MINISTRY OF TOURISM OF BRAZIL

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MINISTRY OF TOURISM OF BRAZIL NATIONAL
SECRETARIAT OF PROGRAMS FOR THE DEVELOPMENT OF
TOURISM Department of Financing and Investment
Promotion in Tourism
November, 2008
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• BRAZIL
• The name of the game is predictability,
  possible after 15 consecutive years of sound
  macroeconomic policies
• One of the best macroeconomic brazilian assets
  is its modern, prudent and efficient banking
  system.
• Macroeconomic improvements, the inclusion of
  million of new consumers and a huge increase in
  infrastructure investments and productivity must
  be considered.

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CREDIT/GDP INTERNATIONAL COMPARISON (SEPTEMBER
2008)
Developed countries 136.8
Emerging countries Asia 110.4
Emerging countries Europe 45.0
Latin America 33.2
Italy
USA
India
Chile
China
Korea
Spain
Japan
Brazil
France
Mexico
Poland
Turkey
Russia
Canada
Sweden
Equador
Hungary
Bulgaria
Portugal
Thailand
Malaysia
Germany
Australia
Romania
Argentina
Colombia
New Zeland
Slovak Rep.
South Africa
Czech Republic
United Kingdom
OBS. BRAZIL, CREDIT/GDP 40.
SOURCE CENTRAL BANK, ECOWIN
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REAL ESTATE CREDIT/GDP INTERNATIONAL COMPARISON
(SEPTEMBER 2008)
Developed countries 55.6
Korea and Emerging countries Asia 17.6
Emerging countries Europe 6.7
Latin America 6.1
India
USA
Italy
Spain
Chile
China
Korea
Japan
Brazil
Canada
Russia
Mexico
Turkey
Poland
France
Hungary
Portugal
Bulgaria
Argentina
Thailand
Colombia
Australia
Germany
New Zeland
Hong Kong
Czech Republic
United Kingdom
OBS. BRAZIL, HOUSING CREDIT/GDP 1.92.
SOURCE CENTRAL BANK, ECOWIN
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SHARE OF THE EXTERNAL RESOURCES IN THE TOTAL
CREDIT STOCK SEPTEMBER/08
External resources 7.3
Domestic resources 92.7
SOURCE CENTRAL BANK
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SELECTED COUNTRIES GDP GROWTH FORECAST BASE
SCENARIO ()
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CHANGE IN BRAZILIAN GDP GROWTH 1984 2010
Average of the 7 years 4.29
Average of the previous 20 years 2.70
SOURCE IBGE FORECASTS () BY MARKET CONSENSUS
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NET DEBT ON A DOWNWARD TRAJECTORY PUBLIC SECTOR
NET DEBT - OF GDP
Total debt
External debt
SOURCE CENTRAL BANK
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RECORD PROFITABILITY IN THE PRIVATE SECTOR
In
Return on Equity Median of the 500 largest
companies
SOURCE CONJUNTURA ECONÔMICA FORECAST MARKET
CONSENSUS
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GROSS FOREIGN DIRECT INVESTMENT US
MILLION ACCUMULATED 12 MONTH
US MILLION
SOURCE BCB
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FORECAST TRADE BALANCE 1991 2009
SOURCE CENTRAL BANK FORECASTS () MARKET
CONSENSUS
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BRAZIL AS A GLOBAL TRADER
Latin America 22,5
USA and Canada 18,2
Oceania 0,4
Asia 15,7
Africa 5,4
Europe 28,9
Middle East 4,4
Other 4,4
SOURCE MDIC
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FX-INTERNATIONAL RESERVES, ANNUAL 1988 2008
US MILLION
SOURCE BLOOMBERG, BACEN
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CHANGE IN THE NET CREATION OF FORMAL REGISTERED
JOB POSITIONS IN CUMULATIVE 12-MONTH TERMS 1998
2008
SOURCE CAGED
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POVERTY IN OF THE BRAZILIAN POPULATION 1992 -
2007
SOURCE CPS/FGV
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MIDDLE CLASS IN OF THE BRAZILIAN POPULATION
1992 - 2008
SOURCE CPS/FGV
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NATIONAL TOURISM PLAN 2007/2010A TRIP TO
INCLUSION
Boosting the Private Sector
Program for Investment Atraction
Program for Tourism Financing
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The Ministry actions aim at

• Stimulating the private sector by the
  diversification of financing sources and the
  promotion of investment, always including the
  Regional Programs for Development.
• Identifying atractive tourism projects.
• Searching potential areas for the expansion of
  leisure and entertainment business projects.
• Supporting serious investors.

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WORLD CUP 2014- GREAT OPPORTUNITIES

• Development of tourism infrastructure
• Jobs generation
• Arrival of 600,000 tourists just because of the
  event
• The country definitively in the international
  tourism routes

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WORLD CUP 2014- GREAT OPPORTUNITIES

• US 2.5 billion in foreign direct investments
• 0.5 increase in GDP
• Large publicity abroad
• Construction or improvement of sports and urban
  facilities which will be a legacy for the host
  cities

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WORLD CUP 2014- GREAT OPPORTUNITIES
GROWTH ACCELERATION PROGRAM (PAC)

• The Federal Government, since 2007, has been
  anticipating necessary and important investments
  which will be decisive for the success of the
  event

ESTIMATED REGIONAL INFRASTRUCTURE INVESTMENT
R bn
LOGISTICS ENERGY
SOCIAL/URBAN
58.3
274.8
170.8
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WORLD CUP 2014- GREAT OPPORTUNITIES
GROWTH ACCELERATION PROGRAM (PAC)

• INVESTMENTS
• Airports R 3.0 bn
• Roads R 12.2 bn
• Undergrounds R 1.5 bn

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WORLD CUP 2014
STRATEGIC ROLE FOR THE MINISTRY OF TOURISM
Investments in the 18 world cup candidate cities
until 2007
R 1.1 bn

• Estimated Investments Until 2014

R 7.5 bn
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WORLD CUP 2014
STRATEGIC ROLE FOR THE MINISTRY OF TOURISM

• Lodging quality and quantity will be inspected
  and controlled by FIFA
• Hotel brands are expanding and consolidating
  their positions
• Brazil already receives more than 5 million
  tourists/year.
• The domestic travel market is booming 50 million
  air trips in 2007. In 2003 the number was 30
  million

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Department of Financing and Investment Promotion
in Tourism

• HERMANO GONÇALVES DE SOUZA CARVALHO
• Director
• hermano.carvalho_at_turismo.gov.br