A Brazil Win at World Cup Will Mean Over US$ 500 Million in Losses for Rio’s Businesses

    Brazil fans

    Brazil fansIs the World Cup good for the Brazilian economy? There is a lot of debate about whether or not there are losses of productivity due to World Cup soccer games. But the president of the Rio de Janeiro Shopkeeper Club (Clube dos Diretores Lojistas), Aldo Gonçalves, says there is no doubt that sales drop significantly every time Brazil plays.

    “Sales fall around 50% and that is a fact. Stores close early before the games and most do not open again. Only shopping centers open again after a game and even so business will be very weak,” says Gonçalves.

    He estimates normal sales in the state of Rio de Janeiro at around 200 million reais (US$ 110 million) per day. So, there is a loss of 100 million reais (US$ 55 million). “Only small shops that sell cheap stuff for soccer fans are doing well. They sell hats, T-shirts, flags and horns (vuvuzelas, etc),” reports Gonçalves.

    Meanwhile, the director of the Rio Commercial Association, Daniel Plá, says that if Brazil makes it to the World Cup final total losses for Rio businesses will reach 1 billion reais (US$ 552 million).

    And about a third of that will never be recuperated, says Plá, as those are losses in restaurants and bars, and so-called “compulsive buying” by shoppers that ceases to exist during soccer games.

    Meat Consumption

    Some commerce seems to benefit from the days of Brazil’s games even though the economy suffers due do the working day lost. June 20, Sunday, the day Brazil played against Ivory Coast, the consumption of meat rose by 50% over the average meat trade on Sundays. This according to the director of the Association of Retail Trade in Fresh Meat of São Paulo, Ramiro Casa Nova.

    This increase, however, doesn’t occur when the game is on a week day like the Brazil-Chile match, which happened on a Monday. Casa Nova says that when the games are during the week, the consumption of meat is lower. That’s because many fans watch these games at their place of work and have no time to organize a barbecue, for example.

    According to the association’s president, Manoel Henrique Faria Ramos, annual consumption per capita of meat has remained around 82 pounds, although the country has expanded its population, livestock and exports. “I believe this average will be maintained,” he observes.

    A survey by the Economic Research Institute Foundation (Fipe), on the third week of June showed that prices of beef fell by an average of 0.34% and the part most appreciated for the barbecues, the sirloin, had even a more expressive fall (0. 42%). Pork was on average 0.39% cheaper and birds, 1.63% more affordable.

    ABr

    Tags:

    • Show Comments (3)

    • Jamesddd

      Great, they’ll go out and spend money they don’t have.

    • Alan

      na
      The author also fails to mention the positive good will and feeling that comes from a World Cup Win, or any sports win for that matter. After the series is over, Brazilians will be out and about, spending, eating drinking, shopping, and all of them beaming with pride. I saw it myself in 2002, when I went there one week after the 5th World Cup win.

    • John Miller

      What a load of rubbish
      Absolute rubbish journalism.
      Sorry, but I have been working in brasil for the past 4 world cups. Yes, people do go watch the games when Brasil is playing, but the impact is minimal, people work around this. You plan, and act accordingly.

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazilian real

    Brazil Raises Half a Billion Dollars Selling Global Bonds

    Brazil's foreign exchange reserves, which totaled US$ 239.271 billion as of the 14th this ...

    ‘You Need Balls to Take the Argentineans,’ vents Brazil’s Lula

    Argentina reacted coolly to an alleged critical expression from Brazilian President Lula da Silva ...

    Brazilian TV Crew Beaten Up by Lula’s Party Supporters

    Reporters Without Borders expressed indignation after three members of a television crew from privately-owned ...

    Brazil’s Inhumanity: Jean Charles Is a Hero, Victims of Brazilian Police Are Nobodies

    Jean Charles de Menezes has been buried with all his fellow citizens and politicians’ ...

    Brazil’s Breadmaker Nutrella Goes International

    Nutrella, a traditional maker of breads, is getting ready to enter the foreign market. ...

    225-Million-Year-Old Dinosaur Puts Brazil on the Limelight

    The Brazilian National Museum, in the city of Rio de Janeiro, received yesterday, December ...

    Brazil: Lula, Kirchner and Chí¡vez in a Rush to Integrate

    Upon his arrival at the South America – Arab Countries Summit, Brazil’s special presidential ...

    Goiânia Brazil's Rally dos Sertões

    Brazil: Americas’ Largest Off Road Rally Will Have 23 Foreigners

    The 15th edition of Rally dos Sertões (the Brazilian backlands), scheduled to begin on ...