#3 Economic Crisis
Brazil has been the subject of economic downfall since last year which has affected the budget for the Games. The recession has led to the Rio De Janeiro State to decrease the budget for the Games by 30%. The recession has been in place for the last five quarters in Brazil which has seen a great decline in their GDP.
The security personnel are also not getting their salaries due to the inability of the State to pay them. The Rio State government was declared bankrupt last week which initiated an emergency federal bailout. This could mean that the pending payments of the police and other government employees will be settled soon.
But with the police protesting inside the International Arrivals hall at the Rio airport, the number of tourists that will be expected could take a hit.
The official figure of the Rio 2016 budget indicates that Brazil have spent $2.28 billion on organising the event. But their expected income from the event stands at $2.25 billion. This is just the official figure, but many reports have suggested that Brazil has spent 10 times the official amount (close to $20 billion).
Although, incoming tourists would mean that Brazil will benefit from it when the tourists spend in their country. The major concern will be how they can afford to finance the event if any tragedy takes place before or during the Games. The real question is that should Brazil have hosted the Games during their economic crisis?
