Skip to main content

Brazil is Loosing the Cruise Market Because of High Costs, Legal Challenges and Lack of Infrastructure

13 years 6 months ago

Brazil is losing the market share in the hands of their neighbors in the cruise season 2012/2013. After growing in the last ten years an average of 30% consistently and reaching fifth place in the segment worldwide.
Growth fell 15% while Argentina grew by 15% considering only Abremar associated companies (Brazilian Association of Cruise Ships), and 27% in total, Said Ricardo Amaral, president of the association.

Next year Brazil will receive  762,000 tourists in 280 travel itineraries, compared to 894,000 for the 2011/2012.

According to the president of Abremar, lack of infrastructure and high port costs and tax, as the incidence of PIS / COFINS on fuel supply, are weighing on the cost of business. The cruise lines are seeking other routes, such as Argentina and the Caribbean.
MSC Cruises reported high costs Assistance service to commanders during maneuvering in ports.
The company will pay $ 100,000 for assistance whenever the "MSC Fantasia" in or out of the port of Salvador (Bahia), said Adrian Ursilli, director of sales and marketing for MSC Cruises in Brazil. The ship, with 140,000 tons, is the largest of the season. In Santos, the service for this ship will cost $ 35,000, he said.
In the Italian city of Genoa, the cost to enter and exit the cruise liner are $ 9,000. "The trend is to reduce the company's routes to Salvador in the coming years", he announced.
The National Steering Council (Conapra in the Portuguese acronym) did not confirm the cost in Salvador. "You can talk about values until the negotiation is effectively closed," he said in a note.
The same practice in Santos also supports the data presented. The prices set with MSC Cruises are determinate on a trade agreement, and therefore, are confidential.
However, he said that the average price for these maneuvers is about R $ 10 per passenger in the port of Santos.

According to MSC, despite the difficulties, Brazil is a strategic country. It is the second largest market for transatlantic company. MSC is sending four ships this summer and expects to carry 260,000 guests in Brazil and Argentina seasons. An increase of 27.4% over that of 2011/2012. But not all start or finish the trip in Brazil. "MSC Musica", one of four that make up the Brazilian fleet this season, will be based in Buenos Aires.
"We have a very strong following in Brazil. Understand tax and operational challenges continue to be addressed and overcome in order to facilitate future growth," said Ursilli.

Pullmantur decreased from four to three the number of ships this season. According to the director, Rodolfo Szabo, high costs, legal challenges and lack of infrastructure to operate in Brazil contribute to the migration of tourists.

With four cruise ship this season, Costa Cruises will have a bed capacity 5% higher than that offered in 2011/2012. It is expected that 212,000 guests will visit Brazil with Costa by the end of the season. The sales and marketing manager of Costa, Claudia Del Valle said that operating costs are among the main reasons that lead to any shipping company to bet on other markets.
For Del Valle, is essential to create specific legislation and public policy incentives to improve port infrastructure. "The cruise market is rising. Failure to resolve these issues, Brazil can gradually get less ships".

Event date description
30.11