by Diogo Canteras - Founding Partner, HotelInvest

The FIFA World Cup and the Olympic Games held in Brazil during the 2010s brought significant investments in the country's international promotion and transport infrastructure. These investments provided long-term benefits and accelerated the recovery of national tourism. 

However, the factor that truly reshaped the landscape was the appreciation of the US dollar. Between 2006 and 2015, the exchange rate hovered around R$2 per dollar. From then on, it steadily increased, reaching R$3 in 2017, R$4 in 2019, R$5 in 2024, and now R$6.

In addition to the strong appreciation of the US currency, the post-Covid years have seen a surge in demand for experiences, leisure, entertainment, tourism, and hospitality. Prices have risen above inflation worldwide across various sectors: airfare, hotels, dining, entertainment, and tours have all become significantly more expensive.

This shift has resulted in two key outcomes: international travel has become unaffordable for most Brazilians, while Brazil has become an increasingly attractive and competitive destination for foreign visitors.

This transformation has been gradual, allowing for the development of many new leisure-oriented projects in recent years, including boutique hotels, luxury inns, resorts, tourist attractions, beach clubs, and high-end restaurants.

Across Brazil’s main tourist destinations—whether in major cities, small countryside towns, or coastal areas—the changes are evident. Airports, hotels, and attractions are bustling with tourists, and investments, both completed and in progress, are shaping the future of the industry.

The key challenge ahead is ensuring that this rapid growth is managed sustainably, balancing economic expansion with the integration of local communities and environmental conservation. Comprehensive destination management must now be a top priority.