Red clay rally: merchants forecast sales surge during motorsports event

Traders in Encarnación, Paraguay, are preparing for a significant economic upswing as the city gears up to host stages of the World Rally Championship in Itapúa. Alfredo Bareiro, vice president of the Association of Merchants of the Commercial Circuit, expressed optimism that this year's event will bring a much-needed improvement in sales, especially compared to the previous year when expectations were not fully met.

This year's edition is particularly anticipated to generate more activity in the city, as Encarnación will host the final stages of the rally. This strategic placement, combined with the experience gained from last year, allows local businesses to better cater to the specific needs of rally attendees. "The people staying in the city will have more time and will be closer to the commercial sector," Bareiro noted, highlighting the potential for increased local spending.

Organizers are forecasting an impressive influx of 400,000 spectators, a substantial increase from the 210,000 who attended in 2025. This projected growth is attributed to the success and positive reception of the previous event. The local Chamber of Commerce, Industry, and Services (Cacise) has conducted training sessions for its members to ensure they are well-prepared for the expected surge in visitors. Conrado Kiener, president of Cacise, stated that the inclusion of rally stages within the city itself "will generate greater commercial, tourist, and general consumption movement."

The World Rally Championship event is expected to inject approximately $200 million into the local economy. However, Kiener also issued a call to authorities to implement comprehensive security measures to protect the estimated 3,500 to 4,000 businesses operating in the capital of Itapúa.