February 27 2018  |  Retailers

Dufry’s Gustavo Fagundes talks Brazil and the South American economy

By Hibah Noor


Gustavo Fagundes, Dufry’s General Manager Brazil and Bolivia

When the economy in Brazil is up, the entire region benefits, and that is especially true in the travel and tourism industry. When people have confidence, they spend more on what they consider luxuries, with travel being one of the top choices. “A strong economy will help the region and will drive better indicators, such as tourism and travel related business,” says Gustavo Fagundes, Dufry’s General Manager Brazil and Bolivia.

According to Itau BBA estimates, Latin America growth will more than double this year when compared to 2017, from 0.9% to 2%. “The main reason for the increase is the recovery of Brazil, which is expected to grow 2% in 2018, after recording two consecutive years of contraction in 2015 and 2016,” says Fagundes.

When Brazil’s economy improves, the country’s position as a tourism destination usually improves greatly, according to Fagundes. “Argentina leads the ranking of the countries that sent most tourists to Brazil, followed by Paraguay, Chile and Uruguay,” he says. “We expect to receive 3.5 million foreign tourists here in Brazil over the summer season, and at least 2.3 million of them will be Latin Americans.”

While Brazil’s economy has improved greatly since the recession, recovery doesn’t happen overnight. “We are confident about Brazil’s recovery, but we understand that this could take some time,” says Fagundes. “Positive indicators include the GDP growth, lower inflation rates, improvement of unemployment rates and, to a lesser extent, a stable US rate (which benefits the travelers in Brazil). The presidential election this year could put pressure on the economy and impact the recovery. Nevertheless, we keep using our tools and initiatives in order to drive further our performance based on the current economic scenario.”

Fagundes says on the whole investors see the economy recovering, but warns that Brazil still faces a delicate political moment. This year’s election and the Pension Reform decision could put pressure on the recovery. “We are waiting for the approval of the Pension Reform, which will make the government accounts more balanced and bring more stability to the country, both economically and politically,” says Fagundes.

Brand News

June 18 2018

Diageo introduces Johnnie Walker…

Diageo Global Travel is set to introduce Johnnie Walker Black Label Triple Cask Edition exclusively in travel retail this…

By Hibah Noor

June 18 2018

Puig welcomes passengers aboard…

Beauty group Puig has launched two travel-exclusive limited-edition collector’s fragrances from Jean-Paul Gaultier: Gaultier…

By Hibah Noor

June 18 2018

NARS Cosmetics teams with fashion…

NARS Cosmetics has collaborated with long-time fashion design partner, Erdem Moralioglu, on a 14-piece makeup collection…

By Hibah Noor

June 18 2018

Hendrick’s celebrates World Cucumber…

Hendrick’s Gin staged an unusual global activation on June 14 to mark World Cucumber Day across the travel retail world.

By Mary Jane Pittilla

June 18 2018

Award-winning Aberfeldy goes for…

Aberfeldy 12yo’s new gold bar-themed gift tin, presented a travel retail exclusive one-liter…

By Mary Jane Pittilla

June 13 2018

Mars shares sweetness this Eid

​This Thursday sees the beginning of Eid - an important religious holiday celebrated by Muslims worldwide that marks the…

By Hibah Noor

June 12 2018

Tiger Beer roars for Heineken in…

Heineken Global Duty Free showcased its expanded portfolio at the TFWA Asia Pacific show in Singapore, led by the country’s…

By Mary Jane Pittilla

June 12 2018

Grey Goose journeys through the…

Launching now across global travel retail is the 2018 limited-edition Riviera bottle from Grey Goose vodka that celebrates…

By Mary Jane Pittilla

June 12 2018

Licor 43 taps into coffee trend…

In response to the booming coffee trend, Spanish wine and spirits producer Zamora Company has introduced Licor 43 Baristo,…

By Mary Jane Pittilla

Copyright 2018 DutyFree Magazine. All rights reserved. Privacy Policy Sitemap