With international borders closed, domestic tourism in Brazil has enjoyed a boom over the last two years. Yet even with the recent opening of frontiers, the trend looks set to continue its consolidation. As a result, Olivier Chavy, the CEO of RCI and a leading voice in the sector, believes revenue could increase by 40% this year, particularly in the shared vacation sector.
Road to staycations in Brazil
In a recent interview with Exame, Chavy explained why he is so optimistic about tourism in Brazil this year. He points out that although RCI suffered during the pandemic, the timeshare sector was one of the first to recover from the crisis.
He attributes this recuperation to the appetite for staycations in Brazil. “People want to travel to regain the sensation of the freedom they lost during lockdown,” Chavy said. He points out that Brazilians are keener than ever to travel in their own country.
The growing middle class is another factor driving the staycation trend. “Despite its economic difficulties, Brazil’s middle class is made up of more than 100 million Brazilians,” he said. In short, Chavy believes that domestic tourism is becoming increasingly popular in Brazil.
40% growth in revenue
RCI has expanded its presence in Brazil considerably on the back of this trend. Before the pandemic, RCI opened timeshare options in Jericoacoara in the state of Ceará and Canela in Rio Grande do Sul.
Furthermore, between 2019 and 2021, the company expanded its presence in Brazil to 46 hotels and resorts. The Coral Resort on the beach at Flecheiras in Ceará is one of them.
As a result, the timeshare sector reached a record US$1 billion of sales in Brazil. “The figure shows the strength of our industry,” said Chavy.
He predicts further major expansion this year. Specifically in Brazil, Chavy forecasts a growth of 40% in revenue from shared tourist accommodation options. “We expect to make US$1.4 billion in sales in Brazil,” he said, adding that it’s a “daunting challenge, but very possible”.
Timeshare options in Brazil
This vacation option has gone from strength to strength among Brazilians who like the idea of being part owners of a holiday home while enjoying the possibility of staying at other resorts in Brazil. RCI has access to over 4,200 affiliated resorts worldwide and an expanding presence in Brazil.
Other major brands have also joined the shared tourism concept in Brazil. They include Hard Rock, currently building a hotel in Lagoinha in Ceará, due to open next year. The company also has timeshare projects underway in Natal and Recife.
Appealing and profitable investment
As well as providing holiday accommodation for the owners, timeshare in Brazil also offers an attractive investment option for private investors. Examples include Villa Santorini rental suites at The Coral, with investment from US$232,000 and a projected income of 12.39% a year.
(Source: Exame, Hosteltur)