REPORT FROM BRAZIL—Don’t cancel your hotel reservations in Brazil because of recent flooding just yet. While mountainous resort areas north of Rio de Janeiro are reporting heavy damages because of floods and the ensuing mudslides, hotels in the city still are open for business.
“Mostly poor areas have been affected,” said Emmanuel Burgio, founder and CEO of luxury tour operator Blue Parallel. “More than 800 people died, so it is a major natural disaster. But it does not affect tourism in Rio.”
All is clear along the shores of Rio de Janeiro’s Copacabana as well.
“In Copacabana, everything is normal,” said Alban Dutemple, the general manager of the Sofitel Rio de Janeiro Copacabana. “The reservations at Sofitel are normal and the guests aren’t canceling their trips to Brazil.”
Flooding affected day-to-date operations at the Sofitel, however.
“Some suppliers have delayed the delivery of some products in the hotel because they were located in those affected areas,” said Dutemple. “The prices of vegetables had also risen and there has been delay in delivery as well.”
Concentrated damage
The most significant damage was felt in the mountain resorts of Petrópolis, Nova Friburgo and Teresópolis. The area is one of Brazil’s most significant tourism regions, as it contains two national parks and nearly 300 hotels that attract mostly Brazilian travelers.
While concentrated, the devastating effects of the flooding are being felt throughout the country. The death toll is expected to reach 1,000 and hundreds more are missing, and tens of thousands of people were literally washed out of their homes. State officials are calling the floods Brazil’s deadliest natural disaster since 1900.
“The State of Rio de Janeiro has been affected by heavy rains, causing landslides and floods,” according to Embratur, the Brazilian Tourism Board. “The most damaged areas were Nova Friburgo, Petrópolis, Teresópolis, Areal, Sumidouro, Bom Jardim and São José do Vale do Rio Preto. The rescue team from the Fire Brigade team of the state of Rio de Janeiro has been constantly working to restore normalcy to these affected areas. The rains caused profound hydrographic and geographic changes in the state of Rio such as changes in the course of rivers and their beds.
“The hospitality industry as a whole, including hotels, were affected in some areas,” Embratur added. “The Ministry of Tourism is taking appropriate actions to support recovery and reconstruction of tourism infrastructure of the most affected regions. Approximately 85% of the Teresópolis hotels are already operating normally. In Nova Friburgo, only five among the 140 existing hotels are still not working.”
State tourism secretary Ronald Azaro told Dow Jones Newswires hotels are expected to lose considerable business during the next month because of the flooding. Being summer in Brazil, hotel occupancies typically hover near 85% at this time of year, Azaro said. The state’s hotel industry could lose as much as US$18 million in revenue during the next 30 days if tourists avoid the region because of the floods.
In December, the month leading up to the flooding, Rio de Janeiro’s hotel industry posted a 1.7% decrease in occupancy to 67.2%, a 5% increase in average daily rate to US$214.81, and a 3.2% rise in revenue per available room to US$144.38, according to the most recent data from STR Global.
The peak travel season approaches
Brazil's peak travel season is fast approaching. Approximately 50% of rooms in the region already were booked for March’s Carnival celebration. Cancelations are not expected at this time.
“Tourism will be very important and will contribute greatly to the reconstruction of the region,” according to Embratur. “After finishing the rescue process and rebuilding the access to the most affected areas, the Ministry of Tourism and Embratur will assist in the recovery of cities and promote actions to rebuild the tourism image of the region through an advertising campaign, both nationally and internationally.”
January and February generally see the most rainfall in this part of Brazil, though in recent years flooding and mudslides have intensified. In 2010, Angra dos Reis’ Pousada Sankay, a small oceanfront resort, was wiped out in a New Year’s Day mudslide that killed 19 people.