Grant Thornton: Brazilian businesses substitute hope for doubt over World Cup legacy

With the FIFA World Cup due to kick off in Sao Paulo on 12 June, new research from the Grant Thornton International Business Report (IBR) has found that Brazilian business enthusiasm for hosting the tournament has plummeted over the past two years. However, while few business leaders predict increased investment or increased profits as a result of Brazil hosting the competition, there is hope that infrastructure improvements and a greater influx of tourists will prove enduring legacies.

The IBR reveals that the proportion of Brazilian business leaders who believe hosting the World Cup would translate into faster economic growth has fallen from 80% in Q1-2012 to just 33% by Q1-2014. Similarly, just 11% of businesses currently plan to make extra investment for the tournament, compared to 23% in 2012. A further 19% of businesses expect their profits to rise, with 52% expecting the tourism sector to see the biggest pick-up in activity.

More than two in five business leaders expect infrastructure investments - particularly those in the transport sector - to be the most enduring legacy of the games (42%), with a further quarter expecting a greater influx of tourists (26%). However, almost a third believe stadium construction in their city has disrupted daily life and just 40% believe the stadium will be well used once the tournament is over.