Kimep University
Principles and Practices in Tourism Topic: Brazil
Instructor: Vladimir Garkavenko, PhD
Group: Alisheva K.
Omyrbek- uly N.
Zamanbek A.
Zhunusbekov T.
Almaty 2013
Table of contents
History of travel and tourism in Brazil
Statistics on inbound, outbound and domestic tourism, expenditures etc.
National, Regional and Local organizations relevant to tourism, their functions
Tourism Industry’s Sectors developed in Brazil:
Transportation
Hospitality sector
Distribution
Attractions
Motivations for travel to Brazil
Tourism development planning, sustainability
Tourism Marketing activities to promote Brazil
Tourism impacts, benefits and costs for Brazil
Tourism prospects in Brazil. Recommendations and Conclusions
History of travel and tourism in Brazil
Tourism in Brazil becoming is one of the major sources of revenues for Brazil economy, it can be explained by big events which was planned to hold in next year, for example, 2014 World Football Cup. But Brazil still popular among tourists for unique nature, which includes mountains, sandy beaches, jungles etc. and welcomes visitors with creative architecture, culture, festivals and cuisine. The South American nation is the fifth largest country in the world, home to 170 million inhabitants. Brazil boasts hundreds of miles of coastline, some delightfully peaceful and others throbbing with parties, bars, restaurants and cafes.
Rio de Janeiro and São Paulo are two of the most visited destinations in the country, offering visitors (whether in the country on business or pleasure) a fabulous peek into the complex heritage and natural spectacle of Brazil. Tourism rates sky-rocketed from the year 2000 onwards as awareness of its multifaceted appeal rose. There was a period between 2006 and 2008 that economic issues hindered the tourism industry somewhat. However, Brazil is the most visited country in the continent of South America today.
Statistics. International tourism, number of arrivals (inbound)
The value for International tourism, number of arrivals in Brazil
was 5,433,000 as of 2011. As the graph below shows, over the past 16
years this indicator reached a maximum value of 5,433,000 in 2011
and a minimum value of 1,991,000 in 1995.
International tourism, number of departures
(outbound)
The value for International tourism, number of departures in Brazil
was 6,430,000 as of 2010. As the graph below shows, over the past 15
years this indicator reached a maximum value of 6,430,000 in 2010
and a minimum value of 2,338,000 in 2002.
International tourism, receipts (current US$)
The latest value for International tourism, receipts (current US$)
in Brazil was $6,830,000,000 as of 2011. Over the past 16 years, the
value for this indicator has fluctuated between $6,830,000,000 in
2011 and $744,000,000 in 1996.
International tourism, expenditures (current US$)
The latest value for International tourism, expenditures (current
US$) in Brazil was $25,070,000,000 as of 2011. Over the past 16
years, the value for this indicator has fluctuated between
$25,070,000,000 in 2011 and $2,874,000,000 in 2003.
Domestic Tourism
Domestic tourism is a key market segment for the tourism industry in Brazil. In 2005, 51 million Brazilian nationals made ten times more trips than foreign tourists and spent five times more money than their international counterparts. The main destination states in 2005 were São Paulo (27.7%), Minas Gerais (10.8%), Rio de Janeiro (8.4%), Bahia (7.4%) and Santa Catarina (7.2%). The top three states by trip origin were São Paulo (35.7%), Minas Gerais (13.6%) and Rio de Janeiro (8.2%).
In terms of tourism revenues, the top earners by state were São Paulo (16.4%) and Bahia (11.7%). For 2005 the three main trip purposes were visiting friends and family (53.1%), sun and beach (40.8%), and cultural tourism (12.5%).
National, Regional and Local organizations relevant to tourism, their functions
The Latin American travel and tourism industry's leading Associations, as well as some key international Associations, are supporting WTM Latin America. Some of the Associations will be exhibiting at the event within a dedicated area.
ABETA – Brazilian Association of Ecotourism and Adventure Tourism
With 240 associates in 23 states, ABETA strengthens Brazil’s potential for nature travel. ABETA's mission is to transform our country into a fun, conscientious and healthy way, making life in the open air a force that drives the evolution of society.
ABRASTUR – Brazilian Association of Cooperatives and Social Tourism Companies
ABRASTUR was set up with the objective of bringing together social tourism cooperatives and clubs in the constant search for observing and faithfully complying with current legislation, its articles of incorporation and its code of ethics, and ensuring they are complied with. It also oversees the moral, professional and social prestige of its associates, by defending their collective and individual rights and interests with trade bodies and governments.
ABRATURR - Brazilian Association of Rural Tourism
ABRATURR was founded in 1994, with the objective to represent, support and help its associates in order to strengthen the segment, promote and develop the rural environment. ABRATURR has always been committed to the preservation of Brazil’s environmental, cultural and economic heritage. Its associates are state entities that represent the rural tourism segment.
National tourism organization “Ministerio do Turismo” of Brazil
Be acquainted with the purposes and objectives of the Ministry of Tourism, of its secretariats and of EMBRATUR. Developing tourism as a sustainable economic activity with a relevant role for the generation of jobs and foreign currency and providing social inclusion. The Ministry of Tourism is innovating in the handling of public policies with a decentralized management model, guided by the strategic thinking. Its organizational structure comprises the National Secretariat of Tourism Policies, which assumes the role of carrying out the national policy for the sector, oriented by the directives from the national Council of Tourism. In addition, it is responsible for the internal promotion and overseas the quality of the provision of the Brazilian tourism service. The National Secretariat of Programs for the Development of Tourism is responsible for subsidizing the formulation of plans, programs and actions for the strengthening of the national tourism. The duties of the body are the infrastructure promotion and development and the improvement in the quality of the services rendered.
Tourism industry in Brazil
First of all, I would like to ask the questions “What is Tourism industry and can we call tourism sector as industry itself”. As was written in article “More than an ‘‘industry’’: The forgotten power of tourism as a social force”, tourism it is not just business it is economical, political and social phenomenon which has deep impact on other different industries, like transportation, hospitality sector, distribution and attractions or vice versa, I mean that, they also influence on tourism itself. So from this point we can say that, these industries are platforms for business, while tourism is engine which starts and unite all them together, in order to satisfy the customers’ needs and wants. So in this case I’d like to introduce you with all industries separately.
Transportation
As we know Brazil is the largest country in South America and one of the biggest countries in world, after Russia, Canada, China and USA, which total size are more than 8.5 million km². That is why transportation plays an important role in this country. As statistics shows the roads are the main unloading branch for transportation, for instance the total paved roads for year 2002 was 184,140 km, and this total number of paved increasing due to economical and population growth. In Brazil some part of roads are private, that is why people should pay for using them. While railways become less popular among citizens, in comparing with 31,789 km (1970), current size is shorter which contains not more than 30,875 km (2002), the most of the railways are privatized by Federal Railroad Corporation. Brazil has one of the biggest amount airports in world, while the biggest amount in USA. The total number of airports in Brazil is 2500. The huge number of airports can be explained by impassable jungles, the long separation of destinations, and big population, which is according to statistics in 2012 composed 194,000,000 people.
So, as we look at transportation as one of the supporters of tourism, I want to describe the major types of transport, companies and some futures in this sphere in Brazil. In order to travel around Brazil, simple tourists can use passenger trains, travel basses, rent cars or plains, but I’d like to remind that in our paper we look at Tourism industry in Brazil from business point of view, not as simple tourists. Anyway any information will be useful for any side, so in this sunny country as common driver you can meet with undisciplined driving and other adverse situations, at least corruption by local authorities. For instance we can look at statistics, more than 42,000 deaths in traffic accidents per year (2011, statistics by SOS Estradas), for compare in USA about 30,000 deaths per year in traffic accidents (2011), mention that population in USA is higher than 316,000,000. If we look back at statistics and look at them from tourism business point of view, Brazil is not safety place for private driving, and rent a car can be dangerous for tourists.
Aircraft transportation or civil aviation, is one of the major and important part of transportation in Brazil, because they connect sparsely inhabited places with the main economical centers of country, while for tourists is important to move from big economical centers to cultural, natural and historical places. To support the fact that aviation the one of the major type of transportation I can add that, according to Brazil's Department of Civil Aviation (DAC), Brazil holds the world's third largest business aviation fleet, surpassed only by the US and Mexico. To sum up civil aviation is good opportunity to make business in this sphere, because it can produce more revenues for tourism firms due to prices and length of destinations.
Railroads, the weak side of Brazil transportation industry, for some reasons, for example: aviation is much convenient due to not high prices and time of delivering, railroads in Brazil needs big investments in order to develop railway infrastructure, that is why some political impediments, because developing airlines seems more rational for local politics. But if we look at this sphere as Tourism Company, it could be unique and profitable idea as “Orient Express”.
In conclusion for transportation sector, I can conclude that Brazil needs some developments and some implementation from authorities to make legal framework and allocating more investments to weak sides of transportation, like railways, not only on civil aviation, because prices for fuel increasing each year, while trains can use electricity or at least coal, in addition as history tells do not put all eggs in one box.
Hospitality sector
In Latin America, Brazil is the leader of inside foreign investments in commercial real estate. It can be explained for some reasons, some of them are World Football Cup 2014, Olympic Summer Games in 2016 (Rio de Janeiro), stable political and economical situation in country, which is very important for tourism attractiveness, in addition Brazilians are fun loving and very welcoming. According to a recent Bloomberg survey, Brazil is preferred place for investments, for a number of reasons:
Brazil emerged from the recent global recession relatively unscathed and managed to maintain its investment-grade rating.
It has brought its inflation under control and has launched smarter budgets.
It has maintained a healthy banking system.
It has a stable political climate.
Yet several challenges remain for Brazil:
Brazil carries a gross public debt estimated at 63% of gross domestic product (GDP), which is higher than other investment-grade countries.
It lacks sufficient transparency with real estate debt instruments.
The nation has high taxes and restrictive labor laws, which can limit investment return.
Investing in Brazil requires time, patience and strong local connectivity, but the result is getting into one of the world’s fastest-growing investment markets. So from businessman point of view Brazil is plum for building hospitality industry. But what Brazil can offer to tourist today?
So currently in Brazil hospitality sector can offer hotels, condo hotels (condominium based) and mixed-use properties, where the hotels or condo-hotels are developed together with residential, corporate towers and/or shopping malls. Also this market mainly controls by some hotel companies, for example:
Accor- the 2nd largest hotel chain in World, today it operates in Brazil about 144 outlets with 22.809 rooms. Also Accor planned to build in Brazil new 85 hotels (5000 rooms)
Atlantica- with 72 hotels in Brazil, also planned to build new 28 hotels.
Sol Melia- 14 hotels, it is Spanish company, which focuses on big cities in Brazil.
Hyatt- it is familiar brand for local people, Grand Hyatt in Sao Paulo is 5 star hotel, with 466 rooms.
Hilton- only two hotels in Brazil, they also see Brazil Hospitality market as good platform for future development.
Also there are many other famous international Hotel Chains like Marriot, Blue Tree and Hotels Othon
So as conclusion, Brazil Hospitality sector is not overloaded by big amount of hotels and hotel chains, and current local and foreign businessmen has good opportunity to make revenues from this industry, because World Cup 2014 and the 2016 Olympics, will attract huge amount of tourists who will need not expensive rooms not only in one city, and due to economic and political stability Brazil is very attractive place for tourists.
Distribution
In order to organize the travel to Brazil, consumer has many flexible ways to plan travel. The easiest way for customer is contact with local travel agency who can find the most attractive and affordable option for customer. But if we look deeper, this local travel agency will contact with tour operator who also will contact service provider, as service provider we can understand the transportation, hospitality and entertainment services, so it the easiest and first way of tourism distribution.
The second way includes operation between customer and tour operator, who is also will contact with service provider, and there are some advantages of them: professional assistance, multiple options, free or low- cost assistance, cumulative group power, single charge billing.
The third way is straightforward contact between customer and service provider, so in this case customer chooses and organizes his travel by himself, by choosing hotel, transportation provider, and other entertainment destinations. As advantages of straightforward distribution I can list: simplicity, sales opportunities, flexibility, and personal control over the sale.
Brazil is not popular destination among Kazakhstan tourists, but we have some international travel agencies who can organize your travel to Brazil, for example: Farab- Tourism (www.farabtourism.kz), Complete Service (www.complete.kz), Premium Travel (www.premiumtravel.kz) etc.
Attractions
As we know Brazil is country of contrasts, because here tourist can meet with the majestic mountains which are combined with lush tropical forests, magnificent beaches, with dense jungle. The great waterfalls harmonize with the quiet and cozy bays. Along with modern cities, there are tribes living in the wild jungles, using primitive tools and hunting methods of Stone Age. Age of high technology coexist with incredibly life backward Indian tribes that do not know what electricity is, also the famous and colorful Carnivals, the great sportsmen, especially football players. All these things we can call attractions, as products of tourism, and these attractions the main reasons of traveling to this country.
In this case I’d like to introduce you with current and future perspectives of attraction industry in Brazil. There are different types of attractions like, natural, cultural, events, recreation and entertainment attractions and each of them were deeply presented in Brazil.
Natural Attractions
In other words we can call such attraction as Eco- Tourism. As was described before, Brazil has rich flora and fauna, different landscapes, like mountains, rivers, bays etc. and Brazil is unique place because from 290,000 types of plants, 90,000 situated in Latin America, mainly in Brazil, from 1,400,000 types of animals, 10% of them lives in Brazil. So this place is good opportunity to do business for Tour companies in different natural locations, for example:
Amazon- is the second longest river in the world and is by far the largest by water flow; also it is the largest and most intact rainforest region in the world. One of the most popular destinations among eco- tourists, there are many tour firms which can introduce customers with all futures of Amazon. As was mentioned before couple of Kazakhstani firms can organize the tours to Amazon from Kazakhstan.
Pantanal - The Largest Wetlands in the World: In the centre of the South American continent lies the largest wetlands in the world: the Pantanal. Extending into three countries, Brazil, Bolivia and Paraguay, its total area is an estimated 240,000 square kilometers (60% is in Brazil).
The Atlantic Forest- The Forgotten Rainforest of Brazil: The Atlantic Forest is one of the most threatened rainforests in the world. It used to stretch all along the Brazilian coast occupying an area of about 1.1 million square kilometers. Now less than 10% remains. Most of the forest cover in the states North of Salvador is gone.
Cerrado - The Magical Brazilian Heartland: The heartland of Brazil, the "cerrado", covers an area equal to Western Europe (2 million sq km) and is thought to be one of the South American continent's more ancient ecosystems.
Caatinga - Ancient Badlands of Northeastern Brazil: Caa-tinga (caa = woods, tinga = white) is the Tupi Indian name for the typical vegetation of the backlands of the North East of Brazil. In the prolonged dry season, most of the thorny bushes, scrubs and contorted trees of the caatinga lose their leaves and you see a thicket of dull grey-white trunks and twigs.
After Earth summit in Rio 1992 Brazil become the center of Ecotourism, and this type of tourism popularizing every year, also in International Arena Brazil rainforests plays significant role, because we call these place as lungs of earth, and other countries who interested in saving environment take care about this area of Earth.
Cultural and Events Attractions
Cultural tourism is type of tourism which consists of historical, cultural sightseeing’s; also it includes introducing with local communities and them traditions. Brazil as multi national country has rich historical places, which combined with different type of nations who lived there before European invasion. The mix of cultures effected on all spheres of life, for example: on architecture, here tourist can see Olinda historic downtown area, Ouro Preto, Teatro Amazonas etc. or also celebrating some events, as example Carnival, we can say it is Christians Holiday, but with some local “wild” changes in contest of event, and at least people, the Brazil community consist of different type of nationalities and them “hybrids”, here we can find local Indians, representatives of central and north European people, a lot of Japans, people from middle east who emigrated in 1970th , also a lot of people with African roots. So, I’d like couple of most famous cultural and event attractions in Brazil.
Event attractions one of the good opportunities to eliminate seasonality effect on tourism, as example: Sale period in February in Dubai, Oktoberfest in Munich or many other events over the world where the main source of revenue decreasing due to seasonality. As event attraction in Brazil it will be right to mention first of all the Famous Carnival in Rio, also the last Sport Events, like Cup of Confederation which was in June, also World Football Cup in 2014.
Carnival in Rio
This event attracts more than 2,000,000 million tourists from all parts of world. Also this carnival take place in other regions of Brazil, like Salvador and Olinda, but the biggest and most popular carnival undoubtedly the Carnival in Rio de Janeiro. People who celebrate Carnival is everywhere, in clubs, pubs, cafes, so opportunity to make profit in all spheres is very high.
Christ the Redeemer
The symbol of Rio de Janeiro and Brazil, Christ the Redeemer is the famous statue of Jesus Christ. Located at the peak of the 700 meters (2,300 ft) Corcovado Mountain, it provides a sweeping panorama of Rio de Janeiro. The Christ the Redeemer statue stands 39.6 meters (130 ft) tall, including its 9.5 meters (31 ft) pedestal. The majestic statue, the icon of Rio de Janeiro as tourism product is very attractive like the Statue of Liberty in New- York, or Eiffel Tower in Paris, or Big Ben in London.
So, any event in Brazil is very colorful and amazing performance, and in case of attraction Brazil is very popular among tourists. Events is one of the main sources of tourism product in Brazil, for example we can find in closer places sandy beaches and sunny weather, but we can not find such mixed culture like in Brazil, of course every culture is unique, but Brazil represents they futures of culture in most attractive way for tourists. It does not mean they not need development of tourism management, because far geographic location plays own role on tourists attendance. But we have a lot of good examples of far geographic location, but good tourists attendance, so it is good opportunity for tour companies.
Motivations to travel to Brazil
What are the top 10 reasons to visit Brazil? Brazil is a country of great natural beauty. Dazzling beaches and rainforests are a few of the superlative attractions that await visitors. Brazil is also home to a people of great ethnic and cultural diversity, whose heritage is expressed in vibrant art and celebrations, historical cities and bustling urban centers. Here are some of the main reasons to visit Brazil.