Travel agencies are taking a wait-and-see attitude to the newly opened overseas tourism destination, Brazil, worrying the high cost of around 30,000 yuan (US$3,628) may hold back domestic travelers.

Brazil has officially opened to individual Chinese tourists from yesterday, as the National Tourism Administration officially signed a tourism memo of understanding with Brazilian tourism authority to grant it China's overseas destination status, the Beijing Times reported.

Citing the costs of the already opened business tours to South American countries, industry insiders worry the prices of the individual tours to Brazil will be high.

Currently, the price is 29,500 yuan for an 11-day business tour to Brazil and 37,500 yuan for a 14-day tour business to Brazil and Peru, according to China Travel Service, China's leading travel agency.

The charges are far above other overseas tours, such as some 15,000 yuan for Australian and New Zealand routes, 20,000 yuan for European routes, and under 10,000 yuan for Southeast Asian travel.

Industry insiders blame the hovering ticket fares and charges by local travel agencies in the South African areas for the expensive Brazilian tours.

Tickets and taxes mount to 60 percent of the total cost and local travel services such as hotels reach 30 percent, they noted.

In this sense, the remaining profit margin is so slim for Chinese travel agencies that they are unlikely to cut prices to woo domestic travelers, the insiders said.

On the other side, compared with areas close to China, information of South American countries still remain limited, which makes another factor that would disinterest domestic tourists, insiders added.

Experts suggest travel agencies to add Brazil along with other countries to a multi-country route to attract tourists and control the high cost.

The price is more acceptable if it's under 30,000 yuan, they noted.

(Shanghai Daily November 18, 2004)