Domestic tourism on the rise in Brazil

With the depreciation of the Brazilian real in relation to the U.S. dollar this year (hovering around R$3.00/US$1), Brazilians have become far more interested in travelling within their nation than abroad. Tourism is one sector that is bucking the trend of slower economic growth and consumer spending, indicating positive growth and great potential.

According to a recent survey conducted by Brazil’s Tourism Ministry and Fundação Getulio Vargas (FGV) in April 2015, the vast majority, 77.4% of Brazilians planning to travel this year, will be spending their vacations within the country and not going abroad. The remaining 19.5% are planning to travel overseas and 3.1% were undecided about their holiday destination at the time.

For the minister of Tourism, Henrique Eduardo Alves, the boost in domestic tourism is mainly due to the dollar exchange rate hike, improved infrastructure of airports in major tourist hotspots thanks to the World Cup 2014 (including the newly built São Gonçalo do Amarante International Airport in Natal), and the number of national holidays in the year.

Travelling internationally became more expensive due to the dollar hike; thus, air tickets, hotels, and other items that were previously more expensive in Brazil are now much more affordable at home than overseas. In addition, Brazilians have always preferred to travel within the country instead of going abroad, according to the Tourism Ministry; nevertheless, cost factors and poor infrastructure have shifted travellers to look for international destinations. Now travelling prices have reversed in favour of Brazilian tourism and the natural, cultural, and business attractions, which are crucial factors boosting Brazilian tourism, present a great development potential.

Last year, more than 206 million trips were made by more than 62 million Brazilian tourists, with the country advancing by 23 positions in the competitive tourism ranking by the Global Economic Forum last week, climbing from 51st to 28th position. This year the survey conducted by the Tourism Ministry and FGV shows that approximately 10.9 million extra domestic trips will be taken, bringing the sector revenues of over R$18.66 billion.

This clearly demonstrates the need to increase investment in Brazilian tourism infrastructure even more and promote domestic destinations. Following the argument, this represents an excellent opportunity for Ritz-G5, the award-winning developer that has been investing and constructing holiday properties in Natal since 2008.

Natal is a thriving city with nearly one million inhabitants; the capital and largest city in Rio Grande do Norte (north-eastern state in Brazil), enriched with a beautiful coastline and abundance of sandy, white beaches.  Known as the ‘City of Sun’ thanks to its 3,000 hours of sunshine every year and pleasant climate averaging 27 degrees Celsius, Natal is also known as the ‘City of Dunes’, thanks to its wealth of dunes and extensive offer of dune buggy rides along the sandy beaches. For this reason, locals refer to Natal as ‘the Brazilian capital of buggies’.

With the domestic tourism increase, Ritz-G5 can offer Natal’s tourists and visitors holiday and business accommodation in its own hotels such as the Piramide Natal hotel, (due to finish refurbishment in September) as well as the Mercure Natal hotel (currently in construction), which will be managed by the Accor Group, one of the world’s leading hotel operators with presence in 92 countries and a portfolio of over 3,700 hotels.

In respect of domestic tourism rise, we would also like to emphasise the opportunity available at Ritz-G5’s Palm Springs condominium development - an ideal destination for luxury homes in a prime beachfront location. Buyers from the South of Brazil, Rio de Janeiro and São Paulo, can build their dream holiday home here at considerably lower and far more affordable prices than home.

For more information on Palm Springs Natal and Ritz-G5 hotel investments please contact the team at Ritz-G5 on +44 207 183 7565 or visit

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