Innovative property investments
Investment Property in Brazil
Buying Guide
Introduction
Vast, mysterious, bounteous, beautiful, booming
The fifth-largest state in the world in terms of area and population, the country named after a nut sprawls over a huge part of South America and shares borders with every country on the continent bar Ecuador and Chile.
It is home to the world’s largest river, the Amazon, and the rainforest - Earth’s greatest ecological repository - which bears its name.
Brazil’s economy is flourishing while its culture and vibrancy reach out across the globe in the form of its carnival and, of course, its supreme football team.
Brazil: splendid, magical, exotic, unique and priceless.
Tourism a priority
Tourism is an increasingly vital earner for Brazil, and while it does not yet share the same importance as industry as regards its benefits to the economy there is no doubt that the national and various local governments are becoming extremely keen to promote Brazil as a unique and multifaceted tourist destination.
In 2005 - the last year for which we have complete records - some 5,358,000 foreign visitors entered Brazil, almost a million of which came from Argentina and another 800,000 from the USA.
These foreign visitors generated over 2 billion USD in extra revenue for Brazil and the government intends to increase this figure to 5 billion USD by 2012.
The most popular destinations for overseas travellers were Rio de Janeiro (visited by over a third of all foreign tourists), the Santa Caterina region, and Parana, site of the Iguazu (or Iguacu) Falls.
Upping the tourist spend
Many of these visitors are comparatively low spenders - back-packers and other low-yield tourists, as well as visitors from less affluent countries in South America.
While not wishing to ignore this revenue stream the authorities are now looking to attract higher-spending, higher-net-worth travellers and to this end have embarked on a substantial tourism-promotion drive which includes a good degree of new infrastructural investment.
Northeastern rise
The government has seen the north-east of the country - specifically, the Northeast region - as being the focus for this new tourism wave and a number of new resorts - a good proportion also marketing freehold properties - have sprung up along the coast.
New and updated airports and an increased number of routes to Europe and the USA are being complemented by a proliferation of five-star resorts offering all the trappings to which western tourists have become accustomed: golf courses, spa centres, marinas, adventure sports, leisure and conference centres and much more.
Big-name brands have moved in, creating jobs and increased affluence as well as providing a genuine, novel and affordable alternative to established long-haul (from Europe) destinations such as the Caribbean.
As a result the number of international visitors to the Northeast tripled between 2002 and 2006.
Investment in tourism facilities in and around the city of Natal - in some ways the epicentre of the Northeast’s tourism boom - in the province of Rio Grande do Norte is set to exceed 2 billion USD over the next five years; over and above that, millions are being spent on expanding Natal’s airport to the point at which by 2009 it will be the eighth-busiest in the world according to government projections.
Domestic tourism
It’s important to note, too, that the Northeast attracts a huge number of domestic tourists as well as foreign visitors.
As Brazil’s middle class grows, so too does its potential tourist spend, and the government is keen to ensure that as much of that spend as possible remains within the country.
Therefore much investment is being directed towards affordable, Brazilian-focused installations which are also proving profitable to western investors.
Controlled development
Most of the new tourist infrastructure is being aimed at what one might class as traditional tourists - those looking for sun, sea, sand and all the other ‘s’s.
The tropical delights of the Brazilian coast are a marketeer’s dream and the government is well aware of the dangers of overdevelopment, hence a well-structured tourist plan which promises to make the most of what the coast can offer visitors without exploiting it to the extent of causing lasting damage, both to the environment and the economy.
Exceptional ecological attractions
Both on the coast and in the interior, ecotourism is also an increasingly important factor. Brazil’s peerless ecological resources are of great interest to travellers from across the world, and a number of the new coastal resorts have been set up with this in mind: turtle nesting sites, rare swamps and lagoons holding countless endangered species are all being carefully protected within a network of luxury resorts, and it is to be hoped that protection here means more than just a good PR-friendly sales pitch.
Inland, while development is less extensive and flights fewer and further between, the mighty Amazon and its rainforest lie in wait for those with the drive and wherewithal to visit them at first-hand.
Key facts
- Population: 188,078,122
- Area (km2): 8,511,965
- Capital: Brasilia
- Language: Portuguese
- Religions: Catholic, indigenous
- Currency: Real (BRL): BRL1= 0.2466 GBP
- Dialling code: +55
- High season: All year round
- Happy Planet Index: 63rd / 178
- Big Mac Index: 3.01 USD
Downloadable Reports and Documents
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