Domestic Tourism

When it comes to business-related profits, expansions, and growth, tourism and travel play an important role, as the number of people attending large events could influence the bottom line of a company. U.S.-based businesses that are looking to conduct mergers or acquisitions in Brazil would be wise to consider the tourism of the country as well as work with a Brazilian law firm to ensure all procedures are performed legally.

The Rio Times reported that the country’s largest carnival is expected to see fewer international tourists this year. The economic instability in Europe and the United States have traveling numbers in decline. However, domestic tourism is expected to make up the shrinking rate from international downfalls, as there has been a rise in Brazilians traveling to this carnival in recent years. The spending levels during this major event are likely to stimulate the local industries and leave larger profits at many businesses.

“In past Carnivals there was an average of between 65 and 70 percent of foreign tourists recorded in hotels, and the rest were Brazilians,” Alfredo Lopes, the President of Brazilian Association of Rio’s Hotel Industry, told the news source. “For Carnival 2013 the forecast is that this number will be equal – fifty percent foreigners and the other half Brazilian.”

In Brazil, tourism has risen as more people moved from poverty toward the middle class once the economy improved. Some other reasons behind the decline in international travelers includes the pricey hotels and high costs of living in Rio and São Paulo, the biggest cities in Brazil.

U.S.-based businesses that are interested in expanding to Brazil may see the rising domestic tourism as beneficial. When developing mergers or acquisitions, it is important to work with a Brazilian lawyer who can represent foreign clients effectively.