Businesses hope to make hay in first Carnival with no Covid restrictions

For many foreigners, Brazil is synonymous with Carnival. But the country had been deprived of one of its staple celebrations since Covid caused a global health emergency nearly three years ago. When you think of Carnival, you think of large public gatherings, with friends and strangers alike in close proximity to each other — something unthinkable during the Covid pandemic. 

In 2021, Brazil was emerging from a brutal second coronavirus wave — and it had barely gotten any vaccines in arms. In 2022, the Omicron variant led to a massive surge in infections, and authorities in many urban centers restricted activities. Cities such as Rio de Janeiro and São Paulo had street parades in April, but the party was massively deflated. 

Now, as over 85 percent of Brazilians have taken at least one vaccine shot and Covid deaths are rare, Carnival is back.

Revelers — and brands —  are preparing to celebrate with a vengeance.

Natália Souza, a 27-year-old publicist, is ready to dust off her costumes, throw lots of glitter all over her body, and enjoy music and parades in Olinda, a traditional Carnival destination in the northeastern state of Pernambuco. While revelers have already been on the streets for many weekends, the “official” celebration starts on Saturday.

Ms. Souza is not the only one dying with anticipation. The National Confederation of Commerce (CNC) estimates that Carnival will create over 24,600 temporary jobs. Revenue is expected to be almost 27 percent higher than a year ago at BRL 8.18 billion (USD 1.57 billion). While a massive rebound, this remains 3 percent below 2020 revenue in nominal terms. The gap tops 20 percent if we discount inflation in the period. 

That being said, all estimates come with the caveat of failing to account for the informal economy...