Essays on The Rio 2016 Olympic Games - Economic, Environmental and Social Impacts Case Study

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The paper 'The Rio 2016 Olympic Games - Economic, Environmental and Social Impacts" is a good example of a business case study.   Mejor sporting events such as the World Cup and Olympic games commonly attract desires for hosting from several countries across the globe. The main reason for the scramble by countries to hold such events is the economic opportunity that comes with hosting such events such as the returns on investments (Ejwick, 2006, p. 8-26). Besides the economic impacts, however, the events have significant social and environmental impacts on the host cities.

This paper assesses the economic, social and environmental impacts of the Rio 2016 Olympic Games on the host city, Rio de Janeiro, Brazil. The Rio 2016 Olympic Games was a major international sporting event held in Rio de Janeiro, Brazil starting from the 5th to 21st of August. A total of 28 games were played during the event including the rugby sevens and golf, attracting a large number of people from across the globe. The event resulted in Brazil hosting a large number of visitors from the players themselves to high profile government officials from various countries. Economic Impacts The hosting of the Rio 2016 Olympics came at a time when Brazil was struggling to bounce back economically following the recession of 2008-2009.

One of the economic impacts of this event was increased revenue through tourism. During the Olympics, the city hosted over 400,000 visitors from all over the world including the internationally known musicians from America. This number was above the original target for the city. This resulted in an increase in foreign exchange as tourists. Additionally, more employment opportunities were created in the service sectors such as the hotels and the sales targets for many of the city’ s companies were reached.

Additionally, the sporting event served as a way of opening up the city of Rio to the world, thus, the city is expected to attract more tourists and investors that are likely to influence its economy positively in the long-term. Although the event had various advantages both to the local residents and the city at large, the challenge lies in whether the expenses on the preparation of the event matched the returns, a situation known as the construction leakage.

The construction leakage explains the reason why cities spend much money on preparation for a mega event with minimal economic impact. In Brazil, the money used in the preparation for the 2016 Olympics was sourced from taxpayers. Since the infrastructure developed was rendered useless after the event, the investment returns were lower than the amount of money spent in the preparation for the event. Another economic impact of the Rio 2016 Olympic Games on Rio was the commitment of public funds to the event, resulting in high public leverage.

Days before the commencing of the games, for instance, there were protests in Niteroi with the protestors complaining of funds from education, health, and social programs being redirected to the Olympics, further sabotaging the already suffering economy of Rio and Brazil caused by the recession. Moreover, the high-cost overruns of hosting the event added debt pressures on the city. Initially, the budget for hosting the Olympics was estimated to be $4.6 billion. However, as the games drew nearer, the budget scaled by 51% due to the construction of facilities such as the Velodrome, Aquatic Center and the Golf Course.

Additionally, the budget included the construction of a new metro line in Rio (Garretson, 2016, p. 1-5).


Dale, C. (2016). Rio 2016: Economists Question Wisdom of Hosting Olympics. CNBC International, p. 1-3.

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Ejwick, AC (2006). The Economic Impact of Hosting the Olympic Games. Do Study Characteristics Matter? Bachelor thesis, UVA, p. 8-26.

Garretson, J. (2016). Here’s What it Cost to Host the 2016 Rio Olympics and How it Compares to Previous Games, p. 1-5. Retrieved 09/11/2016.

Hiller, H (2013). Host Cities and the Olympics. An Interactionist Approach. Routledge, London, United Kingdom, p. 34.

The Guardian (2016). Rio 2016: The Olympics has destroyed my Home. Retrieved 09/11/2016, p. 2-5.

Vercillo, C (2016). Rio’s 2016 Olympic Golf Course: City’s Last Remaining Ecosystems Left in the Rough. Institutional Repository. University of Miami Law School. Inter-American Law Review, vol 47, p. 224-245.

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