São Paulo – Financing to tourism-related projects was up 33.16% in quarter one this year from quarter one, 2012. According to a report released by the Brazilian Ministry of Tourism this Tuesday (28th), in quarter one this year, R$ 2.65 billion (US$ 1.29 billion) were loaned to hotels, bars, restaurants, parks, car rental companies, travel agencies, and transportation agencies. In quarter one last year, loans amounted to R$ 1.99 billion (US$ 971 million).
According to a press release from the Ministry of Tourism, Brazil’s Federal Savings Bank accounted for R$ 1.74 billion, i.e. 66% of total loans granted by government-owned banks to the tourism industry. Banco do Brasil loaned R$ 357 million (US$ 174 million), and the Brazilian Development Bank (BNDES) loaned R$ 271.6 million via the ProCopa hotel refurbishing and construction program. Banco do Nordeste loaned R$ 190.5 million and Banco da Amazônia loaned R$ 90.3 million (US$ 44 million).
According to the national secretary for Tourism Development Programs, Fábio Mota, loans to the industry are on the rise since the beginning of the decade because banks recognize a potential for growth, and because businessmen are more apt to receive the funds.
“In 2003, when the ministry began to create special credit lines for the industry, we saw R$ 1 billion (US$ 488 million) in loans. In 2012, we saw a record volume of R$ 11.2 billion (US$ 5.36 billion),” said Mota in the ministry’s press release. From 2003 through March 2013, loans to the hotel industry amounted to R$ 47.5 billion (US$ 23.1 billion).
*Translated by Gabriel Pomerancblum
