Carnival means big business for communities around the world

Rio de Janeiro: The Carnival in Rio de Janeiro, Brazil, is known around the world and may rightly call itself the "greatest show on Earth." During the 5-day festivities, beginning this Friday and lasting until Ash Wednesday next week, thousands of colorfully dressed dancers' parade through the Sambadrome, a large, open-air venue, while millions more take to the streets for the famous so-called Blocos, meaning street parties.

According to the city of Rio de Janeiro, an estimated 7 million people are out celebrating during Carnival — and quite naturally they spend a lot of money. Carnival in Rio is not just a cultural phenomenon, it's become a money-spinner for the entire Brazilian economy.

No matter whether it's exotic feathers, glittering costumes, or colourful masks — anyone walking through the streets of Brazil's biggest city in the days leading up to Carnival can't miss the countless stalls selling festive accessories.

Carnival means big business for the city of Rio, which according to official municipal data, garnered nearly $870 million (€840 million) in revenue from the festival in 2024.

On a nationwide basis, Carnival in Brazil this year is expected to add about 12.1 billion reais ($2.06 billion, €2 billion) to the country's economy, according to the National Confederation of Commerce in Goods, Services, and Tourism (CNC).

Big profits on 'Fat Tuesday'
In the United States, the city of New Orleans is the capital of Carnival, celebrating the season for an entire two weeks, with the so-called Mardi Gras, or Fat Tuesday, parades marking the highlight of the festivities.

There, colourfully dressed revellers and brass music fill the streets of the historic French Quarter, and spectators are eager to grab one of the plastic bead necklaces being thrown down to them from floats.

Carnival is a major economic driver for the city deep down in the US state of Louisiana. It supports creative industries, cultural businesses, and thousands of small local enterprises.

A 2024 study conducted by New Orleans-based Tulane University shows that the total "direct and indirect impact" of Mardi Gras to the city's economy was $891 million (€800 million) in 2023.

The study was commissioned by the New Orleans Mardi Gras Advisory Council, whose co-chairs James Reiss III and Elroy James said in a joint statement on the release of the paper: "This economic activity in turn supports tens of thousands of jobs …, with those dollars turning over countless times throughout our community."

German revellers can indulge in the festive events organised during Carnival for much longer as the season already begins in the previous year ­— on November 11 at 11:11 a.m. to be exact.

In the following months, German Carnival clubs up and down the country hold hundreds of local sessions that include dance and music performances, comedy acts and the shows of special Carnival dance groups. Those sessions culminate in the so-called street Carnival events — major parades, that is, taking place in Carnival strongholds such as Cologne and Düsseldorf on the Monday before Ash Wednesday.

The Institute for Economic Research (IW), based in Cologne, has been studying the economic impact of Carnival for quite a few years. For the 2024/2025 season, it is expecting more than $2.08 billion (€2 billion) in revenue, IW said in a study.

Restaurants and pubs stand to profit most with nearly €925 million in revenue, followed by retail (€449 million), transportation (€322 million), and hotel bookings (€240 million).

However, reducing Germany's vibrant Carnival scene to mere economic figures wouldn't do the tradition justice.

Cologne's Mayor Henriette Reker says her city is renowned across the world "for its cathedral, the Rhine river, and, of course, the Carnival."

"For us locals, Carnival isn't just an event — it's an essential part of our culture and a reflection of our way of life," she told DW. Carnival plays a vital role in strengthening social cohesion, she added, which is especially significant these days when "forces at home and abroad attempt to divide society and challenge democracy."

IW director Michael Hüther also said that society "must not underestimate the psychological impact" of what Carnival lovers in Germany call "the fifth season." Representing "unity and optimism," these values associated with Carnival are more important than ever in times of global crises and uncertainty, he added.