Lastly, we have the city which won the bid to host the 2016 Olympics: Rio de Janeiro, Brazil! The historic selection of Rio makes it the first South American city to ever host the games, and the second ever to do so in Latin America. To better understand the effect the Olympics could have on Rio, it is important to examine the various facets of Rio and its diverse economy.
Rio de Janeiro is the second-largest city in Brazil behind São Paulo, with a population of 14,387,000. It is widely-renowned for its natural beauty and tourist attractions. The beaches Copacabana and Ipanema and the City of Samba anchor an annual draw of millions of tourists, both international and Brazilian, which contribute a significant amount to Rio’s economy. Besides tourism, Rio’s other industries also play a major role for the city itself and the country of Brazil in the global business world.
The largest aspect of Rio’s economy is the energy industry. A large deposit of oil discovered in the Campos Basin, which is located offshore from Rio has generated a majority of Brazil’s oil production. Oil giants Shell, ExxonMobil, and EBX all station their Brazilian headquarters in Rio.
Rio also has a robust service sector. Numerous banking institutions and the Bolsa da Valores do Brazil, the second-largest stock market in Brazil, drive Rio’s influence in the international business world. Industrial production of pharmaceuticals rounds out Rio’s diverse economy. Major international pharmaceutical companies have their Brazilian headquarters in Rio, such as Merck, Arrow, Roche, and Baxter.
So what effect will the Olympics have on Rio’s economy? Well, for one, the Olympics will provide a major boost to Rio’s tourism industry. Greater exposure of Rio’s tourist attractions will generate interest in those who have never been before, and create loyal visitors in those that are experiencing Rio’s tourist offerings for the first time. As for its other industries, the Olympics provide opportunities for Rio businesses to interact with sponsors of athletes and events, as well as creating more exposure for themselves by becoming sponsors. Furthermore, high-profile individuals often attend the Olympics, and exposure to Rio’s industries, climate, and culture could lead to possible investments or partnerships.