Rio Carnival revelers hunt for bargains amid economic crisis

Rio’s tourism agency is hoping to attract 1 million tourists who spend about 3 billion Brazilian reals ($950 million) in the city during the Feb. 24-28 festivities. If that pans out, it would be roughly the same amount of revenue as last year.

Hotels estimate they will see only a 72 per cent occupancy rate, about 14 points less than last year.

With festivities starting Friday, there are still 800 stand tickets for the parade, which typically sell out right after New Year’s Day. Many of the box seats for the float parade, which feature local and global celebrities, have been distributed among the samba schools that put on the spectacle. Organizers say they want to make sure television cameras don’t capture any empty spaces.

The backdrop is the worst recession that Latin America’s largest nation has suffered in decades. Brazil’s central bank estimates the country’s economy shrank more than 4 per cent in 2016 and unemployment is around 12 per cent.

Rio’s state government has felt that impact like few others, with public servants having their pay delayed for months. Violent protests have become frequent as the state legislature considers several austerity measures.

In the neighbouring state of Espirito Santo earlier this month, military police went on a weeklong work stoppage that coincided with an upsurge in murders and other crimes. The fear that Rio police would stage a similar strike was so strong that resident Michel Temer has activated 9,000 soldiers to patrol in the state of Rio.

In Rio’s popular commerce areas this week, stores were filled with products but light on customers. Full Carnival costumes, with prices varying between 30 reals (about $10) and 3,000 reals (about $1,000), were not selling. Instead of glittery pieces for revelers to dress as harlequins, policemen, nurses and Wonder Women, party-goers are most concerned about finding a deal.

Claudio Muniz, who manages a Carnival store in downtown Rio, said sales in January were nonexistent and only in recent days have people started looking — for bargains.

“Last year was already bad. People only bought kits,” said Muniz. “We didn’t raise any prices, but people still think it is expensive.”

Homemaker Marina Hill is one of the locals spending less. Last year, she bought two costumes, but this year will buy only one that she plans to wear every day.

“I am not spending more than 150 reais ($55),” she said. “It’s not easy, but not celebrating would be even worse.”

Even some good Carnival news nationwide reflects bad news for Carnival in Rio. Stores in Sao Paulo, the nation’s largest city, project a rise of 6 per cent in sales for party-goers. But that is because many people who usually travel to Rio are staying home.

For the vast majority of Cariocas, as Rio residents are known, Carnival celebrations have always been about street parties, called “blocos da rua.”

Even the 451 “blocos” this year may suffer.

“Sponsors are gone, city hall doesn’t help and no one wants to put their personal items like their cars on sale to celebrate Carnival,” said Rita Fernandes, one of the organizers of a “bloco” association. “If there is no help, many of us, including blocos that have been around for 30 years, might be gone soon.”

Mauricio Savarese, The Associated Press

by Canadian Press

Rio Carnival revelers hunt for bargains amid economic crisis

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