Olympics set to bring foreign direct investment ‘gold’ to Brazil
Sporting enthusiasts around the world are eagerly awaiting this summer’s Olympic and Paralympic Games. The host country, Brazil, is also looking forward to the games, but for more than just their entertainment value.
Minister of Tourism Henrique Eduardo Alves shared his hopes for the legacy of the Olympics at the International Tourism Fair (Fitur) in Madrid during January. One of the most important legacies will be a boost in tourism, he explains,
“Brazil has great growth potential in the tourism area and will certainly make it an area to improve upon.”
The US$11 billion invested by the Brazilian government in hosting the games, which will take place this summer in Rio during August and September, has been spent in such a way as to leave a lasting legacy for the city, with 15% being applied directly to sporting infrastructure and the remainder to other elements required to boost Rio’s appeal and capacity.
Brazil’s hope is that its own investment and rising popularity will inspire others to direct their funds towards the Latin American country as well. Paul Telfer, Chief Financial Officer of leading real estate developer Ritz-G5, which is developing a range of projects in the northeast of Brazil, comments,
“The hope is that one effect of the Olympics will be to increase foreign direct investment in Brazil. This certainly looks like it will be the case. Asian investment in Brazil is already high in some areas – like the northeast – and this shows no signs of slowing down, particularly in this bumper Olympic year.”
High end real estate developments are one beneficiary of Asian investment in Brazil. From luxurious apartments, like those at Costa Azul, with their captivating ocean views, swimming pool, gym, private bar and spa, to leading branded hotels like the Piramide Grande Mercure, developments have been generating a strong and sustained level of interest from Asian investors.
Increasing foreign direct investment (FDI) is of course good news for Brazil’s economy, which is currently in a process of fiscal adjustment. The economic situation is turning around, with a raft of plans in place to ensure the country returns swiftly to growth. Heightened levels of investment from overseas will of course help that growth to be achieved sooner rather than later, with the Olympic Games tipped to have a significant increase on FDI during 2016.
For further details, contact the Ritz-G5 team on +44 207 183 7565 or visit www.ritz-g5.com.