São Paulo – The Brazilian Ministry of Tourism and the Brazilian Development Bank (BNDES) have approved a line of credit of 1 billion Brazilian reals (US$ 573 million) for hotel industry businessmen to refurbish existing hotels and build new ones in Brazil in order to receive the tourists who will come to the 2014 FIFA World Cup and the 2016 Olympic Games.
According to estimates disclosed by the minister of Tourism, Luiz Barretto, there currently are 28,000 hospitality establishments in the country, including hotels, lodges, resorts and flats. The credit line enables businessmen to invest in different types of establishments, setting specific rules for each category. The interest rate for purchase of domestic machinery and equipment is 6.9% per year, but may go up to 8.8% depending on the product category.
The Brazilian Development Bank’s Pro-Copa Turismo line aims to foster the country’s hotel industry. Deadlines for payment in refurbishment operations range from 8 to 12 years, and in the building of new enterprises, from 12 to 18 years.
According to data supplied by the ministry, approximately 600,000 foreigners should visit the country during the 30 days of the FIFA World Cup alone. With the Olympic Games, the government expects growth of 10% to 15% in tourist arrivals.
In order to standardize the means of lodging, the ministry, the National Institute of Metrology, Standardization and Industrial Quality (Inmetro) and the Brazilian Metrology Society (SBM) are going to start organizing a new rating system for tourist enterprises, so as to have stricter control over the quality of services provided, thus granting credibility to the Brazilian hotel industry.
*Translated by Gabriel Pomerancblum
