The Brazilian Chamber of Foreign Trade CNC projects a real revenue of R$458 billion ($92 billion) for Brazil’s tourism in 2023.
This marks an 8.8% increase from 2022. Extended holidays contribute to this growth.
Each long holiday could add 2.1% to yearly revenue. In monetary terms, that’s an extra R$48 billion ($9.6 billion).
This is similar to 40 days of regular earnings.
In July, revenue hit a record R$41 billion ($8.2 billion). Adjusting for inflation, that’s a 7.8% jump compared to last year’s July.
Tomorrow, a detailed tourism report will be released.
José Roberto Tadros, the CNC President, highlighted tourism’s role in post-pandemic recovery.
He recalls a time three years ago when the sector lost two-thirds of its monthly income.
Average domestic flight costs are dropping. The price recently went from R$700 ($140.56) to R$565.21 ($28.16).
According to aviation regulator Anac, there was a 3.2% decline in July year-over-year. Consequently, domestic passengers reached a record 8.5 million.
On international flights, the number of tourists reached 1.7 million, up 18% from last July.
Alexandre Sampaio, a director at CNC, credits federal tax reforms for this drop in airfare costs.
Job growth in tourism is promising too. An estimated 165,200 new positions will appear this year, a 5.9% increase.
Moreover, inflation in the sector is at 5%. Rates are highest in lodging, tolls, and travel packages.
Background
The projected growth in tourism revenue also has implications for related sectors.
For instance, the hospitality and restaurant industries stand to gain from increased tourist activity.
More tourists mean higher demand for food, lodging, and local services.
This cascading effect could fuel job creation beyond the estimated 165,200 new positions in tourism alone.
Simultaneously, the decline in airfare could potentially impact airlines’ profit margins.
Airlines will need to find a balance to maintain profitability while offering competitive prices.
However, cheaper flights could result in higher booking volumes, compensating for the lower ticket prices.