A cheaper greenback nudges Brazilians to travel overseas

An array of recent dollar devaluations occurred since president Lula took office is prodding Brazilian nationals to fly to other countries, said Tasso Gadzanis, chairman of the Brazilian Travel Agency Association (ABAV).

If the dollar happens to hold on to its current level somewhere between 2.95 and 3 reales per buck, the flow of outgoing Brazilians should soar to 50 percent compared to the year before. Since last January, Uncle Sam’s currency has lost 16 percent of its face value against the real.

During most of the second half of 2002 when Brazil’s presidential campaign was in full swing, the dollar exchange rate edged nearly 4 reales and eventually made overseas traveling much pricier.

Mr. Gadzanis explained that taking a trip to Miami as a benchmark reveals that same journey would now cost 28 percent less in reales, a situation that has rekindled the formerly pent-up demand for tourist packages.

Some tour operators believe, though, that renewed thrust for traveling abroad is not reflecting a decline in domestic tourism. In the case of Rio de Janeiro and despite the negative publicity triggered by the city’s rampant crime rate, the flow of Brazilian vacationers remains very much the same compared to past years.

Nonetheless, a cheaper dollar could also make a dent in Brazil’s luring tourist destinations in the eyes of foreign travelers who might eventually spend 30 percent less than the year before in case they decide to move around the South American nation.