Analysis of the Economic Impact of 2016 RIO OLYMPICS
The 2016 Olympic event is to be held in Rio in Brazil. This will be the first time for such an event to be held in the countries of South America. Brazil beat Tokyo Madrid and Chicago to win this chance. The Olympic will involve a line of activities ranging from athletics, gymnastics, ball games and other field events. To achieve all these within the stipulated span, the country has set up different venues for each set of events. The beach volleyball shall be held at Copacabana beach; the aquatics games at Peodoro while Barra will be the central Olympic Park for athletes and field events. Rugby and football will be held at Maracana, which will also be the venue for the opening and closing ceremonies (Alex and Gardenia, 2014). The entire project is expected to consume 240 billion dollars with the Brazil’s federal government being the hosts. Apart from the Macarana field, most of the other venues are new and are constructed from scratch. The public authorities took up the marketing program by contributing $692 to its funding. However, the buildings within and without the park are funded by a partnership between the public and private investors with the international broadcast and media center part of the ally. It is expected that more than 10,500 athletes will take part in the event. The state has made 7.5 million tickets available with an expectation of over 380,000 visitors. The cost of the tickets ranges from $40 for the swimming events to $3,000 for VIPs.
Economic Impact
According to the report by the International Olympic Committee, the economic effects of the Rio Olympics will be $2.82 billion. The country expects a domestic sponsorship of up to $570 million that amounts to 32 percent of the total revenue. The sale of tickets and licenses is expected to bring in $406 million with an added $ 30 million from donations. Since the start of the preparations in 2014, the project has seen about 90,000 people employed in the sites. More will be employed during the event to act as drivers, guides and about 85,000 as soldiers. Most of these are sourced from the local community with few experts sourced from outside. According to a report by Eduardo and Paulo, a high multiplier factor (4.26) has been quoted by the media(2016). This means that the country will receive an income worth four times the expenditure by the end of the Olympics.
Mechanisms of Economic Impact
With the expansion and redevelopment of the Maracana field during the last world cup events, the field was able to hold 75,000 people. However, it was squeezed to hold double the value during the opening and closing events. During the Olympics, the field has been expanded to hold 90,000 people which will comfortably cash in more income. According to the report by the International Olympic Committee, different venues will aid in specific growth of the surrounding areas. The Barra area is currently expanding, and construction of the Olympic park in the region will help improve infrastructures such as hotels and communication networks. Copacabana is an iconic beach that gained fame during the world cup festivals. However, the impact was not as expected. Its redevelopment will market it further and leave it a visit place for tourists after the Olympics. Peodoro is a poor area with petite development. The construction of aquestric, BMX and aquatics center will aid boost its development by far. New road and communication networks are to be built. At the same time, redesign of the houses and guesthouses will provide a new for of business that will highly boost the economy. Scholarships for youths in the four areas are underway as a part of the program to assist the young grows both in arts and academics. The new educational program with involves sports, fitness, health and lifestyle. All these projects are marked by a 5.5 billion usage in the airport, road and railways, environmental management systems worth $1.2 billion and electricity infrastructure amounting to 770 million. The freedom to do business will also be beefed up with 813 million invested in security equipment
Although the government may end up using a lot of funds to complete the megaprojects, most Brazilians are optimistic that the economy will be boosted. The sales will hike by about 20 percent, and more tourists will visit the area during and after the event.
Critical analysis of economic impact assessment
The Rio Olympics will bring a vast positive economic impact to the state. According to the report by Gaffney concerning the previous world cup event, the country generated $4billion income (2016). I believe that, since the place was highly marketed during that event, it will attract more people during the 2016 Olympics. From previous statistics, Brazil has one of the highest growing economies of late, and this will be an epic moment for the economy to shoot. It will boost not only the entire countries net income but also that of the specific regions natives. After analyzing the previous impacts on Olympics games in other countries, the intended $2.82 billion income is achievable in Brazil by the end of the events.
Conclusion
The Rio Olympics intended economic growth income of $2.82 million extends far beyond the events. The infrastructural advancement that the country will have set up will remain a source of revenue in future whenever other events are held in the country. At the same time, the citizens will enjoy benefits ranging from healthy environment, recreational facilities and sponsorship for youths. It is a beneficial project for both the taxpayers and the country at large.
References
Eduardo A. Haddad, and Paulo R Hahhad (2016). “Major regional development and sports events: the case of Rio de Janeiro 2016 Olympics Games,” Regional Science Policy & Practice 2, no. 1.
Christopher Gaffney (2010). “Mega Events and Socio-Spatial Dynamics in Rio de Janeiro, 1919-2016,” Journal of Latin American Geography 9.
Alex Robinson and Gardenia Robinson (2014). Rio de Janeiro Footprint Focus Guide: Includes Copacabana, Maracana Stadium, Paraty, Ilha Grande, Ipanema. Footprint Travel Guides. p. 28. ISBN 978-1-909268-88-3
International Olympic Committee (2015). Report of the 2016 IOC Evaluation Commission. 46-52. Retrieved from https://www.google.com/url?sa=t&rct =j&q=&esrc=s& source =web &cd=1&ved=0ahUKEwiVlJGej-jKAhXGfhoKHU3yDCgQF ggfMAA&url =http%3 A % 2 F%2Fwww.olympic.org%2FDocuments%2 FRep orts.
