Switzerland Tourism opened its office in Brazil in 2004. Since then, the market growth for Switzerland has been exponential, thanks to impactful marketing and promotion programs by Team ST.

The Brazilian market was one of the first long-haul markets to show signs of recovery in 2021. Switzerland was the first European country to open its borders to Brazilians in June 2021, which contributed greatly to the good figures.

When compared to the figures for 2019, in the overall balance for 2022, Brazil was the fastest long-haul ST market to recover its overnights. In particular, the increase in the number of Brazilians in mountain regions was 12.6%, already indicating a possible change in the behaviour of Brazilians, who were previously more inclined to visit more cities, now with an increase in the search for mountain regions.

In 2023, we are gearing towards a record year, with a probable increase of more than 10% compared to the record year of 2019, thanks to an active presence in the media, tourism fairs, events, and training for tourism professionals, as well as a presence on social media.

Directory

  1. Know the basics
  2. Market activities 2024
  3. Localized annual plan 2024

Know the basics

AddressSwitzerland Tourism
Consulado-Geral da Suiça São Paulo 
Av. Paulista, 1754 – cj 175
01310-920 São Paulo, SP
Brazil
Market ManagerFabien Clerc
Contact+55 (11) 96492-7470
fabien.clerc@switzerland.com
LinkedIn
Instagram
www.linkedin.com/in/fabien-clerc
www.instagram.com/clercfabien

Meet the Team

ST Brazil is composed of two other team members, with whom we cover the whole spectrum of impactful marketing.

Research and reports

  • ST market research page –– here
  • ST Research Report 2023 –– Download here
  • ST TMS 2017 –– Download here
  • Tourism at a glance (all markets) — Download here
  • PANROTAS Brazilian market overview 2023 — Download here

Market activities 2024

Last updated: 01/21/2024 by fclerc

Localized annual plan 2024

Last updated: 01/21/24 by fclerc

Market Situation

General Market situation Brazil

The Brazilian economy rebounded strongly after the Covid-19 pandemic. Resilient domestic demand, supported by social transfers, continues to drive growth. Inflation is decreasing, providing room for further monetary policy easing. However, public debt remains high, calling for and improved spending efficiency and the swift implementation of the recently established new fiscal framework. The planned reform of the consumption tax system will reduce compliance costs significantly. Productivity has declined over the past decade and rekindling it will require further structural reforms.

Economy

The unfavorable news coming from abroad should interfere – negatively – in Brazilian’s economic dynamic. That doesn’t mean the positive direction the country has been achieving will be altered to the opposite orientation, but it could impact the growth pace.

The first one of them comes from the United States, with data on employment above expectation still indicating a quite heated economy, and, consequently, this brings an overload for the Federal Reserve, the American Central Bank, controlling inflation through the interest rates. Thus, the tendency is that the rate over there continues on the current threshold for a longer period, in a range varying from 5.25% and 5.5% a year, reducing the chances of cuts in the short term.

Given the relevance of the American economy, this movement generates an effect on the global currencies, and Real also suffers from that. Previously oscillating around 4.80 reais (R$ 4.80) per dollar, currently it is back to valuing above 5 reais (R$ 5). Another important fact is the war in Israel. It’s still too soon to evaluate the economic impacts from this lamentable event. So far (when this analysis is being written), international prices such as the oil and agricultural commodities haven’t skyrocketed, differently from what occurred a little more than a year ago at the beginning of another conflict between Russia and Ukraine.

In the domestic scenario, the Central Bank cut the basic interest rate, going from 13.25% to 12.75% a year once again. The expectation was that for the next meeting, there would be a new reduction in the same magnitude. However, in the face of the new facts, the decision might be

for a slower pace, of 0.25 percentage point. Even due to the gap in interest in comparison with the United States, which has been reducing it, and ramping the dollar’s attractiveness up.

Even with the elevated interests in Brazil, the credit continues to be very plentiful across financial institutions, for consumers and companies. Nevertheless, what is worth emphasizing as a challenge ahead, is the sequential increase in companies’ default rate. In a year, beyond 8 billion reais (R$ 8 billion) were not paid by the companies in a wide range of credit modalities. That’s an alert sign showing that many companies could potentially stop operations, or they will need more time to solve financial issues, and only then think about investments, delaying a stronger pace of the economy’s expansion.

Among the economic activities, the sign of weakening is clear. The manufacturing industry registered a slight increase of 0.5% in August, in the comparison with the same period last year. Regarding machines and equipment, the scenario is more challenging, since there was a 15.4% annual downturn, according to IBGE’s data. Considering the services, there is a clear slowdown, going from an increase of 3.6% in July to a 0.9% rise in August. Nonetheless, this is also related to a higher comparison base, since the second semester of last year was marked by a stronger upturn in activities, mainly in the tourism sector. According to FecomercioSP, the Monthly Survey of National Tourism shows a 1.2% increase, in August, taking into consideration that in the same period last year the variation was 66%. The forecast for the end of the year predicts a rise slightly above 11%. Although it’s a favorable moment, it’s necessary to emphasize that it’s expected there will be normal oscillations from now, with monthly downturns due to both a higher comparison base, and due to lower prices of some services in tourism, which impacts in the financial transactions.

In the Brazilian retail sector, in August, sales grew 2.3% in the annual counterbalance driven by the 5.6% increase in the supermarket sector. Most of the analyzed activities by IBGE showed negative results, such as clothing (-7%), furniture and household appliances (-1.5%), and fuel and lubricants (-3.5%).

Brazilians have been expanding their buying capability each month, given the more controlled inflationary process and the heated job market. There are many families with overdue debts, which payments they are letting in for later. This is a limiting factor for the consumption performance for the mid- and long-terms.

And the agribusiness, which saw a spectacular year in 2022, goes through a moment with prices decreases. On one hand, this is good for inflation, but on the other, it interferes negatively with the gains, companies’ investments in farms, and in income distribution. The weakening of the global demand, mainly by the main market, China, has brought this tendency for agricultural commodities. Therefore, the Brazilian economy goes through a moment with positive results, however, with a weaker pace and challenges ahead, external, and internal. Investors are keeping an eye on the fiscal framework, how and where the government will increase their revenues; to cover the increase in the expenditure that has already been planned for a near future, what can affect debt’s control and the interest’s direction. Instabilities and uncertainties, which aren’t new in Brazilian’s history.

1) In September, the inflation was 0.26%, and it accrued 5.19% in 12 months. While the transportation group, which involves fuel, had a 1.40% monthly increase, the food, and beverages group, the one that weighs the most in the index, pointed to a 0.71% deflation.

2) In August, 221 thousand formal job positions were opened across the country, with the service sector being in the spotlight, showing a 114 thousand balance. In the period from January to August, there were 1.4 million ad- ditional people in the formal job market.

Travel industry

Brazil is preparing for the summer high season, the greatest period for trips in the country. The expectation is very positive, although it still presents some bottlenecks, especially in the air sector. Check out some perspectives for the next months:

• The domestic tourism is trendy, however, with the flight offer being nearly the same one as last season. That’s because the airlines suffer with the lack of new airplanes, due to the delay com- ing from the manufacturers.

• The International tourism is growing, but the flight offer hasn’t reached pre-pandemic levels yet. Europe still has the advantage of having more flights and presenting better prices in com- parison to the United States.

• The expectation is to end the year with more than 1.5 million Brazilian visitors in the United States, still a lower number compared with the 2.2 million in 2019.

• 5.8 million Brazilians already have the American visa and are able to travel.

• 1.3 million Brazilians should get the American visa this year.

• Waiting lines are occurring for visas that are being requested for the first time. The average waiting period to get a visa to the US is 190 days (it has already reached 660 days in June of this year). The U.S. Consulate’s estimation in São Paulo is to end the long lines by June 2024.

• The American air carriers are also starting the phase of seasonal increase in flights: American Airlines and Delta Air Lines will have additional flights from São Paulo and Rio de Janeiro to the United States.

• Great American attractions and theme parks should finish 2023 with the indicators equal to the ones in 2019, and Brazil is Top 3 in the main parks in Orlando, Florida.

• Despite the preference for Florida, in the United States, other destinations can already see an in- crease in Brazilians’ demand, such as New York and California.

Travel behavior

Google has recently disclosed an unprecedented study about Brazilian travelers’ new consump- tion behavior, which has changed quite a bit from 2019 to 2023.

According to the study, the new featured behaviors are:

1 Tourism in Brazil becomes terrestrial 

Currently, the new traveler seeks, predominant- ly, smaller-distance routes, as for national des- tinations, aiming shorter itineraries. According to Google, there was an increase of 156% in the search for routes totaling up to 250 kilometers of distance from 2019 to 2023, while the search for routes with up to 3.5 thousand kilometers decreased 77% in the period. “This generates a structural change of Tourism in Brazil, which be- comes a terrestrial Tourism”, Martiniano points out.

2 Half of consumers’ interests are regarding accommodation.

Accommodation, which in 2019 represented 35% of the interest of Brazilian consumers, currently represents 50%. From 2019 until now, the search for hotels increased 99%, while the search for air- lines increased 1%, reaching the same threshold as in 2019.

3 The traveler’s journey is digital

Nowadays, the discovery journey of travelers is predominantly digital. Searches on Google and on YouTube are leading, and apps have a prominent role in the country. Brazilians pass 5h20m per day on apps, just staying behind Indonesia.

4 Tourism can become protagonist on Black Friday

The Tourism segment presents great potential on Black Friday. Goggle’s studies show that 71% of consumers want to buy trips on Black Friday, but 49% have never bought them, so there is indeed a demand and interest for pur- chasing trips within the period.

The interests of the traveler who buys on Black Friday is, mainly, on:

1o place – Accommodation (60%);

2o place – Package Deals (59%);

3o place – Flight Tickets (53%);

4o place – Sightseeing Tours (41%);

5o place – Tickets for Tourist Attractions (26%); 

6o place – Car Rental (25%)

7o place – Bus Tickets (17%); 

8o place – Cruises (16%).

The study also indicates that offers or package deals for trips ranging from four to ten days can have emphasis for consumers, as well as personalized offers beyond ten days for the high-end public.

5 Favorable consumption scenario

The economic scenario in Brazil brings an opti- mistic perspective this year. When questioned if the economy in the country will be better by the end of the year, 51% of Brazilians answered yes, considering as well that their own financial situation will improve. That means a consump- tion longing; Brazilians are more optimistic.

WHAT BRANDS AND DESTINATIONS ARE THE MOST SEARCHED FOR IN TOURISM? 

In the browse on Google, the airlines lead the ranking.

Gol (7.8%); Latam (7%); Google Flights; And Azul.

As for searches for generic terms, “beach” is the preferred one of Brazilians.

In the search for destinations, Rio de Janeiro prevails in Google’s searches, while internationally, Orlando is the most browsed destination. This isn’t exactly new, but now Curaçao is also in the spotlight, presenting a monthly growth.

Personas

The Brazil market focuses primarily on the personas Quinn and Kris. Find more information about the personas here.  

Key Performance Indicators

Final 2022Open 2023
Bed nights hotels220’758256’362
Turnover Total (CHF)62 Mio.73 Mio.
Growth 2022 – 202313.4%
Campaigning & Activation*
·      Top-Marketing Contacts115’551’477112’496’410
·      Customer reactions462’234747’667
·      Tracked Sessions on MyS.com per year146’611529’383
·      Engagement Rate on MyS.com21.7%58.8%
·      Engagement Rate on Social Media1.56%0.26%
Media work (KMM)*
·      Top-Coverage articles7387
·      Top-Coverage media contacts186’602’019137’832’661
·      Qualified Interactions with KMM130166
Trade (KAM)
·      Influenced overnight with tour operators 96’39632’991
·      Turnover generated23’135’0407’917’840
·      Influenced revenue with tour operators 74’345’88072’800’000
·      Specific group and FIT packages198141
·      Qualified Interactions with KAM661844
Partner cooperations
·      Investments tourism partners1’710’3231’665’258