The never-ending taxiing of Brazil’s tourism sector

After the World Health Organization made the Covid-19 pandemic official in March of last year, it quickly became clear exactly which industries would be hit the hardest by restriction measures. While bars and restaurants lay empty, relying on delivery models, and small businesses saw hefty struggles to stay afloat and manage their overheads, the blanket closure of international borders and travel bans delivered a monumental and possibly irreversible blow to the global tourism industry.

One year and a half down the line, the scenario has not undergone significant change. In Brazil, fragile recovery in the first few months of 2021 has kept the tourism sector on life support. Despite some optimism with increased vaccination coverage in Brazil and elsewhere, any rebound for the country’s tourism industry is set to be crushed by Delta variant fears and soaring inflation.

São Paulo tourism and commerce federation FecomercioSP measured turnover for the sector at BRL 9.6 billion for May 2021, 47.5 percent higher than 12 months prior. However, the figure remained 31.2 percent lower than May 2019, signaling a stark and persistent dropoff in revenue.

The only tourism segment that has managed to return to pre-pandemic levels is waterway transport, but it accounts for less than 1 percent of the entire sector’s profit share.

Despite the underwhelming performance, FecomercioSP stresses that several tourism segments are gradually becoming more optimistic about the future, hoping that an easing of coronavirus measures and an increase in vaccination will result in more consistent growth.

“Our recommendation for business owners is to balance optimism and caution, believing there...