Brasília – Overseas spending by Brazilian tourists rocketed last month. According to figures released this Thursday (22nd) by the Central Bank, international travel spending by Brazilians reached US$ 2.087 billion in October. The amount is the highest ever for October and second only to that of July last year, when Brazilian tourists disbursed US$ 2.234 billion in other countries.
Due to the increased spending, the balance of international travel, i.e. the difference between foreign tourists’ spending in Brazil and Brazilian tourists’ spending overseas, showed a US$ 1.536 billion deficit in October. According to the Central Bank, it was the highest deficit ever for the month of October.
To the joint manager of the Central Bank’s Economic Department, Fernando Rocha, exchange rate stability in the last few months and the rising incomes of Brazilians explain the resumption of overseas spending.
“After having risen mid-year, the US dollar remained stable at around R$ 2 in the last few months. That allowed tourists to plan their overseas spending better, enabling Brazilians to start travelling again. Not to mention that Brazilians’ incomes kept growing during the period,” he said.
After the recent hike of the dollar, which appreciated in relation to the Brazilian real in the last few days and is now equivalent to R$ 2.10, the manager of the Central Bank’s Economic Department says it will take some time before overseas travel spending declines again.
“Brazilians who are travelling overseas right now had already planned out their trips. Thus, there is always a lag between a dollar hike and the weakening of the [overseas travel spending] account,” he said.
According to Rocha, preliminary figures for November show overseas spending by tourists will be down from October. As of November 20th, Brazilians had spent US$ 1.178 billion in other countries.
*Translated by Gabriel Pomerancblum
