Cup released by the Ministry of Tourism and FIPE, the economic impact of the entire production chain related to the Confederations Cup until the start of the tournament last June totaled R$ 20.7 billion (US$ 9.37 billion), with R$ 19.2 billion (US$ 8.69 billion) from public and private investments for the Cup, R$ 991.6 million (US$ 448.6 million) from tourist spending and R$ 524.4 million (US$ 237.3 million) from investments by the Local Organizing Committee.
For more information visit:
· Ministry of Tourism / FIPE World Cup Tourism Spending Report, May 2014 (in Portuguese): http://www.turismo.gov.br/
· FIPE Domestic Tourist Demand Research, November 2012 (in Portuguese): http://www.dadosefatos.
· FIPE International Tourist Demand Research, August 2013 (in Portuguese): http://www.dadosefatos.
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