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Hardest hit due to Covid-19, Federal actions in 2020 protect the tourism sector

Credit for tourism enterprises preserved jobs and protected consumers.


Hardest hit due to Covid-19, Federal actions in 2020 protect the tourism sector
File Photo, Brazil

Dec 29, Sao Paulo: 2020 was an atypical year for tourism around the world because of Covid-19. Here in Brazil, the sector had to reinvent itself in the face of travel cancellations and the closing of tourist spots. And to reduce the economic impacts on tourism, in this period of crisis, the Federal Government adopted a series of actions to help the sector and guarantee the continuity of activities in the area.



Law Aldir Blanc

One of them was the Aldir Blanc Law, of the Ministry of Tourism, which guaranteed an emergency income for professionals in the sector, such as artists, storytellers and teachers of art and capoeira schools, paid through state governments in three monthly instalments of R $ 600. This law, signed by President Jair Bolsonaro, in June this year, provided for the transfer of R $ 3 billion.


These resources could also be used to pay monthly aid for the maintenance of artistic spaces in amounts ranging from 3 thousand reais to 10 thousand reais. They could also be used to promote cultural activities through public notices, public calls or awards linked to the cultural sector.

This law, as the owner of Casa de Cultura Zazu, in Guarulhos, São Paulo, says Débora Abdalla, was the solution to maintain the standing space, which for thirteen years has brought together dozens of students. “Expenses were high to maintain a closed space due to the pandemic. Then, the Aldir Blanc Law came. And hope flooded our hearts. Then, we gave up on closing school ... The Aldir Blanc emergency law gave us hope so that we can continue with our purpose, which is to transform lives ”, said Débora.



Fungentur

The Aldir Blanc Act was just one of the strategies of the Ministry of Tourism for the sector to face Covid-19. Throughout this year, several other actions were taken to guarantee the continuity of activities due to the measures of social distance.


Through the General Tourism Fund, Fungetur, R $ 5 billion were released through lines of financing for companies in the tourism segment, to ensure breathtaking companies and the maintenance of jobs. These resources allowed access to credit by 1,982 companies located in 428 municipalities in 15 states. The majority, 99.8%, is Individual Microentrepreneurs (MEI) and micro, small and medium companies.


Amaro Gadbem, director of a hotel in Caxambu, at the Circuito das Águas, in Minas Gerais, talks about the importance of having access to the credit line. A relief, he said.


“We had access to the Fungetur line, which was used at a very favourable time so that we could pay off our debts and commitments, at a time when the establishment was closed and in need of working capital to maintain its activities until that the doors were reopened. ”


In addition to Fungetur, another 10.9 billion reais were released in credit lines to capitalize tourist services. In all, since last year, according to the Ministry of Tourism, considering the resources of Fungetur and other lines of credit by public banks, more than R $ 20 billion have been allocated to support and boost the tourism sector.



And 80% of these resources are already in the account of the entrepreneurs, who wait for better days in 2021, as stated by the Competitiveness manager at SEBRAE, César Rissete.


“Brazil is well prepared to receive this number of national tourists and, also, when the possibility comes, our international tourists. We are going to increase the participation of tourism in the national GDP, generating more jobs and allowing our municipalities to be strengthened. Brazil will be stronger from tourism. ”


Latin American urban destinations network

Brazil has also allied itself with other countries in the resumption of international tourism. It is the Latin American Urban Destinations Network, which aims to reactivate the economy in these destinations and attract foreign tourists.



The following cities are part of the Network: Rio de Janeiro, São Paulo, Medellín and Bogotá (Colombia), Buenos Aires (Argentina), Mexico City (Mexico), Lima (Peru), Quito (Ecuador) and Santiago (Chile).


The partnership, according to the Ministry of Tourism, seeks to encourage the economic recovery of these cities through tourism, combining all the characteristics that unite them as Latin destinations.


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