Members of the Brazilian hotel sector and other tourism professionals, concerned about the prospect of integrated resorts in the country, say any legal casinos should operate out of existing resorts.
According to CDC Gaming Reports, a recent meeting of the Joint Parliamentary Front in Defense of Tourism, or Frentur, drew industry groups including the Brazilian Association of Hotels, the Brazilian Association of Resorts, the Brazilian Federation of Lodging and Food and the Forum of Hotel Operators of Brazil.
“While we understand that casinos are important for the generation of employment and taxes, we ask the parliament to consider existing resorts as an ideal space for the installation of casinos,” said Alberto Cestrone, president of the Brazilian Association of Resorts. “Resorts are a natural product to absorb such a venture. It does not need big investments and still has good gastronomy and structure already ready to make it work.”
A new gaming bill introduced by Paulo Azi of Brazil’s Chamber of Deputies would introduce legal casino resorts in the country for the first time. The legislation would authorize up to 32 casino resort licenses in the country; the market has long been of interest to global operators including the Las Vegas Sands Corp. and Hard Rock International. According to Games Magazine Brasil, Hard Rock representative Alex Pariente recently visited Santa Catarina Governor Carlos Moisés to make a pitch for the U.S.-based firm.
Pariente called Brazil “an immense and strategically important market for any operator. The purpose of this trip is to know the possibilities the state offers, including also the legislation that will guarantee the stability that the investor needs for future business.”
Las Vegas Sands CEO Sheldon Adelson has reportedly proposed two casinos in Brazil, one in Rio and another in São Paulo. He has said he would gladly invest $10 billion in a Brazilian casino. In the past, MGM Resorts International has also expressed interest in the jurisdiction.
Deputy Newton Cardoso Jr., newly elected chairman of the Tourism Committee, said the body will continue to study the potential impact of casinos in Brazil; in remarks, he seemed to be a supporter. “The estimates are very positive” that the sector could create millions of jobs and generate up to US$7.85 billion per year in tax revenues, he said.
“The focus should be on tourism actions that can generate more jobs,” he continued. “Brazil needs to participate with at least 10 percent of the world tourism market and today participates with almost nothing. It is necessary to bring technology and intelligence to the development of public policies for tourism. That is our focus, these are the propositions we are going to bring throughout the year.”
