While Brazil has recently experienced an economic decline that saw the depreciation of its currency, the trade believe ongoing marketing is essential to keeping SA top of mind when the country recovers. By Tessa Reed
Arrivals from Brazil to South Africa dropped 36% in the first six months of this year compared with the same period last year, although arrivals have started showing growth in July. The decline has been attributed both to the outbreak of Ebola in West Africa and the economic crisis in Brazil, which has seen the devaluation of the Brazilian real.
Altamiro Medici, SAA Country Manager for Brazil, says, with Brazilians suffering and their currency devaluated, they have been less inclined to travel. “According to research by the blog Melhores Destinos in Brazil, 66% of the travellers changed their international travel plans because of the currency devaluation,” he says.
“The economy in Brazil is not in a great state, so irrespective of the great value for money and special packages we have done in partnership with our agents, we have not seen much traction,” says Peter-John Mitrovich, CEO of Grosvenor Tours. Velma Corcoran, Executive Marketing Manager at Cape Town Tourism, says: “The Brazilians are currently experiencing a financial crisis – their currency has devalued against the dollar by 50% in one year – which has had a massive impact on their national psyche as well as their willingness to want to travel.”
However, the trade are adamant that marketing efforts in Brazil should continue so that the destination can remain top of mind when the Brazilian economy fully recovers. Alex Miller, Legacy Global sales Agent in South America, says when a country is at its lowest, it is the best time to invest in marketing and build new relationships
Adriano Lucchesi, MD of Brazil-based Atlantic Connection Travel, says it is important for the country to continue to invest in marketing to Brazil. “To reach the same levels that we used to reach, I think we need to be aware that the old marketing is not enough – we need more to keep South Africa a strong destination in Brazil.”
Medici also points out that competitor destinations are heavily advertising in the Brazilian market. “We need to match this,” he says.
According to Monika Iuel, South African Tourism General Manager: International Marketing, who spoke to Tourism Update at the ABAV tradeshow in São Paulo earlier this year, Brazil, remains a core market for SA Tourism. “Whilst there has been a downturn coming out of Brazil, or Latin America in its entirety, it is not deterring us at all because it is not a measure of the potential that we see.”
Iuel also pointed out that SA Tourism would continue to invest in this market to remain top of mind when the market recovered. She stressed that it was important that the SA trade understood the benefits of marketing themselves to Brazil. “We need the support of the trade, both in Brazil and in South Africa, to be able to continue to grow,” she said. “Without our partners back home and our partners here in Brazil, our efforts won’t be half as successful.”