Carnaval 2020 Expected to Inject R$8 Billion into Rio’s Economy, Says CNC

RIO DE JANEIRO, BRAZIL – The extended holiday is expected to generate R$8 (US$2) billion in tourism-related activities this year, estimates the National Confederation of Goods, Services, and Tourism (CNC). If confirmed, the turnover represents a one percent real increase over the same period last year and the highest figure since 2015.

According to the CNC, “the gradual rebound of economic activity, coupled with low inflation” tends to reflect in the moderate upturn of tourism services. In addition, the stronger dollar against the Brazilian real should favor a greater inflow of tourists.

The Ministry of Tourism expects that at least 36 million Brazilians will spend the holiday in the country’s six main carnival destinations and the Federal District.

Among the sectors that should generate more revenue, the CNC emphasizes catering, such as bars and restaurants (R$4.8 billion), road, airline transport, and car rental companies (R$1.3 billion) and accommodation services in hotels and inns (R$861.3 million). Together, these segments should account for 88 percent of the revenues.

The State of Rio de Janeiro typically accounts for the largest share of financial turnover in the period with R$2.68 billion, followed by São Paulo with R$1.94 billion, Bahia with R$1.36 billion, Minas Gerais with R$809.7 million, Pernambuco with R$381.9 million and Ceará with R$318 million.

The CNC expects the highest growth rate in revenues to be seen in São Paulo with an increase of 5.4 percent and Pernambuco with an increase of 3.2 percent. Ceará, on the other hand, is likely to see a 2.9 percent decrease in accumulated holiday revenues.

The CNC also estimates that 25,400 casual workers should be hired between January and February of this year to meet the seasonal increase in demand – the largest number since 2014.

The figure represents 2.8 percent more workers than in Carnival 2019. The food services sector is expected to account for 71 percent of these job openings with 18,200 positions.

Source: Infomoney