Leisure & Tourism

An Expert's View about Travel, Tourism and Food Services in Brazil

Posted on: 25 Apr 2012

Brazil is "piggybacking" on the current growth of the middle class and in the major events that will take place in the coming years as the FIFA World Cup 2014 and the Olympic Games Rio 2016.

Leisure & Tourism sector in Brazil Brazil is the 7th destination in the world in number of international events, and was chosen to host the 2014 World Cup and the Olympic Games in 2016. Market overview With the end of 2010, the domestic tourism industry began to indicate a time of great expectation of future earnings. With the favourable economic climate in recent years, which combined GDP growth, increased foreign direct investment in the country, higher inflation control, greater availability of credit and gradual fall in interest rates, a favourable scenario was established for the development of national tourism. In addition, the tourist sector in Brazil is "piggybacking" on the current growth of the middle class and in the major events that will take place in the coming years as the FIFA World Cup 2014 and the Olympic Games Rio 2016. Latest data shows that in 2011 Brazil received 5, 4 million tourists, whom spent US$ 6,775 billion. In 2010 the 80 biggest Brazilian tourism companies had a turnover of R$ 42.8 billion (£16.17 billion) and employed around 96,000 people. Tourism accounts for 3% of Brazil?s GDP and forecasts are that by 2020 will be responsible for 8%. (Source: Ministry of Tourism). Currently, the sector employs 7.2 million. For the World Cup in 2014 there will be around 870,000 professionals dealing directly with the public and visitors in general. The Ministry of Tourism predicts that the sector?s turnover will increase by 16.5% in 2014. Key opportunities ? Since Brazil was chosen to host the 2014 World Cup and Olympic Games in 2016, the Ministry of Tourism started a Project to develop 65 destinations and turn them into a model of high tourism quality before 2014. ? Such initiatives refer to vocational courses to World Cup staff, in areas such as tourism, languages, lodging, security, health and IT. This aims to provide qualified workers of top destinations during the World Cup. ? Forecasts are that Brazil will receive 8 million visitors in 2014, 600 thousand of which should arrive during the World Cup month, while it is estimated in 03 million the number of people travelling inside Brazil during this month. ? In the infrastructure sector, the Brazilian government approved so far projects that together will cost U$1.48 billion. ? As regards to leisure, until 2010 live events were focused only on classes A and B. Average ticket price goes from U$138 ? 300. For these events to survive in Brazil, the sector will have to offer new options to its public, such as strongly invest in class C. Average ticket should cost U$12 to attract this ascending class. ? Investment in musicals in Brazil is growing quite fast and this represents opportunities for UK Company in the leisure sector. ? Museums and Attractions are other important areas that UK companies should exploit: from security to content. A new museum named ?Museu da Pessoa? will be built in Sao Paulo especially for the World Cup in 2014. This is an initiative from Jaime Lerner, architect from Curitiba. Latest export opportunities in Leisure & Tourism Latest export opportunities - Brazil Getting into the market There is not a specific way to enter the Brazilian market in the tourism and leisure sectors. This will really depend on the kind of product and service to be offered. The recommendation is for foreign companies to partner with well established local players. In terms of cultural standards Brazilians are well informed business people and brand orientated. Brazilians are very sophisticated consumers, well travelled and fully aware of what the world can offer. As Brazil is a large and diverse country, it is important to appoint a business partner who has contacts in different Brazilian regions. Most of population does not speak English and business is done with people not with the companies. Personal relationship is fundamental to find success in Brazil. Under Brazilian law is mandatory to have catalogues and promotional material in Brazilian Portuguese. Price is usually quoted in US$. Information about doing business in Brazil can be found in our Business Guide. Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ? Simone Ricci, British Consulate-General, São Paulo. Tel: +55 11 3094 2746 or email: simone.ricci@fco.gov.uk. ? Vera Oliveira, British Consulate-General, São Paulo. Tel: +55 11 3094 1893 or email: vera.oliveira@fco.gov.uk Contact your local international trade team Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events Brazil Latest events ?Leisure & Tourism Major Events Feira das Americas Date: 24 - 26 October 2012 Website address: www.feiradasamericas.com.br Equipotel Date: 10 - 13 September 2012 Website address: www.equipotel.com.br Salao do Turismo Date: TBA Website address: www.salao.turismo.gov.br Useful links More about OMIS and other UKTI services for exporters
Posted: 25 April 2012

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