Rebeca Duran

Rebeca Duran

Staff Writer
The Brazil Business

Updated

Tourism Market in Brazil

Rebeca Duran

Rebeca Duran

Staff Writer
The Brazil Business

Updated

The Brazilian tourism industry is experiencing a golden decade, with significant growth in the number of international and domestic tourists. This article presents an overview of the tourism boom in Brazil.

Brazil has become more and more appealing to the tourists eye from around the world. The Brazilian artistic and natural heritage, the fraternal hospitality, the friendliness of the people and not to mention the upcoming events of 2014 and 2016 make Brazil a very appealing destination. These attributes are responsible for the rise of the tourist movement in this country.

International Tourists Nationality

Position Country Market Participation Number of Tourists
1. Argentina 29.33 1,593,775
2. United States 10.95 594,947
3. Uruguay 4.81 261,204
4. Germany 4.45 241,739
5. Italy 4.22 229,484
6. Chile 4.00 217,200
7. France 3.83 207,890
8. Paraguay 3.55 192,730
9. Spain 3.50 190,392
10. Portugal 3.38 183,728
11. England 2.75 149,564
12. Colombia 1.68 91,345
13. Peru 1.60 86,795
14. Bolivia 1.57 85,429
15. Netherlands 1.33 72,162
16. Canada 1.29 70,358
17. Switzerland 1.21 65,951
18. Mexico 1.19 64,451
19. Japan 1.16 63,247
20. Venezuela 1.05 57,261

Tourism Boom in Brazil

The tourism sector is increasingly optimistic according to a survey released by the Ministry of Tourism. The data shows that the 80 largest companies in the tourism sector in Brazil gained 57.6 billion BRL and employed 115,000 people in 27 Brazilian states in 2012.

The companies evaluated by the data were concentrated in the follwing areas:

  • travel agencies
  • car rental
  • accommodations
  • tourism operators
  • event organizers
  • events promoters
  • air transport
  • road transport
  • inbound tourism

The sector grew 13.1% in 2012 compared to the previous year.The survey indicates significant improvement in the rise of prices in comparison to 2012 when industry prices were up 9.6% while the expectation calculated for 2013 indicates a rise in prices of 3.8%.

Government Investment and Financing

The loans granted by federal financial institutions to finance the tourism sector in 2012:

Month Bank of Brazil Caixa Econômica Federal BNDES Bank of Northeast Bank of Amazon Total
January 123,935 370,098 22,760 3,490 640 520,923
February 142,440 338,039 11,133 14,071 4,870 510,553
March 167,728 506,676 271,092 11,591 5,714 962,801
April 275,618 442,544 16,126 153,220 2,801 890,309
May 334,578 506,289 116,879 5,245 1,348 964,339
June 446,070 635,445 63,248 28,038 14,115 1,186,916
July 138,851 469,165 101,323 19,240 26,250 754,829
August 147,314 484,262 356,517 8,391 141,927 1,138,411
September 181,606 581,554 102,206 2,155 19,322 886,843
October 298,949 624,781 147,119 7,904 1,219 1,079,972
November 176,244 559,183 57,848 8,505 16,608 818,388
December 294,014 732.092 321,859 127,838 11,413
1,487,216

Understanding the Brazilian Tourism Market

In recent years the tourism sector in Brazil has grown and we have seen it become more professional and proficient than ever before.Several projects and programs within government and private sectors reflects the commitment of all in order to improve the quality of the products and services available to tourists, especially those who bear the signature of small and large companies.

A new look was created for the national tourism sector that concentrates on the importance of production in Brazil. The new look helps to include businesses and attractions in the tourism sector such as crafts, agribusiness, small business, cultural events, among other activities.

The Brazilian tourism product offers the Brazilian tourists and the international tourists a diverse range of options, highlighting the natural attractions, both adventure and cultural-historical. In recent years, the government has focused on public policies to develop Brazilian tourism trying to cheapen the internal transportation, developing tourism infrastructure and training professionals for this sector.

Target Regions for Tourists

Tourists in Brazil normally go to places such as; The Amazon in the Northern Region, the coastal areas of Northeast, the Central Plateau and the Pantanal in the Midwest. The historical area of Minas Gerais also attracts some tourists as well as the beaches of Rio de Janeiro and São Paulo in Southeast.

The southeast; particularly São Paulo is the preferred destination for people who are looking for business areas. The Pampas area and the south of the country, while colder than the rest of the country are also a target for tourists searching for nice landscapes and European architecture.

State Percentage of Tourists
São Paulo 38.6%
Rio de Janeiro 19.2%
Paraná 13.8%
Rio Grande do Sul 13.3%
Others 8.7%
Santa Catarina 3.3%
Bahia 3.1%

Great Expectations for the Sector

The continual economic growth in Brazil and the economic stability are also important factors to justify the high expectations for the tourism sector in the country, such as:

  • Brazilian political image abroad.
  • Brazilian exposure in the international media due to major events that will be held in the country.
  • Increased demand for travel by the new middle class.
  • Government incentives for construction of new hotels.
  • Expansion of events to medium and small size cities.
  • Increased passenger demand and occupancy rate of aircraft.

Big Events Coming

In Brazil, companies responsible for the organization of events grew 23.3% last year, appearing ahead of travel agencies (21.9%) and promoters fairs (14.9%). The growth is a result of the exposure of Brazil in other countries, due to sporting events – the World Cup in 2014 and the 2016 Olympic Games.

Over the past eight years, the number of international events increased from 28 to 360 in Brazil. With this, the country had the fifth highest growth in international events in 2012, surpassing the volume of events in Italy, France, Germany and UK.

The cities hosting the World Cup in 2014 will have other activities during competition days. They will receive presentations and exhibitions expanding local cultural programming. The initiative comes from the Ministry of Culture and is part of the Strategic Plan for the mega sporting events that will take place in Brazil in the years to come. The plan is based on aspects such as legacy, cultural heritage, cultural content and qualification.