Weaker currency boosted tourism in Brazil, but took its toll on airlines

The Brazilian Real has been one of the world’s strongest currencies this year, largely thanks to local investors who have put their faith in the new administration. But in 2018, it was an entirely different story. Due to the political uncertainties of last year’s presidential campaign—and there were many—the Brazilian Real lost 17 percent against the U.S. dollar. This did have one positive side effect, however, boosting the inflow of foreign tourists looking for cheaper holidays.

The Ministry of Tourism estimated a 3.3-percent growth in the number of foreign tourists who came to Brazil in 2018, taking the total up to a record 6.8 million. That pushed foreign exchange income to USD 5.4 billion between January and November 2018—2.3 percent more than in 2017. Even the number of domestic trips went up, as the country slowly tried to claw itself out of its hole. Brazilians traveled within the country a total of 206 million times last year.