Brazil’s tour operators lose two-thirds of revenue in 2020

RIO DE JANEIRO, BRAZIL – Tour operators lost two-thirds of their revenue in 2020, according to the industry yearbook released yesterday, April 20th, by the Brazilian Association of Tour Operators (BRAZTOA). According to the survey, the companies’ revenue fell from R$15.1 (US$2.71) billion in 2019 to R$4 billion last year.

The number of passengers carried fell by half, from 6.5 million in the previous year to 3.3 million in 2020. Most sales (77%) were concentrated in travel within Brazil, while tourism abroad accounted for 23% of the companies’ income in the period.

Employment

The crisis triggered by the Covid-19 pandemic also affected employment in the sector, which lost, according to the yearbook, 2.7 million jobs throughout 2020. Food services laid off the most, with 1.7 million jobs cut, followed by the road transport sector, which reduced its workforce by 559,000, and travel agencies, which laid off 197,000 workers.

Despite the strong retraction, BRAZTOA’s president Roberto Haro Nedelciu believes that, compared to the world scenario, the drop in Brazil was not as deep. “I believe that the retraction was not that high,” he said during the presentation of the numbers. “Brazil’s numbers are not significant, they are better than they were in the world.”

Resumption

The tourism market in the country fell to a level lower than in 2009, when the sector posted a R$6.1 billion revenue, according to BRAZTOA’s data. A resumption to a level similar to 2019 should only happen in mid- or end 2022, according to Nedelciu. “It will take a year and a half, two years to get back to those numbers,” he estimated.

The president of the association believes that when a reopening is possible to use the full tourist capacity, there will be growth in demand. “There is a trend for people to be eager to travel,” he pointed out.

Source: Infomoney

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