Research: Accommodation during the Rio Olympics 2016 is 122% more expensive

Staying in Rio during the Olympics in August of next year, will get more expensive. According to a TripAdvisor tourism site research, the dailies charged for 2016 are 122% more expensive on average than those of August this year. In all, according to the site, 240 hotels in the city were analyzed. The Brazilian Association of Hotels of Rio de Janeiro (ABIH-RJ) reported that the occupancy rate in the month of the Olympics should reach 98%.

In ten bairros evaluated in the study, in the southern areas, west and central, the one that accumulated the highest increases in prices was Leblon. There, the average price rose from R$ 508.65 to R$ 2,015.52. Second, it was Copacabana, where the average rose from R$ 410 to R$ 1,252 per stay. The only of the ten neighborhoods that fell was Recreio (minus 24.11%). The average was R$ 347.82 last August and fell to R$ 263.98 in reservations for the month of the Olympics.

Supply and demand rule

In the 2014 World Cup, the increase in stay prices increased from 500%, showed a survey of Embratur. Claudia Martinelli, TripAdvisor spokesperson in Brazil, the rise in prices is normal in times of major events and usually happens in all the cities that host the Olympic Games:

Located in the district with the highest increase, Leblon, the Hotel Ritz, for example, who has daily of R $ 540 to R $ 1,020 this month, will be charged R $ 1,942 for the simplest room available in August next year ( considering the tourism dollar exchange rate at R $ 3.70). The demand for rooms is great, said a receptionist. The administration of property was not found for comment on the prices.

But the Hosting and Modernist Art, opened in Santa Teresa two years ago, will have a daily R $ 1,500 in August. Currently, out of R $ 350. With only five rooms and an art gallery inside, is decorated with inspiration from modernist works. One of the owners, the artist Thelma Innecco says that for the Olympic month were already filled 60% of seats. The visitors, 80% European, will remain for long periods of 15 days.

the fact Leblon and Recreation are, respectively, the most expensive neighborhood and the cheapest to stay stems from the availability of hotels in the regions. In Leblon, as you had no land, no supply of new hotels. Barra and Recreation, there were 12,500 new hotel rooms. The price ended up falling.

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According to Lopes, the hotel occupancy rate for the months before and after the competitions is 60-65%. ABIH estimates show that the sector will employ 40,000 workers during the period of the Games. The expectation is that Lopes tourists who come to Rio to spend more money in the city that those who passed through here during the World Cup.

It’s not the first time that daily go up because of a big event. In August 2013, less than one year’s World Cup in 2014, Embratur found that hotels in the host cities, including Rio, were up 583% more expensive. At the time, the organization considered the change “absurd” and sent a letter to the Ministry of Justice to warn of possible abuse in the intermediation of the Match agency that negotiated daily for the World Cup. Embratur asked the hotel industry that lowered tariffs – which eventually happened. To note the increase, the entity was based on figures in the FIFA website.

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Joe Cloud
Dutch, American, Brazilian... lived there for 5 years and owns property in Brazil. Out of the country for a few years now and would like to go back, however current circumstances tell me it's not the right time.