Copacabana is located in one of the world known tourist destination and also the second largest city in Brazil, Rio de Janeiro. The famous South Atlantic coast harbor with breathtaking landscapes, indigenous cultures and phlegmatic beaches keep tourists flow into the country flow heavy on a daily which affect the economy in so many different ways. Statistics show that, the country receives over five point seven million international tourists annually (Serdoura, 1999). Therefore, the most demanded sector in such a city as Rio de Janeiro, which is one the tourist destination, is hotel services. The big number of accommodation services varies from day in day out depending on a number of factors that are as a result of the tourists in the area.
To begin with, one of the factors that affect tourist`s accommodation daily charges in neighborhood of Copacabana, if the season of the year. Prices of hotels and accommodation go high during summer due to the high number of tourists who visit. According to the Foundation Institute of Economic Research, it is common in many tourists’ destinations in the world. If it time for highly hyped event like the New Year’s Eve and the Carnival, for Copacabana and the city at large, the price of hotel rooms goes high (2006). Another factor that is affecting the price of rooms is the location of the hotel itself.
Hotel that are near to the beach are more expensive that hotels far away from the beach (Guilherme, 2012). This is because, most of the tourists who come in to visit like the laidback beaches which increases the demand of such hotels. As the demand goes high, the prices also goes high. On the same not, land value also determines the cost of accommodation. Lands closer to the beach are valued high than lands far away from the beach. As the land value increase, the price of the hotels and all other catering services accompanied increases too. Millman beach acts as the meeting point of all kind of people in the city, from the rich to the poor (2011). This makes the beach to be the most entertaining place in Copacabana. It also means the distance the hotel is from the beach determines it price.
Apart from that, other factors that affect accommodation prices is the type of rooms, that is, the size and for how many people it can accommodate at a go. This also has to do with the value of the materials and furniture finishing used in the rooms. For instance, a single room can cost high than a double room just because of the value of the bed in the single room more expensive compared to those beds in the double room (Millman, 2011). The type of hotel also determines the price of hotel rooms; one cannot compare the price of rooms in a local hotel to an international hotel. If the target market is high class, likes of international hotels, the price must be high enough to actually make the customers feel the value of the money. Actually, the is law that, any international law must meet certain degree of efficiency, level of security, catering services, location and experience for it to qualify for the permit (Villella, 1999).
Most of the hotels targeting high end tourists in Copacabana and the neighboring have very high prices because high prices is associated with the rich and some level of luxury added values apart from just the beds and food. This also has a connection with the location together with the value of land on which the hotel is seated. In general, the price of hotel rooms depends of a combination of two or more of these factors. The World Tourism Organization argues that, it depends with what the agenda of the owner is and the level of management (2005).
The only factor that remain constant is the occurrence of an important even such the soccer world cup and the carnival. All through this period, the prices remain high because of the constant and increased demand from the number of tourists in the city. It also happens that, during these events, most of the tourists stay longer that the usual seasons. A good example is during soccer world Cup which last for over eight weeks will make the prices to go high in a prior season up to sometime after the events.
Research Hypothesis:
During summer, accommodation services are more expensive compared to other seasons in the year because summer attracts tourists who increase demand thus increasing the daily rates. Daily accommodation rate increases when there is an occurrence of a certain big and famous event like the soccer World Cup period, underway irrespective of whether is winter or summer. Hotels located nearer to the event venues are the most expensive. That, hotels near the Copacabana beach during the New Year’s Eve are more expensive compared to those far away from the venue. Hotels close to the sea are more expensive compared to those far away from the sea because land values more when located closer to the beach that those far from the sea. The New Year’s Eve and the carnival weeks mark the peak of expensive prices during summer time. Local hotels are relatively cheaper in comparison with international ones. High rate of urban stress make hotels located near the coast less expensive compared to those located along the coast.
- Foundation Institute of Economic Research and EMBRATUR. “Characterization and Dimensioning of domestic tourism in Brazil in 2002 and 2006: Methodology and Development” Ministry of Tourism. 2006
- Guilherme Lohmann Palhares. Tourism in Brazil: Environment, Management and Segments. Routledge. p. 126. (2012).
- Journal of Brazil, “The Carnival of the 500 years.” 1999. 24th February, p. 28
- Serdoura, F. M. (1992). “The Large Urban Projects in Lisbon; a reading of the phenomenon.” Centre for Urban and Regional Systems. Institute Technical. Technical University of Lisbon. Lisbon.
- The City of Rio de Janeiro. “Analysis of the Built Environment – Project SA’S “Municipal Planning Department / Municipal Works / City Department of Culture. (2011).
- UNWTO Tourism Highlights, 2013 Edition. World Tourism Organization (UNWTO). June 2013. Retrieved 2014-04-14. pp. 10
- Villella, R., “The Carioca Carnival Impact on Economy,” Hall of City of Rio de Janeiro, Municipal Town Planning Department. Institute Pereira Steps, Special Secretariat for Strategic Affairs. 1999.
- World Tourism Organization. “Tourism Market Trends, Annex 5, 2005 Edition”. (2005). Retrieved 2008-03-30
- Millman, Sevilla & Tarlow. World’s Best at a Glance, Ch. 73, The Beauty and history of the South Atlantic Brazil, (2011):73.08, 73.18. Print.
