FIFA World Cup in 2014 going to be a cash cow for Brazil

PanARMENIAN.Net - According to Brazil’s Ministry of Sports calculations, the FIFA World Cup in 2014 is going to be a cash cow for the country, Forbes said.

The nation’s economy is forecasted to grow by at least $70 billion as a result of its hosting the World Cup, the Brazilian Ministry of Sports said July 6 in a statement. The figure is based on the country’s investments in private and public investment in infrastructure, heightened consumption, increased activity in the services sector and, of course, tax collection.

The World Cup is expected to generate over $30 billion in direct taxes, $10 billion in additional indirect taxes, and an increase in consumption of Brazilian goods and services by an estimated $3 billion for the period leading up to and during the Cup. Approximately 600,000 tourists are expected to come to Brazil for the games, which could bring in an additional $2.5 billion for the Brazilian travel industry.

Around 3 million Brazilian tourists are expected to travel throughout the country as well, potentially generating an additional $3.5 billion for travel and tourism. The figures were announced on July 5 by Ricardo Gomyde, special advisor to Brazil’s Ministry of Sports, during the 2nd Legislative Forum of the Host Cities of the 2014 World Cup.

Gomyde said he expects 332,000 permanent jobs and 381,000 temporary jobs to be created through 2014 as a result of World Cup build-out, mainly new hotels, airport and reforms at 18 football stadiums from north to south Brazil. Total expenditures are seen coming in at $14.6 billion for total infrastructure (at least $1.8 billion for arena reform), and $6.3 billion for the travel and tourism services sector.