The saint's festival that generates millions.

Leonardo Lucena and Paulo Emílio_ PE 247 – More than just boiled corn and peanuts, the June festivities, celebrated with special devotion throughout the Northeast, have shed their modesty and become celebrations that generate millions of reais each year. State governments, municipalities, and the private sector take advantage of the moment to invest in attracting tourists and gaining market share. A clear indication is that, this year, the hotel sector alone is expected to grow by 10% compared to the same period last year. In Caruaru, in the Pernambuco hinterland, the expectation is that the festival will generate more than R$ 180 million over the almost 30 days of festivities.

The hotel industry expects the sector to close the month of June with a turnover of around R$ 45 million, taking into account an occupancy rate of 80% of the 64.000 beds spread throughout the state, a volume 10% higher than that recorded in the same period last year.

 According to the Secretary of Tourism of Pernambuco, Alberto Feitosa, the State Government also increased investments to reflect the growth of the festival honoring the most popular saint in the Northeast. R$ 8 million was invested through the Pernambuco Tourism Company (Empetur), R$ 2 million more than in 2011, when the company invested R$ 6 million in 21 cities.

"The economic boom in Pernambuco, with job creation and increased purchasing power, has allowed us to increase investments, resulting in a greater financial return," says Feitosa.

But the biggest São João festival in Pernambuco takes place in Caruaru, in the state's Agreste region. There alone, R$ 8 million was invested, with R$ 3 million from the public sector (State Government and city hall) and R$ 5 million from the private sector. This amount is similar to what Empetur allocated to be used in 39 municipalities across all regions of the state. The expectation is that the June festival will generate R$ 181 million for the local economy and create 10 new temporary jobs.

According to estimates from the Caruaru City Hall, the "Capital of Forró" (a type of Brazilian music and dance) is expected to attract approximately 10% to 15% more tourists than the 1,2 million who visited the city in 2011, with a satisfaction rate exceeding 90%. Regarding the hotel sector, which has 3 beds, occupancy is expected to reach 98%, 20% higher compared to last year.

 "Investments aimed at improving the city's infrastructure, the centenary of Luiz Gonzaga, and the generation of jobs with several factories that will be installed in Caruaru are the factors that justify a more profitable São João festival in 2012," explains the Secretary of Economic Development of Caruaru, Franco Vasconcelos.

Another municipality that has been having an increasingly significant São João festival is Gravatá, also in the Agreste region of the state. According to the president of the Brazilian Association of the Hotel Industry (ABIH-PE), Eduardo Cavalcanti, the expectation is that there will be 100% occupancy of the 2.600 beds in the municipality, two percentage points more than in 2011.

“With the promotional efforts and the growth of the Pernambuco economy, our expectations for full occupancy in the hotel network are rising. Last year, we closed 95% of the reservations 20 days before the festival. This year, they were booked 45 days in advance,” says Cavalcanti. The local hotel sector alone is expected to generate a financial turnover of R$ 2.3 million.

According to Gravatá's Planning Secretary, Jaime Pedro, investments for this year are in the order of R$ 2,3 million, the same amount as last year. The city government contributes approximately 30% to 40% of the invested amount.

“This depends on the availability of resources from the Gravatá City Hall. The economic crisis is also a factor that explains why the investment will be the same as in 2011. But each year, the São João festival should attract more visitors,” he adds. The secretary also informed that the economic impact in 2012 should be around R$ 10 million and a tourist flow of 120 people during the June weekend.

SPONSORSHIPS - Regarding sponsorships, Skol, one of the main sponsors, is reinforcing its presence in Caruaru with a 530 m² VIP area with a capacity for 1000 people. In Gravatá, the brewery installed the Nave Skol, a tent fully illuminated by LED spotlights and aimed at a young audience.

Kraft Foods, with its Lacta chocolate brand, is sponsoring the São João festivities in both cities for the first time. “Continuing its strategy of celebrating Lacta's 100th anniversary in the Northeast, following high-impact activations such as Carnival and Easter, the brand is making its debut at São João. Gravatá and Caruaru were the chosen cities in Pernambuco. Once again taking advantage of the celebration of the 100th anniversary of the King of Baião, Lacta is dressing these cities with communication that perfectly captures the spirit of São João and with brand experiences,” explains Kraft Foods' marketing manager, Danielle Viana.

With a national market share of 22,5%, according to Nielsen data, Pernod Ricard is also betting heavily on São João festivities, but with higher value-added beverages. “Teachers whisky is the leader in the state with a 57,8% market share. In the entire Northeast, we have a 42% share. We're not just riding the wave of the festival. We have a deep relationship with consumers throughout the region,” says Patrícia Cardoso, Group Manager for Rum, Cachaça, National and Bottled Whiskies at Pernod Ricard.

Although she doesn't mention investments, Patrícia notes that 2011 marks the brand's return to the media after a five-year absence. "The Northeast is the brand's main market in Brazil. And São João is the biggest festival in the entire region, hence our presence," she explains. Teachers is one of the sponsors of the June festivities in Gravatá, where it set up a kind of tavern recalling the origins of the drink.