Brazilian tourist spending abroad rose 67% in last two months

Brazilian tourists spent close to $2 billion as they traveled around the world in the months of January and February this year. That was an increase of 66.69% over the same period in 2010, when tourists spent $1.144 billion abroad.

A Central Bank reports cites tourist spending as the biggest item in its services account, contributing in a significant way to the biggest ever February current account deficit: $3.391 billion.

Brazil’s current account deficit is now a cumulative $8,8 billion for the year and $49.2 billion for the last twelve months. And the biggest increase in the current account was the item “services,” up 37.5% in January and February, compared to the same period last year.

Spending on foreign travel and international transportation represented 61.16% of the services account (international expenses totaled $761 million, an increase of 54.1%; international travel cost $441 million, up 7%). Other items in the account were: equipment rentals ($2.237 billion); computers and informatics ($589 million); royalties and licenses ($413 million); government purchases ($375 million); and, insurance ($210 million). Spending on all these items in the account increased except for insurance, which was down 5.5%.