Brazil tourism totals US$80 billion loss in pandemic; 21.9% growth expected in 2021

RIO DE JANEIRO, BRAZIL – Tourism activities have accumulated a R$453 (US$80) billion loss since the worsening of the novel coronavirus pandemic in the country, in March 2020, through October this year, according to the National Confederation of Goods Trade, Services and Tourism (CNC).

However, the trend is for gradual recovery. In October, the idleness of the sector’s installed capacity decreased, resulting in the lowest monthly revenue loss since the start of the pandemic, R$11.2 billion, estimated economist Fabio Bentes, head of the CNC study.

The CNC forecasts 21.9% growth for tourism activities in 2021, followed by a 2.4% increase in 2022. The sector posted a 36.6% slump in 2020, affected by the health crisis.

According to Bentes, the cancellation of events such as New Year’s Eve and Carnival in several Brazilian cities should defer the full rebound of the sector to the second half of next year. In the previous projection, the sector would recover its pre-crisis level in May.

Out of the losses accumulated in the pandemic through October this year, over half was concentrated in the states of São Paulo (R$193.7 billion) and Rio de Janeiro (R$55.7 billion).

The special aggregate of tourism activities increased 1.0% in October compared to September, according to data from the Monthly Services Survey, released by the Brazilian Institute of Geography and Statistics (IBGE).

The result is the 6th consecutive positive rate, a period in which it accumulated gains of 51.2%. The sector is still operating 19.5% below the pre-pandemic level of February 2020.

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