MARKET PROFILE BRAZIL. September 2003

Transcription

1 MARKET PROFILE BRAZIL September 23

2 Essential demographics Brazil is the 5th largest country and the 8th largest economy in the world, with an estimated population of 166 million, projected to increase to 2 million by 22. The population is distributed throughout the country, with 78% living in urban centres, the major cities being: São Paulo (9.6 million), Rio de Janeiro (5.4 million) and Salvador and Belo Horizonte (2 million). A further six cities have populations above 1 million. 54% of the population are of European origin. 9% are nominally Roman Catholic and the official language is Portuguese. The high population growth rate is reflected in the age distribution of the country: 42% are under 2 years of age, 5% are aged 2-59 years and 8% are over 65 years of age. A and B socio-economic classes account for 3% of urban dwellers; 9% Class A and 21% Class B. A new socialist President, Luiz Inácio Lula da Silva, took office on January The economic uncertainty and devaluation of the real during the election run up has now receded and the outlook appears to be more positive. However, caution continues to be applied. Following a decade of trade liberalisation and antiinflation policies, Brazil has built a stable economy. However, the currency devalued heavily in 22 (5%) and only just begun to rally post-elections. It is currently trading US$1/R$3.. GDP forecast growth of only 2% in 23 and inflation of around 1%. The FMI consider Brazil to be in good shape and continue their programme of support for the country. Travel and tourism trends International leisure travel is confined almost exclusively to the wealthiest 3% of the population. Discretionary income for the top 5% of this sector of the population is extremely high. However, many middle-class Brazilians will make real sacrifices in order to travel. They are thrifty, demanding good value for money on travel, accommodation and food items in order to ensure that they have enough money to spend on consumer goods and entertainment. Travellers tend to be young, well-educated and multi-lingual, with 5% residing in the states of São Paulo, Rio and Rio Grande do Sul. A high percentage (22%) travel alone, 56% with other adults and 22% with children. The most popular international destination is the USA. Following September 11, the number of Brazilians travelling to the USA has fallen greatly and Europe is now almost as popular. Competitive airfares to Europe make this an attractive option. Within Europe, France, Italy, Spain and Portugal are the prime destinations. However, discounting the visiting friends and relatives (VFR) traveller, Britain is second only to France in terms of pure leisure traffic. The devaluation of the real is currently affecting international travel and most middle class Brazilians are vacationing within Brazil this summer (December-February). However, as the currency returns to some form of stability, low airfares and good value packages will once again attract travellers. Brazilians are entitled to one month of paid vacation per year and hence tend to take longer than average vacations (17 days). A significant number will spend the whole month travelling. The peak holiday periods are January/February and July, corresponding with the school vacations. Travel trends continue to move away from package tours toward independent travel, with only 45% of international travellers using a travel agency to organise their trips. The decision to travel has a short lead-in time, with over 4% of trips planned within one month of departure. Most Brazilians (75%) will use hotel accommodation, 18% stay with family and friends and 3% stay in rented apartments. Business travel accounts for 3% of all international travel from Brazil. The main destination is the USA, with Europe a close second. Almost half of all business travellers will travel accompanied by a non-working partner and extended trips are frequent. Plans for leisure trips tend to be significantly influenced by the women of the family. About 8% of international travellers hold credit cards. In order to curb spending, the government currently imposes a 2% tax on all international purchases made by credit card. Travel market to Britain In 22, 85, Brazilians travelled to Britain spending 82 million. Source: International Passenger Survey (IPS) 22, Office for National Statistics.

3 History, culture and pageantry have powerful appeal. Britain is regarded as a safe destination, efficiently run by an honest population. The high quality of Britain s service and consumer products, as well as its trend-setting music and fashion, are major attractions. Other advantages include the fact that no visa is required and that there are direct daily flights with two airlines. London is recognised as being a fashionable, vibrant city and Scotland has a strong image. Britain s heritage cities are popular for day trips out of London, but there is little knowledge of other regional products. Britain is still perceived as being a traditional country, with bad food, poor weather and serious, reserved inhabitants. The strong pound is once again causing Britain to be regarded as an expensive destination in comparison with the USA and the rest of Europe. Brazilians are big spenders. The average expenditure per capita per visit to Britain in 22 was 965 significantly more than the spent by their American counterparts. (IPS 22) Accommodation tends to be in 3 and 4 star hotels in city centre locations. A significant minority will stay in 5 star luxury hotels. There is also a growing demand from families searching for good value-for-money serviced apartments and B&Bs. Uncertainty about driving on the left deters the success of fly/drive packages, which are so popular in the USA. English continues to be the essential language to learn. British English has a certain snob value over its competitors the USA, Canada and Australia. Student travel to Britain accounts for 9% of visitors. Brazil represents a year-round market with peaks in January/February and July. Visitors to Britain tend to fall into four broad customer groups: 1. Youth (age 16-25) are drawn from elite households with an income of US$4,+. They are interested in self-improvement and will seek language courses with leisure options. Parents finance the trips and are influential in the choice of destination for study. 2. Young Professionals (age 25-45) want to develop and advance their careers. They are interested in business English courses and are likely to travel on business to trade fairs, exhibitions and conferences. 3. The Cultured Elite (age 35-55) are well educated, independent travellers attracted by Britain s history and culture. They visit museums, art galleries, London s theatres and the heritage cities, and are likely to venture north to discover Scotland. Shopping is an important component of any trip. 4. The Middle Class (age 35-55) use the multi-city European coach tour as a means to visit Britain. They are souvenir tourists intent on visiting as many of London s icons as possible. Brazilians stay an average of 14 days in Britain (IPS 22). This allows for plenty of opportunity to lure them away from the fascinations of London. A cultural overview The family structure in Brazil is very important. Several generations will often live together in the same household. Young adults will live with parents until marriage and thus enjoy economic support (no rent or utility costs), hence increasing the discretionary income they have available for travel and other luxury items. It is not unusual for affluent parents to purchase an apartment and/or cars for their offspring. Brazilians read newspapers and magazines, but do not tend to read books, which can be expensive. TV is widely watched; soap operas are a national passion and cable TV is reaching an increasing number of households every day. Football is still the national sport, though in the more affluent households, volleyball and tennis have significant followings. After work, Brazilians can be found in local restaurants and bars. Their leisure time is not, on the whole, home-based. They are regular cinema-goers. Evening activities tend to start late and can go on until the early morning, even during the week. A beach culture exists. It is here that friends meet to chat and gossip, play cards, read the paper or perhaps exercise pre- or post-work. Rather than go to the beach, more affluent families will be members of social clubs which

4 have swimming pools, sports facilities and restaurants. Young Brazilians use the shopping malls as a safe social meeting point in the evenings and at weekends. Brazilians love to shop. They are fashion followers and label snobs. Imported goods are still considered more desirable than national ones, even though there may be no difference in quality while the price difference is usually significant. The spread of computer literacy and use of the Internet among the younger elite is high, with approximately 14 million users in Brazil. Brazilians represent 88% of the e-commerce undertaken in Latin America and 75% of the money spent goes to foreign sites. It is estimated that approximately US$25 million was spent by Brazilians on-line in 22. The influence of the USA s culture and habits on young Brazilians has a much greater impact today than the culture of Europe brought in by their ancestors. Contrary to popular belief, Brazilians in general do not like hot, spicy food and are not heavy drinkers. Fast food is popular. Gambling in Brazil is prohibited, but the national lottery is widely played. Caring for the Brazilian visitor Brazilians speak Portuguese and, particularly the younger generation, will prefer to be given information in English rather than Spanish. Learn how to greet and thank your Brazilian client in Portuguese. Be patient with their efforts to speak English and respond clearly and slowly. Brazilians travellers are from the upper ranks of Brazilian society. They are fun-loving, outgoing and gregarious especially when with compatriots. They can get over-boisterous and loud without realising they are disturbing others. A quiet word will defuse any situation. En-suite bathrooms with a powerful shower and mixer taps over the sink will be much appreciated. Cleanliness is essential. Provide bottled water in bedrooms or information that the tap water is drinkable. Brazilians dine at around 21. Provide plenty of bread, butter and water, both still and sparkling. Fresh fruit is appreciated at breakfast. Brazilians do not travel lightly. Cases are large and usually heavy, so porters and elevators are a welcome facility. Provide plenty of local information on good restaurants in all price ranges, markets, attractions, transport alternatives, entertainment and especially shopping areas. Brazilians like to be sure of where they are going and what they are doing; take time to explain and talk with them. Brazilians are not accustomed to saying please and thank you as frequently as the British. This should not be construed as rudeness. Outline trade and media structure Trade Brazil has approximately 6,3 travel agencies with international sales, although only about 65 have sales above US$1 million. Increased operating costs are forcing smaller agencies to close or merge with larger, better equipped agencies and operators. This should see a move towards a stronger travel trade structure in the future. British Airways operates a daily flight from São Paulo/Rio de Janeiro to London Heathrow. Varig also operates a daily service. São Paulo and Rio de Janeiro account for 77% of international airline ticket sales. The main CRS systems in use are Amadeus, Galileo and Sabre. There is a fiercely competitive specialised student and educational travel trade sector. Incentive travel is still in its infancy, but developing rapidly. Media There is no national press, but the two major newspapers in São Paulo and Rio states reach wide audiences. They are: Folha de São Paulo circulation 484, Estado de São Paulo circulation 355, O Globo (Rio de Janeiro) circulation 544, Jornal do Brasil (Rio de Janeiro) circulation 16,

5 Each state capital produces at least one major daily newspaper which will be widely read within that state. Most newspapers publish a weekly travel supplement. Veja has the highest readership for a national general interest magazine. Exame and Caras are also influential for reaching potential travellers. The most important monthly glossy travel magazines are Revista Viagem e Turismo and Próximo Viagem. There are two principal travel trade publications: Panrotas (monthly airline directory and a weekly trade newspaper) and Brasilturis (fortnightly). The main TV channels in Brazil are Globo, STB and Bandeirantes. Cable TV is well established in the major urban areas and subscriptions are increasing rapidly. Many local radio stations exist and radio is still a popular form of entertainment and news reporting. Preparing for a visit to Brazil Speak to VisitBritain in London before your visit for the latest information on Brazil. If you wish to visit the VisitBritain office in Brazil, make an appointment early in your itinerary. Check the timing of your visit. Avoid the holiday periods of December/January/February and July. Carnival and Easter are also bad times. Long weekends are common for top management when holidays fall on a Tuesday or Thursday. Make appointments with the agents you intend to visit a couple of weeks before you travel. A faxed confirmation two days before the meeting is a good idea. Also try and mail a copy of your brochure to them so they are able to learn about your product prior to your visit. Leave plenty of time between appointments, particularly in São Paulo. Traffic congestion is not unusual and travelling within the city is slow. Taxis are safe and meters currently show the fare to be paid. Public buses should be avoided, but the underground system is clean and efficient. Speaking Portuguese will help immeasurably, instantly making your visit memorable. Print information, or at least flyers, in Portuguese. This should increase the probability of success over rival companies who have not made the effort to do so. Make presentations clear and concise; attention spans are short. Working hours tend to be 9-12 and 14-18, Monday to Friday. Some agencies are also open Saturday morning, but management might not necessarily be available. Lunch and dinner appointments are treated as social events, not just extensions of a business meeting. Success in the market depends greatly on building up personal relationships. Follow up after your visit to renew contact. Remember some personal details and ask after your contact s spouse or children. Patience and flexibility will pay off in the end. Feedback to VisitBritain would be appreciated. Tell them about the pros and cons of your visit, your overall impressions and the results you have achieved. Be mindful of security at all times. Public holidays 23 January 1, January 2, March 1-5, April 17, April 18, April 21, April 23, May 1, June 19, September 7, October 12, November 2, November 15, November 2, December 25 VisitBritain contact details London UK-based suppliers are advised to contact the International Markets Team in London in the first instance for any enquiry on the market, statistical information, market opportunities or when planning a visit to Brazil. Alison McKay, International Markets Consultant Tel: , Fax: alison.mckay@visitbritain.org VisitBritain Thames Tower Blacks Road London W6 9EL Brazil Cheryl Readman, Manager Brazil cheryl.readman@visitbritain.org Mônica Haitz, Marketing Executive monica.haitz@visitbritain.org

6 VisitBritain Rua da Assembléia 1 Sala 377 Rio de Janeiro RJ Tel: / Fax: brasil@visitbritain.org Sources of further information Market specific For any further information relating to the Brazilian market, please contact the Londonbased International Markets Team (see above) or visit VisitBritain s dedicated website for the UK tourism industry: The following contacts may be useful during your visit to Brazil: British Airways São Paulo Al.Santos 745 7th Floor São Paulo SP, Tel: Fax: The British Council Rio de Janeiro Rua Elmano Cardin 1 Urca Rio de Janeiro RJ, Tel: Fax: The British Council São Paulo Centro Brasileiro Britânico Rua Ferreira de Araújo 741/3 São Paulo SP, Tel: Fax: The British Council Brasilia SCN Quadra 4 Bloco B Torre Oeste Sala 22 Brasilia DF, Tel: Fax: The British Council Recife Av Domingos Ferreira 415 Boa Viagem Recife PE, Tel: Fax: General For free online market and marketing information for Britain s inbound tourism industry, market intelligence data, trends and statistics, comprehensive diary of industry events, hotlinks to an extensive range of related third party sites... and lots more, consult As an alternative route to VisitBritain s market and marketing expertise, contact: Industry Helpline Tel: industry.relations@visitbritain.org VisitBritain publishes detailed information on marketing opportunities in markets around the world as well as directories of contacts in a range of fields including tour operators, travel agents, carriers, special interest operators, hotel representatives and GSAs. In addition, a series of Market Profiles covering Britain s major markets, including this one, are produced twice-yearly and published in electronic form only on For further market information and advice contact VisitBritain s International Markets Team on the telephone numbers below: USA, Canada, Argentina, Brazil Tel: Japan, Hong Kong, Singapore, India, South Korea, China, Australia, New Zealand, UAE, Saudi Arabia, South Africa Tel: France, Italy, Spain, Portugal, Belgium, Netherlands, Ireland Tel: Germany, Austria, Switzerland, Russia, Poland, Sweden, Norway, Denmark, Finland Tel: The Business Tourism department offers advice on targeting the Meetings, Incentive, Convention, Exhibition and Association segments through workshops, exhibitions, advertising, print and research. There are also a variety of advisory publications available. For further information about any of the above, please contact the Business Tourism department: Tel: /3252 for general enquiries Tel: for Association enquiries Tel: for Europe Tel: for long-haul markets businesstourism@bta.org.uk For further tourism research information and market intelligence visit the research website of the National Tourist Boards:

7 Key market statistics Brazil VISITS SPEND 2 2 thousands millions AVERAGE LENGTH OF STAY AVERAGE SPEND PER VISIT AVERAGE SPEND PER DAY Days % share of total visits PURPOSE % share of total visits SEASONALITY Holiday Business VFR Study Miscellaneous Jan-Mar Apr-Jun Jul-Sep Oct-Dec AGE REGIONS STAYED IN: 21 NIGHTS C. England 13% S. England 28% % share of total visits N. England 1% Other % Scotland 1% 5 W ales % London 48% Mode of Travel 1997: 62% Air; 18% Sea; 21%Tunnel 21: 82% Air; 2% Sea; 15% Tunnel Source: International Passenger Survey, Office for National Statistics