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Date: 2016-08-19

Mitigating Rio´s Housing Crisis

The daily struggles of Brazilians are not unknown to the people of Rio, but the location and media coverage of the Olympic Games have brought the depth of Brazil’s deep-seated economic, social, and political issues to global light. These multifaceted problems are rooted in Brazil’s steep recession and allegedly corrupt government. This lethal combination results in ineffective governing and policing, jeopardizing both the comfort and safety of Olympians and tourists and the livelihoods of the poorest Brazilians. In this gloom however, Airbnb has emerged as a viable source for temporary Olympic housing that simultaneously stimulates the Brazilian economy.

 

Economic & Housing Problems

 

Ineffective governing has failed to adequately address: the sewage polluted water situation in Guanabara Bay and other Olympic aquatic sport venues, the outbreak of the notorious Zika virus, and the general lack of proper housing for Olympians and Brazilians alike.[1] Furthermore, Brazilian protesters at the Games have revealed their government unjustly allocated its limited funds to hosting the Games instead of to upkeeping schools, hospitals, and social programs; the University of Oxford’s Said Business School claims Brazil has overrun their Olympic sports-related budget by $1.6 billion.[2]

 

Brazil has failed to decrease its mass amounts of desperate poverty, and its housing crisis is worsening with Olympic hotel construction and renovation.[3] Last April, approximately 300 squatters were forcefully evicted from an abandoned apartment building being updated for the Olympics. While the homeless were offered 130 spots in a shelter on the outer edges of the city, the occupants declined for safety concerns. Guilherme Simões, the national coordinator for the Homeless Workers' Movement claimed, "There are now around 800,000 families without a home in the Rio metropolitan area. Rio continues to persecute, demonize and criminalize the poorest in society, and it's getting worse."[4] So not only is the massive hotel construction taking funds away from social programs for the poor, but it is also taking temporary shelter from Brazil’s most marginalized population.

 

These complicated problems have long existed in Rio, but the government’s dedication to funding the Games has certainly not diminished their effects. 

 

How does Airbnb fit into this?

 

AirBnB simultaneously addresses the housing crisis and helps Brazilians affected by the recession supplement their household income.[5]

 

This is the first Olympic Games where home-sharing has been officially recognized as an alternative form of accommodations,[6] and there are currently 20,000 rental listings for the Rio de Janeiro Olympic Games.[7] This San Francisco based startup has had tremendous success in Rio; Brazil’s recession’s helping grow the supply of rentals and the Airbnb rentals are concurrently addressing the Games’ “huge accommodation problems”.[8]

 

Airbnb rentals are an innovative, cheap, sustainable solution to the Olympic tourist housing crisis. As the Games come to a close, it’s feared newly created hotels will soon have countless vacancies. The Wall Street Journal wrote, “But those [no vacancy] signs will likely go back into the closet after the games are over. Brazil’s hotel industry has been reeling from the effects of a prolonged recession, a political crisis and the outbreak of the Zika virus”.[9] Contrastly, Airbnb doesn’t cause the same drastic sense of emptiness as residents who rented their beds/rooms/apartments/houses will merely resume their lives in their homes after the closing ceremonies.


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