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Brazil tourism market: US and Argentina popular destinations for Brazillians
Travel and Tourism in Brazil - a new market research report on 2014-04-18 21:18:03
In 2012, Embratur realigned its marketing strategy to secure a 300% increase in foreign currency inflows from international tourists and to double the number of inbound visitors to Brazil by 2020. In order to do so, it streamlined participation in trade shows that are directed to its target source markets (Latin America, North America and Europe) and intensified its promotional activity in 2012 and 2013. The main goal is to take the most advantage of the increased exposure of Brazil, as it prepares to host two large sporting events, to display the beauty and attractions of the country and to achieve a durable positive impact on tourist arrivals.

Brazil is under pressure as it enters 2013 with much infrastructure work delayed just one year away from the FIFA World Cup 2014. As of May 2013, just four stadiums of the 12 cities selected to host World Cup games had been finished. Despite the delay, all projects are expected to be completed in time for the upcoming events. Nevertheless, it is certain that renovations will be required in preparation for the Olympic Games following the rush to finish infrastructure for the World Cup. This is very concerning, as it puts at risk the quality of all work done and, consequently, could have a negative impact on future tourism flows, as venues do not hold up to their original plan and are not fully operational. In order to attract over 7 million tourists as it wants to by 2014, Brazil will have to prioritise quality overall to avoid running the risk of a huge failure, much like the Commonwealth Games held in India back in 2010.

In 2012, TAM and LAN Airlines finally completed their merger (originally announced in August 2010) to create the largest airline in Latin America and one of the largest in the world – LATAM Airlines Group SA. The combined carrier will be a stronger competitor on long-haul international routes and an ideal alliance partner. The merger allows for more coordination on routes and pricing, as well as increasing negotiating power with suppliers. Furthermore, it expands the geographic presence of both airlines.

Brazil is turning into a rapidly growing source market for arrivals worldwide. For Brazilian tourists, favourable exchange rates, coupled with the fact that international destinations offered similar or even lower prices than domestic ones, favoured international over domestic trips in 2012. The US and Argentina remained the most popular destinations for Brazilians. Although not a top destination, the Caribbean has seen a large inflow of Brazilians thanks to its lower prices and the introduction of direct flights to the Caribbean by GOL in 2010.

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