Lima 2027 Pan American Games: what will be the impact of this sporting event on the Peruvian economy?

For the second time in its history, Lima will host the 2027 Pan American Games after winning the election over Asunción, Paraguay, with 28 votes. This result has been recognized by the Minister of Economy and Finance, José Arista, who pointed out that the holding of this sporting event will have a positive impact on sectors such as tourism, gastronomy and services..

With an investment that would amount to $360 million, the Lima 2027 Pan American and Parapan American Games will boost our country’s economy and generate thousands of jobs. To address the impact that said event will have on the demand for services and deepen its economic benefits, The Republic He spoke with two specialists on the subject.

Lima 2027 Pan American Games: what will be their impact on the economy?

The choice of Lima as the main venue for the next 2027 Pan American Games has generated expectations among government authorities, the country’s economic agents and the population in general. For Ana Reátegui, professor of finance at ESAN Graduate School of Business, “the holding of this sporting event will boost the national economy and will favor an increase in the consumption of food, accommodation and tourism, but not to the same level as the previous competition, since “The main investments were made for 2019.”

This opinion is shared by economist Javier Zúñiga, who says that the level of spending will not have the same magnitude as the 2019 Pan American Games, because there are already works done for certain sports. “In 2019, the impact was around 1.5% of what was spent and now the Minister of Economy and Finance, José Arista, says that it would be around 4% of what was spent. This time, the investment would be $360 million, a lower figure than the previous one (S/4,000 million, including VAT)”, he explained.

Regarding the tourism sector, he estimated that the number of local visitors would increase from 50,000 to 400,000 and in the case of foreigners it would exceed 150,000. Along these lines, he indicated that a need four times greater at the employment level would be required from the small business sector and entrepreneurs compared to the 2019 sports competition.

Finally, economist Ana Reátegui agreed with Carlos Neuhaus, president of the Lima 2019 Pan American Games, in relation to the more than 5,000 jobs in the city that the development of this new version of the mega sporting event would generate. “The generation of jobs can reach these numbers and even more. The most favored are those that have to do with services because they will be hired for food, lodging, tourism and others,” she stated.

What did the MEF say about the Lima 2027 Pan American Games?

The Minister of Economy and Finance, José Arista, pointed out that the holding of the Lima 2027 Pan American and Parapan American Games will allow for a return on investment of $4 for every $1 invested.

“It is estimated that for every dollar invested, about three or four dollars are returned to the country, in terms of image, in terms of names, in terms of sales level,” he explained after participating in the ‘Perú Mining’ event. Investments Summit 2024′.

Finally, he acknowledged that already established companies will have the greatest movement and activation. He said that additional expenses regarding transportation and lodging for athletes attending the 2027 Pan American Games will be evaluated soon.

“I think Peru has all the venues ready. We will just have to see how the current expenses of the games are financed because all the athletes have to be transported, they have to be put in a village and the city needs to be fixed up,” he said.