Brazil Has a US$ 4 Billion Travel Deficit So Far This Year

Brazilians haven't been discouraged from taking trips abroad due to the rising dollar in recent weeks. According to figures supplied by Brazil's Central Bank, as of September 23, expenditure by Brazilians in foreign countries reached US$ 786 million in September, and revenues generated by foreigners in Brazil totaled US$ 320 million, resulting in an international travel deficit of US$ 466 million.

In August, spending by Brazilians abroad reached the record-high figure of US$ 1.022 billion. So far this year, the volume already totals US$ 7.862 billion.

Expenditure by foreign tourists in Brazil totaled US$ 499 million in August and US$ 3.866 billion this year. The international travel deficit was US$ 523 million in August and US$ 3.996 billion so far this year.

According to the head at the Economics Department of the Central Bank, Altamir Lopes, increased spending by Brazilians abroad is a result of rising income. "The income factor is important, but it should slowdown a little," he said.

The reduction is expected due to the projection of a lower growth rate for the domestic economy, as well as the appreciation of the dollar against the real.

The Central Bank has revised its projection for this year's international travel deficit up from US$ 5 billion to US$ 6.2 billion, with a reduction down to US$ 6 billion in 2009.

According to Lopes, were it not for the external crisis, the deficit would be higher next year, at around US$ 6.5 billion.

ABr