News

Invest in the Real Brazil – Growing Tourism Denotes Future Success for Investors
11/06/2009

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As one of the BRIC nations (along with Russia, India and China) – those expected to show substantial economic growth in the lead up to 2050 – Brazil has, in recent years, laid its focus on growing its tourism industry as a means for financial growth. An investment of $304 billion on infrastructure projects, a new airport opening in 2010 set to be the 4^th largest in the world, and incredible investment in environmental and tourism bodies have all contributed to the ongoing success of Brazil as a top tourist destination.

 

As a measure of this success, the World Tourism Organisation has stated that during the decade of 1995 to 2005, tourism in Brazil grew three times above the global average, showing a growth of 170%. Not only this but the World Travel and Tourism Council (WTTC) has shown that in recent years, the country’s tourism prospects have continued to go from strength to strength, with 2008 finding Brazil rise to 13^th in the world with regards to the revenue its tourism generates. With the investment in the tourism industry realising firm results for this South American country, the fifth largest in the world, Brazillian President Luiz Inácio Lula da Silva has recently been keen to confirm that this remains the focus for Brazil’s future economic growth, saying at the recent ninth Global Travel and Tourism Summit in Florianópolis,

 

“We are not working in tourism as it is beautiful or it helps in the election. We intend to help the tourism industry as we see it as an extraordinary industry for cultural development and economic development".

 

This continued development points to a bright future for Brazil, with the country’s Ministry of Tourism launching, amongst other projects, “Brazil Now” a scheme focussed on promoting lower taxes for tour operators flying into Brazil from both US and European destinations, proving that the focus remains on growing the numbers visiting the country as well as in turn the income this will generate for the already stable economy.

 

Brazil’s economy has been fortunate to be less affected by the global economic downturn than many other countries, with Brazilian Central Bank President Henrique Meirelles pointing to the forwardthinking of the government as reason for this,

 

“We are already seeing signs that point to an economic recovery by 2010… Brazil's government took timely measures to combat the crisis. Brazil's economy is solid because of this effort." This forwardthinking explains, therefore, the reason why recent figures released by the WTTC predict an average annual growth rate of 4.5% for the Brazilian economy from 2010 to 2019, showing that it is predicted that they will recover quickly and successfully from the downturn. And early figures for 2009 adhere to this, with the National Civil Aviation Agency (ANAC) confirming that April saw an increase of 3.5% in the numbers departing internationally from Brazilian airports compared to the same period in the previous year.

 

This strength of Brazil’s economy is already being recognised by shrewd investors who have moved swiftly to buy into this continued growth. Mike Greene a CEO from Peterborough, South Lincolnshire is one such investor who has bought property in Brazil through emerging market specialists Experience International, having recognised its growth potential:

 

“From the research I have done… it was highlighted that along with India and China, Brazil is one of the fastest growing economies in the world and has been largely unaffected by the credit crunch.” Mike, however, is just one investor who has realised the financial benefits of buying into a growing economy and tourist destination such as Brazil. Increasing numbers are seeing the potential of affordable property and land in the country, where rental income is set to increase in the coming years, even currently showing relative stability during the downturn (the Royal Institution of Chartered Surveyors recently released a survey that showed Brazil’s rents to be one of only a few globally that have yet to report a decrease).

 

Steve Worboys, Director of Experience International, sees a rewarding future for those who invest in Brazil,

 

“Not only are the coming years on track to yield the benefits of the Brazilian government’s commitment to continued investment in their tourist industry but with the FIFA World Cup also being held in Brazil in 2014, and set to attract over 500,000 visitors from overseas, rental opportunities will abound and those buying land and real estate in the country should reap the rewards.”

 

Caponga Beach is one project in the state of Ceará, just half an hour from the capital city of Fortaleza, flagged as one of Brazil’s prime tourist destinations and just 1km from a beautiful white sandy beach. This is an area that is being substantially developed to bring increasing numbers of tourists to the region and Caponga Beach represents an exciting investment opportunity for those looking to make a secure return on their money.

 

The project covers around 80 acres and has an already completed infrastructure and facilities such as a clubhouse, communal pool and tennis courts in the planning. Investors can choose from a number of different investment opportunities: they can purchase a plot of land and flip it in three years; purchase a plot and build a villa(s) to sell in two years or to keep on as a longer-term investment; buy a block of up to 16 plots and build properties that can then be sold on; or purchase a block, arrange planning and build options and then sell on as a project.

 

Plots are available from £7,575/ R$25,034 and for more information please contact Experience International on 0207 321 5858 or visit www.experience-international.com.