Doing Business In Brazil. Hospitality Perspective

BRAZIL. SAO PAULO.

EXECUTIVE SUMMARY.

The economy and business activities are rising globally nowadays, organizations are tempted to explore new target markets in order to increase the market share values. Hence, the implementation of a strategic planning and analysis of a selected target country or region is essential before initiating an investment. The following paper will discuss the analysis mainly on the economical and political structures of Sгo Paulo city located in South East of Brazil by focusing on a macroeconomic perspective will therefore be taken in argument.

Brazilian economy, According to Heritage.org, is 60.9% free, which makes it 70th freest economy in the world, while the world's average is 60,6% (appendix 1).According to this numbers, one may assume the consistent development of the tourism sector and the future openness of the country for investing money in the tourism industry even some challenges need to be overcome. Nevertheless, Brazil has a massive potential to become regions' and world's to top holidays destination, with its huge variety of scenic vicissitudes, and world wide renowned cities such as Rio de Janeiro, or Sao Paulo. In 2006, 36million domestic tourists travelled in their country spending approximately US$ 5 Billion, while 6million foreign visitors have spent the same amount of money (see appendix 10). UNWTO has been forecasting that by the year 2020 international arrivals worldwide should exceed 1, 6 billion, while out that 1, 2 billion should be intraregional and the rest 378 million will consist out of long-haul travellers. The top three regions should be Europe (717million), East Asia and Pacific (397million) and Americas (282million, for quick charts observe appendix 12). Brazil's economy is shadily gaining power after its 2001-2002 economic crisis. Despite its huge budget debt and it has a big corruption problem,