Travel and Tourism in Brazil

Its developing nation status is fading away each year, as Brazil astonishes the world with strong economic development and growing international importance. This growth acted as a major magnet to international tourists, leading to a positive performance in terms of arrivals, and enhanced tourism flows within the country in 2011. Air transportation and travel accommodation were the main beneficiaries, with continuous investment in new routes and rooms to further capitalise on such good momentum.

The Travel and Tourism in Brazil report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest market size data 2007-2011, allowing you to identify the sectors driving growth. It identifies the leading companies and offers strategic analysis of key factors influencing the market - be they new legislative, technology or pricing issues. Background information on disposable income, annual leave and holiday taking habits is also included. Forecasts to 2016 illustrate how the market is set to change.

Product coverage: Car Rental, Demand Factors, Health and Wellness Tourism, Tourism Flows Domestic, Tourism Flows Inbound, Tourism Flows Outbound, Tourism Receipts and Expenditure, Tourist Attractions, Transportation, Travel Accommodation, Travel Retail.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?
- Get a detailed picture of the Travel and Tourism market;
- Pinpoint growth sectors and identify factors driving change;
- Understand the competitive environment, the market's major players and leading brands;
- Use five-year forecasts to assess how the market is predicted to develop. SHOW LESS READ MORE >

TRAVEL AND TOURISM IN BRAZIL
Euromonitor International
March 2012

LIST OF CONTENTS AND TABLES

Executive Summary
Brazil Has It All To Become A Leading Destination
Infrastructure Development Is A Concern
the US Wants More Brazilian Tourists
Gol Acquires Webjet
Middle-class Consumers Set To Explore the World
Key Trends and Developments
Opportunities From Recovery
National Tourism Strategy
Legislative Environment - US VISA Waiver Programme To Include Brazil?
Infrastructure Development in Brazil
Gol Acquires Webjet
Social Networking Phenomenon in Brazil
Tam and Lan Are Close To Merger
Demand Factors
Table 1 Leave Entitlement: Volume 2006-2011
Table 2 Holiday Takers by Age: % Breakdown 2006-2011
Table 3 Seasonality of Trips 2006-2011
Balance of Payments
Table 4 Balance of Tourism Payments: Value 2006-2011
Definitions
Tourism Flows
Tourism Receipts and Expenditure
Travel Accommodation
Transportation
Car Rental
Travel Retail
Tourist Attractions
Online Sales
Health and Wellness
Summary 1 Research Sources
Cvc Brasil Operadora E Agência De Viagens SA in Travel and Tourism (brazil)
Strategic Direction
Key Facts
Summary 2 CVC Brasil Operadora e Agência de Viagens SA: Key Facts
Company Background
Competitive Positioning
Summary 3 CVC Brasil Operadora e Agência de Viagens SA: Competitive Position 2011
Gol Linhas Aéreas Inteligentes SA in Travel and Tourism (brazil)
Strategic Direction
Key Facts
Summary 4 GOL Linhas Aéreas Inteligentes SA: Key Facts
Summary 5 GOL Linhas Aéreas Inteligentes SA: Operational Indicators
Company Background
Competitive Positioning
Summary 6 GOL Linhas Aéreas Inteligentes SA: Competitive Position 2011
Hotelaria Accor Brasil SA in Travel and Tourism (brazil)
Strategic Direction
Key Facts
Summary 7 Hotelaria Accor Brasil SA: Key Facts
Company Background
Competitive Positioning
Summary 8 Hotelaria Accor Brasil SA: Competitive Position 2011
Localiza Rent A Car SA in Travel and Tourism (brazil)
Strategic Direction
Key Facts
Summary 9 Localiza Rent A Car SA: Key Facts
Summary 10 Localiza Rent A Car SA: Operational Indicators
Company Background
Competitive Positioning
Summary 11 Localiza Rent A Car SA: Competitive Position 2011
Headlines
Trends
Competitive Landscape
Prospects
Category Data
Table 5 Car Rental Sales by Category and Location: Value 2006-2011
Table 6 Car Rental Sales: Internet Transaction Value 2006-2011
Table 7 Structure of Car Rental Market: 2006-2011
Table 8 Car Rental National Brand Owner Market Shares 2007-2011
Table 9 Car Rental Brands by Key Performance Indicators 2011
Table 10 Forecast Car Rental Sales by Category and Location: Value 2011-2016
Table 11 Forecast Car Rental Sales by Category: Internet Transaction Value 2011-2016
Headlines
Trends
Prospects
Category Data
Table 12 Number of Hotel/Resort Spas: Units 2006-2011
Table 13 Health and Wellness Tourism Sales by Category: Value 2006-2011
Table 14 Spa Consumer Markets: Domestic Tourism 2006-2011
Table 15 Spa Consumer Markets: Arrivals 2006-2011
Table 16 Forecast Health and Wellness Tourism Sales by Category: Value 2011-2016
Headlines
Trends
Prospects
Category Data
Table 17 Domestic Tourism by Destination: 2006-2011
Table 18 Domestic Tourism by Purpose of Visit and by Mode of Transport: 2006-2011
Table 19 Domestic Tourist Expenditure: Value: 2006-2011
Table 20 Method of Payments for Domestic Tourism Spending: % Breakdown 2006-2011
Table 21 Forecast Domestic Tourism by Purpose of Visit and by Mode of Transport: 2011-2016
Table 22 Forecast Domestic Tourist Expenditure: Value: 2011-2016
Headlines
Trends
Country of Origin
Business Vs Leisure
City Arrivals
Prospects
Category Data
Table 23 Arrivals by Country of Origin: 2006-2011
Table 24 Leisure Arrivals by Type 2006-2011
Table 25 Business Arrivals: MICE Penetration 2006-2011
Table 26 Arrivals by Mode of Transport: 2006-2011
Table 27 Arrivals by Purpose of Visit: 2006-2011
Table 28 Incoming Tourist Receipts by Geography: Value 2006-2011
Table 29 Incoming Tourist Receipts by Category: Value 2006-2011
Table 30 Method of Payments for Incoming Tourist Receipts: % Breakdown 2006-2011
Table 31 Forecast Arrivals by Country of Origin: 2011-2016
Table 32 Forecast Arrivals by Mode of Transport: 2011-2016
Table 33 Forecast Arrivals by Purpose of Visit: 2011-2016
Table 34 Forecast Incoming Tourist Receipts by Geography: Value 2011-2016
Table 35 International Arrivals by City 2007-2011
Headlines
Trends
Destinations
Business Vs Leisure
Prospects
Category Data
Table 36 Departures by Destination: 2006-2011
Table 37 Leisure Departures by Type 2006-2011
Table 38 Business Departures: MICE Penetration % Breakdown 2006-2011
Table 39 Departures by Mode of Transport: 2006-2011
Table 40 Departures by Purpose of Visit: 2006-2011
Table 41 Outgoing Tourist Expenditure by Geography: Value 2006-2011
Table 42 Outgoing Tourist Expenditure by Category: Value 2006-2011
Table 43 Method of Payments for Outgoing Tourism Spending: % Breakdown 2006-2011
Table 44 Forecast Departures by Destination: 2011-2016
Table 45 Forecast Departures by Mode of Transport: 2011-2016
Table 46 Forecast Departures by Purpose of Visit: 2011-2016
Table 47 Forecast Outgoing Tourist Expenditure by Geography: Value 2011-2016
Headlines
Trends
Prospects
Category Data
Table 48 Tourist Attractions Sales by Category: Value 2006-2011
Table 49 Tourist Attractions Visitors by Category: 2006-2011
Table 50 Tourist Attractions Online Sales: Internet Transaction Value 2006-2011
Table 51 Leading Tourist Attractions by Visitors 2006-2011
Table 52 Forecast Tourist Attractions Sales by Category: Value 2011-2016
Table 53 Forecast Tourist Attractions Visitors by Category: 2011-2016
Table 54 Forecast Tourist Attractions Online Sales: Internet Transaction Value 2011-2016
Headlines
Trends
Airlines
Competitive Landscape
Prospects
Category Data
Table 55 Transportation Sales by Category: Value 2006-2011
Table 56 Transportation Sales: Internet Transaction Value 2006-2011
Table 57 Airline Capacity: 2006-2011
Table 58 Air by Category: Passengers Carried: 2006-2011
Table 59 Airline Passengers Carried by Distance: 2006-2011
Table 60 Airline National Brand Owner Market Shares 2007-2011
Table 61 Airline Brands by Key Performance Indicators 2011
Table 62 Forecast Transportation Sales by Category: Value 2011-2016
Table 63 Forecast Transportation Sales: Internet Transaction Value 2011-2016
Headlines
Trends
Hotels
Competitive Landscape
Prospects
Category Data
Table 64 Travel Accommodation Sales by Category: Value 2006-2011
Table 65 Travel Accommodation Outlets by Category: Units 2006-2011
Table 66 Travel Accommodation by Broad Category: Number of Rooms 2006-2011
Table 67 Regional Hotel Parameters 2011
Table 68 Travel Accommodation Sales: Internet Transaction Value 2006-2011
Table 69 Hotel National Brand Owners by Market Share 2007-2011
Table 70 Hotel Brands by Key Performance Indicators 2011
Table 71 Forecast Travel Accommodation Sales by Category: Value 2011-2016
Table 72 Forecast Travel Accommodation Outlets by Category: Units 2011-2016
Table 73 Forecast Travel Accommodation Sales: Internet Transaction Value 2011-2016
Headlines
Trends
Leisure Travel
Corporate Business Travel
Competitive Landscape
Prospects
Category Data
Table 74 Travel Retail Sales by Category: Value 2006-2011
Table 75 Travel Retail Corporate Business Sales: Value 2006-2011
Table 76 Travel Retail Leisure Sales: Value 2006-2011
Table 77 Travel Retail Online Sales by Category: Internet Transaction Value 2006-2011
Table 78 Travel Retail National Brand Owner Market Shares 2007-2011
Table 79 Travel Retail Brands by Key Performance Indicators 2011
Table 80 Forecast Travel Retail Sales by Category: Value 2011-2016
Table 81 Forecast Travel Retail Corporate Business Sales: Value 2011-2016
Table 82 Forecast Travel Retail Leisure Sales: Value 2011-2016
Table 83 Forecast Travel Retail Online Sales by Category: Internet Transaction Value 2011-2016

1. EXECUTIVE SUMMARY

The travel and tourism industry in 2005

Travel and tourism performed well in 2005, witnessing growth in all aspects of the industry. Budget/low cost companies contributed greatly in boosting sales for the industry as a whole. Brazilians are very price conscious and tend to look for the best quality deals at the lowest prices. Following the trends of 2004, the success of budget accommodation such as Formule 1's hotels and the budget airline GOL, demonstrated that the low cost concept has been warmly embraced and is continuing to increase in popularity among Brazilians.

More tourists came to visit Brazil in 2005 than in the previous year, which would indicate that the promotional efforts undertaken by Embratur – the Brazilian government body responsible for tourism – paid off, although, at the same time, a large number of Brazilians travelled abroad.

2005 saw corruption scandals in Brazilian politics, which surprisingly did not affect the economy as much as expected. However, many companies decided to delay undertaking planned investments in fear of an economic crisis, which ultimately, did not materialise. At the same time, the transport side of the industry – particularly airlines – continued to believe in Brazil, and new companies, such as Webjet, BRA and OceanAir entered the country, while existing companies ordered more aeroplanes and expanded their fleet. The year finished with an unsolved political crisis as it was uncertain if the corruption allegations would extend to the president and great expectations for 2006, when Brazil's presidential elections are due to take place.

Exchange rates become inviting while border controls become more hostile

Brazilians travelled more often and spent more money on travel and tourism over 2005. Despite the fact that it is becoming more difficult for Brazilians to enter other countries through the new requirement for visas, more Brazilians travelled abroad in 2005 than at any time in the previous three years. This was due to favourable currency exchange rates. Air tickets are charged in US dollars in Brazil, which became cheaper as the real strengthened. This situation also boosted expenditure abroad, with Brazilians spending more in 2005 than any time since 1999.

At the same time, the US tightened visa requirements for Brazilians entering the US. Brazilian citizens have to send copies of a large number of documents, bank statements and have a personal interview in order to convince the authorities they will not immigrate to the US. As a result of these strict regulations, large numbers of Brazilians began crossing the border into Mexico with a view of ultimately entering the US illegally. As a way of stopping this, the Mexican government also decided to make visas a requirement for Brazilian citizens who wanted to visit Mexico.

Many Brazilians who do travel to Europe are often not well received. Although visas prior to entry are not required in order to visit most countries, Brazilian travellers now need to have a health insurance policy with coverage of EUR30,000 as well as be able to show proof of income and accommodation, etc. In the UK, the number of Brazilians refused entry is increasing and Brazilians are now among the most refused nationalities.

Resorts create a splash over "unfair" cruise competition

2005 saw a battle emerge between resorts, cruise companies and operators. According to the resorts, they are facing unfair competition and demanded measures from the Ministry of Tourism, who promised to analyse the situation.

The cruise ships on the Brazilian coast are foreign, and because of that, do not fall under Brazilian law, particularly regarding employment. Having only part of the crew from Brazil (25% minimum as required by legislation), they do not have to heed the CLT – the work regulations that all Brazilian businesses have to follow – therefore cruises do not pay all employment taxes and have a much lower overhead on their payroll. Resorts, on the other hand, which provide employment to thousands of Brazilians have huge costs due to employment taxes.

Resorts have also complained about casinos, which are prohibited in Brazil but exist on cruise ships and begin operating as soon as the ship is in international waters. The cruise companies, however, state that they have to follow far stricter regulations, such as detailed inspections and goods declarations at each Brazilian port at which they stop. Both resorts and cruises offer similar types of entertainment, and with the favourable currency (cruises are always sold in US dollars), Brazilians are starting to opt for cruises, which in some cases may now be cheaper than the resorts. Resorts are requesting equality in terms of competitive conditions, and specific legislation for cruises – including payment of the same or similar taxes.

The motels industry has also complained about unfair competition with budget hotels over the last few years of the review period. By law, motels cannot service those under 18 years of age and are therefore obliged to ask guests for identity cards. This law does not apply to budget hotels and has caused many motel customers to switch from thematic motel rooms charged in three-hour periods, to budget hotels which offer overnight accommodation, with less comfort, but at a similar price.

The transportation industry has also witnessed some discontent. According to bus and coach companies, they have been losing some of their customers to budget airlines such as GOL and claim that airlines have to pay less tax – airlines are subject to less tax when buying aeroplanes than bus companies when buying vehicles. Coach companies also claim they have to pay a huge amount of money in tolls on privatised roads, and face damage to their vehicles when driving on badly maintained roads.

Transportation: more low cost carriers and the demise of VASP

VASP, a traditional airline in Brazil, has faced severe financial problems over the last few years of the review period. However, these got worse and the company had to stop its flights in January 2005. Due to large debts, the Brazilian court closed its headquarters down. Employees were not paid salary or benefits, aeroplanes were withdrawn, and the company did not even have money to pay for fuel. Even the electricity supply to the company's headquarters was cut-off due to lack of payment. However, there may be some hope as the company's predicament is being studied under a recuperation plan, and the company might start flying again in 2006 as a low cost carrier.

Brazil also saw other changes in the aviation industry. New companies such as Webjet, BRA and OceanAir started to operate regular flights – following the low cost air fare GOL initiated in Brazil. GOL had its best performance ever and increased the number of its passengers, industry share and number of routes greatly, along with announcing a contract to purchase 101 new aeroplanes by 2012. The company also started selling tickets which could be paid in 36 instalments with interest of 2% per month. This is more instalments than any of its competitors offer. While interest charges ultimately increase the ticket price, it does open up sales to millions of Brazilians who would otherwise have been unable to purchase a ticket.

After almost becoming bankrupt through high debts, Varig showed the government a recovery plan by finding investors willing to back it. TAP, the Portuguese airline allied to the Chinese investor Stanley Ho, decided to invest in Varig and help the company to pay off its debts and restructure. Varig continued to fly throughout these changes.

A holiday in the sun can now be bought through retailers

A number of existing retailers, from supermarkets to clothes shops and on-line retailers have entered the travel and tourism industry.

Carrefour Tourism started as a travel retail outlet in 2002. One of the largest supermarket chains in Brazil, it created a department in-house in 2001 to manage its own corporate travel. This later became the basis of the travel agencies that now exist on the premises of some of its hypermarkets. It is still not a particularly large operation, as of its 82 outlets throughout Brazil, only six have travel agencies, but with the growth of the industry, the company is now very interested in expanding this arm of the business significantly. The company's aim is to be a discount travel agency, aimed at lower-income consumers, while gaining scale.

C&A is another new player in this field. The largest clothing chain in Brazil is now interested in selling trips to its customers, particularly to lower-income earners. It has already opened eight outlets in Brazil all located on the premises of its clothing shops and it plans further expansion during 2006.

Submarino, which is similar to Amazon, is Brazil's largest on-line retailer. It also decided to enter the travel and tourism industry in 2005. Popular for selling items such as CDs, books, and DVDs etc, it acquired the operations of Travelweb.com.br in a R$2 million deal during 2005. It also bought Ingresso.com.br in an R$8 million deal during 2005, which is an on-line company selling tickets to shows, cinemas and parks, etc. The TravelWeb website is now being rebuilt and is due to be launched under the Submarino Viagens name in the near future.

These new operations are expected to change the Brazilian travel and tourism industry over the next few years, particularly regarding less wealthy consumers, who will, for the first time, have cheaper travel allied to more abundant and simpler financing.

- Cvc Brasil Operadora E Agncia De Viagens SA
- Gol Linhas Areas Inteligentes SA
- Hotelaria Accor Brasil SA
- Localiza Rent a Car SA