Good morning! This week, with Covid restrictions disappearing, the Brazilian tourism industry tries to recover from the pandemic downturn. Environmental tax breaks policy is not having the desired effect in Brazilian municipalities.
Brazilians are traveling again
Per Brazilian tourism operator association Braztoa, 2021 broke all previous records for the sector as Covid restrictions on travelers loosened in Brazil and abroad. The number of passengers boarding last year jumped 124 percent from the dreadful 2020 figures — when planes were grounded for months.
- Figures surpassed even pre-pandemic levels. The number of passengers on domestic flights in 2021 was 47 percent larger than in 2019.
Why it matters. The pandemic ravaged tourism in Brazil, with tens of thousands of companies shutting down. Despite the surge in passenger numbers, the sector estimates that the pandemic still cost the industry BRL 214 billion (USD 45 billion) in 2021.
What is happening. Braztoa chair Roberto Nedelciu says there is a repressed demand for tourism after months of restrictions on circulation.
Yes, but … Revenue remained 44 percent below pre-pandemic levels, which shows that many of the tourism packages being used in 2021 were booked before the coronavirus crisis — thus not generating much additional revenue...