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Rio 2016: Can Games bounce back from Brazil economic woes? | Rio 2016: Can Games bounce back from Brazil economic woes? |
(about 13 hours later) | |
Rio 2016 chiefs are confident the Olympic and Paralympic Games will be successful despite the potentially negative effects of the lacklustre Brazilian economy. | |
Latest figures show that Brazil fared worse than almost any other major economy in 2015, with its GDP contracting by 3.8%, according to the national statistics agency IBGE. | Latest figures show that Brazil fared worse than almost any other major economy in 2015, with its GDP contracting by 3.8%, according to the national statistics agency IBGE. |
It was Brazil's worst set of figures since 1990, as economic growth in the world's seventh-largest economy has fallen sharply in recent months. | It was Brazil's worst set of figures since 1990, as economic growth in the world's seventh-largest economy has fallen sharply in recent months. |
It is all very different from when Rio was awarded the world's biggest sporting event in 2009, a time when the nation's economy was coming out of recession and was seen as possessing huge growth potential. | It is all very different from when Rio was awarded the world's biggest sporting event in 2009, a time when the nation's economy was coming out of recession and was seen as possessing huge growth potential. |
'Spectacular Games' | 'Spectacular Games' |
Then, the Games were seen as a showcase for the country, not just to promote it on the world stage, but also as a fillip for the economy, with then-President Luiz Inacio Lula da Silva saying the "financial crisis hit us last and we got out of it first". | |
"In 2009 it was a different scenario," admits Carlos Nuzman, the president of the Rio 2016 organising committee, who is adamant the country will deliver a "spectacular Games". | "In 2009 it was a different scenario," admits Carlos Nuzman, the president of the Rio 2016 organising committee, who is adamant the country will deliver a "spectacular Games". |
Mr Nuzman, on a recent visit to London, said that from an organisational point of view the "economic issues that we have have not affected the Games". | |
"We have the support of the three levels of government - the Federal, state and city authorities - and the organising committee are all working together," he added. | "We have the support of the three levels of government - the Federal, state and city authorities - and the organising committee are all working together," he added. |
'Proud' | 'Proud' |
The 73-year-old says organisers are operating a balanced budget before the Games, which run from August 5-21, and that the only cuts have been to the "excess". | |
Organisers are scaling back in a number of areas to balance their operating budget of £1.35bn, with cost-cutting measures of some $500m (£353m). | Organisers are scaling back in a number of areas to balance their operating budget of £1.35bn, with cost-cutting measures of some $500m (£353m). |
These include ditching plans for a 4,000-capacity floating stand at the Olympic rowing site on the Rodrigo de Freitas lagoon. | |
"We are not changing anything about the field of play, we are doing everything for the athletes, nothing has been cut," adds Mr Nuzman. | "We are not changing anything about the field of play, we are doing everything for the athletes, nothing has been cut," adds Mr Nuzman. |
"We have not used any public resources - I think we are the single organising committee who have done this. That is a victory - especially in the moment we are living in our country and we are proud of this." | "We have not used any public resources - I think we are the single organising committee who have done this. That is a victory - especially in the moment we are living in our country and we are proud of this." |
Ticket campaigns | Ticket campaigns |
That flatlining economy may also be the reason for the slow ticket sales to date, as Brazilians hold onto hard-earned cash. | |
With between 12% and 15% of Paralympic tickets and 47% of Olympic tickets sold, the last thing organisers need is for their showpiece event to be played out in front of half-empty stands. | |
Of the 6.6 million Olympic Games tickets available, just 3.1 million have been snapped up, but Mr Nuzman remains confident. | Of the 6.6 million Olympic Games tickets available, just 3.1 million have been snapped up, but Mr Nuzman remains confident. |
"Many, many sports are already sold out," he says. "If we had more tickets, we'd have sold more. For the other sports, we have a campaign." | "Many, many sports are already sold out," he says. "If we had more tickets, we'd have sold more. For the other sports, we have a campaign." |
He adds: "Brazilians love to buy tickets at the last moment. This happened with the World Cup and other events. I am confident we will have full stands, and I hope sponsors can give the tickets they have to their guests." | He adds: "Brazilians love to buy tickets at the last moment. This happened with the World Cup and other events. I am confident we will have full stands, and I hope sponsors can give the tickets they have to their guests." |
Torch relay | Torch relay |
On the business front, Mr Nuzman says organisers have signed more than 700 commercial contracts with 1,272 suppliers. | |
Coca Cola, Nissan and Bradesco have signed up to be sponsors of the Olympic torch relay across Brazil, beginning on 3 May. | Coca Cola, Nissan and Bradesco have signed up to be sponsors of the Olympic torch relay across Brazil, beginning on 3 May. |
With regards to sponsorship of the event itself, Rio 2016 communications executive Mario Andrada said the sponsorship sales programme has reached 95% of its target. | |
He said he was confident of the sponsorship programme being completed in the next few months. | He said he was confident of the sponsorship programme being completed in the next few months. |
As well as the IOC's sponsorship strata of Worldwide Olympic Partners, such as Coca-Cola, McDonald's, Samsung and Visa, there are currently six official sponsors and 11 partners of the Games. | As well as the IOC's sponsorship strata of Worldwide Olympic Partners, such as Coca-Cola, McDonald's, Samsung and Visa, there are currently six official sponsors and 11 partners of the Games. |
They include Brazilian businesses such as Bradesco, Embratel, Correios, TAM, Batavo, Globo and Skol, and international brands such as Nissan, Cisco, and EY. | They include Brazilian businesses such as Bradesco, Embratel, Correios, TAM, Batavo, Globo and Skol, and international brands such as Nissan, Cisco, and EY. |
Youth attraction | Youth attraction |
As far as infrastructure development is concerned, Mr Nuzman says the velodrome is the only Olympic venue that has experienced delays, caused by a hold-up in the delivery of wood for the track, but that the arena is 85% completed. | As far as infrastructure development is concerned, Mr Nuzman says the velodrome is the only Olympic venue that has experienced delays, caused by a hold-up in the delivery of wood for the track, but that the arena is 85% completed. |
Meanwhile, he says that the canoe slalom water venue in the Deodoro zone of the city - an area with a large number of under-18-year-olds - is already being used by 12,000 youngsters each weekend. | |
He adds that only one of more than 40 sporting test events - cycling - has been delayed to date, by two weeks, with more than 50% of trials completed. | He adds that only one of more than 40 sporting test events - cycling - has been delayed to date, by two weeks, with more than 50% of trials completed. |
But it is not just on the economic, ticketing, and sponsorship fronts, that Rio is under the spotlight. | But it is not just on the economic, ticketing, and sponsorship fronts, that Rio is under the spotlight. |
The Zika health virus scare has been widely covered in the world's media for the past few months, which may means some officials, spectators and competitors think twice about attending. | |
Mr Nuzman points out that Dr Margaret Chan, the head of the World Health Organisation has expressed confidence that Brazil can host the Rio Olympics safely despite the Zika threat. | |
Meanwhile, he says the Games organisers will install air conditioning in all apartments in the athletes' village to combat the mosquitoes that spread the virus. | Meanwhile, he says the Games organisers will install air conditioning in all apartments in the athletes' village to combat the mosquitoes that spread the virus. |
Water monitoring | Water monitoring |
Another concern has been that the water at Marina de Gloria - where seven of the 10 sailing events will launch - will be too dirty. | Another concern has been that the water at Marina de Gloria - where seven of the 10 sailing events will launch - will be too dirty. |
Mr Nuzman, who played for the Brazil volleyball team at the 1964 Games, said that the water would be inspected weekly for stagnant water, moving to daily during the Games period. | Mr Nuzman, who played for the Brazil volleyball team at the 1964 Games, said that the water would be inspected weekly for stagnant water, moving to daily during the Games period. |
"The field of play of the Olympic Games is the other side of the [Guanabara] bay," he adds. "The international federation gave the approval and we will keep a very strong team to clean, which will start and continue during the Games." | "The field of play of the Olympic Games is the other side of the [Guanabara] bay," he adds. "The international federation gave the approval and we will keep a very strong team to clean, which will start and continue during the Games." |
However, despite the organisers' ability to seemingly juggle many challenges simultaneously, the underperforming Brazilian economy continues to overshadow preparations. | However, despite the organisers' ability to seemingly juggle many challenges simultaneously, the underperforming Brazilian economy continues to overshadow preparations. |
With the economy predicted to contract again this year by about 3%, Rio 2016 will hope it can provide a much-needed feel-good factor. |
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