Brazil Trade Industry Losses During World Cup: Daily

A recent study by the FIRJAN estimates the Rio trade industry will see loses of R$262 million during the World Cup games.

By Chesney Hearst, Senior Contributing Reporter

RIO DE JANEIRO, BRAZIL – While the service sector in Rio de Janeiro is expected to see increased sales during the World Cup and the seven games to be hosted in the city, losses are predicted for the trade industry during that time period, due in part to the three official holidays scheduled by the city.

Brazilian Trade Industry, Rio de Janeiro, Brazil, Brazil News, Economy, World Cup, Brazilian Trade Sector, Brazilian Service Sector

Rio de Janeiro and Brazilian trade industries are predicted to see loses in revenue during the World Cup games, photo by Marcela Camargo/ABr.

A recent study by The Federation of Industries of the State of Rio de Janeiro (FIRJAN) estimated that during the three official municipal holidays of June 18th, 25th and July 4th, the Rio trade industry would lose R$262 million.

The Tenants’ Union of Trade of the City of Rio de Janeiro (SINDILOJAS) also released estimates of a seventy percent drop in revenue during game days.

“An event like the World Cup completely takes the focus off of consumption,” Aldo Carlos Gonçalves, president of Tenants’ Union of SINDILOJAS told O Globo. “We can open, but who is going out to buy a dress, a car or a pair of shoes in the Brazil on game days? Foreign tourists will not shop here because the products are more expensive. What will increase are the sales of hats, shirts, souvenirs, items of lesser value and small weights in the industry.”

One item that has increased in sales are televisions. In April production reportedly grew by twenty percent. “We are selling twice the amount of what we sold last year,” Director of Customer Service for Samsung Brazil, Luiz Ruiz, told O Globo.

Earlier in February of this year in its paper, “The Economic Cost of the Holidays”, FIRJAN estimated that national and state holidays including the official 2014 World Cup holidays throughout the county, could lead to loses of R$45.5 billion in 2014 for the entire Brazilian industry.

In August of last year, according to estimates from the Brazilian Tourism Ministry, EMBRATUR, tourists from Brazil and abroad are predicted to spend R$25 billion during the month-long football (soccer) World Cup. However by April of this year many estimates had cooled and prices for tourism services fell, with major discounts offered in many cases.

Read more (in Portuguese).

* The Rio Times Daily Updates feature is offered to help keep you up-to-date with important news as it happens.

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