Projection of hospitality and the Olympics
Historically, major events and host cities have had, at best, a tumultuous relationship. The tax-payers inevitably raise questions about the cost of developing infrastructure (especially in countries less-equipped to handle such massive, and quick growth). But the other side of the coin deals with the economy – will the cost of infrastructure growth prove fruitful to the economy if new, locally-sourced, jobs are created? How much will the hospitality industry thrive?
Events like Oktoberfest, report upwards of 6.4 million tourists that flock to Munich each year and spend over 445 million USD (in a two week period) on food and accommodations. In 2014 occupancy rates for hotels and hostels peaked around 90 percent. Both, massive boosts for the hospitality sector.
Rio will be the host of the 2016 Olympic Games, and we’re all familiar with the tax-payer hardships that initiated during the World Cup and spewed over to these summer events. But now, looking on the bright side- how will hospitality be impacted?
How have other cities prevailed?
During the 2012 summer Olympics held in the UK, Berkeley Scott claims, “Employment raised by 181,000 to the highest level it had been since the September to November 2008 period, while the number of unemployment dropped by 65,000”.
Many host cities fear that the main event will provide a façade for the hospitality sector – one quick boost of revenue then a massive slump following the event. UK claimed that their post-game slump in booking was not prevalent. Data compiled by TravelClick showed that almost a third of London’s hotel rooms were booked for the August Bank Holiday weekend that immediately followed the games.
Brazil also had some pleasant monetary numbers after a turbulent World Cup. According to TrekSoft, Rio’s revenue from overseas tourism market grew from .264bn USD to 2.104bn USD thanks, in part, to the 2014 World Cup.
What will this year look like for Brazil?
The Brazilian Tourism Institute is predicting some exciting figures for the hospitality sector during the 2016 summer Olympics:
- Brazil will receive at least380,000 foreign visitors during the Olympics. As well as the promise of world-class sport, these visitors will be drawn to the famous monuments, carnivals, and landscapes of Rio.
- Over 2.241 million international tourists (out of a total 5.9 million)visited Christ the Redeemer during 2014when Brazil hosted the World Cup, so the hope for an increased show during the Olympics is there.
Time will tell how the Olympics can help Brazil’s struggling economy and turbulent political landscape, but we’re hoping the hospitality industry thrives.