The organizer of one the most iconic carnivals in the world, Brazil expects to receive U$ 1,7 billion in revenues linked to tourism activities, according to a report released by the National Confederation of Trade in Goods, Services and Tourism (CNC).
If predictions are confirmed, the main economic activities related to the event will see a financial increase of 26,9% in comparison to the previous year.
“Carnival is seen as the “Christmas of tourism” in Brazil. In this sense, the activities related to this event have been severely impacted since the enactment of the health crisis in mid-March 2020 by the World Health Organization (WHO),” said the Confederation.
For the largest nation in Latin America, Carnival is a serious business that moves billions of dollars, and for that reason, it is considered to be the main event for the country’s tourism sector. The celebrations have just started and they last until the end of February.
Going big again
The Covid-19 pandemic caused a massive jolt in the Brazilian carnival industry. Over the last two years, the protocol restrictions and traveling measures imposed by the government led to the cancellation of the event in several regions throughout the country.
“After the 43% drop in revenues in 2021 and the slow recovery in 2022, the definitive normalization of post-COVID-19 activities is expected to have a positive impact on revenues this year,” explains the economist Gabriella Stelling.
According to her, restoring revenues to pre-pandemic levels encounters only known obstacles this year.
Increase in inflation and the rise in interest rates contributed to the growth in prices for accommodation and represented a barrier to the expansion of spending on leisure activities.
A favorable scenario after all
Despite this, the overall scenario is favorable, and the 2023 Carnival might have a remarkable effect on the Brazilian economy. Stelling believes that around 24,600 temporary jobs will be generated, as the crowds invade the streets.
From a perspective of revenue generation, CNC’s report indicates that the highlight will be the segment of bars and restaurants – with an expected turnover of U$ 711 million – followed by passenger transportation companies – U$ 453 million – and accommodation services – U$ 177 million – whose revenue is partially carried out in advance.
Together, these three segments will account for nearly 84% of all revenue generated during the biggest holiday on the national calendar.