• Categories
  • Archives

Feeling Rich, Brazilians Go on Spending Spree Overseas

Brazilian tourist in Paris The decreasing dollar value and the country's rising income, in spite of the recent increase in the inflation rate, are leading Brazilians to spend more in foreign countries. On the other hand, the number of foreigners visiting Brazil has remained stable for three years – 5 million – according to the Brazilian Tourism Institute (Embratur).

The rise in the amount of money spent by visitors is a result of the depreciation of the dollar against the real. "Even though the value of the dollar is not favorable to us, we are not losing a substantial number of tourists, and we have the advantage of receiving tourists of a higher-level, who spend more and stay longer in the country," stated the director for Studies and Research at Embratur, José Francisco de Salles Lopes.

The director of international affairs at the Brazilian Travel Agency Association (Abav), Leonel Rossi, claims that with the dollar at a lower value compared with the real, the number of "low-income" foreign tourists – who used to purchase tourist packages with chartered flights to the North and Northeast – has decreased, but the reduction was not "very high."

Rossi is expecting growth of 10% in the number of foreign tourists in Brazil this year. "There needs to be greater advertisement for Brazil abroad," he said.

As expenditures by Brazilians in foreign countries grew at a lower rate than those of foreigners in Brazil, the international travel account posted the most significant negative result in the 12-month period ending in June this year.

According to the Central Bank of Brazil, which began keeping track of the historical series in 1947, the travel deficit reached US$ 4.833 billion. In a 12-month period, travel account revenues reached US$ 5.416 billion and expenditures by Brazilians abroad totaled US$ 10.250 billion.

The Central Bank's figures show that spending by Brazilians in foreign countries has been on the rise for some years now. From 2004 to 2005, expenditures went from US$ 2.871 billion to US$ 4.790 billion, growth of 39.1%. In 2006, the figure continued to grow – US$ 5.764 billion – and totaled US$ 8.111 billion.

"First off, the country's economy is doing well, the people are more confident about their wages and jobs and, when that happens, people have more money for tourism and leisure. The other factor is the dollar," explained Rossi. According to him, three and a half years ago, a US$ 1,000 ticket cost 3,300 Brazilian reais. Now, that same ticket costs approximately 1,600 reais.

Revenues (expenses by foreigners in Brazil) are also rising, but at a lower rate. In 2004, the value reached US$ 3.222 billion, and continued to increase until it reached US$ 4.953 billion, in late 2007.

To the director at Embratur, in spite of the deficit, there are some positive aspects. "The balance of tourism payments is rising exponentially. And there is a share of expenses by Brazilians that stays in the country – with the airlines, travel agents and tourist operators. This money that remains in the country is very important to the economy," he asserted.

ABr

Tags:

  • Show Comments (2)

  • jerrydill

    Dollar value
    I don’t see the dollar staying low for a long time. I think you could see an increase in the value soon. This may slow tourism especially to the US. I know that Tourism to Brazil is a major source of income for the country.

  • Sutter

    Tourism
    The dollar may be down and consumer confidence up (not completely sure about that), but it’s still expensive to travel to other countries, and even within Brazil, due to the high fares. Lack of competition is at least partly to blame. The cost to fly from, say, Sao Paulo to Recife or Fortaleza or Belem is much, much higher than it costs to fly the equivalent distance in the U.S. TAM has particularly increased costs of flights from Fortaleza to Miami. Many Brazilians rely on bus travel, but that’s a bit impractical for overseas trips.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Indicted for Green Card Fraud Can Get 15 Years in Prison

A federal indicment was returned June 2 following the arrest of a Brazilian man from ...

Brazil Wants World to Accept Abrolhos Park as Protected Area

Recognition of a an area in Brazil comprising five million hectares, including the Abrolhos ...

House of Horrors

In Minas Gerais, police stations torture methods used in the 1960s are still in ...

Brazil’s Finance Minister Out for Disrespecting Law, Says Lula’s Leader in Senate

When he announced the president of the Brazilian Development Bank (BNDES), Guido Mantega, as ...

Small Business Creates 70,000 New Jobs in Sí£o Paulo, Brazil

The micro and small sized companies from the state of São Paulo, southeast Brazil, ...

Brazil Boom: Agribusiness and Machinery Give Paraní¡ State Best Year Ever

Sales by the industry of the southern Brazilian state of Paraná, from January to ...

Brazil’s Benefit of Costlier Oil: More Sales to Arabs

The price of the WTI (West Texas Intermediate crude, a type of oil used ...

Brazil Discovers Trade Fairs and Small Businesses Get a Boost

Trade fairs in Brazil have been growing from year to year and are now ...

Amnesty Wants Full and Public Probe on Killing of Brazilian by London Police

A jury at the Central Criminal Court in London reached the verdict today (November ...