Government Wants to Boost Cruise Ship Tourism in Brazil

RIO DE JANEIRO, BRAZIL – Infrastructure Minister Tarcísio Freitas said he wants to increase the number of tourist cruises operating on the Brazilian coast from seven to forty by the end of 2022 when President Jair Bolsonaro’s current term ends. In other words, an increase of 471.4 percent.

Last season (2018/2019), seven ships from three companies operated in the country: MSC Cruzeiros, Costa Cruzeiros, and Pullmantur. The 2019/2020 season, which will begin on November 15th, 2019 and end on April 15th, 2020, will include eight ships and more sailing days, the Brazilian Association of Cruise Ships reported.

The Royal Caribbean, one of the largest companies in the sector, left Brazil after the 2015/2016 season, claiming high operating costs and low profitability.

According to the minister, the government’s priority is to improve the connection between ports and cities; to increase infrastructure for ships to access ports, with a focus on dredging and a buoying system; and to reconfigure existing terminals to receive only tourists.

According to his assessment, there are not enough port terminals exclusively aimed for tourists in Brazil. The minister himself said it was “not pleasant to dock with a cargo ship” next to you. The federal government’s goal is to authorize additional construction of tourist terminals with private investment and to relocate cargo traffic.

The municipalities in the government’s sights are Fortaleza (Ceará), Rio de Janeiro (Rio de Janeiro), Angra dos Reis (Rio de Janeiro) and Balneário Camboriú (Santa Catarina), he said. These cities, which already attract many visitors, could profit much more from a modern tourist port infrastructure.

According to the Ministry of Tourism, with data from the Brazilian Association of Maritime Cruises, the sector generated 40,000 jobs and an economic impact of R$2.1 billion in the 2018/2019 season. On average, a ship is estimated to create 4,000 jobs and generate a turnover of R$250 million.

The portfolio reported that Brazil accounts for only 0.25 percent of the number of passengers on cruise ships in the world. According to the government, Australia, which has almost 25 million inhabitants compared to Brazil’s 210 million, welcomes 36 ships per season and has 1.3 million cruise line passingers. This figure is equivalent to 5.3 percent of the global market.

According to the ministry, the government also needs to move forward in reducing taxes and operating fees, a long-standing demand from companies.

The president of the Brazilian Cruise Ship Association, Marco Ferraz, says that the costs of berthing, boarding, docking and labor in Brazilian ports are, on average, 40 percent higher than the world average. Cruises in Brazil also have PIS/COFINS taxes imposed on the ship’s fuel and chartering, which is not the case with cargo ships, he said.

Ferraz added that it is necessary for Brazil to ratify an international convention on onboard work prepared by the ILO (International Labor Organization). The country is a signatory, but ratification is underway in Congress with no plans for completion. According to the president of the association, the situation generates legal insecurity because some Brazilian crew members brings lawsuits demanding that Brazilian legislation be applied after dismissal.

“This interferes with the coming of ships to Brazil and the stopover of ships sailing around the world. They prefer to sail straight through to avoid red tape, costs, and go to Argentina and Uruguay,” he says.