During 2008 to 2014, Rio’s revenue from the overseas tourism market grew from $1.26bn to $2.10bn– with the help of the 2014 World Cup. Therefore, the country is entering the Olympic Games on a tourism market high. However, an influx of tourists is not entirely expected.
A predicted 400,000 tourists will visit Rio 2016 during the Olympics. A large number of these tourists will be drawn to the city’s famous monuments, carnivals and landscapes – meaning a surge in sales for tours. Tour companies will have to be innovative in their guides during the event, in order to outshine competitors.
However, Brazil has to overcome many challenges to attract more foreign visitors. This includes more accessible visas and adequate infrastructure. After the recent collapse of the city’s elevated bike path, which killed two people, Rio suffered another setback to its credibility as an Olympic host. The bike lane was among the game’s legacy projects, running parallel to a road high above the sea that will be used for the road-cycling event in the Olympics.
The London 2012 Olympics turned out to be pretty impressive both on and off the field, next will be the Rio Olympics 2016 in Brazil and after the success Brazil had hosting the FIFA World Cup, experts believe that Rio will easily surpass London 2012 Olympics which generated around $1.1 billion in domestic sponsorship deals.
How Rio 2016 will generate revenue
Through different channels, the biggest are the lucrative sponsorship deals from both domestic and foreign companies and sponsorship makes 20% of the total revenue and the TV broadcasting deals which makes around 70% of the total revenue Olympic games generate over the 4-year period which include both summer and winter Olympics over the period. Summer Olympics makes up 60% of the total revenue generated in a Quadrennium cycle.
The image rights licensing, ticketing and hospitality makes around 5% and 3% respectively.
The organizers for the Rio Olympics has already announced the 19 sponsorship deals with domestic companies bring in $1 billion and are in partnership with key industries like Airlines, Oil & Gas, Utlities etc and expected domestic revenue to reach $1.5 billion which is almost 50% more than what British Olympic committee made during London 2012.
Also, the International Olympics Committee is expecting revenue through different streams and what percentage the money will come from different channels. Rio Olympics is set to earn more than double the TV broadcasting money than Olympics in 2004.
The summer Olympics is the hall mark of sporting event and they take place every four years and easily the most watched and the biggest sporting competition in the world; the Olympic Games gather thousands of tourists every four years. The FIFA world cup can make a claim to be the biggest single team sport event but Olympics have its own pedigree.