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Brazil: Lack of Tourists Makes Rio’s Shops Sing the Blues This Carnaval

New York City Center shopping mall in Rio, Brazil

New York City Center shopping mall in Rio, Brazil The Brazilian airports' crisis, which reduced the number of domestic tourists in Brazil, is reflecting negatively in the financial performance of Rio's shopping malls these first weeks of the year. The Rio de Janeiro's  Aloserj (Shopping Malls' Shopkeepers Association) reported a 7.5% contraction in sales from January 1st through last week.

Gilberto Catran, the Association's executive director said that despite the increase in the number of foreign tourist cruise ships, which should mean an increase in international tourism, there was no corresponding sales increase.

"The same has been happening to the national tourism, which has been well below expectation due to the airports trouble. Many people just gave up traveling," said the director.

An Aloserj's survey among Rio's main shopping malls revealed that a reduction in domestic and international tourists has been decisive in determining a negative result at the beginning of the year, informed Catran.

According to the Aloserj director, traditional expenditures by Brazilian families at this time of the year should be added as a factor causing this situation.

These start-of-the-year expenses include taxes as IPTU (Imposto Predial e Territorial Urbano – Urban Building and Land Tax) and IPVA (Imposto sobre Propriedade de Veí­culos Automotores – Tax on Motor Vehicles Ownership), "which affect especially the middle class", and  the purchase of school material, "which affects all population's classes."

The Carnaval festivities apparently are not helping to invigorate the retailing sector. "There was a big  expectation concerning the tourist activity, which considerably increases the flow of potential consumers in the shopping malls. This is not occurring, however", said Catran.

Another clue that things are not going well is the fact that companies let go of temporary workers hired for the Christmas season right after the year's end. In years past, shopkeepers had waited till Carnaval before they started firing personnel and going back to their basic staff. "They had these dismissals earlier this year," Catran explained. "This is a sign that the activity is not good."

The 2007 growth outlook is not encouraging. Retailers in Rio are not expecting to increase their sales by more than 2% to 3%. "There are no structural or macroeconomic conditions that would allow an increase bigger than that," explained the director.

Last year, shopkeepers affiliated to Aloserj reported an increase of about 2.5% in their sales. This has been the same percentage for the last four years, which is in tune with workers' purchasing power, as well as unemployment and economy restrictions," Catran said.

He also reminded that nowadays the middle class has new expenses that weight on income, like cellular phone and Internet. "There was more money available for the consumption of products but not of services. That's what has determined the small levels of growth these latest four to five years," he concluded.
 

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  • Show Comments (11)

  • Ric

    ON A NEGATIVE NOTE
    My daughter attended a Swiss-German boarding school and tells me that they were served CABBAGE PIZZA for lunch. This came as a great shock. Comments?

  • Ric

    ch.c
    Yes, a newsletter I get mentioned Zug as a good tax haven. Maybe itÀ‚´s like Delaware in the USA.

  • ch.c.

    To Ric…with a big Smile !!!!!!!
    Did you know that my Liliputian Country has more tourism revenue than Brazil ????????

    Yessssssss….sadly for Brazil !

    Nothing to do with Zug, that is not a tourists area, but a tax area….as you said. Laugh !

    On a lighter but true rumor (unproven yet) :Cia Vale will/could (rumor) set up their headquarters of ALL their non ferrous metals division….in Z U G !!!!!!!

    Yessssss…and this is after their purchase of INCO. A new division has been created. this division is worth US$ 30 billion or so and listed on the UK exchange !

    And if the rumor will become reality, this new company will in fact only copy what others world giants in non ferrous metals…..already did years ago…..namely puting their headquarters in….Z U G !!!!!!!

    You see my country has NOOO oil, minerals or whatever but we have…IDEAS, technology and skills !!!!!

    Did you know that the banks in my Liliputian country have on deposits 9,5 % of the WORLD money, and 28 % of the world PRIVATE wealth is MANAGED by these banks ????????

    We are not afraid of competition, we beat everyone ! Simple ! smile -;-))

  • ch.c.

    doubtful….
    …that the reasons are only due to the airports/airlines problems. In my view, the violence and crimes actually in Rio affect more the tourism sector than the air traffic
    problems.

    The anti-americanism will reduce the Americans touriits, but what about tourists from ALL other nations ????

    In fact the answer is quite different : why go in Brazil when elsewhere is so much better ! Therefore why bother ?

    And it is not the budget allocated by Lula to increase the publicity and marketing for Brazil that will make a dent !
    Just read the world newspapers that in fact just publish the daily Brazilian news !!!!
    USA has just recently put a travel warning for Brazil, published on this site.

    Usually what follows is a…..TRAVEL BAN !!!!!!!!

    Laugh…laugh….laugh !!!!!

  • regor_12

    With the anti-Americanism and the inability of the government to curb the crime rate, should there really be any surprise that tourists aren’t going to Brazil?

  • Ric

    Move to Zug for better tax rates. Get together with ch.c for special events.

  • bo

    [quote]The 2007 growth outlook is not encouraging. Retailers in Rio are not expecting to increase their sales by more than 2% to 3%. [/quote]

    Well that’s been the national average for quite a number of years now, so they’re making “par”. 🙁

  • Steve

    Promote tourism not witch-hunting
    It seems interesting that Walfrido Guias in his role as minister of tourism promotes denouncing and witch hunting with the notion that every woman and adolescant has been abused. A few dollars spent on extolling the wonders of Rio and the state of Guanabara instead of being the stooges of the UN and the NGO parasites might help to alleviate the lack of tourists!!!

  • bob

    I was planning a trip to see brazil, but one of my friends said “just get a ticket to the local prison…not that brazillians are crimianls…but they kill brazil name with all the crime.” I don’t think brazil is in my plans after reading of the violence. I live in the United States and I’m not saying its the best country, but Brazils killings are just plain scary as a turist I could not go there. I have friends who live there and are afraid to leave home and its there home. I think its only going to get worse before it gets any better.

  • Forrest Allen Brown

    LOOK AT THE PRICES
    IF ANY LOOKED
    YOU WOULD SEE THE PRICE OF THE JUNK THEY WERE TRYING TO SELL
    IS AS HIGH AS THE LAND THE BRAZILIANS ARE TRYING TO SELL ON THE NET

    NO BATHROOMS , NO CONTROL , BAD FOOD . HOT BEER . STUPID PEOPLE , WITH GUNS , KNIFES , GANGS

    HAVE A GOOD WEEK DOWN THERE

  • Old one.

    These Brasilians are fools. They dont understand that they will fail in whatever they do. Atleast they should realise it, after visiting this site, and reading the comments posted by ch.c. (recently he may be using different names, but the deadly poison in his words remains the same)

    God has sent ch.c for the Brasilians. Stupid Brasilians dont realise it.

    All Brasilians should be made to visit Brazzilcom every hour. They should be slapped on their asses, and made to read what ch.c has written by each passing hour. (Women should be made naked, while reading —right ch.c?) .

    All those who dont do the needfull, should be sent to iraq to die.

    Lula should order to combine all comments of ch.c and give it a form of a text book, and it should be included at all levels of education in Brasil. Thereafter wait…..keep visiting this site..for future advise from ch.c…… mercy..god has sent him to brasil…let no words of his go waste…

    For people who dont know about the great ch.c : wait, soon he will appear from thin air, and contribute his golden words to this post. if not, then this post is worthless, people should then move on to other posts, where lord ch.c has blessed with his golden words !

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