Brazil Market Overview

Brazil Inbound Tourism Snapshot

2015 was a year of economic challenges across Latin America and the outlook for 2016 is mixed for the major tourism markets. One contributor to the economic difficulties is weak exchange rates across the region, holdiing implications for tourism flows in all directions but particularly problematic for outbound tourism from Latin American countries. 2016 will likely bring slower outbound trip growth and declines in some cases as international trips, especially to the US and Western Europe, become too expensive for many consumers.
 
In Brazil specifically, a “perfect storm” of economic factors took place in 2015/2016, during which the country sunk into its worst economic recession in a half-century and the value of the Brazilian real dropped by nearly 40 percent vs. the U.S. dollar. Some tour operators who sold their products in Brazilian reals but paid their U.S. suppliers in dollars were unprepared for the economic crunch and one of the largest tour operators, Nascimento, went bankrupt last summer. Still, as numerous sources have told the Inbound Report—even though 2016 should see a single-digit percentage decline in visitor arrivals to the USA—well over 2 million visitors are still expected to descend upon their acknowledged “dream destination” as Brazilian operators and U.S. receptive tour operators have found that shorter stays, an increase in MICE traffic and a lower per capita spend on shopping and attractions (particularly in the Orlando area) will be the new normal.
Source: Inbound, Outlook & Predictions, Jan 2016 


All this is to say that by 2020, South America is forecasted to generate nearly 1 million more visitors, a 19% increase versus 2014. Brazil, the largest source market in the region, is expected to regain and build by 2020, up to 2.7 million Brazilian visitors, an increase of 18% over 2014.

Consumer confidence in the economy has improved after the return of political stability and the country is poised to return to growth following the deepest recession in many years. A stronger Brazilian currency has encouraged tourists to travel abroad, especially to the U.S. and expenses abroad is going back upward trajectory that has been characteristic of the last decade and for the first time since January 2015 and has reached $ 1.29 billion in August. Brazilian currency appreciated over 23% in 2016 against the dollar.
 
IPW in New Orleans caused a positive and last longing impact the U.S. Southern region as Brazil was one of the top five International delegations among buyers, public relations professionals and media attending the show this year. For 2017, IPW expects to near double the number of Brazilian buyers due to the positive signs of Economy´s recovery.
 
Copa Airlines flights between Panama and New Orleans also contributes to develop the tourism in the region with convenient connections to more than 55 destinations to Central and South America. 

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RESEARCH

Travel Profile -  Brazil

 Travel South USA Region
 (12 state region)
2015 2014
(revised)
Yr/Yr % Change
 Number of Visitors 78,000 128,000 -39.1%
 Visitor Spending $71,182,800 $154,368,000 -53.9%
 Travel South Share of Market 3.4% 5.0% -32.0%
 Nights in Travel South USA Region 11.7 14.4 -18.8%
 States Visited 2.4 2.1 -14.3%
 Sources:  US Department of Commerce, Travel Market Insights

INTERESTING TRENDS

  • Brazil has "bottomed out" and is on its way back. Last year's 33% surcharge on all credit card purchases in the U.S. has been reduced to a more manageable 6.2%
  • Both the U.S. and Latin America air carriers are offering deep discounts on U.S. routes which serves to stimulate travel to the United States
  • Hotels in several major gateways are more open to selling value rates through the RTO channel
  • Brazilian currency appreciated over 23% against the dollar in 2016, encouraging international travel, particularly to the United States
  • With a more favorable exchange rate for the first time since January 2015, Brazilian spending went up $1.29 billion in August 2016
  • The film "Wild America" produced in association with Brand USA and narrated in Portuguese, will inspire audiences to travel and discover the great American outdoors

IN MARKET REPRESENTATIVES

River Global

River Global works on promoting travel destinations targeting Brazilian tour operators, travelers and travel media through various channels. Our team of tourism specialists is prepared to promote destinations or business main attractions and points of interest, offering a range of services developed to make the Brazilian and South American tourism market acknowledgeable. Operating out of São Paulo, Brazil, the largest financial and commercial center of South America, River Global provides all the necessary information, expertise and support needed by its clients to expand or establish their businesses in Brazil, providing customized solutions to meet government trade, marketing and tourism promotion agencies and firm´s specific needs.  


Jose Madeira - Managing Director

Jose Madeira (jmadeira@riverglobal.net) is the founding and managing director of Business Brazil group, which includes Tourism Brazil and World Conquer International Consulta Ltda. Madeira is a Brazilian citizen with more than 30 years of experience in the private and government sectors with demonstrated expertise in forging and strengthening economic and business ties between Brazil and foreign countries through negotiation of domestic and international sourcing, organization, and participation in foreign trade missions and trade shows, trade and investment seminars, international marketing and promotion, market research, and other official events within the government and business community. He has organized FAM tours to U.S. destinations, worked with tour operators to create travel packages, organize participation in tourism-related trade shows, destination seminars, sales missions, marketing and PR activities, social media, and other activities in the travel and tourism industry.


Gisela Perez - Tourism Manager

Gisela Perez (gperez@riverglobal.net) brings 25 years of tourism and management experience, having served as commercial manager of MK Travel for a number of years, and before that, having served in various positions at New Age, Interpoint among other Brazilian tour operators. In 2012, Gisela was awarded as one of the best Sales Manager by Panrotas travel trade magazine. Gisela’s vast resources and her existing relationships with our partners and customers will enable her to hit the ground running in her new role in promoting Travel South states as a premier destination.


Mariana Amos - Marketing Specialist

Mariana's (mdamos@riverglobal.net) strong knowledge and over five years of experience in the tourism industry in leading and managing online campaigns, social media, on and offline strategies and development, implementation and performance analysis. Mariana is familiar with the U.S. Travel and Tourism industry working for a digital marketing agency, ITI Marketing in Georgia, having among its clients GDEcD Tourism Division, Peachtree City CVB, Bradenton Area, Kentucky, and other destinations. 


MARKETING & SALES ACTIVITIES

Travel South USA has a year-round investment in research, travel trade strategies, along with earned, owned and paid media to amplify our efforts in-market. Commissioned research along with monthly trend reports and a comprehensive tour operator analysis is provided to state tourism offices participating in the Global Partner Program. Travel Trade strategies and tactics include sales missions, trade shows, workshops/training regional road shows, cooperative event marketing with Brand USA and recruitment of tour operators buyers to International Showcase & Super FAMs. Earned, Owned and Paid Media strategies and tactics include hosting visiting journalists, FAMs, social media campaigns, and cooperative advertising efforts B2C.
Research

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 Monthly Reporting
 Tour Operator Brochure Analysis
 Tourism Economics & Travel Market Insights Commissioned Studies
 

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 TSUSA Journalist FAM w/ Brand USA Louisiana, Tennessee, & Alabama August 18 - September 5, 2016
 International Showcase & Super FAMs Atlanta, GA & Region November 28-December 3, 2016
 WTM Latin America Sao Paulo, Brazil April 4-6, 2017
 International Showcase & Super FAMs Charleston, SC & Region November 27 - December 2, 2017
 

 small_EarnedMedia.pngEarned, Owned, & Paid Media

 Press Releases & E-Newsletters - 1x a month to over 400 travel journalists Monthly
 Hosting Visiting Journalists & FAM Tours On Approval
 Distribution of Travel South USA Inspiration Guide (Portuguese Version) - View Here
 Produced by Brand USA / Miles Media
Year Round
 Social Media Campaigns - https://www.facebook.com/visiteosuldoseua/?fref=ts  Weekly