The mega events paradox: analyzing the behavior of the hospitality industry in the city of Rio de Janeiro during and after the Olympics

O paradoxo dos grandes eventos: analisando o comportamento da indústria hoteleira na cidade do Rio de Janeiro durante e após as Olimpíadas

La paradoja de los grandes eventos: analizando el comportamiento de la industria hotelera en la ciudad de Río de Janeiro durante y después de los Juegos Olímpicos

Abstract

Considering the urban transformations and the development of the hotel sector in the City of Rio de Janeiro driven by the 2016 Olympic Games, this study aims to understand how the hotel industry behaves in terms of organic growth and investments during periods of mega international events. To this end, a qualitative case study research was carried out that included 7 different hotel brands whose results were coded and categorized resulting in a theoretical-conceptual framework responsible for identifying some competitive pressures on traditional hospitality, including 6 different challenges: (1) political institutional insecurity, (2) perceptions of the media, (3) public security, (4) other national and foreign locations, (5) new videoconference technologies, and (6) Online Travel Agencies. It was found that the exponential growth in the number of beds in the city in the years leading up to the 2016 Olympics generated several complications for the industry at that time. The logic of this expansion is discussed throughout the paper during different phases and the aim is to help fill a gap left by empirical research in the area, which has little explored the logic behind the option of investing during Olympic Cycles.

Keywords
Mega Events; Olympic Games; Tourism and Hospitality; Institutional Theory; Rio de Janeiro