BUSINESS

Low-Budget Olympics? Rio Olympic Organizers Forced To Cut Costs Amid Recession

10/06/2015 01:59 EDT | Updated 10/06/2015 02:59 EDT

RIO DE JANEIRO — Olympic organizers, faced with the reality of a country deep in recession, are trimming costs to keep their budget balanced.

To keep spending in line, officials say they will cut back on printed material, reduce staffing at dozens of test events and trim costs for the opening and closing ceremonies of the Olympics and Paralympics in Rio de Janeiro.

"This is a very strict budget,'' said Sidney Levy, the organizing committee's chief executive officer. "There'll be no excess, but we are not going to compromise the essentials.''

Levy has said often over the last few months he will trim costs and cut non-essential purchases.

News of the budget austerity comes as hundreds of journalists from around the world are in Rio this week visiting Olympic venues and talking with organizers about how the games will run when they open Aug. 5, 2016.

The organizing committee's budget remains at 7.4 billion reals ($2 billion), which is for putting on the games themselves. It does not include building venues, subway lines and highways to help stage the games.

Operating income is from ticket sales, local sponsorships, merchandising and licensing with the largest contribution from the International Olympic Committee.

Brazil hosted the World Cup last year with year-long protests leading up to the event. Now the Olympics are causing a strain.

Brazil's currency has lost 70 per cent of its value against the dollar in the last year and inflation is running at 10 per cent. The economy is expected to remain in a steep recession through the games, and there are calls to impeach President Dilma Rousseff, partly driven by a $2 billion bribery scandal involving state-run oil company Petrobras.

Olympic organizers face other problems.

The venues for sailing, rowing, canoeing, triathlon and open water swimming are heavily polluted with viruses and bacteria with only stop-gap measures possible to contain the problem. Organizers have said athletes are not at risk, though some athletes have openly questioned competing in the dirty water.

An Associated Press study published on July 30 showed high levels of viruses in all of Rio's water. Organizers say they are looking at viral testing but do not plan to move any venues.

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See the summary findings and methodology of the AP's study: http://apne.ws/1IFxS9h

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AP Sports Writer Stephen Wilson contributed to this report.

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Stephen Wade on Twitter: http://twitter.com/StephenWadeAP

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