In general, the World Cup host is not profitable tourism industry

The World Cup is not profitable tourism industry

According to figures released this week by the federal government of Brazil, the World Cup is a victory for the transport and tourism industry of the country.

"We lost the trophy, but Brazil won the World Cup," said Aloisio Mercadante, Brazilian President Dilma Rousseff's chief of staff, said in a statement.

"Brazil showed that they know how to win, lose, host and celebrate peace with honor and 'make yourself at home' atmosphere that won the whole world."

According to government figures, 1 million foreign tourists visited Brazil in the event a month, far exceeding projections of 600,000 pre-Cup visitors coming into the country from abroad.

Approximately 3 million Brazilians traveled around the country during the event, just short of the expected 3.1 million.

In addition, according to the government, from million foreign visitors, "95% of them said they intend to return."

"We said that we would host the World Cup the World Cup," President Rousseff said in a statement. "Indeed, we hold the World Cup the World Cup.

"We have a problem, our game against Germany. Yet ... we beat the pessimistic predictions and to host the World Cup the World Cup with a great and wonderful contribution our people."
German visitors have a great time. But they will be back?
German visitors have a great time. But they will be back?

Not everyone on board

Government assessment about the impact of the World Cup are significantly more enthusiastic than a report last week in the Wall Street Journal called the show "sculpture for the Brazilian domestic travel industry."

Citing figures from the Brazilian Airline Association, the projected number of stories of air travel in Brazil fell 11% to 15% during the World Cup compared to the same period in 2013 story blaming the price hike-ups and a lot of people to frighten domestic travelers.

Economists who study the impact of major sporting and other events at the local and national economies tend to be less optimistic than the governments that host them.

"Every time you get your World Cup tourists get a less regular tourists," Dr. Andrew Zimbalist, a sports economist and economics professor at Smith College in Massachusetts, told CNN.

"In general, the World Cup host is not profitable tourism industry."

Zimbalist said that international tourism profile doubt Brazil will have a positive long-term impact as a result of the World Cup.

He pointed to the high media coverage around the event which focused on the "bad conditions" facing the country, such as violence, poverty, pollution and social unrest, as illustrated by the large number of public demonstrations against public funds being spent on new infrastructure.

Furthermore, he said, the World Cup will not be an ongoing sale for less than the 12 events the city hosts.

City of Manaus Amazonas is an example.

Zimbalist cited public money spent on stadiums that will ultimately be under-utilized. Instead of inspiring beauty of the coverage surrounding the Amazon, media reports tend to focus on the new facility and the conflict surrounding the construction.

"It's very difficult to see how it will promote tourism in Manaus," Zimbalist said.

More where that came from

Turning mega-sporting events like the World Cup and the Olympics in tourism campaigns proxy must remain a company.

Some cities continue to reap the benefits of hosting.

Barcelona has seen a tenfold increase in the number of tourists due to host the 1992 Summer Olympics.

Meanwhile, a decade after hosting the 2004 summer games, the Olympic Games in Athens has become a decaying ghost town.

For now, it's unlikely there will be enough time to assess the long-term economic impact of the World Cup on the Brazilian economy before the next big event in the country - the Summer Olympics in Rio de Janeiro in 2016.

Comments