Panel SA: Demanding proof of vaccination for visitors was a wise decision, says Cable Car Pão de Açúcar

The 109 years that the Sugar Loaf cable car completed last week are being celebrated with the resumption of the flow of visitors after more than a year of turmoil from the pandemic, which shook the tourism sector.

The company’s sales fell by around 70%, but since July the postcard has been recovering. The presence of visitors from states such as São Paulo, Minas Gerais and Goiás is already beginning to be felt. According to Sandro Fernandes, the company’s president, the return of foreigners is still in its infancy. If in pre-pandemic times, international tourists represented 35% of demand, compared to 65% of Brazilians, in the current scenario, foreign tourists account for 2% of visits.

Last month, a municipal decree started to require proof of vaccination against Covid, a measure that has worked, according to Fernandes. “We are very supportive of this decision because it reinforces the concern with sanitary safety. We understand that it was the right decision”, he says.

How was the beginning of this company?In 1909, an engineer, coffee grower, Augusto Ferreira Ramos, looked at these two stones and had the vision of laying cables to connect them and giving people the opportunity to climb one of the most beautiful rocks in the world to observe the city. This placed Rio and Brazil as one of the world’s postcards. It was impactful for the time. And I didn’t have the equipment here. Everything was manufactured outside the country.

To achieve this, he sold shares of the Pão de Açúcar cable car to raise funds, go to Germany, have the parts manufactured, import parts, and bring 300 people who helped him build the cables. Had to import cement. The pulleys were so big to go into the ship’s hold that they were cut in half and bolted in here. We still have the original pulleys in our collection here.

In the 1960s, there was a very bad type of grass here, and the fauna and flora began to be recovered by Cristóvão Leite de Castro [engenheiro que ingressou na companhia como diretor técnico em 1930, assumiu a direção em 1962 e trocou os antigos bondinhos de madeira por novas cabines em 1972].

How have trams been modernized over time?We are currently on the third generation of cable cars. It is even necessary to explain why it is called a cable car. The first cabin, when operation began in 1912, resembled the Santa Teresa tram, which was larger. Then it was affectionately nicknamed the cable car. And Brazilians use the word as a synonym for cable car. This first cabin operated from 1912 to 1972. Then came the second generation cabin, shaped like a diamond.

We are now in the third generation, since 2007. And the main concept, of being like a jewel that can walk through the sky of Rio, remained. Big celebrities passed through here. Einstein, Bob Marley, Malala and the nearly 50 million tourists.

And the classic story of Tim Maia?He arrived to do a show that had Nelson Motta as a producer. It was packed, but when he arrived at the station, he said he wasn’t going up. He asked to receive the entire fee in cash on time. They rushed to get the money, but then he said he wanted it in coin and it wouldn’t go up under any circumstances. He asked people to come down for him to do the show downstairs. With great insistence, he climbed. Scared. Lying on the floor. But when he arrived, he looked at the beauty of the Morro da Urca. From there, he started to perform several shows in our amphitheater, which also received Hermeto Pascoal, Dancing Days and several others.

007 also passed through here. Hosting Roger Moore was a great showcase. It has a history that clearly demonstrates our values, which is the issue of safety. For the execution of the film, it was negotiated that the cabin could not suffer anything. There is a scene where the cabin enters and destroys the station, but it leaves intact. It was a requirement, because it needs to denote the issue of security to everyone who visits us.

There are some curiosities that people don’t know. To make events there is a logistics. We have to go up with equipment. And for that, it has a cable line dedicated only to cargo. We also have to supply energy, waste treatment, sewage.

You have already lived through a pandemic and today you are living again. Has any experience been used?We had to be closed without an operation for five months last year. But there was a rediscovery, mainly from Rio de Janeiro. We are in great demand by people looking for open spaces.

​How big was the thud?It dramatically impacted our results. Compared to 2019, in 2020, we dropped approximately 70% in visitation and, consequently, in sales. In 2021, we are starting the recovery. From July until now, there has already been a recovery, not only with the cariocas, but with the public in São Paulo, Minas Gerais and Goiás. And we are already feeling the demand for foreigners. This year should reach 70% or 80% of a normal year like 2019.

And the foreigners?In recent months, we have seen an increase in the presence of foreigners. Much due to the drop in the need for quarantine for those returning from Brazilian territory to Europe. It has grown day by day. In a normal year, we have 35% international and 65% national tourists. Today, we are 98% of nationals in the visitation.

And how was the experience of demanding a vaccination card?Since September 15, a municipal decree has required the presentation of the card. We support this decision by the municipal government because it reinforces the concern with health security. We had no problem. When someone forgets, we reschedule the visit for another day. We understand that it was the right decision.

How are investments in this scenario?This year, we exchanged our drive pulleys. It was an investment of more than R$13 million. The exchange operation is complex.

Do you also partner with other companies? How was that?We work on three platforms, which are tourism, entertainment and media. Tourism is very consolidated. Entertainment, with our activities, too. In March, for example, we will have another edition of Noites Cariocas. And the third pillar is the media.

With our high visitation, we are sought after by the media. In this pillar, we have examples such as the launch of the Porsche 911 in November 2019, when we hoisted a Porsche to be presented at an impactful event. We also partnered with Booking, in which we transformed our old trams that are displayed here into a living room and bedroom.

On the other hand, recently, we were approached by a big brand that wanted to wrap our trams. We really appreciate it. It was very attractive financially, but under no circumstances can we put the visitors’ perception of the view into question. So we refused.

Are you following the debate over the return of daylight saving time? It is a claim by the tourism sector. Would that really help?Yes. Daylight saving time really positively impacts the results of the tourism sector as a whole. People can spend much more time outdoors on the beach.

How does the energy crisis threaten them?When Cristóvão Leite de Castro decided to change the cable car system to the second generation cable car, he had the option of using fossil fuel or electricity. And already at that time he decided on electricity. And now, in October, we’ve taken another step, going to the free market. Our consumption is even low, but we managed to achieve it.

We generate energy and play it on the network when the tram descends heavier. At the end of the day, when more people are coming down, we generate energy and put it on the grid.

A lot of people are confused and surprised to learn that you are a private company?Probably. We are one of the oldest companies in Rio de Janeiro. A private company, privately held, audited, with processes and controls and shareholders. We operate around the clock 365 days a year.

Your visitor’s resumption is happening at a time of retracted economy. How does this influence your recovery?2020 and 2021 were really challenging for all of us. The fact that we are in a natural monument, with open areas, helps in attracting visitors. Now, we are starting to observe the visitation of foreigners as well.

Sugarloaf cable car

The construction and operation of the air route between the former Military School and the top of Morro da Urca was authorized by municipal decree in favor of the founder in 1909. The initial stretch was inaugurated in 1912. Today, the company has accumulated more than 300,000 hours of operation and exceeds 5 million trips