Importance of this Celebration

Rio's global image is so closely associated with Carnival that the two things are almost synonymous. Everything from the tourist industry to episodes of The Simpsons have found it hard to separate the two entities. Usually this is a huge boost for Rio's economy but this year the global credit crisis has even taken the shine off Carnival. Materials for the parades have shot up in price and costume suppliers have gone bust.

More important, the big-name sponsors and donating companies, such as Petrobras, the state-owned oil company, aren't able to contribute costing the parade millions of pounds. The Rio state government will donate several million, and tourist revenues, though likely to be down on previous years, also hotels are expecting a 20 percent drop in occupancy, that will still be significant. Carnival goers are expected to inject $521 million into the city's economy, up from $510 million last year.