Brazil should give tourism the significance of agribusiness

Earlier than reaching the management positions within the tourism sector that he has held in recent times, Vinicius Lummertz, a local of Santa Catarina, devoted his profession to financial improvement, specializing in sustainable progress with job creation and revenue. Graduated in Political Science on the American College of Paris, studied administration on the Kennedy Faculty of Harvard College (USA) and at IMD in Lausanne (Switzerland). He led the Sebrae of Santa Catarina, state the place he additionally held the place of Secretary of Worldwide Articulation and Planning, Finances and Administration within the authorities of Luiz Henrique da Silveira. On this position, he created and chaired SC Par, an organization targeted on challenge structuring and public-private partnerships. With this baggage he arrived in Brasília, the place he held the place of Nationwide Secretary for Tourism Insurance policies within the governments of Dilma Rousseff and Michel Temer, chaired Embratur and have become Minister of Tourism.

Since 2019, he heads Setur, the State Secretary of Tourism and Journey in São Paulo. The Ministry introduced on Tuesday (30) the outcomes of a collection of research carried out in partnership with the Inter-American Growth Financial institution (IDB) to assist the restoration and long-term progress of the sector. Lummertz spoke with DINHEIRO about this program and different challenges Brazil faces in capitalizing on its tourism vocation.

MONEY — Tourism’s contribution to Brazil’s GDP was about 7.7 % in 2019, earlier than the pandemic despatched the sector right into a recession. We’re far behind Mexico, Chile, Argentina and even Iran. As a result of?
VINICIUS LUMMERTZ — Tourism must be a strategic precedence for the nation. And it is not. Brazil has wasted time investing little or no in worldwide promotion and advertising, which might appeal to extra tourism and enhance its picture. Till 2004, we had a small annual surplus within the tourism expenditure steadiness [a diferença entre o que entra com as visitas de estrangeiros e as despesas dos brasileiros em viagens internacionais]. Since 2005, the account has reversed and changed into an enormous deficit, accumulating USD 156.5 billion by 2021. We now have all of the situations to reverse this case.

Making the most of Brazil’s aggressive benefits in tourism doesn’t appear to be a precedence for the present authorities or the candidates…
This presidential marketing campaign fails to grasp that the worldwide battle for jobs includes tourism, which can generate one-third of the planet’s new jobs over the following ten years, in keeping with a projection by the World Journey and Tourism Council (WTTC). Union spending on tourism promotion and advertising on the nationwide market has dropped from BRL 38 million in 2018 to BRL 1.3 million this 12 months [os dados estão no Portal da Transparência]. We have to hit the journey button.

What does it imply to press the journey button and the way can it’s finished?
Tourism may be the brand new agribusiness by way of financial potential, nevertheless, with much more optimistic city and social results, extra high quality of life, jobs and alternatives, as we try to do in São Paulo and Serra Gaúcha (RS ) and Foz. do Iguaçu (PR). Brazil, which till 40 years in the past was an importer of meals, is right this moment one of many largest exporters. In each agriculture and tourism, Brazil is on the high of the world’s comparative benefits. In agriculture, they grew to become aggressive with the combination into the worldwide economic system. Entry to know-how and information arose from Embrapa’s worldwide cooperation and the results of this integration into the so-called “inexperienced revolution”, led by worldwide conglomerates, along with billions of credit score investments. Tourism assist insurance policies weren’t a precedence within the nation’s strategic instructions. We didn’t benefit from one of many mega-potentials that comes from the identical matrix: the scale of Brazil. We now have the best pure potential for tourism improvement on the planet and one of many ten biggest cultural potentials on the planet.

“We’re investing in native branding, constructing native manufacturers, as now we have already finished in Vale do Ribeira with the Vem professional Vale marketing campaign” (Credit score: Disclosure)

And learn how to flip this potential into alternatives?
An instance is our Mais Turismo program, the results of technical cooperation with the Inter-American Growth Financial institution (IDB), which focuses on Tourism and the Atmosphere. The technical cooperation value USD 250,000, financed by the IDB on a non-reimbursable foundation, with the target of laying the foundations for the implementation of a restoration and restoration plan for the tourism sector, given the impression of the pandemic. One of many outcomes of this cooperation is an funding program and financing fund totaling USD 300 million that may profit the areas of Vale do Ribeira, Litoral Norte and Mantiqueira Paulista.

How will these sources be invested?
In tourism product structuring, advertising and positioning, encouraging innovation, sustainability and strengthening tourism governance, socio-environmental administration and tourism manufacturing chain financing. The proposals have been designed to adapt credit score demand and provide to the sector, together with the creation of a particular funding fund, financing and a brand new credit score evaluation engine in partnership with fintechs.

Is the concept of ​​turning them into vacationer districts, a mannequin that has already been carried out in some areas of the state?
Till the earlier administration, the federal government of São Paulo had just one promotion program that introduced sources to municipalities to advertise tourism, known as Dadetur. The price range was 200 million lei. We launched new packages and raised this quantity to R$ 550 million with the target of selling and structuring the areas with the district coverage. We’re investing in native branding, constructing native manufacturers, as now we have already finished in Vale do Ribeira with the Vem professional Vale marketing campaign. Native branding is happening in parallel with the creation of vacationer districts, equivalent to Portal da Mata Atlântica, primarily based on Legado das Águas of the Votorantim Institute, involving 5 municipalities. Or to Mantiqueira, which incorporates Campos do Jordão, Santo Antônio do Pinhal and São Bento do Sapucaí. Based mostly on these investments, all of us challenge for the following 4 years the era of 750 thousand jobs, of which 250 thousand direct and 500 thousand oblique, and the rise of tourism GDP within the state from the present R$ 220 billion to R$ 270 . billion.

And the place there are not any pure sights or cultural curiosity, what may be finished to encourage tourism?
It’s potential to create the attraction, as in Andradina, the place the Tietê and Paraná rivers meet. A theme park is being constructed there with an funding of R$ 500 million from the personal sector. That was the case in Olímpia, the place the resort infrastructure has 30 thousand beds. Or within the Rota das Frutas area, the place there are already parks like Hopi Hari and Moist’n’Wild. R$ 200 million is being invested within the development of a bicycle lane on the Rodovia dos Bandeirantes.

How will these districts appeal to vacationers?
Demand in São Paulo is already larger than provide. The creation of the district, by regulation, establishes a governance in co-management of municipalities and three authorities departments: Tourism and Journey, Transport and Infrastructure and Atmosphere. It’s a work of structuring that has by no means been finished in any state, a lot much less by the federal authorities. After we speak about vacationer districts, I perceive that Brazil may implement extra, in all areas, particularly in locations that have already got the best situations for this, such because the Rota das Emoções, which fits from Ceará to the Delta do Parnaíba and to Maranhão . , in Lençóis Maranhenses, along with historic facilities equivalent to São Luís, Salvador or Tiradentes, and pure conservation areas equivalent to Amazônia, Pantanal, Jalapão, Serra da Mesa, Serra Catarinense, Serra Gaúcha and Aparados da Serra.

“Holambra, with 17,000 inhabitants, receives 1.5 million vacationers a 12 months, highlighting its flower manufacturing and Dutch colonization” (Credit score: Istock)

Tourism could be a platform for varied dimensions of the economic system, such because the manufacturing of artisan items or regional meals. Tips on how to encourage this vocation?
We’re touring the state with a program known as São Paulo in Motion. A examine of all bottlenecks in tourism areas to grasp what work is required and what institutional interventions are potential, from the creation of councils to advertising plans. We’re engaged on these buildings to grasp the customer economic system. I cite for example Holambra, which more and more realized its potential to draw guests via each flower manufacturing and Dutch colonization. It’s a municipality of 17 thousand inhabitants that receives 1.5 million vacationers per 12 months. These are shoppers who can rework the native economic system by spending on services and products in Brazil.

Would this be the way in which to reverse the deficit of virtually R$ 160 billion amassed since 2005 within the tourism steadiness?
We now have all the things to generate a surplus in tourism, however it’s obligatory to advertise, construction and have sturdy goals. As I designed within the Turismo SP 20-30 plan. The primary difficulty the districts delivered to us was the ICMS rebate for theme park gear, which may be both a Ferris wheel or software program.

If the sector asks for a tax lower, what if there isn’t any incentive?
I emphasize that the success of agribusiness has been its integration into worldwide manufacturing chains, and this must be the central aim of the nationwide tourism economic system. It’s not new that worldwide resort flags are actually extra current in different Latin American international locations than in Brazil. We now have been ignored of the worldwide theme park increase, however it’s nonetheless potential to place ourselves very effectively if there’s an understanding of the importance of the scale of the tourism trade.

Which outcome can be…
Launching Brazil on the trail to benefit from its nice improvement potential.

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