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BRICS Countries: Brazil

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Fabian Zacher

on 30 June 2014

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Transcript of BRICS Countries: Brazil

BRICS Countries: Brazil
1. Introduction
Table of Contents
1. Introduction

2. BRICS Countries

3. The "B" in BRICS

4. Tourism Sector

9695 Research Project I
Prof. Dr. Wolfgang Georg Arlt
Global GDP % BRICS

11% global GDP in 1990

25% global GDP in 2011

40% global GDP by 2050
Source: FTKMC, 2013
Leaders of BRICS from left to right are President Dilma Rousseff of Brasil, President of Russia Vladimir Putin, President Manmohan Singh of India,President Hu Jintao of China and President Jacob Zuma of South Africa at Los Cabos in Mexico 18/06/2012.
4. Tourism Sector
5. Brazil's Tourism Industry
6. BRICS travel potential
9. Changing Role of Tourism within BRICS
11. Tourism as Political and Development Tool of BRICS
12. Strategies to Support South-South Cooperation Using Tourism
BRICS countries are seen by UNWTO as emerging tourism markets in both outbound and inbound tourism
"...until 2017, the growing demand for international tourism will be led by the so-called emerging economies. From this group of markets, tourism growth will be led by the group known as BRIC, comprising of Brazil, Russia, India and China or also BRICS, which includes South Africa as a new emerging economy" (UNWTO cited in EU, Tourism business portal, 2014)


Table of Contents



7. Intra-regional tourism between BRICS countries
7.1 Brazil tourism industry overview

7.2 Inbound tourism from BRICS countries to Brazil


8. Factors promoting and hindering the development of intra-regional tourism between BRICS countries


Table of Contents

9. Changing Role of Tourism within BRICS

10. Possible Development of Intra-regional Travel between BRICS

11. Tourism as Political and Development Tool of BRICS

12. Strategies to Support South-South Cooperation Using Tourism

13. Conclusion


- influence on global economic and political affairs
- importance of Travel & Tourism as global stabilising force:
job creation and economic development

BUT:
- missing recognition of culture and tourism on the agenda of BRICS
- weak cooperation and collaboration in terms of tourism
- culture and tourism not recognized as integration tool (bilateral levels)

10. Possible Development of Intra-regional Travel between BRICS
Reasons for South-South Cooperations:

- Global South as source of growth and markets
- South-South trades and investments are rising
- rising South-South development assistance
- highlighting and exchanging good practices


Main tourism attractions in Brazil

- to facilitate the visa application process
- to lower the flight fees and to add more flights to BRICS destinations
- to cooperate with other countries in order to promote regional tourism
- to adapt tourism infrastructure and facilities to BRICS travellers
- to promote destinations more intensive among BRICS countries.
7. Intra-regional tourism between BRICS countries
7.1 Brazil tourism industry overview
Inbound tourism

- in 2012 Brazil welcomed more than five million tourists
- major tourism source markets: neighboring South American countries (Argentina, Uruguay) and United States of America, from the European continent: Germany, Portugal and Italy
- travel purposes: leisure, business, VFR

Source: Slob, Wilde, 2006; Trip Advisor, n.d
Source: Slob, Wilde, 2006; UNWTO, Tourism highlights, 2013
-
method for organizing the trip:
contracting package deals, using traditional travel agencies
- demographic profile:
the majority are middle-aged, between 28-45
- travel group:
brazilian tourists prefer to travel either alone (49%) or in travel groups (27%)
-
information sources:
recommendations from family and friends, information obtained from travel agents and tour operators
-
preferences regarding trips:
art, culture, heritage, nature, adventure sports or folklore
- type of accommodation:
3 and 4 stars hotels are the most highly demanded

7.1 Brazil tourism industry overview
Characteristics of Brazilian tourists
Source: EU, Tourism Business portal, 2014
7. Intra-regional tourism between BRICS countries
7.2 Inbound tourism from BRICS countries to Brazil
Source: Source: Embratur cited in InfoEscola, 2011

Approved Destination Status (ADS), 2004


The document comprises of four main points:
- the exchange of lists of tour operators between Brazil and China
- establishing a hot telephone line for emergencies with translation
- offering Chinese and English-speaking guides
- facilitation of visa situation.

Brazil-China
Source: Agencia Brazil, 2004
Brazil-South Africa
Source: Bizcommunity, 2011; News24, 2014; ABAV, 2014
Brazil-India
Source: PTI news agency, 2012
- South African tourism marketing agencies in Brazil
- a possible cooperation agreement between the state of Rio de Janeiro and the provincial government of the Western Cape
- Brazilian Travel Agencies Association travel tradeshow (ABAV)
Tourism cooperation agreement, 2004

- promoting joint venture investments in the field of hotel industry and tourism infrastructure
- exchange of experience in developing different types of tourism such as eco-tourism, beach and rural tourism
Brazil-Russia
Source: Consultant Plus, 2014
Tourism cooperation agreement, 2001

- cooperation between Brazilian and Russian tourism authorities
- exchange of statistical data in the field of tourism
- mutual promotion of these tourism destinations.
8. Factors promoting and hindering the development of intra-regional tourism between BRICS countries
and Brazil
Accessibility: Attractiveness:

- visa regulations - travel purposes and motivations
- transportation situation - tourist demands and offers





8. Factors promoting and hindering the development of intra-regional tourism between BRICS countries and Brazil
Source: PTI news agency, 2012
Brazil
Russia
South Africa
90 days
6. BRICS travel potential
Source: Schools Training, 2014
Source: http://www.statista.com/statistics/273951/growth-of-the-global-gross-domestic-product-gdp/
Source: http://rt.com/shows/venture-capital-summary/159764-brics/
Source: Financial Technologies Knowledge Management Company Limited (FTKMC), 2013. BRICS and the Global Economy. Mumbai. [pdf] Available at: http://www.arlt-lectures.com/BRICS-and-the-Global-Economy.pdf
Source: FTKMC, 2013
Source: RT, 2013. Geopolitical Giants: BRICS world's wealthiest bloc in 30 years?
Source: FTKMC, 2013.
Acronym "BRIC" 2001
Forecast global economic trends used for economic modeling
Accept BRIC acronym
Start to meet (formally in 2006)
Further political cooperation
Fuel investments & economic growth
3.
Summit
Let's invite
South Africa
2011
BRICS
Paula: South-South
Downplaying the role of BRICS as purely economic, exists mostly on verbal agreements
Not a legally bound international organization
Contemplating setting up HQ in one of the capitals
“The BRICS nations have emerged as the most watched and promising group. From being an idea for investment, BRICS have grown to assume importance and significance in terms of strong domestic growth, contribution to the global economy, expanding financial markets [and an] enhanced scope of engagement with other developing countries [...]”.
Source: FTKMC, 2013.
BRICS are strong...
Source: RT, 2013. Geopolitical Giants: BRICS world's wealthiest bloc in 30 years?
World's largest exporter of minerals
Worlds 2nd largest economy
Source for cheap labour
Cheap intellectual resources
Powerful agricultural sector
Continent's leader in natural resources
2. BRICs
GDP Ranking
Zorig: Politics
Annette: Diversity
Pauline: Development Bank
Zorig: Politics
Annette: Diversity
Pauline: Development Bank
- no remarkable changes in Brazil’s inbound tourism
- growing volume of travel abroad of all BRICS;
Brazil as rapidly growing source market
- China, Russia and Brazil half the world’s
increase in tourism expenditure

China on the 1st place, Russia on the 4th place, Brazil on the 10th place

BRICS: new demand growth and spending power; large potential for developing tourism industry

Source: Langkilde, 2013,UNWTO, 2014; WTTC, 2012
9. Changing Role of Tourism within BRICS
Reasons for growth as outbound markets:

- rising incomes, changing spending patterns
- rising population, growing middle class, progress in technology
- favourable exchange rates, lower or similar prices
- new demand growth and spending power (all BRICS)

BUT: countries still got untapped potentiality in tourism development; need for strong cooperation and tourist infrastructure
Source: Kader, 2013; Langkilde, 2013;
Mukherjee, 2014, The Goldman Sachs Group, 2003; WTTC, 2012
BRICS summit Durban 2013:

"Improving the cultural exchange through tourism"
- South Africa as the driver in BRICS tourism development
- driving factors for tourism development:
- population, land mass
- rich cultural diversity, geographical peculiarities
- best tourism destinations world wide
- growing political support for tourism sector
Source: Mukherjee, 2014
10. Possible development of intra-regional travel between BRICS
BRICS summit Durban 2013:

"Improving the cultural exchange through tourism"
New goals:
- tourism universe as center for attraction for global tourists
- growing middle class as potential target audience
- promoting tourism between member countries; attention from other countries
- tourism as delicate subject to be handled with care; safe environment
- less bureaucracy and paper work; liberalization of visas (One-Group-One-Visa)

bright future of tourism development for the BRICS block

Source: Mukherjee, 2014
Source: UNWTO, 2014; WTTC, 2012
11. Tourism as Political and Development Tool of BRICS
Bilateral contracts concentrating on Tourism:

- Approved Destination Status, 2004 between China and Brazil
- Tourism Cooperation Agreement, 2004 between India and Brazil
- Government Decree, 2001 between Russia and Brazil

improve relationships and facilitate/increase intra-group tourism
strong cultural, strategic, economic and diplomatic relationship

Source: Pereira and de Castro Neves, 2011; Singh and Dube, n.d.; WTTC, 2012
11. Tourism as Political and Development Tool of BRICS
Source: Mahapatra, 2013
Premier body of BRICS: Tourism-5

- coordination of policies on tourism

- promotion of value of tourism
(job creation, economic growth, supportive policies)
12. Strategies to Support South-South Cooperation Using Tourism
Trans-regional grouping: IBSA (India-Brazil-South Africa) in 2003
- multinational, multicultural, inequality, poverty, industrialization

able to act on a global scale and willing to increase participation

- promotion of South-South; four-pillar-approach
- main goals:
- contribute to the construction of a new international architecture
- bring the voice together on global issues
- deepen their ties in various areas
”IBSA as novel and important form of South-South Cooperation!”

to explore the future of democracy and international cooperation in the global South
12. Strategies to Support South-South Cooperation Using Tourism
Source: Heyzer, 2013
Source: IBSA Trilateral, 2014; Pereira and de Castro Neves, 2011; Sotero, 2009
Source: AGC, 2012
Multi-destination tourism: Association of Caribbean States

- tourism as primary vehicle for social and economic development
- innovative marketing strategies; cooperation networks
- increase and share of revenues

BUT: In case of BRICS, little commonality and huge distances might be a problem!
13. Conclusion
- no remarkable tourism development due to BRICS
- BRICS start now to concentrate on tourism expected development;
need to support tourism as development and political tool
- South-South cooperation and bilateral contracts to be developed

BUT: Is this support or undermining of BRICS?

agreements before BRICS; focus on tourism
support of BRICS more than undermining
Tourism-5 as promising alternative to support
tourism in the frame of BRICS

growth of domestic and international markets resulting in social benefits for the host communities
Increase in political stability + economic growth
Development in infrastructure & tourism products
Improved connectivity conditions by land, air and sea
Boost to human resources training
The formation of a culture around tourism
5. Growth Factors
Thank you for your attention!
Full transcript