Brazil plans mega push for tourism

FLORIANOPOLIS(BRAZIL): Will tourism be the next wave for Brazil? For, it is the $40-billion travel and tourism sector that is driving the Brazilian economy. Bordering almost every country in South America, Brazil is making an all-out effort to woo global tourists.

���Every country dreams of rich tourists, those who spend thousands of dollars. But we must recognise that most human beings are not rich enough to afford luxurious holidays. And even European tourists have the conscience to spend only what they are actually able to spend,��� noted Brazil president Luiz Inacio Lula da Silva at the just-concluded, two-day global summit on travel and tourism here.

The event began on June 15 in the ���Samba��� land, where India was represented by Jyotsna Suri, chairperson and MD of Bharat Hotels, Deepak Ohri, CEO of Lebua Hotels and Resorts and Sonu Shivdasani, chairman and CEO, Six Senses Resorts and Spas in the galaxy of global panellists. Describing the ���beauty and greatness��� of his country, Mr Lula da Silva said, ���I have to say nothing but the truth.��� A series of events have been lined up over the next eight years even as the country is according top priority to celebrate them using the plank of the twin drivers ��� travel and tourism.

���We are working hard to convince the international community that bringing the Olympic Games here is recognising that Brazil is on the right road to becoming an even greater nation. We are not working in tourism as it is beautiful or it helps in the elections. We intend to help the tourism industry as we see it as an extraordinary industry for cultural development and economic development,��� he said. It is not poverty that attracts tourists. If that were the case, then Latin America, Asia and Africa would have emerged as top-notch destinations, Mr Lula da Silva said.

��� Before the recession, Brazil had taken the decision to invest $304 billion on infrastructure, he sought to point out.
Conceding that there is a lot that needs to be done to have an ecosystem that would help travel and tourism to flourish, the president said investors must be lured in to the country not on the basis of incentives and free land sops but ���the certainty that we will be prepared to receive tourists with excellent customer service.���

Mr Lula da Silva proclaimed that his country was the last victim of the global financial crisis. Increased investment on social policy helped it to grapple with it better than the time it felt the impact.

���I have told chiefs of state all over the world that this crisis is not to be cried or lamented over. It is a crisis that stimulates countries to invest in themselves and to do so heavily, so that we can leave it in much better conditions.���

He went on to say that the government is actively considering ���revitalising��� regional aviation. ���We want to re-establish flights between countries of South America and the possibility of travelling to African countries,��� the president said, noting that the administration would launch initiatives to help the country bridge the geographical gap within the continent and make access to Brazil easy.

In 2022, Brazil would complete 200 years of independence. ���It was not a country that believed in itself. We had low-self esteem, but now we are full of it (confidence). This crisis showed who is who in the world economy. Brazil shows itself as having plenty of financial stability, its ability to regulate its own financial system, better than any other country in the world. And that is why we are convinced that we will exit this crisis far better than when we came into it. All of you will be pleased to make investments in countries that have plenty of natural beauties, but that also offer you cultural activities and security,��� he said.

Giving assurance on behalf of the federal, state and municipal government, Mr Lula da Silva said, ���We are not the best in the world, but we are also not the worst. We are not inferior, and we are avid to catch up on the lost time, when Brazil did not believe that tourism is one of the foremost industries of development in the country.���

These observations set the tone for the World Travel and Tourism Council (WTCC) ��� organised global summit on ���Real Partnerships Energising Economies.��� At its signature format ���The Round,��� the audience from various continents saw industry leaders engage in an open exchange of ideas aimed at capitalising on the global tourism and travel potential.
Wide-ranging panel discussions on transforming economies, changing values, removing barriers towards global integration for travel and tourism, real partnerships and energising economies were held in which private and public leaders from the industry participated.

The ���incredible��� response of Mexico to swine-flu disease and its influence on the world GDP were among the host of issues that were debated. Oxford Economics chairman John Walker said the base forecast of visitor exports falling by 1% (or $10.5 billion) had been upset in view of the current scenario. They were to plummet by 60% points ($620 billion). The concern is not about visitors seeking other destinations but the fact that travel had stopped.

While government spends on health is on the rise, it is constrained in giving help to hard-hit firms due to budget constraints. Discretionary spends have dipped by 30%, triggering a whole new change of behaviour among travellers. As governments have already spent enormous sums to tackle the financial crisis, they may not be willing to extend the generosity to cover unfolding ones.

Heated debates on whether the outbreak of swine flu virus could be categorised as a pandemic and the ways and means to counter took place. Some mind boggling statistics were presented: the GDP losses to the tourism sector is pegged at $2200 billion spread over late 2009 and 2010, compared to a much lesser impact of $25 billion in the case of the SARS disease.

Panellists agreed that some regions are more vulnerable to a contagious disease shock than others. Also, a SARS-type case had limited impact while the pandemic outbreak of swine flu has to be viewed from a global consequence.

Private sector is now more understanding about the role of the government. That it can act and quickly too with a long-term strategy and a whole set of measures to promote tourism received appreciation. A point was also made about how the market is slowly bouncing back backed by surveys indicating that it seems to be an end of the worst with world purchasing managers��� indices showing pick up signs especially in the US, China and the Eurozone.

Though there is a crisis of confidence and the ���fear of future��� factor immobilising things, the role of the government being critical was a fact accepted by one and all. Notwithstanding the pressure on capital, this is a time when the market is getting cleansed. Job losses in the labour-intensive tourism sector is substantially larger than what the manufacturing saw in the last few years despite governments globally not acknowledging it. But, on a longer term, the gains from travel and tourism is far greater than that of manufacturing, were some key points at the summit.

Another vital point made was the much needed concerted effort to perceive the crisis as a ���weapon of change��� and that this was probably a wake-up call to utilise money and resources in an optimal manner. The panellists also emphasised on the need to replace red carpet by a green one, to promote responsible tourism and globally sustainable initiatives even while forging collaborative partnerships that seek to raise the profile of the tourism and travel business.