Investment Property in Brazil

Tourism

Promoting Brazil

Tourism is an increasingly vital earner for Brazil, and while it does not yet share the same importance as industry in its benefits to the economy, there is no doubt that the national and various local governments are extremely keen to promote Brazil as a unique and multifaceted tourist destination.

Tourism numbers

In 2005 – the last year for which there are complete records – some 5,358,000 foreign visitors entered Brazil, almost a million of who came from Argentina and another 800,000 from the USA. These foreign visitors generated over $2 billion in extra revenue for Brazil and the government intends to increase this figure to $5 billion 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 Falls.

Big spenders

Many of these visitors are comparatively low spenders, such as back-packers, 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 travellers and to this end have embarked on a substantial tourism-promotion drive which includes a good degree of new infrastructural investment.

Tourism boom

The government has seen the the Northeast region of Brazil 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 now complemented by a proliferation of five-star resorts.

Development in Natal

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 is set to exceed $2 billion over the next five years. Over and above that, millions are being spent on expanding Natal’s airport; by 2009 it will be the eighth-busiest in the world according to government projections.

Domestic tourism

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.