The resurgence of major events in Rio de Janeiro in recent years has positively impacted the city’s economy. The economic activity generated by both domestic and international tourists, as well as the locals, is linked to various services directly or indirectly connected to the events held in Rio, such as transportation, hospitality, dining, and more. The main economic drivers remain the two most famous fixed events: Carnival and New Year’s Eve. However, the city also hosts concerts, sporting events, and forums. In November this year, it will host the G20 summit, a group formed by the 20 largest economies in the world.
According to the third edition of the “Carnaval de Dados” study, a publication by the Municipal Secretariat for Urban and Economic Development (SMDUE), Riotur, and the João Goulart Foundation Institute (FJG), the estimated economic impact of Carnival 2024 was R$ 5 billion. Regarding the ISS tax collection in February, Rio collects almost R$ 500 million from all services provided, related or not to Carnival. From the services directly or indirectly related to the festivities, it is estimated that the city collects nearly R$ 200 million in taxes, with approximately 20% coming solely from tourism and events.
In its first edition, the “Réveillon de Dados” report, published by the City Hall of Rio through SMDUE, in partnership with Riotur and FJG, indicated an economic impact of R$ 3 billion during New Year’s Eve 2024, representing a 15% increase compared to the 2023 New Year’s celebration, which generated R$ 2.6 billion.
A phenomenon in the current music scene, the American singer Taylor Swift, credited by the American Federal Reserve for the recovery of Florida’s hospitality sector and generating 3,300 jobs in California, helped boost Rio’s economy in November last year. An SMDUE survey estimated an economic boost of at least R$ 158 million from the three concerts held at Nilton Santos Stadium. The calculation considered ticket sales and fan spending on transportation, beverages, food, and more.
November 2023 also featured more events in the city: the Libertadores final, won by Fluminense at Maracanã, and concerts by international bands Red Hot Chili Peppers and RBD. According to calculations by SMDUE, based on data from the Municipal Secretariat of Finance and Planning, these events collectively boosted Rio’s economy by R$ 669.2 million.
This amount is 25% higher than that generated in November 2022 (R$ 535.4 million), almost four times more than in November 2020, the first year of COVID-19 (R$ 174.5 million), and 56.4% higher than in November 2019 (R$ 427.8 million), still in the pre-pandemic period.
The world’s largest technology event, Web Summit Rio, landed in the city for the first time in May 2023. According to the report “Potential Economic Impacts of Web Summit Rio (2023-2038),” prepared by SMDUE in partnership with Invest.Rio, the city’s investment promotion and attraction agency, the impact on Rio’s economy over six years is expected to be R$ 1.2 billion.
The six editions have the potential to attract more than 800,000 people. Tourism in May is strengthened, generating almost R$ 100 million in ISS from Tourism by 2028. Alongside other innovation and technology initiatives, such as Porto Maravalley, Web Summit Rio is expected to help increase ISS Technology revenue by up to R$ 1 billion over the six years of the event.
One of the most benefited sectors is accommodation (hotels), with an estimated impact of R$ 161.3 million by 2028. The food sector, including bars and restaurants, follows closely, potentially reaching R$ 61.8 million in the sixth edition.
In March last year, the concert by the British band Coldplay at Nilton Santos Stadium also had an impact on Rio. According to an SMDUE analysis, the band boosted Rio’s economy by R$ 86.3 million. The value considered ticket sales and fan spending related to the concert.
