Rio’s Olympic Gold for Business
17th August 2012, London: During the London 2012 Olympics, Rio Negocios, the business investment and facilitation agency for the city of Rio de Janeiro has been hosting a number of events in London to showcase the opportunities available to investors in this exciting city. On Thursday 9th August 2012 an event was held at Somerset House, the home of Casa Brasil, to discuss with prospective investors the business opportunities available in the sport industries in Rio de Janeiro.
Event attendees heard from a number of speakers as part of a panel discussion, including Marcelo Haddad, Executive Director, Rio Negocios; Ricardo Trade, Operations Director, 2014 FIFA World Cup Organising Committee; Marcelo Pinto, Executive Director Sport, Globo TV; Bernard Carvalho, Executive Director, Municipal Olympic Company; Carlos Eduardo, CEO, Golden Goal Sports Ventures; Andreas Mirow, Management Consultant, Onboard; Rodrigo Frazao, Commercial Director, Rio 2016.
With both the FIFA World Cup 2014 and the Olympic and Paralympic Games in 2016, the opportunities for businesses involved in the production of sporting equipment, services or staging of major events are enormous. With the world’s focus squarely on Rio for the next four years this panel discussion provided an opportunity for some of the key players to share their experiences and vision for the sports industry in Rio.
The city is already well on its way to delivering the venues needed for both events with 47% completed already. The city is also looking further than the Olympic Games with plans in place to attract new events and championships post 2016. The Rio Olympics will have more investment from the private sector than any other in history creating significant opportunities for investors. The Olympic village itself has been built as part of a private public partnership (PPP).
The Olympics is also driving huge infrastructure projects in relation to transport. Currently only 16% of the population has easy access to mass transportation schemes, by 2016, this will have increased to 63%. This project alone is receiving $7-8 billion of investment.
As well as major infrastructure investments the panel also discussed the opportunities available in sponsorships and TV.
All of the panel were in agreement that Rio is in a unique position to attract international investors and build a business legacy post-Olympic Games.
Below are some of the key quotes and facts which came out of the discussion. If you are interested in speaking to Marcelo or anyone else about the opportunities in Rio, please let us know.
Key quotes from the panel discussion
“This is a once in a lifetime opportunity, our research shows that over half the Brazilian population wants to attend an event in person – that’s 100 million people!” Rodrigo Frazao, Commercial Director, Rio 2016
“In every country that hosts a World Cup or Olympic games, from the moment the event is awarded we see the television market grow at a very fast pace.” Marcelo Pinto, Executive Director Sport, Globo TV
“Rio will be the first Olympics in modern times to host all sporting events within the city. About 5 million square metres of land are being rebuilt specifically for the Olympics.” Bernard Carvalho, Executive Director, Municipal Olympic Company
“Ten years ago, Sao Paulo was the business hub of Brazil, this is not the case anymore, Rio is very much on the scene and is growing fast.” Carlos Eduardo, CEO, Golden Goal Sports Ventures
“The FIFA Confederations Cup 2013 is not a test event for us, it is our chance to show the world that Rio is ready.” Ricardo Trade, Operations Director, 2014 FIFA World Cup Organising Committee
“The World Cup and Olympics are an opportunity for Rio to build its sports industry ecosystem significantly, businesses providing services, equipment and event support will all be well placed to take advantage of the growth.” Andreas Mirow, Management Consultant, Onboard
“It is important that the world sees Brazil as a well-run country capable of delivering big projects. The Olympics and World Cup are both opportunities to do this.” Marcelo Haddad, Executive Director, Rio Negocios
Key facts about the Rio Sports industry
Investment and income
- R$56 billion predicted extra income generated due to the sporting events
- 57,900 temporary jobs and 37,000 permanent jobs to be created in the sporting industry
- Total investment of US$18 billion being made in sporting events related projects
- 2 seaports, 3 commercial airports
- USD 8 bn planned investments in transportation (+ 140 Km of BRTs / 1,300 new buses)
- Mass transportation system growth from 16% to 63% serving a further 700k people
- 259 weekly direct international flights (number in January 2012
Eyes of the world are on the city
- FIFA Confederations Cup – 2013
- FIFA World Cup – 2014
- City’s 450th Anniversary – 2015
- Olympic Games – 2016
- 50% of Brazilian listed companies HQ’d in Rio
- More than a quarter of revenues earnt by Brazilian companies come from Rio
- Significant number of international companies based in Rio – Diageo, GE, IBM
Access to funding
- Through pension funds, asset managers and PE managers Rio has access to more than USD 400 bn
- Rio held 4th place in global rankings for FDI (2010 – according Financial Times) with USD 7.27 bn secured in that year alone
Access to skills
- Dedicated city zone for R&D activity with operations run by BG, Siemens, Halliburton
- 4 of the top 9 Brazilian universities are based in Rio city (in courses of Engineering, Physics, Chemistry, Maths, IT and Business)
- Rio universities provide significantly more grade 4/5 courses than any other Brazilian city (in courses of Engineering, Physics, Chemistry, Maths, IT and Business)
- Rio held 4th place in global rankings for FDI (2010 – according to Financial Times) with US$7.27 bn secured in that year alone
- USD 128.9 bn private/public investments are planned before 2020
- Major public/private partnerships have helped improve the security situation