Brazil’s Carnival to Register Worst Revenues in Three Years

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – The 2017 Carnival festivities around the country this year are expected to move R$5.8 billion in tourism activities this year, according to a survey conducted by the National Confederation of Trade in Goods, Services and Tourism (CNC).

Despite the volume this year’s Carnival results should be 5.7 percent lower than the one recorded in the same period of last year and the worst performance for the period in three years.

“Despite the recent trend of lower price changes for typical services at this time of year, the real decline in income has imposed the need for frequent adjustments in the household budget through the postponement of non-essential expenses, such as leisure,” CNC economist Fabio Bente told reporters during the release of the survey.

The revenues generated during this time of year in the transportation segment are expected to total around R$977.9 million while the accommodation segment expects revenues of around R$652.5 million.

Food services which account for 57.3 percent of all revenues during this period should total R$3.31 billion. Carnival period, which in some cities extends up to a week, is considered the largest holiday in the national calendar for tourism related services.

Rio de Janeiro is the state expected to register the greatest movement of resources, with an expected circulation of R$2.4 billion, followed by São Paulo, with R$1.5 billion.

The results are not too bad considering Brazil is in the middle of harshest economic crisis in decades, which could push nearly 3.6 million Brazilian back below the poverty line by the end of 2017, according to a World Bank report released earlier this week.

This week the U.S. dollar also depreciated against the Brazilian real to its lowest value in more than nineteen months falling below R$3.10/US$1, which does not help foreign tourism.