Retailers in Recife disdain the Confederations Cup.

Fernanda Cruz
Reporter from Agência Brasil

São Paulo – A survey by the Credit Protection Service (SPC) shows that 52% of business owners in Recife's commerce and services sectors are not preparing their establishments to receive tourists for the Confederations Cup. The survey was conducted with over 1,2 business owners from all host cities, operating in markets, bars, restaurants, snack bars, nightclubs, hotels, hostels, street commerce, and shopping malls. In these six capital cities, the average number of business owners who are not preparing is 59%.

The study data also revealed that, among business owners who have not made preparations, 46% either dismissed the need to make any changes to their business or claimed they were unable to prepare their establishments for the World Cup. Among the reasons given by business owners who showed disinterest in improving their businesses, the predominant argument involved a lack of return on potential investments, cited by 27% of respondents. Another 14% cited a lack of capital for investment, 13% said there was a lack of government support, 11% complained of a lack of qualified labor, and 8% claimed to have no working capital.

Eduardo Melo Catão, president of the Recife Chamber of Retailers, admits the low optimism among business owners. “We don't have high expectations for many tourists during this Confederations Cup: there isn't a great deal of activity surrounding it. But the businesses will certainly be well-stocked and prepared,” he assured.

According to Catão, Recife's merchants are much more hopeful about the World Cup than they were about the Confederations Cup. "You could say that he [the businessman] is much better prepared for the 2014 World Cup because he'll have more time. I believe that the flow of tourists will also be much greater for the World Cup," he said.

Nyedja Cavalcante, a sales assistant at a hotel in Recife, located on Avenida Boa Viagem, confirms that expectations are higher for the World Cup. According to her, reservations for the Confederations Cup fell short of expectations. “The hotel has 199 rooms, and the day with the highest number of reservations is June 16th, with 80% occupancy. For the other days [June 19th and 23rd], it's at 60% occupancy. We expected more,” she said. Furthermore, despite the hotel prioritizing the hiring of English-speaking staff and translating its website, most reservations for the Confederations Cup period were made by Brazilians, Nyedja explains.

Cristiane Arruda, manager of a fast food restaurant in the Boa Viagem neighborhood, said she doesn't expect an increase in customer traffic during the Confederations Cup and therefore hasn't made any changes to the establishment. According to her, only the staff at one of the chain's seven stores, located inside Guararapes International Airport, will receive training and English classes to better serve foreign tourists.

According to the SPC study, among the business owners who, on the contrary, decided to invest in the World Cup, 36% prioritized employee training. “We have noticed a concern among shopkeepers regarding learning English and Spanish. We perceive that there is a movement in this direction on the part of shopkeepers, especially in stores of…” for shopping time"That's where tourists go most," said Catão. Meanwhile, 40% of those surveyed were concerned about increasing product variety. Another 34% of business owners focused on expanding their inventory. Investment in business infrastructure was a concern for 30% of entrepreneurs.