Economist Highlights Carnival's Superior Investment Return Over Industrial Sector in Brazil

Carnival's Economic Prowess Outshines Traditional Industry

Italian-American economist Mariana Mazzucato has brought to light the remarkable economic efficiency of Brazil's Carnival, asserting that its return on investment surpasses that of several traditional industrial sectors. During her visit to Brazil to study the creative economy surrounding the festivities, Mazzucato highlighted the festival's profound impact, stating that 'Public investment in the arts and culture contributes far more to the economy than much of the traditional manufacturing industry.'

According to studies by the Getúlio Vargas Foundation and the Brazilian Industrial Development Agency, one real invested in culture in Brazil can generate an impressive BRL 7.59 in societal return through job creation and income. This stands in stark contrast to the automotive and trucking sector, where one real invested yields a multiplier effect of BRL 3.76.

Beyond Economics: Emphasizing Social and Cultural Benefits

Mazzucato, who leads research at University College London (UCL) in collaboration with UNESCO on the economic role of arts and culture, underscored that Carnival's value extends far beyond mere financial metrics. She emphasized its substantial social benefits, including contributions to well-being and mental health across numerous communities, particularly vulnerable ones.

'More than just about the food, drinks, hotels, and tourism during Carnival, it's about the social impact - the skills, schools, networks, the value of social cohesion, and the sense of identity and heritage,' Mazzucato explained. Her research included visits to Rio de Janeiro and Salvador, with plans to explore Recife, to delve into the creative economy underpinning these celebrations.

Significant Economic Contributions Across Brazil

The economist's observations are supported by recent projections for Brazil's Carnival. The Brazilian National Confederation of Commerce of Goods, Services and Tourism (CNC) estimated that nationwide Carnival celebrations in 2025 would generate over R$12.03 billion (approximately USD $2.08 billion). Key sectors benefiting include:

• Bars and restaurants: Projected turnover of R$5.4 billion (USD $935.44 million)
• Transportation: Predicted to generate R$3.31 billion (USD $573.39 million)
• Accommodation: Expected to contribute R$1.28 billion (USD $221.73 million)

These three sectors alone are anticipated to account for 83% of the revenue generated by tourism during the Carnival period. The festivities are also a major job creator, with approximately 32,600 temporary jobs expected nationwide in 2025.

Regional Impact and Growing Tourism

Major cities across Brazil experience significant economic boosts. For 2026, the Rio de Janeiro state government projects an economic impact nearing R$10 billion, with the city itself expecting around R$5.7 billion (approximately USD 1 billion). This includes the creation of an estimated 50,000 to 70,000 direct and indirect jobs. Hotel occupancy rates in Rio reached approximately 98% ahead of the 2026 festivities, underscoring the high demand.

In Salvador, the 2025 Carnival generated R$7 billion, attracting 3.5 million tourists and achieving over 90% hotel occupancy. The customization market for 'abadás' (Carnival shirts) in Salvador alone supports over 1,200 formal seamstresses, highlighting the festival's broad economic ripple effect. Other cities like São Paulo and Belo Horizonte also anticipate millions of revelers and substantial economic contributions, reinforcing Carnival's status as a vital economic and cultural powerhouse for Brazil.