Brazil and Tourism During The 2014 World Cup- The Sports Economist
World Cup 2014
The world cup brought in over 1 million viewers of the sport to Brazil. This brought in so much money from tourism. When a country is in need of a economic boost they try to hold a major event like the world cup or the Olympics When the Olympics are held in a bad economic country they are force to create new stores and stadiums. So this will bring in a lot of money to that country and help them and hopefully give them a economic boost. But there is also another side to it when all those people leave because that big event is over those shops that were opened don't have the same business anymore. So might eventually shut down and go out of business.
This happens when the Average revenue is below a companies average variable cost. That is what makes a company shut down and this happens a lot, because their business isn't booming anymore so they lower their prices and don't make the money they need to.
I get what you are saying but you are only looking at one half of it. The host country has to build new structures like housing and hotels for everyone coming in. If they gain more money from the tourists than the costs of the expenses, then this is a good thing.
ReplyDeleteJoel is exactly right, hosting an event could be deadly if the profits don't exceed the costs.
ReplyDeleteIf it is a well-developed country, like the United States, I think it is a great idea for that country to host something like the Olympics. Most people don't realize how much it costs to host the Olympics. There are now only two locations in the running for the 2022 Winter Games because many countries were scared off by the price to host the games. So while hosting a huge event like this will definitely bring in a lot of money, it might actually cost more to host the event.
ReplyDeleteI agree with Tyler here. Yes, it is beneficial to have a major event in a country. But, the initial costs are so extreme it may not be capable to be done at all.
ReplyDeleteYou actually lose a ton of money when you host the Olympics because building the stadiums and things for it is not very cheap. Just look at how much money Russia spent on the winter Olympics.
ReplyDeleteIt's good to see that Brazil made a lot of money from the World Cup, but hopefully the amount that they made is greater than that which they spent to prepare for and host the event.
ReplyDeleteI agree that country's can make money off of sporting events but they can also lose a ton. One positive of hosting is that the country works hard to improve the country whether it is crime or environment problems.
ReplyDeleteThe chance to hold two of the worlds biggest sporting events is very big for Brazil. These events have made huge improvements to Brazil that have been seen by everyone with a TV.
ReplyDeleteHosting these games costs a lot of money, and it also brings in a lot of money. As long as Brazil is making and not losing it, I think this is great for them.
ReplyDeleteIF YOU READ MY BLOG ON THIS YOU WILL UNDERSTAND IT MORE........ but anyway lol Brazil did lose the World Cup but in the end they won involving the total revenue they earned for their economy with tourism and advertising.
ReplyDeleteNow now.
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