international marketing strategy to enter hospitality sector in brazil

8/13/2019 International Marketing Strategy to enter hospitality sector in Brazil

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Contents

Preface ............................................................................................................................... 1

Acknowledgement ............................................................................................................. 2

Chapter 1: The chosen country: Brazil ............................................................................... 3

Chapter 2: Historical and Geographic Factors.................................................................... 7

Chapter 3: Cultural Factors .............................................................................................. 12

Chapter 4: PoliticalLegal Environment ........................................................................ 16

Chapter 5: Trade Barriers ................................................................................................. 20

Chapter 6: Strategy to Enter the Country ......................................................................... 25

Chapter 7: Market Research ............................................................................................. 26

Chapter 8: Catering to Nearby Countries/Region ............................................................. 30

References ....................................................................................................................... 33


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UK companies incorporating or licensing a business in Brazil must know that with an estimated 600,000foreign visitors expected for the World Cup alone and with 12 host cities to prepare, Brazil is facing ahuge challenge. Estimates of the investment in infrastructure required to prepare for 2014 range from 10billion to 30 billion.

This will include:

Stadia: construction and modernization Airports: infrastructures expansion and modernization Railways: (long-distance passengers rail, LRV (light rail), Monorail, high speed trains and

technological understanding of these technologies Further opportunities will be available as soon as the plans for the Olympics Games will be

implemented. Other interesting sectors in which you may find profitable registering a business inBrazil are: Hospitality and hotel (infrastructure and equipment) Logistic Public Security and safety Marketing Public Health Tourism Oil (high sea exploration) and natural gas Heliport infrastructure (new helicopters and new heliports on the coasts) Power and Renewable energy Shipbuilding (construction and maintenance) Water treatment (water, sewage, waste collection and treatment) Housing Program

In 2012, Brazil was the 4th main FDI destination in the world after US, China and Hong Kong. In 2011,FDI in Brazil reached at its high record of US$ 69.5 billion.

During the past decade, the country has maintained macroeconomic policies that controlled inflation andpromoted economic growth. Inflation was at 6.5% in 2011, and urban unemployment reached a historic

low of 6.0%. Interest rates, though high compared to the rest of the world, remained historically low at theCentral Bank benchmark rate of 80% as of July 2012.

In 2011, the U.S. was Brazils largest source of imports followed by China, Argentina, Germany, andSouth Korea. U.S. merchandise exports to Brazil in 2011 were US$42.9 billion, and U.S. imports fromBrazil were US$31.3 billion.

Selected Service in BRAZI L : HOSPITAL I TY

Over the last 20 years, mega sporting projects have experienced substantial change, expanding andreemphasizing the demands so that cities and countries can host these events. In the case of the World

Cup, FIFA and 2016 Olympics host cities requires to have a hotel chains apart from sports stadiuminfrastructure, urban mobility, airports, ports, public security, sanitation, telecommunications, energy andhealth systems, among many others.

Why HOSPITAL ITY:

Brazil in the near future hosts large international events: World Cup 2014 and the 2016 Olympics.


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These events are likely to stimulate demand for a larger hotel infrastructure than the present one. Newfacilities are being built while older worn down or out dated facilities will have to undertakerefurbishment in order to live up to the required standards.

The hotel business in Brazil has become increasingly attractive to investors due to increased tourism andpromising business growth rates. Indexes such as the REVPAR (revenue per available room), haveincreased year over year since 2005 in all Brazilian regions. The South, South-eastern and Mid-Westregions had outstanding performance with more than 10% growth rates in the same period. However,Brazil still lacks a more consolidated hotel industry, and there are highly attractive markets forentrepreneurial projects in underdeveloped regions, particularly in the northeast. The more developedmarkets in the south provide good opportunities for niche concepts or more products that require moremature markets.

Current investments in this industry in Brazil are primarily done through hotels, condo hotels(condominium based) and mixed-use properties, where the hotels or condo-hotels are developed togetherwith residential, corporate towers and/or shopping malls.

Figure 1: Hotel beds, forecasts for the World Cup Source: Valor Especial, June 2010There is a genuine optimistic atmosphere within the Brazilian hotel market. The reason for this, was theexpectation of a strong GDP (+5,35%) on a yearly basis, a stable exchange rate (1 US$ = 1 R$ 1,80 at

year end), and an increase in the SELIC rate (11% at the years end). FDI for 2010 was the second highestin history (at US$ 37.5 billion). According to an analysis made by the Brazilian Tourist Ministry, theBrazilian hotel industry is undergoing a very positive development. The hotel supply in Brazil hassubstantially increased in the last few years, but it still remains below the countries potential.


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Chapter 2: Historical and Geographic Factors

Question 2: Give specific details of the historical and geographic factors on the basis of which this

country has been selected.

Historical factors of Brazil

Inhabited by indigenous people for thousands of years, Brazil was discovered by Europeans in 1500 whenthe Portuguese navigator Pedro lvares Cabral landed on its coast. Brazil became a Portuguese colonyand remained so for over 300 years. Brazil declared its independence from Portugal in 1822, when aconstitutional monarchy was established. A federal republic was proclaimed in 1889. Democraticadministrations have been interrupted twice since. From 1930 to 1945 the country was subject to thecivilian dictatorship of Getlio Vargas. In 1964, following political, economic and social unrest, a new

administration was established by the military and considerable economic growth and development wasachieved during the next 20 years, although not without political and social repercussions. Democracywas restored in 1985.

A new constitution was enacted by Brazils National Congress in 1988, which upheld the presidentialsystem while simultaneously decentralizing political power. The Brazilian constitution is lengthy,consisting of 250 permanent articles and 94 provisional articles.

In recognition of possible flaws in the wording, the Constituent Assembly made an express provision forits review. This review is behind schedule. Several amendments have already been approved.

Brazils performance during the 2008/2009 international financial crisis Brazil overcame the international economic turbulence and crisis in 2008/2009 and emerged from itstronger and a more attractive place in which to do business. Brazil was the first Latin American countryand probably one of the first countries worldwide to have emerged from the international recession.Although the global environment remains difficult and the export sector is therefore continuing tostruggle - a fact made more difficult by the strongly appreciated Real - Brazils sheer size (2011 GDP ofapproximately US$ 2.477 trillion) and the strength of its domestic demand (60% of GDP) have made aneconomic recovery possible. A highly diversified economy and diverse trading partners, as well as a solidfinancial systemleveraged by active regulators and the Bank - have also helped to counter the effects ofthe crisis in Brazil. The economic impact of the global financial crisis and falling demand has thereforebeen less severe for Brazil then for the USA, Europe and Asia. This can also be seen to have been a

consequence of successful long-term joint public and private growth initiatives in Brazil. A combinationof factors, such as nearly two decades of political and currency stability, the pursuit of fiscal discipline,high international reserves, solid macroeconomic indicators (based on a strong focus on inflation control)and the strengthening of the middle class consumption power, have led Brazil to this enviable position.Furthermore, credit is due to the government for reacting promptly to the crisis, by implementing anti-cyclical measures to sustain the consumption of durable goods and the flow of credit, particularly for theautomotive and construction industries and for households. These measures have contributed to lowerunemployment and the economic recovery.1


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Overall, then, there has been increasing recognition worldwide that Brazil was one of the most successfulcountries in managing the impact of the crisis.

Financial and strategic investors are thus aware of the opportunities presented by Brazil in the neweconomic world we are entering. They realize that Brazil is the place to be. Cross-border merger andacquisitions1and strong capital markets will play an important role. Witness the fact that Brazil has beenchosen as the host nation for the 2014 FIFA World Cup while Rio de Janeiro has also been elected to hostthe 2016 Olympics. Couple that with the fact that long term strategies and investments are now top of theagenda and Brazil can be seen for what it is: a potential economic powerhouse.

Geographic factors of Brazil

Brazil is the worlds fifth largest country, occupying an area of 3,287,000 square miles, equivalent to

almost half of the entire South American continent. It borders all South American countries except Chileand Ecuador, having a total border length of 9,777 miles. Its coastline runs for more than 4,578 miles,mostly along the South Atlantic Ocean. Brazil comprises 26 states and the Federal District of Brasilia, thecapital city. Its comparative landmass is slightly smaller than the USA. Brazil is made up of five maingeographical regions:

North (mainly the Amazon basin).Northeast (roughly east from 46 west Longitude and north from 16 south latitude).

Southeast (the coastal states south of the Northeast region down to So Paulo, plus the state of MinasGerais).

South (from the state of Paran southwards).

Central-West (the states of Mato Grosso, Mato Grosso do Sul, Gois and the Federal District).

Over half of Brazils landmass lies at about 650 feet above sea level, but only a fraction of that rises

above 3,000 feet. The highest peaks have an altitude that is less than 10,000 feet and only six of theseexceed 9,000 feet: two in the far North and four in the Southeast.

Population pyramid of Brazil

1 https://www.pwc.com.br/pt/publicacoes/assets/doing-business-brazil05.pdf


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2

Climate in Brazil

Arable land is found mainly in the Central-West and South regions, but this is changing as a result of theneed to develop land for agriculture throughout the rest of the country, particularly in the Central-Westand the North. Brazils river system is extensive: the Amazon and its tributaries, which are great rivers in

their own right, drain over half of Brazils land mass. Other large rivers include the So Francis co Riverin the Northeast and the Paran and Paraguay rivers in the Southwest, both of which are tributaries of theRiver Plate. The equator runs north of the Amazon River and the Tropic of Capricorn crosses the state ofSo Paulo. Most of Brazil therefore lies in the tropical zone, with only the South lying in the temperatezone. The South experiences occasional below zero temperatures. The North is hot, humid and rainy.Along the coast the tropical heat is tempered by sea breezes and inland, especially along the CentralPlateau, the higher altitude keeps temperatures down. Humidity is high all along the coast and rainfall is

heavy. The inland Northeast region contains drier land.Brazil has nearly every type of climate, except for harsh wintry weather. The country does not suffer fromearthquakes and hurricanes, but rainstorms, drought and frost do occasionally cause considerable damage.The country boasts some spectacular scenic beauty, particularly along the coastline.

Regional trends in Brazil

Brazil is experiencing investments in the hotel sector in all regions.

Hotel investment projects

According to Valor Especial the future of the hotel investments will primarily focus on the North-eastern part of Brazil. As seen in the below statistics, the north-east region already accounts for 48, 2%of new investment projects and 83, 3 % of the invested capital. The north east remains underdeveloped fornowAround 46.000 rooms are being constructed and it is hard to tell when the market is saturated.

2http://www.pwc.com/en_gx/gx/retail-consumer/pdf/brazil.pdf


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3

FIFA World Cup 2014 host cities

The hosting location of the FIFA 2014 world cup can be seen in figure above.

The city of Rio de Janeiro has attracted extra attention because it is hosting the Olympic Games in 2016.There is a growing perception that there will be a large volume of public and private investment in the

city, andan increase in hotel demand.This perception is based on the following facts:-hosting of the World Cup 2014

, - petrochemical, - transportation and international commercesectors

-real Porto Maravilha Project renewing Rios port area.

It is estimated that Rio will need 40,000 more rooms to satisfy the demand during the Olympic Games9.

So Paulo will also be one of the hosting cities for the World Cup 2014. In 2010, the expectations werethat the demand for hotels will begin to increase, once again reaching 2008 levels. So Paulos current

market situation is favourable for investors and owners of hotel units in the city. The secondary market ofcondo-hotel rooms is growing and can prove to be a lucrative way to invest in the citys industry duringthe next few years.

Source: Valor Especial: Turismo - June 20103Source: http://www.fifa.com/worldcup/brazil2014/destination/cities/index.html


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Chapter 3: Cultural Factors

Question 3: Give specific details of cultural factors which would be favorable for marketing in this

country.

Social Structure

The majority of Brazilians are of European or African descent4. Apart from the original Portuguesesettlers, others who have settled in Brazil and significantly influenced its culture include Germans (mainlyin the southern states), Italians and Japanese (mainly in the state of So Paulo).There are many othersmaller ethnic communities in the larger cities, representing most nationalities. The jungle regions arepopulated by indigenous tribes who are few in numbers.

With its mixed background of Portuguese, Italian, German, Japanese, East European and Africanimmigrants, Brazil offers a broad spectrum of cultural and social activities, which vary by region. Mostmajor cities support cultural institutions. Leisure and recreational activities take place mainly outdoors,taking advantage of the favorable climate. There are many clubs that offer extensive sports and socialfacilities.

Business Implications of local culture

For developments overseas hotel operators should consider local culture and incorporate this into productdesign and service.

Gee (1994) explains 'culture is important within the hotel environment for the following five reasons 5:

In communicating, transacting business, and negotiating with colleagues from other countries In working for a foreign-based hotel company In managing human resources in another country, whether the employees are indigenous to that

country or hired from yet another country

In managing foreign born or culturally diverse workers in the domestic hospitality industry In accommodating international guestsVarious aspects of Brazilian culture:

Knowing the Hofstedes cultural dimensions of Brazil with respect to India would help future hotel

operator like Taj group to structure the management style of working over there in Brazil.

4Doing Business and investing in Brazil , PWC report, 2013, p 16

5Gee, Chuck Y. 1994. International Hotels; Development and management. United States. Educational Institute of the

American hotel & motel association


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Figure: Comparison of Geert-Hofstedes cultural dimensions of Brazil and India

Source: http://geert-hofstede.com/brazil.html

Power Distance Index:

With a high score of 69 Brazil reflects a society that believes hierarchy should be respected andinequalities amongst people are acceptable. In companies there is one boss who takes completeresponsibility. This means that it is quite widely accepted in Brazil that superiors are above theirsubordinates and a considerable dependence exists between them. In some cases, contribution to decision-making process is fairly limited, and done by a select group of high-ranking officials.

For a foreign hotel operator from India, which is also having high PDI as Brazil, it would be easier tomaintain the hierarchy in an organization.

Individualism versus collectivism:

Similar to India, Brazilian society is also a collectivist society where family is the center of the societystructure .They give importance to the relationships more than anything else. While doing business inBrazil it is important to build up trustworthy and long lasting relationships: a meeting usually starts withgeneral conversations in order to get to know each other before doing business.

Since Brazilian structure is more collectivistic (A Hofstede Individualism score of 38 only), it isimperative that you do nothing to publicly mortify a Brazilian. Criticizing an individual meeting memberin work settings causes both that person and you to lose face with the rest of the members in the formalmeeting.

Masculinity versus femininity:

Brazil is also a moderately male-dominated (Hofstede Masculinity score of 49) society. Gender inequalityis a major concern in Brazil (only 39% of the workforce comprise of working women). Workplace safetyand job security are the issues important to Brazilians.

Uncertainty avoidance:

Uncertainty avoidance is the important factor which should be taken care of when an Indian company likeTaj group is entering Brazil. At 76 Brazil scores high on UAI indicating societys low level of tolerancefor uncertainty. In an effort to minimize or reduce this level of uncertainty, strict rules, laws, policies, and


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regulations are adopted and implemented. The ultimate goal of this population is to control everything inorder to eliminate or avoid the unexpected.

Where as in India, UAI is very low where no strict rules and policies are followed. So this importantcultural factor should be kept in mind while entering Brazil as the society does not readily accept changeand is very risk adverse.

Long term orientation:

At a score of 65, Brazil places itself amongst the long term oriented societies as the only non-Asiansociety. Like Asians the Brazilians accept more than one truth. Brazilians easily accept change as a part oflife.

Favorable cultural Factors

For a foreign hotel operator like Taj group, favorable cultural factors for marketing in Hospitality sectorin Brazil are as follows:

In Brazil, restaurant entertainment prevails over home entertainment.

Giving a gift is not required at a first business meeting; instead, buy lunch or dinner. Leisure and recreational activities take place mainly outdoors, taking advantage of the favorable

climate.

Brazilian business culture is depicted below that has to be taken into account for business activities.

Brazil is a big country home to a variety of different cultures. However, when doing business in Brazil a

few general rules of thumb apply:


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Introduction to Brazilian business culture6

Be prepared to commit long term resources (both in time and money) toward establishingstrong relationships in Brazil. This is the key to business success.

Make appointments at least two weeks in advance. Avoid improvised calls to business orgovernment offices.

Some regions have casualness about both time and work. In So Paulo and Rio De Janeirobusiness meetings tend to start on time, though minor delays are accepted.

Business meetings normally begin with casual chatting. Let the host decide when it is time totalk business.

In Brazil, restaurant entertainment prevails over home entertainment.

Giving a gift is not required at a first business meeting; instead, buy lunch or dinner.

Handshaking, often for a long time, is common. Shake hands for hello and goodbye; use goodeye contact; when leaving a small group, be sure to shake hands with everyone present.

When women meet, they exchange kisses by placing their cheeks together and kissing the air.

First names used often, but titles are important.

Music and long, animated conversation are favorite Brazilian habits. When conversing,interruptions viewed as enthusiasm. Brazilians enjoy joking, informality, and friendships.

6 The Brazilian Hotel Sector , The Danish Consulate General and the Embassy of Denmark, So Paulo, August 2010, p 22


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The Brazilian constitution states that foreign investment should be in the national interest and is welcomeprovided it represents a long-term commitment to economic development, particularly in those areas thatare high on the governments list of priorities. These include the development of agriculture, technology,healthcare service and labor-intensive industries and the manufacture of goods that are currently importedand goods that will increase exports.

Foreign direct investments have seen a considerable rise in the last decade with the figures as shown inthe table below:

Source: Doing Business and Investing in Brazil 2013, PWC

For entering into hotel business, Rio de Janeiro City as the Brazilian city is considered to be mostattractive option, with the largest amount of year round tourists in the hotel and tour industry in thecountry. Most of the major 5 star hotel chains have a hotel in the city (including the Sheraton, theMarriott, the Othon, the Sofitel and the InterContinental), which are largely located towards the beach

areas of the south zone (Zona Sul). These are complemented by a range of mid-range options as well asyouth hostels spread across the city. The city centre has a number of choices (which largely cater tobusiness visitors) and there are a growing amount of 3/4 star hotels, boutique-sytle pousadas and youthhostels located in the traditional and culturally rich area of Lapa.8

Acquisition Law of Coastal property by a foreign firm:

Brazilian law provides for severe restrictions on the acquisition of properties within coastal and frontierareas, for national security reasons. The Brazilian law either foreigner or Brazilian national, does notacquire property of real estate located within coastal areas but only the right to use.

All the properties located in coastal area are subject to payment of specific taxes called foro and laudemio.

Foro is an annual tax to the use of the property and is levied on the rate of 0.6% over the value of the rightof use. The laudemio is paid when the right of use of the property is transferred and is levied on the rate of5% over the value of the property buildings and improvements.9

Regulations to be followed by foreign players to establish hotel business in Brazil:

The National Monetary Council (Conselho Monetrio Nacional - CMN) is the exchange control andforeign investment authority. Foreign-exchange policy is controlled and supervised by the CentralBank.

Exchange-control and foreign-investment policies are established by the National Monetary Council,the president of which is the Minister of Finance.

The basic legal concepts regulating foreign capital in Brazil are defined in Laws 4,131 of 1962 and4,390 of 1964, which were regulated by Decree 55762 of 1965. 10

The concept of foreign capital under Brazilian law is defined by law 4.131/62 and its amendments.The legislation together with Regulamento do Mercado de Cmbio e Capitais Internacionais foreign

8www.brazilinvestmentguide.com/.../brazil-hotel-industry-investment-guide.

9Legal guide: Business in Brazil Coordinated by Durval de Noronha Goyos, Jr. 8

thEdition, 2011.

10https://www.pwc.com.br/pt/publicacoes/assets/doing-business-2013.pdf


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investment and repatriation of profits abroad, giving foreign capital invested in Brazil identicaltreatment and equal conditions as domestic capital.11

Political Risk in Brazil:

During the appointment of present President Dilma Rousseff, Brazil has faced high profile corruptioncharges which have led to delay in infrastructure delay for football world cup of 2014. Other risks includean apparent lack of interest in long-term structural reforms, pressure to heighten public spending, andrenewed intervention in currency markets.12

According to Transparency International in the year 2013 Brazil ranks at 72 positions in terms ofcorruption index throughout the world.13

Foreign Corrupt Practice Act Compliance Procedure:

In order to carry out the business procedures without any hurdles, compliance of FCPA is evident forforeign companies to implement in their respective organizations. The Securities and ExchangeCommision (SEC) and Department of Justice (DOJ) have both indicated that a s tatement in a companys

code of ethics, without more, is not a sufficient FCPA compliance program. Following set of minimumcompliance regulations need to be implemented in the company:

Establish a compliance code that clearly prohibits bribes and other forms of corruption:Companies should develop clearly articulated corporate policies requiring compliance with theFCPA, including the establishment of compliance standards and procedures to be followed by alldirectors, officers, and employees, as well as all business partners.

Establish an independent compliance Force: A top corporate officials should be responsible forimplementation and oversight of all regulatory and compliance policies, standards, andprocedures, including with respect to the FCPA.

Implement an effective FCPA training program: Companies must ensure that all of their directors,officers, employees, agents, and business partners are aware of and understand their compliancepolicies and procedures regarding the FCPA.

Establish a system for reporting potential violations: Companies should implement a reportingsystem for directors, officers, employees, agents, and business partners for reporting suspectedviolations of company policies, or suspected criminal conduct.

Take appropriate remedial action if violations occur: Companies must respond appropriately toactual or suspected violations of the FCPA or compliance programs. This includes takingappropriate disciplinary action against employees, and terminating relationships with agents andbusiness partners that commit such violations.

Conduct thorough due diligence of all agents and business partners: Companies should establishpolicies requiring extensive pre-retention due diligence of all agents and business partners. Thesepolicies should include a detailed, step-by-step vetting process, as well as post-retention oversightof the agent or business partner.

11Legal Guide: Business in Brazil Coordinated by Durval de Noronha Goyos, Jr.

12http://www.reuters.com/article/2011/08/02/brazil-risks-idUSRISKBR20110802

13http://www.transparency.org/cpi2013/results


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Contracts with third-parties should require compliance with the FCPA: All contracts with agentsand business partners should be in writing and require compliance with the FCPA.

Impose appropriate internal controls: Companies should establish financial and accountingprocedures designed to ensure proper maintenance of a system of internal accounting controls andaccurate books, records, and accounts in compliance with the FCPA.

Conduct internal FCPA compliance audits: Companies should conduct audits at regular intervalsto ensure that their compliance programs, including their anticorruption provisions, are effectiveand implemented properly.14

A new Brazil Clean Companies Act has been approved by the Brazilian government in order toimplement anti-bribery laws in a more stringent ways and this new law will be applicable from January29, 2014.15

Future Trends on Foreign Investments:

Government permission is required before company can begin operating in certain sectors like healthcare

service, banks and financial institutions, mining companies, oil refineries, maritime companies, road andair transport companies.

Tight exchange and foreign-investment controls remained practically unchanged for many years, but since2005 there has been a gradual relaxation of controls and restrictive and protectionist practices. Foreignownership up to 100% is allowed in hospitality sector.

There has been a clear preference for foreign companies to establish themselves through subsidiaries andjoint ventures rather than simply exporting to Brazil and this is likely to continue in future. Foreign-exchange transactions are controlled, Stock markets are active and reasonably developed, but stockownership is not widespread, patent, trademark and copyright protection is available which would furtherattract foreign investments in Brazil.

14http://www.policymed.com/2012/08/foreign-corrupt-practices-act-brazil-and-the-pharmaceutical-sector.html

15http://www.pillsburylaw.com/siteFiles/Publications/Alert20131031LitigationPreparingforBrazilsNewAntiCorruption.pdf


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Chapter 5: Trade Barriers

Question 5: What all specific Trade barriers have been considered in Brazil?

Brazil ranks 130 out of 183 countries in the World Banks 2012 Doing Business Report. Although Brazil

has made substantial progress in reducing traditional border trade barriers (tariffs, import licensing, etc.),tariff rates in many areas remain high and continue to favour locally produced products.

As Brazil has implemented theBrasil Maior(Greater Brazil) plan, we have seen a rise in trade protectionssuch as tax breaks to benefit local manufacturers, increased tariffs, and local content requirements. Indiancompanies need to find strategic Brazilian partners and find ways to show that they are doing more thanselling their products in Brazil and then going home. Indian companies may face market access challengesin Brazil over the next several years, such as increasing pressures on the GOB to raise tariffs and imposenon-tariff barriers. Brazils Buy Brazil policy is one such measure.

Brazil's trade relations with India have witnessed a ten-fold increase in the last decade and expected toreach $ 15 billion by 2015, with exports of $5.04 billion and imports of $5.58 billion close to 10 timesincrease in the last ten years.16

IndiaBrazil bilateral trade 2007-2012 (US$ million)

Indias Indias Balance of Total trade %

Exports Imports Trade for

India Growth

2008 3,564 1,102 2,461 4,666 49.23

2009 2,191 3,415 -1,224 5,605 20.12

2010 4,242 3,492 750 7,734 37.97

2011 6,081 3,201 2,880 9,282 20

20125,043 5,577 -534 10,620 14.41

Indias main exports to Brazil : Diesel oil, coke of coal, lignite or peat, equipments related to windenergy, engineering and electrical equipment, cotton and polyester yarns, naphtha, pigments, medicinesand chemicals.

16http://www.indianexpress.com/news/brazils-trade-relations-with-india-have-witnessed-a-tenfold-increase-in-the-last-

decade/1092381/


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The Government of Brazil levies the IPI rate by determining how essential the product may be for theBrazilian end-user. Generally, the IPI tax rate ranges from 0% to 15%. In the case of imports, the tax ischarged on the product's CIF value plus import duty. A products IPI rate is directly proportional to itsimport tariff rate. As with value-added taxes in Europe, IPI taxes on products that pass through severalstages of processing are reduced to compensate for IPI taxes paid at each stage. Brazilian exports areexempt from the IPI tax.

Merchandise and Service Circulation Tax (ICMS)

The ICMS is a state government value-added tax applicable to both imports and domestic products. TheICMS tax on imports is assessed ad valorem on the CIF value, plus import duty, plus IPI. Althoughimporters have to pay the ICMS to clear the imported product through Customs, it is not necessarily a costitem for the importer because the paid value represents a credit to the importer. When the product is soldto the end user, the importer debits the ICMS, which is included in the final price of the product and ispaid by the end user.

Effectively, the tax is paid only on the value-added; the tax is generally passed on to the buyer since it isincluded in the price charged for the merchandise. The ICMS tax due to the state government is based

upon taxes collected on sales by a company, minus the taxes paid in purchasing raw materials andintermediate goods. The ICMS tax is levied on both intrastate and interstate transactions and is assessedon every transfer or movement of merchandise. The rate varies among states: in the State of So Paulo,the rate varies from 7% to 18%. On interstate movements, the tax will be assessed at the rate applicable tothe destination state. Some sectors of the economy, such as mining, electricity, liquid fuels and natural gascan be exempt from the ICMS tax. Most Brazilian exports are exempted.

Import Requirements and Documentation

Exporters and Brazilian importers must register with the Foreign Trade Secretariat (SECEX), a branch ofthe Ministry of Industrial Development and Commerce (MDIC). Depending on the product, Brazilian

authorities may require more documentation. For instance, the Ministry of Health controls all productsthat may affect the human body, including pharmaceuticals, vitamins, cosmetics and medicalequipment/devices. Such products can only be imported and sold in Brazil if the foreign companyestablishes a local Brazilian manufacturing unit or local office, or the foreign company appoints aBrazilian distributor who is authorized by the Brazilian authorities to import and distribute medicalproducts. Such products must be registered with the Brazilian Ministry of Health.

Temporary Entry

Since 2000, the Government of Brazil has made an allowance for temporary importation of products thatare used for a predetermined time period and then re-exported. Brazil has already ratified the InternationalConvention for the Temporary Admission of Goods. Under Brazils temporary import program, the II andIPI are used to determine the temporary import tax. Products must be used in the manufacture of othergoods and involve payment of rental or lease fees from the local importer to the international exporter.

The Brazilian Government is studying the adoption of the ATA Carnet, an international customsdocument that allows importers to temporarily import goods up to one year without payment of normallyapplicable duties and taxes, including value-added taxes. The adoption of ATA Carnet use in Brazilwould have a huge impact on customs clearance for trade show exhibitors that currently face difficultiesand delays in getting these temporary imports into Brazil. Brazil is expected to come on board prior to thesoccer World Cup in 2014.


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The 2016 Olympic Organizing Committee has received approval from the federal and state governmentthat no taxes will be levied on products and services that will be temporarily imported into Brazil for theOlympics.

Prohibited and Restricted Imports

The Brazilian Government has eliminated most import prohibitions with certain exceptions. In general, allused consumer goods are prohibited from being imported. Used capital goods are allowed only whenthere is no similar item produced locally. Aviation parts, for example, are one of the few used productsallowed to enter Brazil. The country prohibits the imports of beef derived from cattle administered withgrowth hormones, fresh poultry meat and poultry products coming from the U.S. and colour prints for thetheatrical and television market.

Compliance Concerns for entering Brazil are-

1. Brazil Lacks a Place of Business ConceptFrom an organizational and logistical standpoint, Brazil is one of the few countries that lack recognition

of a place of business. While in the majority of countries and regions around the globe businesses canenter and visit with relative freedom to research the viability of a business or market, Brazils strict

requirements stifle the establishment of ground teams or pop-up operations. Instead, foreign businessentities must exercise a lease on premises from day one just in order to initiate business dealings withinBrazil. Further, while Brazil does allow branches, the setup of a branch office requires presidentialapproval, with the only viable option to setup a subsidiary even if only to hire one employee. Thisrequirement demands that businesses be very certainand very prepared for the expenseof establishinga presence in Brazil before ever setting foot in the country.

2. Fulfilling the Sociedade Limitada (LTDA) RequirementsAs mentioned above, foreign entities seeking to establish their presence in Brazil have been forced to set

up a subsidiary even if just to enter the state. The most common business entity is the Limitada. Yet,while this is touted as the simplest office to establish in Brazil, it is by no means a simple and flexibleprocess to create. Organizations must contend with a labyrinth of steps (17 in all) to create one, whichtogether can take between 90 to 152 days to complete. To make things more complicated, these steps andtime estimates may differ from state to state, although the process is essentially the same across Brazil.One reason the process can take so long is that the filing requirements are spread out across variousgovernmental agencies, both federal and state. In Brazil the bureaucracy is so thick that it can take anaverage of 4 years to legally shut down a Limitada.

3. Corporate Tax FilingsNot too long ago, Brazil attempted to transform their tax code to better protect small companiesbut the

result was precisely the antithesis. Today, Brazil has different categories of indirect taxes, both federaland state thus VAT, sales and taxes meet multiple filings requirementsmaking expert accounting help akey consideration for any organization setting up shop in Brazil. To make matters more complex thesefilings do not occur in concurrence or in consideration of corporate calendars. Instead, filings for differentstates have different deadlines. In addition, for companies setting up cost centres in Brazil, the regulatorsdo not recognize the generally accepted OECD cost plus model for intercompany agreements. The

result: Brazil is an accountants dream and a business owners nightmare so brush up on this subject.

4. Employment Law


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Employment represents another myriad of regulations for foreign entities in Brazil. Organizations seekingto establish a presence in Brazil are wise to closely study employment laws in the country, as they willinevitably find themselves tethered to a number of complex national-to-foreign worker ratio requirements,unemployment insurance regulations, social security taxes, termination restrictions and payroll laws.When hiring in Brazil, it pays to be very certain of the employees brought on board to a new company, astermination is very difficult. Add to this the concept of the 13th and 14thmonth(s) of yearly employmentwhere employees are compensated not on a 12-month calendar, but for two additional months every year.

5. FCPA RegulationsPay attention to the Foreign Corrupt Practices Act (FCPA).These programs are implemented by Braziliansubsidiaries to provide more security to investors and help avoid reputational damage. Last yearlegislation was introduced in Brazil designed to require Brazil to comply with international agreementsfor combating bribery (to which Brazil is a signatory). This legislation designed to bring Brazil directlyinto the international mainstream regarding legislation to prevent bribery and corruption addresses civiland administrative liability for corporations for corrupt acts relating to Brazils national and foreign publicadministration.


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Chapter 6: Strategy to Enter the Country

Q.6. What would be the strategy to enter this country? Why? Give specific details pertaining to the

mode of entry

Market Entry Strategy: Strategic partnership with local players

We would like to recommend strategic partnership route to enter Brazil by Taj Group wherein marketingalliance with big local players/developers in key market would bring substantial value to the table.

Brazils business culture relies heavily on the development of strong personal relationships. Companies

need a local presence and must invest time in developing relationships in Brazil. It should be strongly

encouraged for companies visiting Brazil to meet one-on-one with potential partners. One of the bestways for companies like Taj Group to enter the Brazilian market is by participating in local trade showsthrough which they can meet with pre-screened potential clients or partners. It is essential to work througha qualified representative when developing the Brazilian market.

Reasons of mode of entry in Brazil

Carefu ll y analysing li terature regarding mode of entry in foreign region we have found following

aspects:

Assuming that there is no regulation regarding entry modes, companies can choose between non-equity and equity entry modes (figure below) when going abroad:

Figure : The choice of entry modes: A hierarchical model, Source: Peng (2006: 231)

As illustrated in the hierarchical model, non-equity modes include exports and contractual agreements,while equity modes include Joint Ventures and wholly owned subsidiaries (WOS).


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A further comparison of the different entry modes is shown in below table.

Source: Lasserre (2007: 209)

Reasons for choosing particular strategy for mode of entry are as follows, which is strongly supported by

literature as well19

:

In particular when dealing with emerging markets, issues like political and economic instabilityneed to be considered carefully, and might be the reason for not choosing WOS as an entry mode(Pelle, 2007).Regarding emerging markets, Zang and Wang (2006) suggest JV as the preferred entry mode sinceit gives the opportunity to establish a business operation in a foreign country where WOS is tooexpensive, risky or not feasible due to other reasons. This is because emerging markets have highpolitical and economic uncertainty, poorly developed legal and institutional frameworks and thereis a lack of market information and communication systems.

By choosing a JV, companies can better overcome these challenges and reduce transaction costs(Zang and Wang, 2006).

With marketing alliance partner Taj Group are able to:

Reach out their customers in their market

19Ovcina Dino. The Dynamics of Market Entry and Expansion Strategy in Emerging Markets , Sheffield Business Schoolm, 9-20


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Undertake certain marketing activities and conduct road showsCo-host certain events at trade fairs and other international forumsHave reciprocal reservation services and loyalty programmesUndertake food promotions and talent exchanges with each otherHave overall exchange of ideas and information

These localized alliances would eventually move forward to provide global coverage of customers whichcan be used as an effective tool for competitive advantage. Such alliances not only allow for crosspromotion of hotels with alliance partners, but also allow members of corresponding loyalty programmesto avail of special amenities and privileges at participating hotels20.

Details of Mode of Entry

Specific details of mode of entry are as follows:

Strategy of Taj group should be in line of activities to selectively enter key gateway cities aroundBrazil (Sao Paulo, Rio de Janero, Salvador etc.) and look at opportunity only in high end of themarket, under the Taj Exotica Resort and Spa Brand.

Going forward strategy of Taj Group should be focused in three key areas 21:1. Strengthen the brand by investing in key locations on a sustained basis2. Roll out the brand architecture with clearly defined luxury, premium and gateway brands

and standards3. Address brand stretch by restricting the use of the Taj brand across various organisational

entities

Taj Group should sign a strategic marketing alliance with renowned hotel group likes of AtlanticaHotels International (Brazil) or Carlson Rezidor Hotel Group, The marketing alliance will enableboth the hotel groups to harness each others strengths in their respective stronghold markets,

through cross promotion of Taj Luxury hotels and local players hotels.

In addition, several partnerships should enter into with international and domestic airlines forcross promotions with key customers and package tours.

Through marketing alliance, both entities should develop reciprocal and joint marketing activitiesthat include joint participation in trade shows, sales events, culinary promotions and nichemarketing programmes.Furthermore, the companies should also assist each other in exchanging sales leads andconducting roadshows across India and Brazil.

20The Indian Hotels Company Ltd, Taj Hotels Resorts and Palaces Report

21Bickson Raymond .Gateway to luxury, TATA Review 2008


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Chapter 7: Market Research

Question 7: Give specific details of the market research which would be done before marketing the

products/ services in Brazil.

Importance of Market Research before going to Brazil:

"Failure to do market research before you begin a business venture or during its operation is like driving acar from Texas to New York without a map or street signs," says William Bill of Wealth Design GroupLLC in Houston. "You have to know which direction to travel and how fast to go. A good market researchplan indicates where and who your customers are. It will also tell you when they are most likely and

willing to purchase your goods or use your services."22We cannot depend on just secondary data. Throughout the market research process, our goal would be togather as much first-hand information as possible. So our more focus would be on the primary research.Secondary data are absolutely necessary when seeking out potential markets but they only indicate overalleconomy health and not the receptivity of your specific product/service offering.

Any decision in any business is taken based on the information. These information needs range from thegeneral data required to assess market opportunities to specific market information for decisions aboutproduct, promotion, distribution and price.23

We will have to take care of the following common Marketing Research mistakes:1. Using only secondary research

Of course, the secondary research is useful but it doesnt give you the full picture. Thesecondary research might not incorporate all the features of research which are required to ourbusiness.

2. Using only web resourcesWhen we use common search engines (like Google) to gather information, we get only

data that are available to everyone and it is not necessarily fully accurate. We will be interviewingvarious experts from Brazil so that we get to know better understanding of the country andaccordingly we will design our service offering.

3. Surveying only the people you knowFriends and family are often not the best respondents. We sometimes interview only family

members and close colleagues when conducting research. That is not going to be useful always.

22 Lesley S.P.(2010) How to Do Market Research-The Basics, available at:

http://www.entrepreneur.com/article/217345#ixzz2pA9z55K6 (Accessed 30 December 2013)23

Philip R. Cateora, John L. Graham and Prashant Salwan (2013), Developing a Global Vision through Marketing Research, in

Mc Graw Hill Education, International Marketing, pp. 258-293


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1. Macro top-down approach:This would be done through investigating experiencing of industry in the home countryand extrapolating to Brazil. This would help in estimate the reasonable magnitude andbroad overview of the industry.

2. Micro bottom-up approach:In this approach, the future demand is calculated with the help of specific research and allmicro variables will be included

Reconcile output:

Hence, by a top-down and bottom-up analysis, we will be converging macro and microdata points to assess the markets real opportunities over the next decade which will bevery helpful in making decision.

Things to know before we do market research in Brazil:25

Brazilians are very willing to give their opinions but they dont just give it to anyone. They donttrust people they dont know and its especially difficult to get inside peoples home, or even stopthem on the streets. Violence is a reality and you dont want to scare your respondents, right? Somake sure you plan your panel recruitment carefully and gain their trust.

In Brazil, the way you conduct research has to be quick, precise and convenient for therespondent. On the go, anonymous and really fastare words that might convince them toanswer your questions. Mobile and online surveys are good because theyre quick and there is noissue with personal safety. The incentives also need to be very good to persuade people to takepart in research.

Once you have gained their trust Brazilians are really keen to give them your opinions. Especiallyif you tell them how important their opinions are - Brazilians love to feel important. If you becomea friend, theywill tell you everything, even if its a really long survey or your incentives are notthat good.

25Sarah Q. (2012), Conducting market research in Brazil? Top tips from an insider, available at:

http://ondeviceresearch.com/blog/conducting-market-research-in-brazil-we-have-some-tips-from-an-insiders-perspective-

(Accessed 30 December 2013)


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Chapter 8: Catering to Nearby Countries/Region

Question 8: Would entry into Brazil enable the Taj Hotels to cater to nearby countries/regions to

expand your business? Why/ why not?

Brazil covers nearly half of South America and is the continent's largest and most populous nation. Withits vast natural resources and a large labor pool, it is today South America's leading economic power, aregional leader and one of the first in the area to begin an economic recovery[26]. The country is activelyinvolved in leading global activities and is set to host the FIFA World Cup in 2014 in 12 cities, and TheOlympic Games in 2016 in Rio De Janeiro, one of Brazils most populous and prosperous states[27].Seeing these prospects, the Taj Hotels can enter and actively invest in the nations top cities like Sao

Paolo and Rio de Janeiro, following which the conglomerate can spread its reach to nearby countries likeArgentina, Columbia etc.

Brazil is also an active member of the Southern Cone Free Trade Area aka Mercosur, one of the mostinfluential and successful free trade areas in South America as well as the third largest free trade area inthe world. Powered by a market of more than 220 million people and a combined GDP exceeding $1

trillion, Mercosur region offers great opportunities for investment and growth[28].

[Image URL: http://www.publications.parliament.uk/pa/cm200607/cmselect/cmtrdind/208/20804.htm]

Based on similar developments happening in other countries, the hospitality industry of South America isexperiencing a surge in growth. Reports suggest that based on trends seen in developed economies, LatinAmerican countries like Mexico, Brazil, Columbia and Peru are set to register disproportionate demand

26 Central Intelligence Agency (2013): The World Factbook: South America: Brazil available athttps://www.cia.gov/library/publications/the-world-factbook/geos/br.html (accessed on 30th December 2013)27Australian Trade Commission (2013): 2014 Brazil FIFA World Cup and 2016 Rio Olympic Games available athttp://www.austrade.gov.au/Export/Export-Markets/Countries/Brazil/Industries#.UsQ3gfQW2m0 (accessed on 30th December 2013)28Philip R. Cateora, John L. Graham and Prashant Salwan (2013): Multinational Market Regions and Market Groups, Chapter 10, Pg.359,International Marketing, 13th Edition (accessed on 30th December 2013)


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growth throughout the next decade, driven to a great extent by infrastructure investment, economicgrowth and transfer of technology and know-how among many other factors[29].

The above data depicts the growth potential of hotel rooms as well as the macroeconomic trends inBrazil, Columbiaand Peru. In all three countries, there has been a consistent rise in the services sector toan average of around 60% of the economic activity. There is also a projected CAGR of nearly 5% in the

nations with respect to the hotel industry. Several factors contribute to these relatively positive trends: Pent-up demand - decades of unsatisfied demand for virtually every class of real estate, along

with falling cost of capital, rising incomes, increased corporate activity and travel in these nations.

Stratified ownership model - relative lack of long-term commercial debt financing hasconstrained supply and impeded the natural recycling of functionally obsolete real estate,

29Jones Lang LaSalle (2013): Economic Transformation Drives Latin Americas lodging industry available at

http://www.joneslanglasalle.com/ResearchLevel1/JLL-Latin-America_White-Paper_Sep2013.pdf (accessed on 30th December 2013)


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including hotels. As long-term financing becomes increasingly available via a variety of sources, itwill become relatively easier for new players to enter the market.

Emerging market growth rates- with some fluctuations, aggregate growth in emerging marketsis expected to be more than three times that of mature markets, leading to an estimated inversionof balance in economic power from 30.0% today to 70.0% by 2050.

Economic catch-up - globalization, technology diffusion, instantaneous capital flows, lessonslearned in the political economy has reduced the economic development cycle times.

Uneven growth - even within countries, emerging regions like the northeast of Brazil areexperiencing double digit growth rates, while more industrialized regions of the southeast moreakin to the global norm.

Explosion of consumer class- Latin Americas total GDP is expected to grow by just over fivepercent annually during our forecast horizon. At the same time, GDP generated by the consumerclass within the regions is expected to grow by over 7%, and more than double from $2.4 trillionto $5.2 trillion by 2022.

Thus, a combination of these factors has the potential to cause growth in services-oriented activities,especially the hotel industry in the three countries within a short span of time, opening a vast array ofopportunities for Taj Hotels to successfully launch its flagship hotels and resorts in these countries and lapup a niche share of the growing demand.

Another country seeing a booming hotel industry is Brazils Mercosur neighbour: Argentina. Accordingto reports, there is a rise in a variety of hotels developing in the country, with the city of Buenos Airesbeing the hottest market to invest having more than 15 pipeline hotel projects[30]. Taj Hotels can gainfrom investing in projects in Argentinas competitive yet promising market and target high -end customersthrough establishing boutique hotels and resorts.

Based on all of the above information, it can be inferred that there are ample growth prospects for Taj

Hotels to capitalize by investing in Brazil and then moving on to expansion in countries like Columbia,Peru, Argentina and other promising South American nations.

References

References: (Ch.1)

30Gateway To South America (2012): Buenos Aires Booming Hotel Industry available at http://www.gatewaytosouthamerica-newsblog.com/gtsa-general/argentina-general-en/argentina-lifestyle/buenos-aires-booming-hotel-industry/(accessed on 30thDecember 2013)


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1. Olsen, Jimmy (2010), The Brazilian Hotel Sector, in Olsen, Jimmy, The Danish ConsulateGeneral and the Embassy of Denmark, Sao Paulo, August 2010, pg6-12.

2. Deloitte (2010), Brazil 2015_Ingles.pdf, byDeloitte, pg18-21.3. Brazilian Chamber of Commerce in Great Britain, available at

http://www.startupoverseas.co.uk/expanding-a-business-in-brazil/entering-the-market.html(accessed31on 01Jan, 2014).

4. Doing Business in Brazil prepared by Ernst & Young Terco in 2011 available athttp://www.ey.com/Publication/vwLUAssets/Doing_business_in_Brazil_2011/$FILE/Doing%20Business%20in%20Brazil%202011.pdf (accessed on 01 January, 2014)

5. Foreign Trade and Direct Investment (FDI) Brazil-USA, prepared by Ministry of ExternalRelations, Department of Trade and Investment Promotion in November, 2013, available athttp://www.brazilcouncil.org/sites/default/files/Itamaraty_Presentation%2011-7-2013.pdf(accessed on 1 January, 2014).

References: (Ch.2)

6. https://www.pwc.com.br/pt/publicacoes/assets/doing-business-brazil05.pdf (accessed on 1January, 2014).

7. http://www.fifa.com/worldcup/brazil2014/destination/cities/index.html (accessed on 1 January,2014).

References: (Ch.3)

8. Gee, Chuck Y. 1994. International Hotels; Development and management. United States.Educational Institute of the American hotel & motel association

9. Doing Business and investing in Brazil, PWC report, 2013, p 1610.The Brazilian Hotel Sector , The Danish Consulate General and the Embassy of Denmark, So

Paulo, August 2010, p 2211.http://geert-hofstede.com/brazil.html (accessed on 29th December,2013)12.http://www.cyborlink.com/besite/brazil.htm (accessed on 29th December,2013)

References: (Ch.4)

13.Doing Business and Investing in Brazil prepared by PWC in March 2013 available athttps://www.pwc.com.br/pt/publicacoes/assets/doing-business-2013.pdf (accessed on 22December 2013).

14.Brazil Hotel Industry Investment Guide prepared by Brazil real Estate Partners (2011)www.brazilinvestmentguide.com/ (accessed on 29 December 2013)

15.Legal guide: Business in Brazil Coordinated by Durval de Noronha Goyos, Jr. 8th Edition, 2011.16.Reuters (2011) FACTBOX-Key political risks to watch in Brazil available at

http://www.reuters.com/article/2011/08/02/brazil-risks-idUSRISKBR20110802
https://www.pwc.com.br/pt/publicacoes/assets/doing-business-brazil05.pdfhttps://www.pwc.com.br/pt/publicacoes/assets/doing-business-brazil05.pdf


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17.Transparency International Corruption Perception Index 2013 available athttp://www.transparency.org/cpi2013/results

18.Policy and Medicine (2012) available at http://www.policymed.com/2012/08/foreign-corrupt-practices-act-brazil-and-the-pharmaceutical-sector.html

19.William M. Sullivan Jr., Peter A. Baumgaertner, Ryan R. Sparacino, Paulo H.C. Varnieri, andKristen E. Baker (2013) Preparing for Brazil's New Anti-Corruption Law: What In-House

Counsel Should Know available athttp://www.pillsburylaw.com/siteFiles/Publications/Alert20131031LitigationPreparingforBrazilsNewAntiCorruption.pdf

References: (Ch.5)

20.Doing Business and Investing in Brazil prepared by PWC in March 2013 available athttps://www.pwc.com.br/pt/publicacoes/assets/doing-business-2013.pdf (accessed on 22December 2013).

21.http://export.gov/brazil/doingbusinessinbrazil/eg_br_023967.asp (accessed on 22 December2013).

22.http://strategy.consiliumglobalbusinessadvisors.com/blog/bid/313876/Brazil-s-Trade-Barriers-overcoming-tariffs-for-biz-dev-success (accessed on 22 December 2013).

References: (Ch.6)

23.Ovcina Dino. The Dynamics of Market Entry and Expansion Strategy in Emerging Markets,Sheffield Business Schoolm,9-20

24.Bickson Raymond .Gateway to luxury, TATA Review 200825.The Indian Hotels Company Ltd, Taj Hotels Resorts and Palaces Report

References: (Ch.7)

26.Lesley S.P.(2010) How to Do Market Research-The Basics, available at:http://www.entrepreneur.com/article/217345#ixzz2pA9z55K6 (Accessed 30 December 2013)

27.Philip R. Cateora, John L. Graham and Prashant Salwan (2013), Developing a Global Visionthrough Marketing Research, in Mc GrawHill Education, International Marketing, pp. 258-293

28.Anu B. (2012), In the next 48 months we would have 43 more hotels in India taking us to almost200 hotels, available at: http://www.indiahospitalityreview.com/interviews/next-48-months-we-would-have-43-more-hotels-india-taking-us-almost-200-hotels-and-20000-r (Accessed 30December 2013)

29.Sarah Q. (2012), Conducting market research in Brazil? Top tips from an insider, available at:http://ondeviceresearch.com/blog/conducting-market-research-in-brazil-we-have-some-tips-from-an-insiders-perspective- (Accessed 30 December 2013)

References: (Ch.8)

30.Central Intelligence Agency (2013): The World Factbook: South America: Brazil available athttps://www.cia.gov/library/publications/the-world-factbook/geos/br.html (accessed on 30thDecember 2013)


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31.Australian Trade Commission (2013): 2014 Brazil FIFA World Cup and 2016 Rio OlympicGames available at http://www.austrade.gov.au/Export/Export-Markets/Countries/Brazil/Industries#.UsQ3gfQW2m0 (accessed on 30th December 2013)

32.Philip R. Cateora, John L. Graham and Prashant Salwan (2013) : Multinational Market Regionsand Market Groups, Chapter 10, Pg.359, International Marketing, 13th Edition (accessed on 30thDecember 2013)

33.Jones Lang LaSalle (2013): Economic Transformation Drives Latin Americas lodging industryavailable at: http://www.joneslanglasalle.com/ResearchLevel1/JLL-Latin-America_White-Paper_Sep2013.pdf(accessed on 30th December 2013)

34.Gateway To South America (2012): Buenos Aires Booming Hotel Industry available athttp://www.gatewaytosouthamerica-newsblog.com/gtsa-general/argentina-general-en/argentina-lifestyle/buenos-aires-booming-hotel-industry/ (accessed on 30th December 2013)

international marketing strategy to enter hospitality sector in brazil

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