Bolsonaro increases budget for Brazil's promotion

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Bolsonaro increases budget for Brazil's promotion
Thu November 28, 2019

The money will come from resources not executed by other institutions

A former tourist industry candidate, Embratur has been transformed into a promotion agency. President Jair Bolsonaro signed a Provisional Measure on Wednesday (27), which changes the legal nature of the body, from autarchy to Autonomous Social Work, disengaging from the Union budget and receiving resources from social contributions. Embratur - Brazilian Agency for International Tourism Promotion - aims to leverage the international tourism flow of the country. The MP now follows for analysis by the National Congress.

Embratur's president, Gilson Machado Neto, explains that, with the transformation, it will be possible to establish partnerships with the private sector and have more flexibility in hiring services and personnel, who will work abroad.

“Currently, Embratur is an autarchy linked to the Ministry of Tourism, having as its only source of funds the Union budget. With the successive cuts in this budget, the investment capacity to promote Brazilian tourism abroad has been drastically undermining actions. promoting Brazil in the international market and reducing competitiveness in a scenario of high dispute for foreign tourists. In the agency format, it will be possible to enter into agreements and promote integrated actions with other government agencies and private initiative, ”said Gilson.

The Agency will be subordinate to the Ministry of Tourism but will have its own budget. The amount will be 15.75% of the additional contribution from the Economic Domain Intervention Contribution (Cide) currently allocated to the S System. The agency will have 60 days to publish its statute.

Brazil, despite being elected by the World Economic Forum (WEF) as the 2nd in the ranking of international competitiveness in natural resources and the 8th in cultural resources, in 2019, is only 32nd in competitiveness and 101st in tourism and travel industry. With the signing of the Provisional Measure, Embratur agency will act as institutions such as APEX Brazil and ABDI (Brazilian Association of Industrial Development).

“We will have an active and strategic role in attracting foreign tourists. With the return of competitiveness, the expectation is that the return is more jobs and income for the population and the country, ”explained Gilson.

Brazil has been stagnant in attracting international tourists for years. In 1999, the number of visitors in the country was 5.9 million. Almost 10 years later, we reached just 6.5 million. According to the president of Embratur, data show that competing countries in the tourism flow, such as Argentina (US $ 80 million), Colombia (US $ 110 million) and Mexico (US $ 490 million), had stronger budgets for tourism promotion. “While in Brazil this figure was only $ 12.8 million in 2018,” said Gilson. According to him, Embratur's new budget should be around US $ 150 million.

In 2018, international tourists left the Brazilian economy $ 5.92 billion. Gilson noted that measures such as visa-free travel to strategic countries such as the United States, Australia and Canada are already showing improved revenue and believe in a considerable increase in foreign spending in the country. “In July 2019, US $ 598 million entered the Brazilian economy, against US $ 417 million in the same period last year. With the Embratur Agency, we will further exponent these numbers, ”he concluded.


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