Rio de Janeiro – Brazil | G20 Injected R$ 600 Million into the City's Economy


Rio de Janeiro, famed and huge seaside city in Brazil on the Atlantic Ocean, well known for its idyllic beaches of Ipanema and Copacabana, the emblematic Sugarloaf mountain, a granite peak with cable cars to its summit, the iconic 38 metres Christ the Redeemer statue atop Mount Corcovado, considered one of the most visited cities in the Southern Hemisphere and highlighted by its bustling carnival featuring parade floats with samba dancers and flamboyant costumes hosted the G20 Summit, one of the most important events of the global calendar, the meeting of leaders of th world's largest economics which took place from 18th to 19th november, an event that injected R$ 600 million into the economy of this captivating city.

The Minister of Tourism Celso Sabino said that Event Tourism strengthens the potential of destinations, reduces the seasonality of the sector, enhances local culture and involves the population, is of course a powerful segment contributing to economic movement and employment throughout the country.

In addition to positively strenghthening the image of Brazil on the international stage, Event Tourism segment is growing throughout the country generating income and jobs.

In the first six months of 2024, estimated consumption in the recreation sector which encompasses entertainment and cultural events, reached R$64 billion which means an increase of 8.3% compared to the same period in 2023 when the revenue was R$59 billion.

This relevant numbers came from Economic Radar, a study led by ABRAFE, the Brazilian Event Promoters and in terms of jobs creation, the sector formally employs almost 100.000 Brazilian citizens, not counting temporary workers.

A further notable data is concerning the flow of international flights to Rio de Janeiro also grew significantly of 41% driven by the G20 with flights from important countries such as the United Arab Emirates, Germany and the United States of America stand out with growth rates of 160%, 133% and 128% respectively with in total 388 international flights registered, compared to 275 in the same period ofc the previous year.

In addition to the direct economic impact, the G20 undoubtedly reinforced Rio's visibility as a tourism and events destination.

Other details concerning the growth of Brazil is the famous event Rock in Rio which took place on the first weekend of september 2024 increased accommodation searches by 37% and had an economic impact of R$ 2.9 million on the city's economy according to an estimate by FGV Getúlio Vargas Foundation, Brazilian higher education institution and think tank founded in 1944.

This data represents an increase of 7.8% compared to the R$2.69 billion of the 2022 edition, celebrated at the beginning of the year, generating R$5.0 billion attracting more than 8.0 million revelers.

The high demand directly impacted Galeão International Airport, which projects a flow of 326.000 passengers between the start of the G20 and the Black Awareness Holiday on 20th november 2024.

This volume is 68% higher than last year and even exceeds the peaks of Carnival and New Year's Eve traditionally the times of gretest tourist influx in Rio de Janeiro.

During this period Rio airport will received more than 2.000 flights, which means an increase of 87% compared to 2023, standing out as a strategic point for the transport of participants, visitors and locals enjoying the holidays.

 Event tourism also benefited Rio de Janeiro's hotel sector and according to HotéisRIO, the Sindicato Patronal dos Meios de Hospedagem do Rio, the average occupancy of the city's hotels was 80% while in tourist neighborhoods such as Ipanema and Leblon, this rate was even higher, reaching 90.7% and in the five - star hotels selected to host international delegations as in occasion of the G20, the occupancy rate exceeded 95%.

In may of the current year, Perse, the new law of the Emergency Events Sector Resumption Program was developed resuming and re -formulating federal incentives for the segment.

The text exempts, for example, from the payment of IRPJ, the business income tax service providers and companies linked to the sector, CSSL, Social on Net Income and PIS/Cofins for a period of 60 months.

Activities as hotels are entitled to the benefits, as well as aparthotels, restaurants, bars, and other establishments specialising in serving drinks, with and without entertainment, travel agencies, including cruise companies, tour operators, amusement parks and theme parks, activities of botanical gardens, zoos, national parks, ecological reserves and environmental protection areas and services for the organisation of fairs, congresses,  exhibitions and parties among others.

Link - https://infoturlatam.com/g20-inyectara-r-600-millones-a-la-economia-de-rio-de-janeiro/

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