The impact of the World Cup on Brazil’s hospitality industry

The-impact-of-the-World-Cup-on-Brazil’s-hospitality-industryAccording to a report by Ernst and Young Terco, visitors are expected to spend over 2 billion Brazilian real on hospitality (over $800 million USD). With such a large influx of international visitors, the problem is not generating revenue from the event; it is providing enough space for visitors to comfortably stay. Soccer is the most popular sport in the world, which means that millions of passionate fans will be traveling to watch their country’s match. With a beautiful backdrop like Brazil, the allure of such a large event is amplified. This can mean great things for the Brazilian economy and the hospitality industry but only if they are prepared for the large number of people.

Brazilian hotels in all 12 venues where the games will be held have agreed to cap prices. Although the competition is hot, hotels have said that they will not charge any more than what they would charge during the busy Carnival and New Year’s seasons. While the prices aren’t exactly a bargain, they prevent properties from gouging visitors will inflated prices. But in order to be prepared for such a large number of guests, the hotels need to be prepared and invested in beforehand. After stadiums, the hotel complex received the highest amount of investments.

After the games have come and gone, Brazil will have benefited from the large number of tourists in the area. Readying the infrastructure of the city is a challenge, but it shows that the country is ready for future growth. The temporary hotels may be turned into housing projects for residents, or continue in the industry. But before they focus too far into the future, hoteliers need to set their sights on getting through the hectic season that will be the 2014 World Cup.