Brazilian hotel industry would suffer cost pressure beyond its capacity

The Committee for Tourism and Sports approved, on Wednesday, November 5, the Bill 2962/08, by Deputy Marcelo Teixeira (PR-CE), which rules about the renegotiation of loans and financing contracted by the Brazilian hotel industry with the Brazilian Development Bank (BNDES) until December 2007.

The committee’s rapporteur, Deputy Carlos Eduardo Cadoca (PSC-PE), advocated the proposal, arguing that the Brazilian hotel industry has been making important investments in the expansion of its capacity in the last few years, to the extent that it has become one of the fastest growing Brazilian sectors. “With this impact, there has been employment generation and economy advancement, including in less developed regions and small cities” he affirms.

Nevertheless, according to Cadoca, many domestic tourists have opted to travel abroad, as a result of factors such as the valuation of Brazilian currency.
Therefore, he argues that the Brazilian hotel industry is suffering cost pressure beyond its capacity. “The amount spent by foreign tourists was unable to compensate the evasion of Brazilian ones”, explains the Deputy.

Debit balance
According to the Project, the debit balance should be paid in monthly installments corresponding to a maximum of 5% of the hotel net sales during the month prior to the payment.
If there is an agreement and the capacity of payment of the debtor is proved, the installment may be higher than 5% of sales.
Moreover, if the debtor does not pay three consecutive or six alternated installments, the renegotiation contract will be automatically terminated, and the former payment conditions will be reinstated.

Procedure
The Bill was deemed conclusive power, and will be examined by the Committees for Economic Development, Industry and Commerce; for Finance and Taxation; and for Constitution, Justice and Citizenship.

Report - Adriana Resende/NAJ
Collaboration - Rayane Mello