BRAZIL: Brazil Tourism Minister Wants To Grow Tourism Revenue

In a bid to diversify Brazil’s tourism sector and make it more dynamic in respect to earning revenues, the country’s Tourism Minister Henrique Eduardo Alves held discussions with Minister of Planning, Valdir Simão on January 12. Proposals were also presented for new projects aiming to generate more employment and income for the population.

Among the many initiatives is the creation of Special Areas of Tourist Interest, which would result in a specific legislation for the sector in areas with a vocation for tourism, with the review of tax incentives and environmental licensing for the installation of new businesses.

Making better use of national parks for tourism is also among the projects put forward by Minister Alves. “The tourists themselves will help to preserve nature and disclose one of our greatest vocations which is the potential of the environment,” he said.

The proposal to promote Brazil, in and out of the country, by means of a promotion agency that will result from a change in Embratur was among the issues discussed and was also supported bythe Minister of Planning. The agency proposed by Henrique Alves also count on resources from the private sector.

The minister also defended the government’s attempt to legalise gambling and casinos. “If we end the illegality we will have the controlling power and more revenue generated by the taxes levied in all transparency,” he said.

Henrique Alves also proposed adjustments to the budget of the Ministry of Tourism so that ongoing projects are met with the tourism resources that are jammed in the Federal Savings Bank and will return to the National Treasury account.

The return of the money, around R $ 600 million to the budget of the Ministry of Tourism, would facilitate the payment of construction work and enable new projects to be realised, including those arising from parliamentary amendments.

Further, recovery of 25% of Income Tax Withheld at Source (IRRF) on international tourist packages was the main topic of the meeting held amongst the Tourism Minister, executive secretary of the Ministry of Finance Dyogo Oliveira, and industry representatives from tourism industry.

According to the IRS, the rate of 25% will be levied on the value of the shipment sent abroad to cover expenses for services to Brazilian tourists who buy international tourist packages sold in Brazil.