Panel SA: World Cup, election and Covid may disrupt tourism this year, says FecomercioSP

The tourism sector, which had been buoyed by the heating up at the end of the year, but was held back by the advance of the ômicron, expects new obstacles in 2022. World Cup, election and Covid should still disrupt business, predicts FecomercioSP.

The cancellation of Carnival blocks, which normally boost demand for reservations in January, was a bucket of cold water. Added to the scenario are the increase in the cost of living, the pandemic and the elections, says Mariana Aldrigui, president of the entity’s tourism board.

“This is a year that will not be as interesting as it could be if it were not an election year. The electoral scenario, plus this economic uncertainty, will make families more reticent to invest in travel. The sector as a whole is wary”, it says.

She believes that the replacement of corporate events by the online version should also contribute to accommodation, in addition to the World Cup, in November.

“We cannot forget that this is a World Cup year. So, there may be a lot of people slowing down now at the beginning of the semester to invest in incentive events and awards at the end of the year”, says Aldrigui.

Tourism inflation rose again in January after two months of decline. Despite the fact that the price of air tickets, one of the important items in the index, has fallen by around 18% compared to December, other indicators such as tourist packages, accommodation and cinema have increased.

The reduction in the value of tickets is related to the increase in the offer of seats by airlines, according to a survey by FecomercioSP, based on IBGE data. In vehicle rental, the drop was almost 4%.

The general inflation of the sector was -3.33% in the month. However, in the 12-month period, the increase is almost 12%, above the country’s general inflation.

Joana Cunha with Andressa Motter and Ana Paula Branco