Is Brazil really committed to tourism as a national priority, or is it just rhetoric.

[kirk bowman]

The World Economic Forum rates Brazil as number 4 on the planet and number 1 in the hemisphere in cultural and natural tourism resources and attraction.  the country is blessed with multiple top tier global tourism icons.  Tourism was formally announced as a national priority in the late 1990s, and a tourism ministry was formed in 2003.  Billions have been spent on tourism infrastructure, the country received the World Cup, and Rio won the Olympics, the Pan American Games, and other high profile events.

YET, while international tourism expanded by 35% from 2000-2008, it fell in Rio de Janeiro by 15% and was stagnant in Brazil.  (in contrast, tourism over the same period grew by 60% in Buenos Aires.)

I am attaching a PDF with the data and a couple of charts.  I would appreciate comments by Brazil experts on why this sector has been such a dismal failure in the Cidade Maravilhosa, when it should have flourished.

Many thanks, 

Kirk Bowman

Sam Nunn School of International Affairs,

Georgia Institute of Technology.

[Jim McDaniel]

Hi Kirk,

I think there are several factors involved. One is that the Real has gotten so much stronger, compared to the US$. Another is that an image of rampant crime is published in the media. Another is that many of the wonderful places are not that well-known by foreigners, particularly Americans, and the local operators aren't experienced enough at presenting their product to the international market in an enticing manner.

[Mario Andreazza]

Well there are few issues in Brazil that in my believe make the tourism industry have hard times. The political situation in Brazil have been a constant problem, despite de fact that have got much better on the last years, still a bit confused and corrupted to be polite. It’s a lack of interest, even so there are some good people working there and doing the best they can to bring Tourism in Brazil up.

The security reason is a big issue in Brazil, and is specially complicated in the big centers, that work as the entrance door for the country such as Rio and Sao Paulo, that for sure have a big impact in the tourism specially to the international Market, the social problems contribute to the violence and again we return for the public policies that are in place, and politicians making difficult to find a way out of the mess.

Indeed Brazil has a rude potential, Natural, Climate, Culture and People are unique, there are a lot of local tour operators offering services with high quality in Brazil and trying to spread the world about the determinate region they operate.

The real is getting stronger against the dolar, that is making Brazil a more expensive trip, and the cost of the flights from Europe and USA / Canada still high making it a expressive trip, in this time where cheap tickets are the norm, that can make people decide to go to other destinations. The economy there still growing and there is a increase in the number of Brazilians traveling to Europe and USA, also the domestic and regional tourism market in Brazil have been increasing constantly. The airline market in Brazil has increased 28% in the first 6 months of 2010.

Well Jim I need to disagree with you, Tours Operator and travel agencies in Brazil have a really high standard on the service they provide, and all the service sector in Brazil will in general give you a customer service that you can’t experience in other countries. Other than that, they are focusing in technology and have really good professional working in the area, most of them more for the passion to work with tourism then from the money they are making.

The internal market place in Brazil is huge, and can’t be eliminated from the figure, and there have been a increase in the people traveling around in Brazil.

Mario

[Ariane Janer]

Kirk,

I have been following Brazil's tourism industry for a long time (and collect a lot of statistics going back to the 80s) and while still critical of how things are run in tourism in Brazil, one thing is very clear: tourism has certainly become a priority in Brazil and things have much improved. So I will now try to balance your outside looking in view with an outsider (i am not Brazilian) looking from the inside.

Your conclusions are a result of a narrow focus (international tourism in Rio de Janeiro) and just looking at numbers without understanding the context. A lot of the points (especially by Mario) have already been made, but here we go.

1) International tourism in Brazil depends on Argentina and the long haul market from the northern hemisphere. Until 2005, long haul was growing very nicely (while Argentina was in a big crisis). But since 2005, the real started to strengthen against dollar and euro. This was followed by a world economic crisis and long haul (especially cheap charters) were affected. This was partly compensated by Argentina getting out of its slump.
2) Brasil's image as a violent destination, has much improved since the 90s. Favela tours are booming in Brazil. Brazilians now worry about going to places like Europe (terror alerts).
3) Brazil's domestic market is much and much bigger than the international one. Brazil is the size of the USA (without Alaska), which also has a huge domestic market or twice the size of the European Union (80% of Europe travels within Europe).
3) Rio de Janeiro (I live there) is doing quite nicely, in terms of occupancy rates, new hotel investments and products. So "dismal performance" sounds a bit over the top to me. However, it is not the only destination in Brazil anymore. Tourists (domestic and international) are discovering many new places in Brazil to visit, so tourism distribution is also changing.
4) There is no consistent evidence that mega events boost tourism. There is a very interesting study by the European Tour Operators Association on that. Just ask "Australia", where "the bloody hell their tourism went" after the Sydney Olympics.
5) Who is boosting tourism to Buenos Aires, anyway ? Brazilians are travelling more abroad with their hard currency ..
6) Yes, part of the infrastructure investment is wasted and have made sustainability problems worse, especially in the Northeast.. On the other, a lot of money is going to training and quality of service is improving.

Our www.ecobrasil.org.br site has some data (not up to date as I have not had time to revise) on the tourism phases of Brazil. Hope to able to put the up the right data there (in english) the next few months. If you speak portuguese, you can also download some of my presentations.

BTW, what is the source of your data ....

[Alison McGowan]

Occupation rates in hotels Rio de Janeiro are now at 80% and there is now officially no "low season" any more so I am not sure if the information above is just out of date or wrong. The city is booming and I know that not only because I work in tourism but I also see it with my own eyes living here. Cheers, Alison (Hidden Pousadas Brazil)

[Lapa Hostel Rio]

The security reason is a big issue in Brazil and the lack of qualified labor force within the local hospitality companies are another one that needs some attention.

 

The security issue is under constant changing, with the State Government taking over the power in areas dominated by drug dealers. The sensation of security is higher on the streets and the feeling of better days are more and more apparent.

Rio de Janeiro has an astonishing nature and it´s landscape are pretty unique. The security are becoming better and the city and its population are tired of violence and uncertainty. The feeling that we have here is that the city are in it´s prime and after 5 years away between Europe and the Us I´ve perceived a much more internationally minded city over the time.

The prices for foreign travelers are extremelly high, in what i consider the hypothesis of "bubble effect" of prices, specially regarding the hotels and its services.

After had the experience of work in big companies such Marriott, Sheraton, Sofitel and The Standard ( NYC ) I´ve decided to dedicate my expertise in a Low Budget Lodging field openning a Hostel in the heart of Rio, in the city´s most bohemian neighborhood, craddle of the Samba...Lapa in downtown. To learn more access www.lapahostelrio.com