Labor Day: extended holiday benefits tourism, but affects trade

According to economist Aurélio Trancoso, this projection is an indication that sectors such as tourism and transport are among those that benefit most from extended holidays. “Tourist cities also benefit from this extended holiday. There are packages that are made for tourist cities, so the transport sector, which would be the aviation area, also benefits from this. So, the economy does not stop”, he points out.

Check below the movement estimates at the airports

In 2023, of the nine national holidays, four fall on Mondays or Fridays and therefore overlap with the weekend. According to the National Confederation of Trade in Goods, Services and Tourism (CNC), extended holidays and optional points should inject R$ 74.3 billion into Brazilian tourism this year.

Good for some and not so good for others. Entities linked to trade point to a drop in sales due to the holidays. According to the CNC, each holiday reduces the average annual profitability of the commercial sector as a whole by 1.29%. Each holiday on business days generates a loss of BRL 2.46 billion to retailers.

For Trancoso, on holidays that take place on weekdays and on long days, what happens is the displacement of consumption towards certain sectors or niches of the economy.

“Retail is really affected, but not necessarily as a whole. As you have malls open normally, mall stores work. So, part of retail has some problems that you end up losing sales. And when it’s extended, you have Saturday, Sunday and Monday, you’re missing a day normally. On the other hand, there is the tourist area that gains a lot from it. Bars, restaurants, food and drinks are very popular at this time. You lose on one side, but win on the other”, he explains.