Brazilians Spend US$2.34B Abroad in April: Daily

Stronger Real translates into cheaper airline tickets and hotels costs for Brazilians traveling abroad.

By Lise Alves, Contributing Reporter

SÃO PAULO, BRAZIL – With the devaluation of the U.S. dollar in relation to the Brazilian real in April, Brazilian tourists spent more than US$2.34 billion abroad that month, announced the country’s Central Bank on Friday, setting a historical record.

Brazilians Spend US$ 2.34B Abroad in April, Brazil, Brazil News

Airports full of Brazilians taking advantage of a stronger Real and traveling abroad, photo by Tango21961/Wikimedia Creative Commons License.

Expenditures abroad for the first four months of the year totaled US$8.21 billion, increase of 1.7 percent in relation to the same period in 2013. For the entire year of 2013 Brazilians who went abroad spent US$25.3 billion.

According to economists the surge in foreign spending can be linked to the devaluation of the US dollar in relation to the Brazilian real in April. The U.S. currency fell from around R$2.40 to US$1 in January and February to R$2.23 to US$1 in April, down by 1.74 percent. The devaluation of the dollar lowered the prices of dollar-priced airline tickets and hotels abroad and made foreign products more affordable for Brazilian nationals.

The increase in foreign travel comes even with the increase, by the Brazilian government, of the IOF (Tax over Financial Operations) in foreign currency payments made with debit cards, traveler checks and pre-paid foreign currency credit cards, from 0.38 percent to 6.38 percent at the end of the year. Previously the IOF tax was only applied to international credit cards.

Foreigners coming to Brazil left US$547 million in the country in April, down by 6.5 percent from that registered in April of 2013. For the first four months of 2014, revenues from foreigners in Brazil totaled US$2.318 billion, however this is set to get a major boost from the FIFA World Cup happening June 12th to July 13th this year across twelve Brazilian cities.

International travel is part of the services industry segment in Brazil’s trade balance. The services industry in April registered a deficit of US$4.4 billion.

Read more (in Portuguese).

* The Rio Times Daily Updates feature is offered to help keep you up-to-date with important news as it happens.

One Response to "Brazilians Spend US$2.34B Abroad in April: Daily"

  1. Mike in São Paulo  May 26, 2014 at 1:05 PM

    This drop in the value of the dollar is painful for those of us that are paid in dollars.

Leave a Reply

Your email address will not be published.