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Tourists Visiting Brazil Face Sky-High Prices During FIFA World Cup

Tourists visiting Brazil for the World Cup "are advised to pack a bathing suit, sunscreen, and a whole lot of cash," according to Walter Brandimarte of REUTERS. Home to some of the world's most expensive restaurants and hotels, and with some prices rising more as the opening match approaches, "Brazil will shock those visitors" whose idea of a tropical paradise is paying $1 for a beachside beer. Instead, Brazil is often the land of the $10 caipirinha, the $100 risotto and the $1,000-a-night hotel room. Even by European and U.S. standards, "prices for basic items are often staggering." In Sao Paulo, which is surrounded by some of the country's largest coffee farms, "an espresso often costs twice as much as in Lisbon," said pharmaceutical consultant Paulo Duarte, who splits time between both cities. One reason prices are so steep "is because the cost of doing business is so high, thanks to a mind-boggling mix of taxes, import tariffs, bureaucracy and poor infrastructure that can make Brazil a difficult place to operate." Economists have a name for that: "Custo Brasil," or "Brazil Cost." A study by the industry federation of Rio de Janeiro revealed that it can make goods manufactured 30% "more expensive than those produced abroad." There is no getting around the problem -- "especially when it comes to the World Cup." The average hotel cost for the night of the final on July 13 in Rio is 816 reais ($371), according to Trivago, "a website that compares prices on over 190 booking websites." One two-star bed and breakfast in Copacabana is charging 2,000 reais ($909) "for a cramped, poorly furnished room for that one night." In Sao Paulo, visitors will pay an average of 621 reais ($282) for lodging on June 12, "when Brazil plays Croatia in the opening game." A one-way flight between the two cities -- which are only 269 miles (433 km) apart -- takes 50 minutes and costs 549-1,130 reais ($250-$514) (REUTERS, 4/30).

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