Brazil’s Domestic Tourism Set to Grow 11.5% in 2023

Brazil’s local tourism industry is set to grow 11.5% by year-end, according to Fecomercio. This data shows a remarkable recovery since the COVID-19 pandemic.

Specifically, more Brazilians are opting to travel, especially as the year closes out. Also, corporate travel is resurging with trade shows and events.

From January to August, the industry experienced a financial boost of over R$ 12 billion ($2.38 billion).

This marks an 11% growth compared to the same period last year. Notably, airlines are spearheading this growth.

In August alone, they transported 8.2 million people and generated around R$ 3.9 billion ($774.6 million).

This is the highest revenue ever recorded by Fecomercio since its data collection started in 2011.

Hotels and lodging facilities are also contributing to the uptick. In August, they recorded a 9.8% increase in revenue, totaling R$ 1.6 billion ($317.44 million).

Room rates also climbed by 18%, according to Brazil’s Hotel Operators Forum.

Besides that, other sectors are showing progress as well. Cultural and recreational activities grew by 2.7%, while travel agencies and related services increased by 2.5%.

Conversely, road transport declined by 11.1% due to competition with airlines.

However, these rates rebounded by 13.47% in the following month, spurred by major events like festivals.

Alagoas Led Growth

Among the states, Alagoas led tourism growth in August, boasting a 16.3% increase. It was closely followed by Paraíba at 15.3%.

On the flip side, Mato Grosso do Sul, Amapá, and Ceará witnessed declines in tourism revenue.

Lastly, Fecomercio highlighted that tourism-related inflation has risen by 8.26% over the past 12 months.

Despite this, they predict stable tourism prices in the near to medium term, owing to robust demand.