Vol.
8 #3, January 2009
Brazil Building for World Cup and Olympics
Last year, Brazil was confirmed as the host country for the 2014 FIFA
World Soccer Cup, one the world’s largest sports events.
The country is also a candidate to host the 2016 Olympics. The
two major events will require upgrades to infrastructure that will make
Brazil as a major market for construction companies and building
materials over the next few years.
Several cities are hoping to host games in the various rounds of the
World Cup tournament, including São Paulo, Rio de Janeiro, Belo
Horizonte, Porto Alegre, Brasília, Curitiba,
Florianópolis, Fortaleza, Goiânia, Natal, Recife/Olinda,
and Salvador. According to current FIFA practice, no more than
one city may use two stadiums. In the recent past the number of
host cities has limited to eight or ten. The Brazilian
Confederation has received permission to assign up to 12 host cities.
On January 30 a FIFA committee will arrive in Brazil to visit the
aspiring cities in order to review existing stadiums, infrastructure,
transportation, airports, hotels etc. The cities chosen to host
preliminary and final games will be announced on March 2009. That
will be followed by months of investment planning and construction.
In September 2008, Brazil's Transportation Ministry announced that a
high-speed train connecting São Paulo, Rio de Janeiro, and
Campinas costing U.S.$15 billion would be ready in time for the World
Cup.
Rio de Janeiro is also a candidate city for the 2016 Summer Olympic
Games and is welcoming international hotels and constructor companies
interested in joint-ventures with Brazilian companies in the lodging
segment as it positions itself as a candidate for the 2016 Summer
Olympic Games.
According to the Brazilian Olympic Committee, private investments in
the value of 1 billion reais (U.S. $430 million) for the construction
and renovation of at least 18 hotels in Rio and nearby Niterói
will have to be made in the next five years. By 2016, Rio will
need approximately 40,000 rooms to be able to host the Olympic
visitors. Today, the city has 19,000 rooms distributed among
three- and five-star properties and another 4,000 rooms at one- and
two-star hotels. Additional housing for athletes, officials, and
media would be constructed in Barra da Tijuca, Copacabana, the City
Center, and other locations. The magnitude of the endeavor has
the potential to create many opportunities for suppliers of
construction equipment and building materials.
In additional to Rio de Janeiro, the other finalists being considered
are Chicago, Madrid, and Tokyo. South America has never been the
site of the Summer or Winter Olympics. Tokyo hosted the 1964
summer games. The decision on the host city will be announced on
October 2, 2009.
The Brazilian market has been experiencing strong growth.
Wisconsin exports to Brazil grew by 24 percent in the first nine months
of 2008 compared to the same time period in 2007. Exports of
Industrial Machinery, the leading product category, grew by 45
percent. If you would like additional information regarding
opportunities in Brazil, contact Ms. Susan Dragotta, Commerce’s
Latin American Specialist, susan.dragotta@wisconsin.gov, (262) 691-5147.
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