Brazil's Carnival expected to circulate $1.9 billion

Carnival-related tourist activities are expected to set in motion some $1.9 billion this year, according to a study released today (Feb. 6) by the National Confederation of Trade in Goods, Service, and Tourism (CNC). The survey shows that food services in bars and restaurants should account for 57.3% of the revenue—approximately $1 billion.

The official date for Carnival this year is Tuesday, February 28, but street parties and parades have already started to pop up all across the country.

Despite the forecast, funds circulating during Carnival this year should amount to 5.7% less than the amount reported for the same period last year, and is likely to show the worst performance in tourist activities for the period in the last three years.

“Despite the recent trend, with services typical this time of year showing a lower variation in prices, the real decline in income has created a need for frequent budget adjustments among families, who delay non-essential expenditures, like leisure,” said CNC economist Fábio Bente.

Rio de Janeiro is the state with the biggest potential for the circulation of funds, with $769.75 million expected to be set in motion, followed by São Paulo, with $481 million. The two cities combined should account for 68.2% of revenues in the sector during this period.

The tourist activities associated with Carnival are lodging, food, tourism, sport and leisure, travel agencies, land and air transportation, and car rental.

Translated by Fabrício Ferreira