Brazil Tourism Hits Record Year Amid Depreciation

In 2024, Brazil welcomed a historic 6,657,377 foreign tourists, marking a 12.6% growth compared to 2023. Argentinians topped the list of visitors, followed by tourists from the United States and Chile.

According to data from Brazil’s Ministry of Tourism, Embratur, and the Federal Police, 690,236 foreigners visited in December alone, an 11.1% increase over December 2023, making it the third-best December since records began in 1995.

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Tourism Minister Celso Sabino attributed this success to strategic international marketing campaigns, destination development, and strengthened global partnerships. “These efforts have highlighted Brazil’s natural landscapes and rich cultural heritage,” Sabino stated.

Foreign tourist spending reached $6.62 billion by November 2024, a 5.3% increase over 2023 and surpassing the same period in 2014, when Brazil hosted the FIFA World Cup.

Currency Depreciation

One key factor behind this record-breaking year was the depreciation of Brazil’s currency, the real (BRL). The exchange rate reached historic highs, making Brazil one of the most affordable destinations for foreign travelers. Tourists were able to maximize their spending, with lower costs for accommodations, dining, and activities compared to other destinations.

At this moment, each U.S. Dollar is worth more than 6 Brazilian Reais.

USD/BRL

The depreciation of the real was largely driven by excessive government spending, which increased concerns about fiscal sustainability. When governments spend beyond their means without sufficient revenue, it often leads to higher public debt. This undermines investor confidence, prompting a sell-off of the local currency, which in turn weakens its value.

In Brazil’s case, the increased public spending fueled fears of inflation and reduced the attractiveness of holding the real compared to stronger foreign currencies, such as the U.S. dollar. This depreciation, while a challenge for the local economy, made Brazil significantly cheaper for international visitors, contributing to the surge in tourism.

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ABOUT THE AUTHOR See More
Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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