World Cup 2014 overview and analysis

¶ … Cup 2014

How Does the Influx of Money from World Cup 2014 Impact the Hospitality Sector in Brazil?

The hospitality sector in Brazil is being deeply affected by the influx of money from the announcement of the 2014 World Cup (Brazil, 2010). Even though the event is not taking place until next year, changes are already taking place in Brazil. Stadiums will be one of the largest issues for the hospitality industry and the 2014 World Cup. It has been determined that it will cost more than $1.1 billion dollars to construct and refurbish just the stadiums (McLoud, 2011; Shanahan & Goldstein, 2010). Further millions of dollars will be spent on infrastructure throughout the country. There will be such a large influx of people for the event that more than hospitality has to be addressed. The last time Brazil hosted a World Cup event was 1950, and much has changed since then (Future, 2011). When the country was notified that it was going to be hosting the event in 2014, there was talk of how Brazil is a modern nation, and how the World Cup will allow the country to move forward with new and better infrastructure from the influx of funds (Host, 2009).

Those who own and operate stadiums are not the only hospitality industry people who are going to benefit from the World Cup in 2014. They are also not the only people who have a great deal of work to do before the event takes place. Another part of the hospitality industry are the airports throughout the country, and they will be spending several billion dollars to upgrade airports in various cities (Future, 2011). Ten venue cities will have their airports revamped, which will require a great deal of work and will also allow for a larger capacity of individuals to move through those airports (Future, 2011). The comfort provided by larger and better-equipped airports will be necessary to support the hundreds of thousands of tourists and spectators who will flock to Brazil for the World Cup 2014 (Future, 2011). The airports will handle the crowds, and from there many of them will move to the metro and light rail - both of which will also get a makeover based on the upcoming event (Future, 2011). Since there are so many changes being made and there are many different cities participating, there is continued opportunity for growth.

There are a large number of big projects being undertaken, but that is not all that Brazil and the World Cup 2014 are about. Additionally, there will be many small projects that will be seen. These include restaurants and hotels, since the people who come to the country to see the event will need food and a place to stay (Host, 2009). Many hotels and motels will start making changes so they are better able to accommodate the influx of people. Also, the restaurants that are able to expand or revamp their locations will do so in order to make sure people can get what they want (Host, 2009). Even if these locations are not actually in the host cities, if they are close to those cities they will get a great deal of "spillover" of people who are not staying in the host cities (Host, 2009). For some people, the decision to stay elsewhere will be theirs. For others, the decision will be made for them because everything in the host city will already be booked by the time they get around to making their reservations. Either way, many people will be in cities and suburban areas that are close to the cities that are actually hosting the World Cup 2014.