Devaluation of the Real
May 29th, 2000, 05:47 AM
#1
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Devaluation of the Real
How has the devaluation of the Real affected the travel costs in Brazil for an US visitor? Have the prices been raised as a result of the devaluation, i.e. inflation? <BR>For example, the hotel costs in the Fodors' guide and at the ipanema.com site both seem high in US$, not any different from before the devaluation. What are the real costs at the current exchange rate of US$1:REAL1.8?
May 29th, 2000, 08:12 AM
#2
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The devaluation was in Mar '99 when x-rate changed from 1,2 to 1,8. <BR>Prices have been stable for the last years,but when it comes to tourism,specially Rio de Janeiro,be careful as prices are extremely high,at least compared to Europe.Try to avoid international hotel chains,such as Sheraton etc. If you want further infos,just reply. <BR>
May 31st, 2000, 12:14 PM
#4
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It all depends on what you consider to be "expensive". Here are some prices we paid in February 2000. Can of beer from Rio Sul supermarket(less than 50 cents), can of beer from beachside pub/tent(less than $1 USD), all day beach chair rental on Ipanema($3 USD), good bottle of wine at Rio Sul($2 USD), bottle of cachaca at local liquor(less than $1.50 USD), local bus from Ipanema to Copacabana(about 40 cents), one way trip on the subway($1 USD), dinner at a well known all-you-can-eat rodizio in Ipanema($14R = less than $10 USD), pair of leather sandals from Mr Cat($15-20USD), 2 passenger taxi ride from International airport to Ipanema/Leblon($15-18 USD). One more, pack of Brazil cigarettes from a gas station...around $1.50US. <BR> <BR>I was in Rio in December 1998 when the exchange rate was $1USD = $1.05R. And I was there four months ago when the rate was $1USD = $1.75-1.85 R. In February 2000, we found that the prices were pretty much the same as they were in 1998, except that we were able to buy more things. You can definitely find some good bargains in Rio. <BR> <BR>If you want to save money, instead of going with a traditional hotel, look into some of the "aparthotels". Our hotel ranged in price from $130USD/night to $230USD/night. To us these was very reasonable considering it was a 2 bedroom, 2 bath apartment. <BR>
Jun 1st, 2000, 04:48 AM
#5
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Erin, Good examples and clarification. You wrote, "In February 2000, we found that the prices were pretty much the same as they were in 1998,..." Do you mean "the prices" in REALs? Do you find the US$ <BR>prices in the Fodors guidebook and Ipanema.com realistic or on the high side? Difficult to tell if these sources are still listing the pre-devaluation rates. Thanks.
Jun 1st, 2000, 04:38 PM
#6
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GHughes: I meant to say the prices are the same in REAL. It seemed to us that the REAL price didn't change from 1998-2000...it still only cost $R20 for a pair of shoes from Mr Cat and $R1.50 for the subway. <BR> <BR>As for ipanema.com and fodors.com prices...I think they have been adjusted for the devaluation of the real. But, they do not change the rates regularly based on the currency fluctuations. When I booked my hotel in August 1999, the price was $R400/night. At that time the real was worth maybe $1.45 USD. When I checked out the hotel in Feb 2000, my room rate was still $R400/night, but by then the real was worth $1.70 USD. <BR> <BR>It looks like fodors hasn't updated their hotel and restaurant listings recently. It lists the Copacabana Palace in the $100-150USD range, when it should be in the more expensive category. <BR> <BR>Ipanema.com is a more reliable resource. Their prices are more like what you will expect in Rio. Even with the devaluation, the prices for the really expensive hotels have not changed in our favor. Copacabana Palace is still $200-300 USD/night. The same goes for the Inter-Continental, Sheraton, Caesar Park, and the other big chain hotels.
Jun 2nd, 2000, 08:47 AM
#7
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Hello. I live in Sao Paulo, Brazil. The exchange rate now is about US$1=R$1,82. There's another rate, what we call here "paralell change", some sort of "street rate" which is about US$1=R$1,93. If I want to buy dollar bills in a travel agency, for instance, I'll have to pay about 1,93 reais. If I sell dollar bills I'll get less, because of the profit of the exchanger. The dollar rates here is very dependent of american economy. For instance, about a week ago when the basic interest rate raised 0,5% in the U.S., the dollar went up to R$1,87! <BR>The prices here haven't increased much since the devaluation of the Real, except for import products and fuel. That's because president Fernando Henrique is doind g the best to avoid high inflation again. In highly tourist-oriented cities like Rio, things might be different, they usually charge you more when they know you're a tourist, specially in Rio. For an american in Brazil, I guess that basic costs, like food, transportation, etc are pretty cheap. I can tell you some prices of specific products in Sao Paulo, if you want. I have no experience in hotel accomodations in Rio, but I'm pretty sure that they are much more expensive than budget accomodations in the US, like Motel-6, Travelodge or Confort Inn, for instance. Please feel free to contact me if you need any more info.
Jun 6th, 2000, 09:33 AM
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Hello Fred <BR> <BR> It depends where you go. The rate now is around US$1,00=R$1,82. In Sao Paulo (it's where I live), some prices are: <BR> <BR>can of Coke (supermarket)= R$0,60 <BR>can of Coke (restaurant)= R$1,20 <BR>bottle of Brazilian wine (market)= around R$4,00 to R$ 6,00 <BR>bottle of wine (restaurant)= R$10,00 <BR>cheese pizza (delivery)= R$8,00 <BR>chesse pizza (restaurant)=R$15,00 <BR>bus (one way trip)=R$1,25 <BR>subway (one way trip)=R$1,50 <BR>Big Mac= R$3,30 <BR>roll of film (36exp)=9,00 <BR>budget hotel= R$80 to R$100,00 <BR>movie ticket= R$8,00 <BR>taxi from intl'airport to downtown (20 km)=R$35,00 <BR>t-shirt=R$25,00 <BR>jeans (wrangler)=R$60,00 <BR>pair of good leather shoes=R$60,00 <BR> <BR> If you go to the Northeast of Brazil, which is much more beautiful, prices are lower because the cost of living is lower there. If you need more info, let me know.I hope this helps. <BR> <BR>Carlos
