The hotel industry in Brazil presented a deflation of 4% in the last 12 months according to data presented at the 18th Fohb Business Meeting at the Grand Hyatt São Paulo on Monday (04/09). According to the indexes, the value of stays reached a peak during the 2014 World Cup and the 2016 Olympics, when the country received thousands of foreign tourists, but declined a lot in the last two years due to the economic crisis.

This year, the net debt of the federal government should reach between 30% and 50% of national GDP, which has forced the government to raise taxes in order to contain debt bleeding. In addition, the budget deficit of public waiting resulted in cuts in spending across sectors to try to contain the losses.

According to the FGV economics doctor, and Ricardo Meirelles de Faria, the hotel scene was heavily affected by public debt, which directly affected the services sector. “Brazil has reached the bottom of the well. GDP in 2017 should remain at 0.8% and be slightly upward only at the end of 2018, when GDP will reach 2.5%. Today we also have an idle installed hotel capacity of 77%, in addition to the idle workforce, leaving many unemployed and an offer without demand, “he said.

Ricardo stressed that the solution for a resumption must start from more of the public administration, which now participates in more than 43% of the Brazilian GDP. “Today, managing the Brazilian tax system consumes thousands of hours that could be reversed in employee productivity, which is among the lowest in the global indices. There needs to be a move by the government to contain the debt and readjust the public accounts. It’s not to be pessimistic, but to be realistic. ”

Source: Diário do Turismo