Brazil should give the significance of agribusiness to tourism

Earlier than reaching the management positions within the tourism sector he has held in recent times, Vinicius Lummertz, initially from Santa Catarina, had devoted his profession to financial growth, specializing in sustainable development with job and revenue era. Graduated in Political Science from the American College of Paris, he studied administration on the Kennedy College of Harvard College (USA) and on the IMD in Lausanne (Switzerland). He directed the Sebrae of Santa Catarina, a state by which he additionally held the place of secretary of worldwide articulation and planning, budgeting and administration within the authorities of Luiz Henrique da Silveira. On this position he created and chaired SC Par, an organization centered on the structuring of tasks and Public-Personal Partnerships. With this baggage he arrived in Brasilia, 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 has been in charge of Setur, the Secretary of State for Tourism and Journey of São Paulo. On Tuesday (30) the ministry introduced the outcomes of a sequence of research carried out in collaboration with the Inter-American Growth Financial institution (IDB) to assist the sector’s restoration and long-term development. Lummertz spoke with DINHEIRO about this program and different challenges that Brazil faces to take advantage of its vacationer vocation.

MONEY – The contribution of tourism to Brazilian GDP was round 7.7% in 2019, earlier than the pandemic introduced the sector to a downturn. We’re far behind Mexico, Chile, Argentina and even Iran. As a result of?
VINICIO LUMMERTZ – Tourism must be a strategic precedence for the nation. And it is not. Brazil has wasted time by investing little or no in worldwide promotion and advertising, which might entice extra tourism and enhance its picture. Till 2004 we had a small annual surplus within the steadiness of vacationer spending [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 was an enormous deficit, accumulating $ 156.5 billion by 2021. Now we have all of the circumstances to reverse this case.

Harnessing Brazil’s aggressive benefits in tourism doesn’t seem like a precedence for the present authorities or candidates …
This presidential marketing campaign fails to know that the world struggle for jobs includes tourism, which can generate a 3rd of recent jobs on the planet within the subsequent decade, in accordance with a projection by the World Journey and Tourism Council (WTTC). Union spending on tourism promotion and advertising within the nationwide market fell from BRL 38 million in 2018 to BRL 1.3 million this 12 months [os dados estão no Portal da Transparência]. Now we have to push the tourism button.

What does it imply to push the tourism button and the way can it’s accomplished?
Tourism stands out as the new agribusiness by way of financial potential, nonetheless, with much more optimistic city and social results, extra high quality of life, jobs and alternatives, as we are attempting to do in São Paulo and as Serra Gaúcha (RS) and Foz do Iguaçu (PR). Brazil, which till 40 years in the past was a meals importer, is now one of many largest exporters. In each agriculture and tourism, Brazil tops the comparative benefits of the world. In agriculture, they’ve turn into aggressive with integration into the worldwide financial system. Entry to expertise and data arose from Embrapa’s worldwide cooperation and the results of this integration within the so-called “inexperienced revolution”, led by worldwide conglomerates, along with billionaire investments in credit score. Tourism assist insurance policies haven’t been a precedence within the nation’s strategic instructions. Now we have not exploited one of many megapotentials that derive from the identical matrix: the scale of Brazil. Now we have the biggest pure potential for tourism growth on this planet and one of many ten largest cultural potentials on the planet.

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

And methods to rework this potential into a possibility?
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 Setting. The technical cooperation price 250,000 US {dollars}, financed by the IDB on a non-refundable foundation, with the intention of laying the foundations for the implementation of a restoration and restoration plan for the tourism sector, in view of the impacts of the pandemic. One of many outcomes of this cooperation is an funding program and a financing fund for a complete quantity of US $ 300 million which can profit the areas of Vale do Ribeira, Litoral Norte and Mantiqueira Paulista.

How will these assets be invested?
Within the structuring of tourism merchandise, in advertising and positioning, within the promotion of innovation, sustainability and within the strengthening of tourism governance, socio-environmental administration and financing of the tourism sector. The proposals had been designed to adapt credit score provide and demand to the sector, together with the creation of a particular funding fund, financing and a brand new credit score evaluation engine in partnership with fintech.

Is the thought of ​​remodeling them into vacationer districts a mannequin already applied in some areas of the state?
Till the earlier administration, the São Paulo authorities had just one promotion program that introduced assets to municipalities to advertise tourism, referred to as Dadetur. The price range was R $ 200 million. Now we have launched new applications and raised this quantity to R $ 550 million with the intention of selling and structuring the areas with district coverage. We’re investing in place branding, constructing native manufacturers, as we’ve got already accomplished in Vale do Ribeira with the Vem professional Vale marketing campaign. The place branding takes place in parallel with the creation of vacationer districts, corresponding to Portal da Mata Atlântica, based mostly on the Legado das Águas of the Votorantim Institute, which includes 5 municipalities. Or to Mantiqueira, which incorporates Campos do Jordão, Santo Antônio do Pinhal and São Bento do Sapucaí. Based mostly on these investments, we’re all projecting the era of 750,000 jobs over the subsequent 4 years, of which 250,000 are direct and 500,000 oblique, and a rise in tourism GDP within the state from the present R $ 220 billion to R $ 270 billion.

And the place there aren’t any pure points of interest or cultural pursuits, what could be accomplished to encourage tourism?
You’ll be able to create the attraction, as in Andradina, the place the Tietê and Paraná rivers meet. There’s a theme park beneath building with an funding of R $ 500 million by the non-public sector. This was the case in Olympia, the place the lodge infrastructure has 30,000 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 invested within the building of a cycle path in Rodovia dos Bandeirantes.

How will these districts entice vacationers?
Demand in Sao Paulo is already larger than provide. The creation of the district, by the regulation, establishes a co-managed governance of the municipalities and three authorities departments: Tourism and Journey, Transport and Infrastructure and Setting. It is structuring work that has by no means been accomplished in any state, not to mention the federal authorities. In relation to vacationer districts, I perceive that Brazil might implement a number of, in all areas, particularly in locations that have already got the best circumstances for this, such because the Rota das Emoções, which runs from Ceará to Delta do Parnaíba and Maranhão, in Lençóis Maranhenses, in addition to historic facilities corresponding to São Luís, Salvador or Tiradentes, and pure conservation areas corresponding 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, enhancing the manufacturing of flowers and the Dutch colonization” (Credit score: Istock)

Tourism generally is a platform for varied dimensions of the financial system, such because the manufacturing of artisanal items or regional meals. Easy methods to encourage this vocation?
We’re touring the state with a program referred to as São Paulo in Motion. A examine of all of the bottlenecks in vacationer areas to know which works are wanted and which interventions are potential from an institutional standpoint, from the creation of councils to advertising plans. We’re engaged on these constructions to know the customer’s financial system. I cite for instance Holambra, which has more and more realized its potential to draw guests by each flower manufacturing and Dutch colonization. It’s a city of 17 thousand inhabitants that receives 1.5 million vacationers a 12 months. These are shoppers who can rework the native financial system by spending on services and products in Brazil.

Would this be the way in which to reverse the practically R $ 160 billion deficit collected since 2005 within the tourism steadiness?
Now we have all the things to generate a surplus in tourism, however it’s needed to advertise, construction and have strong goals. As we’ve got deliberate within the Turismo SP 20-30 plan. The primary downside the districts introduced us was the discount of ICMS for theme park gear, which generally is a Ferris wheel or software program.

If the trade is asking for a tax reduce, what to do if there isn’t any incentive?
I stress that the success of agribusiness has been its integration into worldwide manufacturing chains, and this must be the central goal of the nationwide tourism financial system. It’s no information that worldwide lodge flags are actually extra current in different Latin American international locations than in Brazil. Now we have been excluded from the worldwide increase in theme parks, however it’s nonetheless potential to place ourselves very nicely in the event you perceive the importance of the scale of the tourism trade.

What end result could be …
Placing Brazil on the highway to take advantage of its nice growth potential.

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