São Paulo Outlook 2012 - Creative City - English by Análise Editorial

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TABLE OF CONTENTS

São Paulo

Outl o ok

creative

CITY 10 PRESENTATION Now it is creativity’s turn in the city’s historic transformation process

06 EDITORIAL The creative force that fuels the city shatters the monolithic concept of rich and poor

19 São PAULO IN NUMBERS More than 500 indicators to explain the city's size and relevance

32 São PAULO ON THE MOVE The projects that will change the city

40 Road system 42 Urban development 48 Sports and leisure 50 Education and safety 56 Sustainable initiatives

66 THE OPINION OF THOSE WHO LIVE IN THE city Survey with more than 50 professional shows what they think of the creative economy

74 The most relevant areas 76 Scenario for the next decade 78 Global creativity 81 Business overview

São Paulo OUTLOOK

90 visitor's profile Tourists visiting São Paulo also come to the city for leisure activities

112 CREATIVe economy in São Paulo Understand how the concept came about and how it became a global trend

93 Profile of tourism

120 The Brazilian and

96 Structure to hold

124 Promising new

in São Paulo large events

100 São Paulo events

foreign expert opinion initiatives in the city

132 Creative sectors www.analise.com

EDITORIAL

EXAMPLE OF a CREATIVE city

he image that comes to mind that a new São Paulo is emerging. The when thinking of a large city São Paulo that jumps off the page in this is that of stifling agglomerajournalistic survey is a bustling, vibrant tion of buildings, cars, smog, city that shows that it has an endless CREATIVE noise and people, many people. amount of energy to transform and reCITY It is the image of chaos, an oppressive invent itself. and inhospitable place. A vision that is And where does this energy come reinforced by social scientists who cusfrom? It comes from its people. A city tomarily analyze large urban centers is made up of a group of related people. by looking at their contrasts. From this That’s what makes it special. São Paulo standpoint, large cities take good care of has its flaws and it pays the price for bethe wealthy minority that takes advaning the seventh largest conglomeration in tage of the plentiful supply of what is the world, but it is also the world’s tenth good while precious little is left for the richest city. It offers to its inhabitants poor. São Paulo, in these discussions, is social, cultural and economic tools that the best example of these contrasts. are above the average for Brazil. This This edition of SÃO PAULO OUTsets it apart. The pleasure with which its LOOK, however, shows that this impeople connect to the world, researching cidade age of the city is short sighted, not to things and trends lends to the city inmention outdated. There are contrasts, novations that for a long time were the differences and many other challenges privilege of meccas like London or New that large centers produce. But there is a York. This fuels it. São Paulo today is creative force fueling the economy and also at the helm of movements and it is producing innovations that tear apart the the people who make it so vibrant. This monolithic concept of rich and poor. At is why there are so many examples to the intersection of arts, culture, business choose from. and technology there are economic acThe organization and analysis of tivities, which today we know account thousands of statistical facts, shown for 10% of the wealth produced by the on the following pages, reveals a city economy of São Paulo. In the end, Wilthat is already set on this path of deliam Shakespeare was right when he velopment, while it prepares to face its predicted through Hamlet that “there are greatest challenges. The examples and more things between heaven and earth people researched by journalists Irene than our vain philosophy supposes.” Ruberti, Vinicius Cherobino and Vivian ciudad Addendum: theater is, indeed, one of Stychnicki, the executives interviewed the sources of creative energy that has by the research team led by Ligia Dohelped to lead this incredible and awknatelli, the breathtaking images, some ward megalopolis to the socioeconomic of which were photographed by Claudio organization of the 21st century, the soRossi and Guilherme Gomes, and the called era of knowledge. exquisite graphic production coordinatIt is well worth pointing out that the ed by designer César Habert Paciornik discussion about this new way of orgaenhance the images and numbers prenizing and valuing production is very sented. The result is a refined edition, recent. It is a thing of the late 90s with a coordinated by executive editor Gabriel more up-to-date version existing in the Attuy under the direction of Alexander UK. The very concept of the creative Secco. It is a project that fills us with economy is not yet very well defined. A widely-accepted pride and that serves as an example of what the creative idea is that this category is made up of economic activities economy is able to produce. We hope you also find a lot of that use intellectual capital for the creation, production and motivation and get a lot of use out of this issue. Enjoy! 0 distribution of goods and services. SILVANA QUAGLIO Publisher This x-ray that you are holding in your hands confirms

São Paulo yearbook 2012

Outlook

AN OVERVIEW OF THE BUSINESS SECTOR THAT WILL SPUR SÃO PAULO’S GROWTH

Overview

The third edition of the publication offers an x-ray of the city that is the 10th largest economy in the world

Transformation

31 URBAN PROJECTS UNDER WAY THAT WILL TRANSFORM SÃO PAULO São Paulo’s citizens

ASSESS THE CITY’S BUSINESS AND ITS CREATIVE POTENTIAL 500 economic facts

AND SOCIAL INDICATORS THAT EXPLAIN HOW THE METROPOLIS WORKS

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São Paulo anuário 2012

Outlook

CRIATIVA

UMA ANÁLISE DETALHADA DO CRESCENTE RAMO DA ECONOMIA QUE VAI IMPULSIONAR SÃO PAULO

Retrato paulistano

A terceira edição da publicação traz o raio X da metrópole como a décima maior economia do mundo

Transformações

31 PROJETOS E OBRAS EM CURSO QUE VÃO MUDAR A CIDADE Os paulistanos

AVALIAM OS NEGÓCIOS NA METRÓPOLE E SEU POTENCIAL CRIATIVO 500 indicadores

ECONÔMICOS E SOCIAIS MOSTRAM COMO A CIDADE DE SÃO PAULO FUNCIONA

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São Paulo anuario 2012

Outlook

CREATIVA

UN ANÁLISIS DETALLADO DE LA CRECIENTE VERTIENTE DE LA ECONOMÍA QUE VA A IMPULSAR A SÃO PAULO Retrato paulistano

La tercera edición de la publicación trae el rayo X de la metrópoli con la décima mayor economía del mundo

Proyectos

31 PROYECTOS EN CURSO QUE VAN A TRANSFORMAR LA CIUDAD DE SÃO PAULO Los paulistanos

EVALÚAN LOS NEGOCIOS DE LA METRÓPOLI Y SU POTENCIAL CREATIVO 500 indicadores

ECONÓMICOS Y SOCIALES QUE EXPLICAN CÓMO FUNCIONA EL MUNICIPIO

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São Paulo OUTLOOK

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Metalworker at factory in São Paulo: city is responsible for 12% of country’s GDP

lalo de almeida/folhapress

PRESENTATION

…TO CREATIVE METROPOLIS T

he creative economy is a concept that includes a series of activities that, at its core, revolve around creation and the development of new ideas. The sector began to be discussed in a structured way at the end of the 90s in Europe. The latest estimates show that in 2011, creative economyrelated activities represented between 7% and 10% of the global GDP and the expectation is that this slice will double by 2020. A local and global overview of the creative activities is shown on page 112. A detailed analysis of the 13 fields of creative activities which have already established themselves and have created roots in São Paulo starts on page 124, in addition to some unprecedented initiatives in the city such as the Virada Cultural weekend. The event attracts 4 million people for 24 consecutive hours of cultural attractions and shows at many different points in the city. The main reference used by this publication to define São Paulo’s creative economy was the study produced by the Administrative Development Foundation (Fundap) for the City Government of São Paulo launched in 2011. It was the first in-depth analysis of the subject in the capital city. The estimates showed that 2.5% of Brazilian GDP derives from the creative economy – the UK, one of the more prolific cities, reaches 5.6%. São Paulo state is above average with a rate of 3.7% and the capital city has 10% of its wealth deriving from creativity, the same as its neighbor, Buenos Aires. London registers 15% and Barce-

lona, which develops a program aimed at the creative sectors since it hosted the Olympic Games in 1992, registered 25% in 2011. A few examples of the more successful initiatives in six cities around the world start on page 144. One of the main challenges for São Paulo to reach similar levels is the development of creative labor. Some professionals and entrepreneurs were able to make use of the cultural diversity and the consumers of the city to create and manage prominent businesses that won over Brazil and are now exporting products. A series of photographs that starts on page 156 highlights some of the people and their stories. This third edition of SÃO PAULO OUTLOOK, in addition to offering an overview of Sao Paulo’s creative economy, continues to be the final guide for understanding the city that is the seventh largest and the tenth richest city on the planet, available in Portuguese, English and Spanish. The following pages offer ten pages of graphs that show how the city works based on more than 500 indicators (page 19), more than 30 of the main projects and developments in progress that will make a difference in the next decade (page 32) and an overview of Sao Paulo’s tourist sector and its prospects for the World Cup and beyond, on page 90. The outcome of an opinion poll with some of the city’s main entrepreneurs, starting on page 66, makes it easier to understand what São Paulo’s good points are and what is hindering it from attracting new business. 0

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CONTRIBUTORS

são PAULO’S CONTRIBUTION Brazilian and foreign professionals, experts and academics, who helped us create an up-to-date overview of the city and the prospects of the creative economy. In addition to the interviews for the production of news articles, the magazine offers the results of a survey conducted by the team of Análise Editorial which was based on the contribution of 57 São Paulo-based executives. We would like to take this opportunity to thank them all for their willingness to share their knowledge.

Acacio Queiroz Filho, president & CEO of Chubb Seguros; Adalberto Bueno Netto, president of the Bueno Netto Group; Adhemar Altieri, corporate communication director of the Sugarcane Industry Union (Unica); Airton Carlini, CEO of Pritchett Brasil and relationship vice-president of the Executives Network; Alex Weiss, economist of Iedi; Alexandra Penhalver, press agent for the Presiden-

Airton Carlini, CEO of Pritchett Brasil and vice-president of the Executives Network

São Paulo OUTLOOK

cy at the City Council of São Paulo; Alexandre Bamberg, CEO of Thyssenkrupp Bilstein; Ana Carla Fonseca Reis, public administrator, economist and expert in creative economy; Ana Garnier, press agent of Choque Cultural; André Glogowsky, chairman of Hochtief do Brasil; Andrea Portella, coordinator of the communication and press area of the Municipal Education Department; Andrew Frank Storfer, president of Interacta Participações and director of Anefac; Anrafel Vargas, managing director of Inova Gestão de Serviços Urbanos; Antonio Ferraiuolo, CEO of De’Longhi; Aurílio Sérgio Costa Caiado, coordinator of the “Creative Economy in the City of São Paulo: Diagnosis and Potential” project, São Paulo, Fundap, 2011; Baixo Ribeiro, creator of Choque Cultural; Camila Moreti, press agent for the Municipal Green and Environment Department; Cao Hamburger, filmmaker; Carlos Alberto Jr., director of Vega Engenharia Ambiental; Carmem Campos Pereira, president of Rede Energia; Celso Kamura, makeup artist and hairdresser; Chieko Aoki, president of Blue Tree Hotels; Christian de Almeida, strategy and marketing manager of Vitopel; Cláudia Leitão, secretary of Creative Economy of the Culture Ministry (MinC); Claudio Oliveira, commercial director of civil construction of Eucatex; Claudio Wilberg, commercial director of TechTeam; Cleodato Moisés Nascimento, spokesman of the Police Station of São Paulo; Daniela Dahrouge Alves, press agent of Lew’Lara\TBWA; Dante Alario Jr., partner and director of Biolab; Edna dos Santos-Duisenberg, head of the Creative Economy Program of the United Nations Conference on Trade and Development (UNCTAD); Edson Luiz Vismona, CEO of Brazilian Legal Institute and the National Forum Against Piracy and Illegality; Elisete Felix, press agent of the Municipal Transport Department; Emiliano de Castro, member of the board of the Bra-

zilian Electronic Games Developer Association (Abragames); Enrique Avogadro, general director of international trade and creative industries of the city government of Buenos Aires; Érica de Paula, press agent of Palavra Cantada; Erika Sena, communications agent of the Green and Envrionmental Department; Esmeralda Rizzo, academic dean of the Presbyterian University of Mackenzie; Eva Emenlauer-Blomers, project director of the Economy, Technology and Research Department of Berlin and director of Project Future (to rebuild Berlin); Fátima Silvana Furtado Gerolin, assistance director at German hospital, Oswaldo Cruz; Fernanda Souza, press agent of Palavra Cantada; Fernando Altério, president of T4F; Fernando Santos-Reis, CEO of Foz do Brasil; Francisco Amaral, acadamic director of the Graduation Center of Fiap; Gabriel Guimarães, assistant to events producer and partner of the Luminosidade Group, Paulo Borges; Gastão Mattos, CEO of Braspag; Gil Giardelli, CEO of Gaia Creative; Gustavo Murad, Air-

photos: Free Stock

This third edition of SÃO PAULO OUTLOOK received the help of dozens of

Edson Luiz Vismona, CEO of the Brasil Legal Institute www.analise.com

CONTRIBUTORS

line IT Sales for Latam of Amadeus IT Group; Helio Nogueira da Cruz, vice-dean of USP; Horácio Lafer Piva, advisor at Klabin; Isabel Silvares, press agent of the Architecture and Urban Planning Council of São Paulo (CAU/SP); Isabela Salgueiro, press agent of the Basic Sanitation Company of São Paulo State (SABESP); Isay Weinfeld, architect; Jack Fahrer, designer and partner of Sergio Fahrer & Jack Fahrer; Januário Soares Dolores, general director - hydropower generation division of Alstom Brasil; Jarbas Antonio de Biagi, president of Banesprev; Jenny Mbaye, partner of the African Cities Center of the capital of South Africa, Cape town; João Carlos Gomes de Oliveira, president of DT Engenharia de Empreendimentos; John Howkins, coined the term ‘creative economy’ and author of the book, Creative Economy, launched in 2001; José Alberto Lovetro, press agent of Mauricio de Sousa Produções; Juan Muzzi, artist and entrepreneur; Juliana Vieira, press agent of Celso Kamura; Julio Cezar Alves, legal advisor; Luciana Alvarez, sustainability manager of AES Brasil; Leonardo Brant, consultant in cultural planning; Lidia Goldenstein, economist; Luana Rag-

Sueli Cristina Marquesi, dean of Cruzeiro do Sul University www.analise.com

gio, press agent of the Ticket for Fun; Luciana Canuto, press coordinator of the Traffic Engineering Company (CET); Luiz Flávio Borges D’Urso, president of the São Paulo Bar Association (OAB SP); Luiz Lara, president and partner of Lew’Lara\TBWA and president of the Brazilian Advertising Agency Association (Abap); Luiz Pastore, CEO of Copper Trading Group; Luiz Paulo Pompéia, director of the Brazilian Heritage Studies Company (Embraesp); Marcelo Mendonça, director of corporate affairs of TAM airlines; Marcos Rodrigues Penido, technical director of CDHU; Mari Gradilone, partner and director of Virtual Office Group; Maria do Rosário de Atouguia, board of the College of Economy (FAAP); Mario Luiz do Nascimento Oliveira, manager of corporate relations of Metropolitan Water and Energy Company (Emae); Mario Oliveira, managing director of Auto Sueco São Paulo; Marivaldo Carvalho, press agent of the Municipal Urban Development Department; Maurício Curi, CEO of Educartis; Mauricio de Sousa, creator of Mauricio de Sousa Produções; Mauricio Sacramento, press agent of filmmaker Cao Hamburger; Omar Santana da Silva Jr., CFO of MetLife Seguros e Previdência; Otávio Zarvos, creator of Idea!Zarvos; Miresh Kirtikumar, corporate strategy director of Estado Group; Moise Politi, director and founding partner of BFRE; Paola Alambert, marketing director of Abyara Brokers; Paula Nader, head of branding and communications at Santander bank; Paulo Borges, producer of events and partner of Luminosidade Group; Paulo Cidade, director of Ipsos; Paulo Luis Santos, owner of Flux Games Studio; Paulo Ricardo Baqueiro de Melo, director of Odebrecht Realizações Imobiliárias; Paulo Tatit, musician of Palavra Cantada; Pierre Moreau, founding member of Ideabank, founder of Casa do Saber and founding member of Moreau & Balera Advogados; Rafael Mussi, press agent of the Municipal Services Department; Roberto Duailibi, founding partner of DPZ Propaganda; Roberto Quiroga Mosquera, partner and director of Mattos Filho, Veiga

Filho, Marrey Jr. e Quiroga Advogados; Roberto Y. Homma, accounting manager of Ecourbis Ambiental; Rodrigo Alberto Correia da Silva, president of the São Paulo branch of Britcham; Rose Koraicho, president of Koema Empreendimentos e Participações; Rubens Ricupero, ambassador; Sandra Peres, musician of Palavra Cantada; Sergio Fahrer, designer and parnter of Sergio Fahrer & Jack Fahrer; Sérgio Milano Benclowicz, director of Brasil Franchising; Sérgio Sesiki, CEO of Companhia Melhoramentos de São Paulo; Sueli Cristina Marquesi, dean of Cruzeiro do Sul University; Talita Passos Prenholato, press agent of the National Telecommunications Agency (Anatel); Thiago Paes, press agent of the Brazilian Association of Shopping mall Storeowners (Alshop); Uirassú Ribeiro dos Santos, head of local institutional relations do HSBC; Valéria Maria Marcondes Perito, managing partner of Ketchum; Vanessa Decicino, press agent of Idea!Zarvos; Wania Torres, press agent of the Government and Legal Business Departments; Werner Grau, partner at Pinheiro Neto Advogados; Wilson Oliveira, in charge of new business of Gaia Creative; Yves Besse, CEO of Cab Ambiental. 0

Yves Besse, CEO of Cab Ambiental São Paulo OUTLOOK

methodology

THE CRITERIA ADOPTED Information sources – The sources used for data on GDP, population, public services and other information related to official indicators of the municipality, metropolitan area, São Paulo state and Brazil were obtained from official entities connected to the respective government spheres. The list of the main entities consulted is shown below: Municipal – Traffic Engineering Company (CET), São Paulo Tourism and Event Company (SPTuris), São Paulo Convention & Visitor Bureau, São Paulo Transport (SPTrans) in addition to other municipal departments. State – Environmental Company of São Paulo State (Cetesb), Basic Sanitation Company of São Paulo State (Sabesp), São Paulo subway company, São Paulo train company (CPTM), State Data Analysis System Foundation (Seade), Foundation for Research Support for São Paulo State (Fapesp), Administrative Development Foundation (Fundap), in addition to state departments. Federal and self-governing federal entities and state companies – National Electrical Power (ANEEL), the National Telecommunications Agency (Anatel), Central Bank (BC), National Economic and Social Development Bank (BNDES), Brazilian Airpotrt Infrastructure Company (Infraero), Brazilian Geography and Statistics Bureau (IBGE), in addition to the ministries. Data collection — In relation to the overview of the creative economy in the capital, the main parameter used by SÃO PAULO OUTLOOK for the study was the “Creative Economy of São Paulo City: Diagnosis and Potential,” released in 2011. The survey was coordinated by the Municipal Government Department in partnership with the Administrative Development Foundation (Fundap). The document also carries a complete analysis of the role of creative companies in São Paulo, job creation and the most innovative segments of the city. “The Creative Economy Report 2008” and “The Creative Economy Report 2010” developed from a partnership between the United Nations Conference on Trade and Development (UNCTAD) and the United Nations Development Programme (UNDP) were also used. The

São Paulo OUTLOOK

reports offer data on the development of the creative economy in the world, between 2000/2005 and 2002/2008 and refer, among other issues, to the creative role of the global economy, the main creative activities and success stories of innovative cities. The World Bank, International Data Corporation (IDC) and the International Congress & Convention Association (ICCA) were also used as sources of information. Surveys, reports and professional educational and governmental institutions were also consulted, such as the College of Economics (FAAP), the Department of Creative Economy of the Culture Ministry (MinC) and the Institute of Applied Economic Research (IPEA). Data relating to specific sectors of the economy were confirmed with professional trade associations and private companies. The main entities consulted were the Brazilian Association of Hotels (Abih), the Brazilian Association of Credit Card Companies and Services (Abecs), the Brazilian Association of Restaurants, Hotels and Tourism (ABRESI), the Brazilian Association of Shopping Mall Retailers (Alshop), the São Paulo Stock Exchange, the Brazilian Company of Heritage Studies (Embraesp), São Paulo State’s Industry Federation (Fiesp), the Union of the Civil Construction Industry (SindusCon), the Union of Companies Aimed at the Purchase, Sale, REntal and Management of Residential and Office Real Estate of São Paulo (Secovi), the Brazilian Union of Fair Promoters (Ubrafe), the Brazilian Association of Electronic Games Developers (Abragames) and the Architecture and Urban Development Council of São Paulo (CAU/SP). Opinion poll — The results of the opinion poll presented in the “city according to the citizens of São Paulo” (pg. 66) were obtained based on the answers of 57 respondents among the leading businessmen, entrepreneurs and individuals who live in São Paulo. The interviewees were contacted by phone and email by the staff of SÃO PAULO OUTLOOK between 16 and 30 April 2012. The names of all the interviewees of the survey are shown on page 16. 0

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President-director Silvana Quaglio

Content Director Alexandre Secco

Advertising director Alexandre Raciskas Rua Major Quedinho, 111, 16° andar CEP 01050-904, São Paulo-SP Tel. (55 11) 3201-2300 Fax (55 11) 3201-2310 contato@analisecom

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São Paulo Outlook PUBLISHER Silvana Quaglio EDITOR Alexandre Secco Executive editor: Gabriel Attuy Survey and distribution manager: Ligia Donatelli Content coordinators: Irene Ruberti, Vinicius Cherobino and Vivian Stychnicki Survey coordinator: Valquíria Oliveira Distribution coordinator: Juliane Almeida Art coordinator: Cesar Habert Paciornik Content staff: Abrahão de Oliveira, Bruna Abjon, Patrícia Silva and Sumaya Oliveira Survey staff: Adrieli Garzim, Alberto Barbosa, Ana Carolina Marquez, Ana Claudia Coelho, Anna Carolina Romano, Bianca Barros, Claudia Barbosa, Daniela Trindade, Danilo Souza, Fernanda Chiarato, Iuri Salles, Jessica Cidrao, Juliana Colognesi, Lucas Rodrigues, Paula Moreira, Raquel Aderne, Ricardo Borges, Taiane Silva, Tais Souza, Thaís Bueno, Vinícius Oliveira, Yasmin Gomes and Yuri Damacena Layout: Bruna Pais, Danilo Pasa and Régis Schwert IT/Management: Cristiano Carlos da Silva IT: Felipe Cavalieri and Leandro Akira Contributors: Alex Argozino, Ana Cláudia Marques, Claudio Rossi and Guilherme Gomes Revision: Mary Ferrarini Translation: Sogl Traduções Advertising/Business executives: Alessandra Soares and Márcia Pires Assistent: Felipe Ricelle Customer care and administrative support: Fábio Lopes and Giseli Monteiro São Paulo Outlook 2011 is an independent publication developed by Análise Editorial with the support of São Paulo city government and SPTuris

Audited by

ISSN 1808-9240

Copies issued: 15.000 Printing: IBEP Gráfica Printed in May 2012 Operation in Newsstands: EdiCase www.edicase.com.br Newsstand Distribution: FC Comercial e Distribuidora S/A Handling: FG Press www.fgpress.com.br Targeted Distribution: Door to Door www.d2d.com.br

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SÃO PAULO IN NUMBERS 1

POPULATION

11 mln Floating population 11.2 mln Resident population 5.3 mln (47%) Men 5.9 mln (53%) Women 0.75 Population growth per year (2000/2010) 15.6/K inhabitants Birth rate 6.1/K inhabitants Death rate 75 years old Life expectation (data of 2010 referring to 2009) 0.841 HDI 0.45 Gini coefficient

6% of population of Brazil

2 SÃO PAULO AMONG THE TEN BIGGEST CITIES

1 2 3 4 5 6 7 8 9 10 3

Equal to the population of Greece Largest Japanese, Spanish and Portuguese colony outside of their own countries

City Shanghai Istanbul Karachi Mumbai Beijing Moscow São Paulo Canton New Delhi Seoul

Country Population China 22 mln Turkey 13,2 mln Pakistan 13 mln India 12,5 mln China 11,7 mln Russia 11,5 mln Brazil 11,2 mln China 11 mln India 11 mln South Korea 10,5 mln

POPULATION PYRAMID OF SÃO PAULO Men

Age

Women

100 or more 95 to 99 90 to 94 85 to 89 80 to 84 75 to 79 70 to 74 65 to 69 60 to 64 55 to 59 50 to 54 45 to 49 40 to 44 35 to 39 30 to 34 25 to 29 20 to 24 15 to 19 10 to 14 5 to 9 1 to 4 Less than 1

(average for Morumbi, Mooca, Tatuapé)

in thousands

600 500 400 300 200 100 0

100 200 300 400 500 600

City budget in 2011

Area

1,500 km

R$ 35.6 bln

Is the largest city in the Southern Hemisphere GMT

Public investment

R$ 3 bln

–3 hours

SÃO PAULO

Population density

7,400 inhabitants/km

PRICES

R$ 24,000 Cheapest car R$ 80/day Car rental (compact car) R$ 750/hour Limousine rental R$ 259 Monthly parking R$ 13 Daily parking R$ 90 Taxi from airport to downtown R$ 3.00 Bus ticket R$ 3.00 Subway ticket R$ 1,600 Driver (monthly average) R$ 1,800 Cook (monthly average) R$ 1,800 Nanny (monthly average) R$ 850 Maid (monthly average) R$ 3.20 Starbucks coffee R$ 2.34 500 ml Coca-Cola R$ 10 Big Mac R$ 18 Movie ticket R$ 30/month Broadband 1MB R$ 2,600 iPhone 4 Ermenegildo Zegna Business Suit R$ 3,500 R$ 329 Roger Waters concert ticket R$ 1,000 School tuition

São Paulo OUTLOOK

Annual collection in 2011

R$ 31.7 bln www.analise.com

Population and economy

ECONOMY

R$ 389 bln (US$ 192 bln) GDP (in 2008) R$ 230 bln Services (in 2008) R$ 63 bln Industry (in 2008) R$ 64 bln Commerce (in 2008) R$ 19 mln Agriculture (in 2008) 6.9% Annual variation (2009/2010) R$ 36,700 GDP per capita R$ 2,200 Family income (average in 2010) R$ 1,400 Worker income (average in 2010) R$ 622 Minimum wage 1 mln Companies 115,000 New companies (in 2010) US$ 3.6 bln Export (in 2010) US$ 14.1 bln Imports (in 2010)

12%

of Brazilian GDP

Same

as GDP of Algeria

billionaires, the 6th city in the world

as exports of Thailand

2nd

largest stock exchange in the world

thousand millionaires, 60% of Brazil

INCOME DISTRIBUTION

Minimum wage Up to 1 From 1 to 2 From 2 to 3 From 3 to 5 From 5 to 10 From 10 to 20 More than 20

Same

Population 11% 19% 17% 23% 18% 9% 3%

7 EAP 10.7 mln 4.9 mln (52%) Services 1.7 mln (18%) Industry 1.5 mln (16%) Commerce 1.3 mln (14%) Others Motorcycle couriers 300,000 224,000 Lawyers 141,000 Accountants 50,000 Doctors 20,000 Trash Collectors 15,000 Car Watchers 10,000 Architects 8.5 mln Voters

Sﾃグ PAULO AMONG THE TEN RICHEST CITIES

1 2 3 4 5 6 7 8 9 10

City Tokyo New York Los Angeles Chicago London Paris Osaka Mexico City Philadelphia Sﾃ｣o Paulo

Country Japan USA USA USA England France Japan Mexico USA Brazil

GDP (US$ bln)(1)

1,479 1,406

792 574 565 564 417 390 388 388

(1) Estimates of PricewaterhouseCoopers for metropolitan regions in 2008

City Council in 2011

Number of Bills town councilors presented

772

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Laws enacted

163

City council budget

R$ 472 mln

5 Regions 31 Subdistricts 96 Districts 58 Voting Zones Sﾃ｣o Paulo OUTLOOK

SÃO PAULO IN NUMBERS

COMMERCE

Total number of stores Pet shops Drugstores Bakeries Gas stations Bank branches Gyms Open-air markets Supermarkets and hypermarkets McDonald’s stores Starbucks coffee houses Mont Blanc stores Ferrari dealers Malls Mall stores Rented spaces in malls Street vendors (registered in the city government)

59 streets with specialized shops

São Paulo has the

3rd largest supply center

HOUSING

Homes Slums (in 2009) Homes in slums (in 2009) Residents of slums (in 2009)

3.9 mln 1,636 400,000 1.3 mln

864 mil credit card transactions per day

SANITATION

Homes serviced Water Sewage collection Sewage treatment Garbage collection

240,000 5,000 4,000 3,200 1,700 2,400 1,000 900 840 147 21 5 1 53 12,000 1.9 mln m2 2,100

REAL ESTATE MARKET

Homes built (in 2011) Homes sold (in 2011) Offices built (in 2011) Home rental m2 (average in April 2011 in Downtown area) Office rental m2 (average on Faria Lima, Itaim, Paulista, Vila Olimpia and Berrini) Office rental m2 by region Faria Lima Itaim Paulista Berrini Vila Olímpia Vacancies in office buildings Growth of home rental prices (2010/2011) Growth of office rental prices (2011/2012)

100% 97% 75% 100%

São Paulo OUTLOOK

Trash collected/day (in tons) 19,000 Household 214 Recyclables 91 Hospital waste 84 Paper and cardboard (in 2010)

Glass (in 2010) Plastic (in 2010) Aluminum (in 2010) Number recyclables coops

25 29 16 21

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37,000 28,000 7,300 R$ 22 R$ 145 R$ 145 R$ 135 R$ 120 R$ 107,5 R$ 135 5% 18% 18%

Trade and services

16 13

HEALTH

Healthcare establishments Hospitals Beds Vaccine doses applied (in 2010) Doctors Doctors per thousand inhabitants Vacancies in hospitals Private system Public system Organ transplants (in 2010) Hospitals qualified to perform transplants In S達o Paulo: Hospital that most performs

kidney

transplants in the world

GARDEN AREAS AND BIODIVERSITY

81 Amount of parks 29 km2 Park area 2% Slice of territory 6,000 Public parks 2 Number of APAs 341 km2 APA area 23% Slice of territory 260,000 Trees planted per year 38,6% Plant coverage of city Coverage of original Atlantic Rainforest 21%

2,500 205 35,000 15 mln 49,000 4.3 61% 39% 2,500 60

Species of fauna 372 Birds 126 Insects 83 Mammals 45 Amphibians 40 Reptiles 23 Fish 9 Arachnids 2 Crustaceans

In S達o Paulo: Hospital that most performs

liver

transplants in the world 14

EDUCATION

Daycare centers Kindergartens Elementary Schools High Schools Technical Schools Unified Educational Centers Universities Distance learning courses Graduates per year (in 2009) Vacancies Daycare Centers (in 2010) Preschools (in 2010) Elementary schools High schools

1,418 467 1,545 632 249 45 200 31 260,000 196,000 186,000 1.2 mln 475,000

CRIMES (PER 100 MIL INHABITANTS)

Homicide Theft Robbery Auto theft

www.analise.com

S達o Paulo 9 1,740 964 732

Los Angeles 8 1,492 317 478

New York 6 1,339 221 127

London 2 450 160

SECURITY

25,000 Military police 20,000 Civil police 7,000 Municipal guards 3,400 Police cars 93 Police stations 96 Mobile military police stations 272 Councils in the city

S達o Paulo OUTLOOK

SÃO PAULO IN NUMBERS

TOURISM

Purpose of visit Business Events Other Brazilian tourists Average stay Average/day expense Origin of Brazilians São Paulo state Rio de Janeiro state Minas Gerais state Paraná state Rio Grande do Sul state Foreign tourists Average stay Average/day expense

45% 24% 31% 10.01 mln 2.6 days R$ 570

1 2 3 4 5 6 7 8 9 10

29.40% 16.00% 9.50% 7.20% 7.20% 2.15 mln 4.8 days R$ 464.00

10 LARGEST EVENTS Event Virada Cultural LGBT Parade New Year’s on Paulista Av. Automobile Fair 750,000 Book Biennale 740,000 International Art Biennale 530,000 Motorcycle Fair 255,000 International Film Festival 200,000 GP Brazil of Formula 1 144,000 Carnival 110,000

Public 4 mln 4 mln 2.4 mln

5th largest zoo

in the world

Origin of foreigners in %

Holds an event every

6 minutes

22,7 45,5 USA

9,8 8,7

Argentina Japan

Others 7,6 5,7

Germany

Spain

HOTEL MANAGEMENT

Hotels Apartments Occupancy rate Average rate Most visited places Museums Parks Nightclubs Theaters Concert halls

São Paulo has the largest LGBT parade

410 42,000 69% R$ 240

24th in the world city ranking

of international business events

81% 67% 56% 37% 3%

EVENTS

Events per year Revenue Event area Exhibitors Visitors

São Paulo OUTLOOK

www.analise.com

90,000 R$ 2,9 bln 700,000 m2 35,000 4.3 mln

Tourism, leisure and culture

CUISINE

Restaurants Bars Pizzerias Barbecue houses Japanese restaurants Delivery options

12,500 15,000 1,500 500 250 2,000

1 mln pizzas

produced a day

10.4 mln loafs of

bread produced a day In 2012, S達o Paulo-based restaurant DOM th was elected the 4 best in the world

www.analise.com

LEISURE AND CULTURE

Sports and leisure center Soccer stadiums Golf courses Car racing tracks Theaters Theater rooms Plays a year Shows and concert halls Museums Libraries Cinemas Movie theaters Large show venues

631 9 12 1 160 280 600 294 110 131 55 260 7

COMMUNICATION

TV channels Radios channels Circulation of largest daily newspaper Broadband providers Cable TV providers Mobile phones per inhabitant (in 2010) Landline calls

S達o Paulo OUTLOOK

11 14 286,000 copies 80 4 1.37 4 mln

Sﾃグ PAULO IN NUMBERS

TRANSPORT

Fleet Automobiles 7 mln Motorcycles 890,000 Vans and pickup trucks 718,000 Trucks 190,000 Buses 42,000 Taxis 33,000 Helicopters 452 Subway trains 150 Daily trips Collective transport 13.9 mln (55%) Collective transport 11.3 mln (45%) On foot 12.6 mln Automobiles 10.4 mln Bus or busload 9 mln Subway 2,2 mln School bus 1,3 mln Train 815,000 Motorcycle 721,000 Chartered bus 514,000 Taxi 91,000 Traffic jams in 108 km peak hours (average in 2010)

Special parking spaces Blue Zone Spaces for senior citizens Spaces for disabled Inspection Traffic dept Inspectors Fines applied Towed vehicles Radar guns Electronic speed bumps Airports Airlines Congonhas Airport Landings and takeoffs (in 2010) Passengers (in 2010) Campo de Marte airfield Landings and takeoffs (in 2010) Passengers (in 2010)

32,000 1,787 785 2,450 9.5 mln 455 423 153 2 44 209,000 16.7 mln 133,000 388,000

Daily passengers Buses (on business days) Subway (on business days) Trains (on business days) Age of cars Up to 1 year old 2 to 5 years old 6 to 10 years old More than 10 years old Parking spaces Own Sponsored Curbside Monthly Daily Blue zone

9.8 mln 4 mln 2.7 mln 9% 23% 27% 41% 3.2 mln 1.7 mln 1.5 mln 259,000 143,000 40,000

A bi-articulated bus can seat 190 passengers

Public transport Bus Operators Bus depots Bus corridors Bus lines Extension (in km) Stops Subway stations Subway lines Extension of subway lines Train stations Train lines Extension of train lines

Sﾃ｣o Paulo OUTLOOK

15,000 26 31 10 1,300 4,400 km 19,000 67 5 74.3 km 98 6 260 km

www.analise.com

Mobility and transport

6,100 zebra walks with traffic lights

4,200 cars and 200 buses cross Paulista Avenue per hour (peak hour)

CO2 EMISSION

CO2 emitted (inventory reference of 2005 in ton equivalents)

15,000 200 60 250,000 38 54,4 km 67 km 156,000

TRAFFIC FATALITIES

1.505 1.463 1.382

1.357

1.365

2010

1,2 mln

2011

2,7 mln 2,7 mln

Motorcycles

26,700

Trucks

266,000 268,000 67,000

21,000

1.566

1.487

2009 Carros

Buses that use renewable fuel Biodiesel Electric Ethanol Cyclists Bicycles Bike racks Bike paths Bike lanes Daily trips

VEHICULAR INSPECTION

15.7 mln

INFRASTRUCTURE

Paved roads Bridges Overpasses Energy consumption Total Residential Commercial Industrial Other Public lighting Distance from port of Santos

17,200 km 47 136 27,300 GWh 11,100 GWh (41%) 9,200 GWh (34%) 4,000 GWh (15%) 3,000 GWh (10%) 570,000 lamps 77 km

53,000

TAXIS

Car/ 1,000 inhab. S達o Paulo 3 Buenos Aires 10 London 3 New York 1.5

Basic taxi fair R$ 4.10 R$ 2.20 R$ 5.70 R$ 4.00

Per km R$ 2.50 R$ 1.10 R$ 7.20 R$ 3.00

2005 2006 2007 2008 2009 2010 2011

www.analise.com

S達o Paulo OUTLOOK

SÃO PAULO IN NUMBERS 31

CREATIVE COMPANIES

8,438

São Paulo

Brazil

63,633 60,707

7,863 7,094 7,276 2006

2007

58,663

58,458 2008

2009

2006

2007

2008

2009

SECTORS OF THE ECONOMY

JOBS IN THE SECTOR SP city, in thousands

Information Technology 2,496 Editing and Printing 1,344 Publicity and Advertising 1,266 Architecture and Design 803 Sound and Video 723 Teaching and Culture 662 Visual arts and Writing 540 Performing Arts 466 Research & Development 102 Heritage 36

140,5

134,5 109,8

114,9

2006 35

2007

2008

2009

PRODUCTION COMPLEXES Job concentration by sector

CREATIVE ROLES

Information Technology Publicity Sound and Video Architecture and Design Editing and Printing Teaching and Culture Research & Development Fashion Heritage Arts & Crafts Visual Arts and Writing Performing Arts

São Paulo OUTLOOK

Itaim 91,900 19,600 16,200 15,900 14,900 14,900 10,400

Architecture and Design 19.6% Information 24% Technology 39.3%

Bela Vista Publicity and Advertising 11.4% Vila Performing Arts 7% Leopoldina Visual Arts and Writing Jaguaré

8,400 8,000 4,300 2,800

República

1,700

Cambuci

Sound and Video 35.4% Editing and Printing 11.3% Heritage 35.4% Teaching and Culture 9.3% Research & Development 31.2%

www.analise.com

Creative economy

MEGA EVENTS IN THE CITY VIRADA CULTURAL 24 hours of activities 4 million participants 1 thousand cost-free attractions 13 stages 45% of the audience between 18 and 24

384 thousand people from outside the capital 3 nights is the average stay of the tourists 1,088 reais is how much each visitor spends in the city 158 million reais involved in the 2011 event 3.4 thousand security guards

VIRADA SUSTENTĂ VEL

CAMPUS PARTY

VIRADA ESPORTIVA

500 thousand participants 482 cultural and educational activities 78 areas with programs 27 thousand kilos of e-waste collected

7,500 participants 160 thousand visitors 500 hours of activities 64 thousand square meters of area for the event

3.5 million participants 2.5 thousand sports activities 1 thousand attractions sites 18 options for children at the Viradinha Esportiva

2012 edition was the

largest in the world

5th largest fashion

FASHION WEEK Editions per year Fashion shows per event Tourists Spectators since creation in 1996 Spontaneous media in Brazil Business Professionals involved

week in the world

2 50 38,000 3.5 mln 350 mln/year 1.5 bln 3,000

CARNIVAL Samba schools and clubs Schools in the Special Group Employees Investment in school Participants of parades Tourists

78 14 5,400 48 mln 106,000 23,000

www.analise.com

SĂŁo Paulo OUTLOOK

Anúncio: DUPLA PG 12

Anúncio: DUPLA PG 13

paulo whitaker/reuters

Airplane over 23 de Maio Street in the southern end: 405 thousand people use the airports of S達o Paulo

São Paulo

ON THE

MOVE

The capital of São Paulo does not stop changing and renewing itself. See the main developments and projects that are transforming the city

The actions

Expansion

Renovation

Overall panorama of the projects that are redefining the city page 40

The improvements made in the city’s business centers page 47

The construction of the Itaquera stadium and how it will change the region page 52

alexandre rezende/folhapress

SP ON THE MOVE

Passengers on subway’s yellow line: more than 4 million people use the subway every day in the São Paulo city

São Paulo OUTLOOK

www.analise.com

SP ON THE MOVE

The renewal

of a city The capital is constantly changing and growing. SÃO PAULO OUTLOOK in this section highlights the major works, actions and ongoing projects and how they will change the face of the city

ão Paulo, the seventh largest city in the world with more than 11.2 million inhabitants, faces challenges and develops projects in proportion to its size. The city has became the tenth wealthiest city on the planet in 2009 with a GDP of almost US$ 400 billion - if it were a country it would be the 40th largest economy in the world, ahead of Israel, Egypt and Chile. It is the city with the largest area in the Southern Hemisphere, covering 1.5 square kilometers, it has a fleet of 7 million cars, the largest fleet of helicopters in Latin America and the largest stock exchange in South America. By its magnitude alone, São Paulo is a city in constant motion: reforms in the road system, projects for the construction of new buildings and real estate complexes, the www.analise.com

expansion of subway lines, airport reforms and preparations to receive the next edition of the World Cup all take place simultaneously. On the following pages, you will see 31 major projects, works and programs that will contribute to the development of the city and will help build the future of the metropolis in the next decades. One of the most recent and important achievements occurred in the area of public safety, through the achievement of a recognized indicator to curb violence. For the first time, the amount of murders in the city reached below the rate of ten murders per 100 thousand inhabitants, a level that is considered acceptable by the World Health Organization (WHO). This rate has been falling sharply since the beginning of the last decade. It dropped from 51 homicides in 2000 to 9 per 100 thousand inhabitants in 2011, a result attributed to preventive policing and policies to combat crime. The national average is 22.3 per 100 thousand inhabitants.

is the position of São Paulo among the world’s wealthiest cities

São Paulo OUTLOOK

SP ON THE MOVE

In line with the turnaround in the security sector, the capital also pursues other indicators of quality of life. A major challenge is to improve urban mobility. The city is known for its complex and overloaded traffic system. As such, one of the investments is aimed at expanding the subway network, which should jump from the current 74 km to 137 km in length, with a planned investment of US$ 40 billion by 2015. Another front to improve public transport and traffic flow is the investment to create exclusive bus corridors and to renew the fleet. In order to remove the transport of cargo from the capital’s traffic network, investments are being made to build structural ring roads encircling the city. The Ring Road has two sections in operation and its completion is scheduled for 2014, providing easy access to highways, the Port of Santos and to the São Paulo International Airport. Another such initiative is the construction of the Ferroanel railway, comprised of 211 kilometers of railroad connecting the metropolitan area to the coast and inland.

In addition to projects to ease traffic, such as the construction and expansion of avenues, especially in the south and east end of the city, the government of São Paulo has also invested in a series of measures to regulate traffic. One was a ban on the circulation of trucks on the Marginal Tietê freeway during rush hour adopted in 2012. A preliminary assessment showed that morning traffic jams dropped more than 10% in the city and 24% in the Marginal after the removal of the trucks. The city government had already regulated the circulation of chartered vehicles in the capital. A restricted area and specific spots for passenger drop-off and pick-up were created to prevent illegal stop points on large avenues that may hinder traffic flow. The Traffic Engineering Company (CET) also reduced the speed limit on major traffic corridors with the purpose of reducing the incidence of serious accidents. The city is also investing in raising awareness and traffic education to increase pedestrian safety. In order to address the traffic jam problem, a series of proposals have

CITY AT WORK

3 malls

39,3 km of bus lanes

1Itaquera football

1terminal for 7 million

stadium

passengers/year in Cumbica

62,7 km of subway lines

192 public city schools

14,5 mil housing units

4 recyclables sorting centers

São Paulo OUTLOOK

been under discussion recently. The capital now has a rotation of vehicles in place, which since 1997 requires drivers to leave their cars at home once a week. The creation of an urban toll in the expanded downtown area has already been considered, as well as a fee to use the Tietê and Pinheiros freeways. But the two measures are considered controversial and are still under discussion. Sustainability – Another issue highlighted in the agenda of big cities, sustainability, is also increasingly becoming more incorporated in São Paulo’s plans. The capital city is one of the pioneers in adopting a policy to fight climate change and is preparing a new inventory for the emission of greenhouse gases. One of the successful programs of São Paulo is the production of biogas in disabled landfills, which besides producing electricity generates carbon credits. The city was organizing the third credit auction to be carried out in 2012, which has its funds reverted to environmental projects. São Paulo has also invested in the use of clean fuels in public transport, encouraging the use of bicycles with the expansion of bike paths and lanes and fighting waste with water reuse and the adoption of more efficient light bulbs in street lighting. The city has gained more green areas: it currently has 81 parks and plans to reach 100. In 2012, through an agreement with the government of São Paulo, the supermarket chains suspended the distribution of disposable bags for the packaging of groceries. Due to consumer complaints, a Term of Conduct Adjustment (TAC) between the supermarket association, the Public Prosecutor’s Office and the consumer protection agency (Procon) was signed to give customers time to adapt to the measure. Now, grocery shopping in the city is done with reusable bags, as is customary in cities around the world. In the United States, San Francisco was the first city to ban the bags in 2007. It was followed by Washington D.C., Los Angeles and Seattle. In Berlin, the packages are sold. The sustainable aspect adds to other www.analise.com

Itaci Batista/AE

SP ON THE MOVE

Aerial view of the Pink Lapacho tree in the central region of São Paulo: more than 260 thousand trees are planted a year increasingly more consolidated features of São Paulo. São Paulo is known for its cultural diversity, which offers a wide variety of attractions for all tastes and wallets. The Virada Cultural week has become one of the biggest events in the city, attracting up to four million participants in its free activities during 24 hours in different parts of the city. Urban renewal – New projects and

ventures redesign the city. The city’s greatest tourist attraction, Avenida Paulista, gains new impetus with the opening of new corporate towers and the construction of another shopping center and a museum. In the Faria Lima region, a new complex combines upscale shopping, offices and leisure options. To meet the demand for offices, the construction companies have announced new ventures on the south end of the capital, expanding the region’s economic center of Luis Carlos Berrini avenue toward the Morumbi www.analise.com

district. Old warehouses are giving way to modern buildings. At the same time as the city expands to occupy vacant land in outlying areas, the downtown area is increasing in value. Urban planning projects targeted at revitalizing and increasing the population of the area are already starting to have a positive result. The supply of housing units has increased, historic buildings are being restored and cultural and leisure offers increase, attracting São Paulo’s citizens to the downtown area. In a city of great distances, such as São Paulo, one of the solutions is to bring jobs and housing closer together in order to minimize displacement. This is just one of the concerns of the residents of São Paulo identified in the survey about how the city should be in 2040. The survey is part of a strategic planning project, the SP 2040, to prepare the city for the future. The residents of the capital hope that by

then the city will become more fluid, fair and sustainable. In the 2040 scenario, São Paulo appears as the business command hub of Latin America and must be prepared for the new challenges and demands. The preparations to host the 2014 World Cup games are also keeping the city busy. The World Cup is expected to attract 15 million tourists to the state capital. The investments needed for the games and also to facilitate the movement of fans around the city include revamping the airports, improving road infrastructure and building stadiums. With the construction of a new arena on the east side of the city, the Itaquerão, and the overhaul planned for the Morumbi and of Palestra Italia stadiums, the World cup will leave as a legacy to the capital three modern large-scale arenas, in addition to the traditional Pacaembu stadium. See below the projects that will help to build the future of São Paulo. 0 São Paulo OUTLOOK

understanding são paulo

rogério montenegro/editora abril

A CITY under RECONSTRUCTION

SÃO PAULO on the move

ROAD NETWORK In addition to the Rodoanel ring road, a new ring connecting railroads may help to improve city traffic and a series of new projects have been approved in the city’s south side

Cargo transport

RING ROADS REDUCE NUMBER OF TRUCKS IN SP

ão Paulo relies on two structural ring roads to ease traffic, mainly by removing cargo transport vehicles from the main avenues. One is known as the Ferroanel of São Paulo, a group of 211 kilometers of tracks linking the metropolitan region to Campinas and the coast. Another project is the Mario Covas ring road, which has two sections in operation and will cover 176.5 kilometers when complete. Preliminary studies for the implementation of the railway ring are underway and the project was expected to be presented in the first half of 2012. In addition to reducing traffic jams, the project is aimed at reducing the time and cost of cargo transport. The southern section will articulate the railways facilitating the connection to the states of Minas Gerais and Rio de Janeiro to the south of the country. Currently, the flow of cargo, mainly wood, steel products and food types, depends on the highways and roadway network. In turn, the northern section will facilitate access between the coast and the region of Campinas, which holds about 70% of the containers for the Port of Santos. The construction of the state government’s ring road began in 1998. The west section was the first to be opened in 2002. The south end was concluded in March 2010. The north and east sections are scheduled to go into operation in 2014.

DID YOU KNOW THAT…

12 thousand new buses went into circulation between 2005 and 2011 in the capital

…the amount of vehicles with some kind of accessibility jumped from

297 to 7,5 thousand

São Paulo OUTLOOK

Road interventions

PROJECTS IN THE SOUTH END WILL EASE TRAFFIC FLOW

ity government presented in early 2012 a plan to improve road traffic in the southern region, which is expected to cost R$ 1.8 billion in four years. One of the most important projects is on the right bank of the Marginal Pinheiros freeway, which will gain an eight mile lane in the Interlagos region. The extension of the Marginal, with three lanes of traffic, will start at the Transamerica Bridge and end up in the vicinity of the Interlagos Racetrack. The plan also provides for a new bridge on the river and one on a channel of the Guarapiranga Dam. An eight-kilometer bike lane is also planned. The project on the Marginal freeway alone will total an investment of R$ 470 million. The project also includes interventions in high-traffic routes in the region, such as Guarapiranga avenue and the roads of Cachoeirinha and M’Boi Mirim. Another important project is the extension of the Jornalista Roberto Marinho avenue to the Imigrantes highway, which will serve to relieve traffic on Bandeirantes avenue. Two tunnels totaling 2,350 meters long will be built on the avenue. Chucri Zaidan avenue will be extended by 3.4 thousand meters to João Dias avenue through two underground passes.

Public transport

MORE BUS CORRIDORS AND A PLAN FOR 137 KM OF SUBWAY

ão Paulo is investing in new bus lanes to speed up public transport and improve traffic. Also, in the first half of 2012, a bid is scheduled to open for the implementation of four new bus corridors totaling 39.3 kilometers of exclusive lanes. The bid, valued at R$ 2 billion also includes remodeling two other corridors and building five bus depots and two intercity roadways. Since 2005, city government has renovated 80% of the city’s bus fleet. A total of 12 thousand new vehicles were put into circulation in 2011. With the replacements, the amount of buses with accessibility also increased. With the addition of 297 adapted buses in 2005, the total number of vehicles equipped with a ramp or lift jumped to 7.5 thousand, in 2011. The Multi-Year Plan of the state government plans to invest about R$ 39.4 billion in the subway and the Metropolitan Train Company (CPTM) by 2015. The subway lines are expected to increase from the current 74.3 kilometers to 137 kilometers. The inauguration of the first extension of Green- Line 2, under construction between Vila Prudente and Oratório, is planned for 2013. www.analise.com

anderson barbosa/folhapress

Business day at Paulista Avenue in the city’s west end: more than 32.5 thousand taxis transit on the city’s streets www.analise.com

São Paulo OUTLOOK

SÃO PAULO on the move

URBAN PLANNING The first results of the actions to recover the downtown region have begun to emerge and interventions have changed slums into neighbourhoods

Action plan

HOUSING AIMS TO BRING THE DOWNTOWN AREA BACK TO LIFE

ão Paulo’s downtown area is again receiving investments for the recovery of public areas and the first results are starting to show. Major urban development plans provide for the revitalization of the area. The offer of new properties grew in 2011, mainly differentiated one-bedroom units, such as flats and lofts. A total of 4.1 thousand units were built, up 32% over that of the previous year. In the one-bedroom sector, the increase was 111%, more than double. The renovation of Roosevelt Square is one of the most symbolic projects of the recovery process. With an investment of R$ 37 million, the project was expected to be completed in the second half of 2012. The Nova Luz project is an ambitious plan for the center in the long term. It includes plans to recover 500 thousand square meters of area. The state government also announced the construction of an artistic complex at Luz, at a cost of R$ 500 million and that will be ready in 2016. Ca’D’Oro Hotel and its surroundings on Augusta Street are also being overhauled. The project, that started in 2009, will transform the building into a multiple-use condominium with corporate, residential and hotel areas. The project will cost R$ 100 million and will be ready for the 2014 World Cup.

Air travel

FEDERAL GRANT SPEEDS UP CONSTRUCTION AT AIRPORTS

fter the concession auction of the airports, major construction and renovation projects were announced for the International Airport of São Paulo in Cumbica and of Viracopos in Campinas. A new terminal with the capacity for 7 million passengers/year will be built in Cumbica. Projects are also planned to expand the runways, yards, parking lots and access roads. The consortium Invepar ACSA, comprised of Invepar and Airports Company South Africa SOC Limited will grant the concession to Cumbica for 20 years, a period in which it will invest R$ 4.6 billion. With the increase in passenger flow for the World Cup games in Brazil in 2014, a package of urgent projects was announced. The investments until the World Cup are expected to be around R$ 1.38 billion in Cumbica. The Viracopos International Airport is more well known for its air freight and has become a benchmark in logistics in the country. At 100 kilometers from the capital and easy access by major highways, the airport is also an alternative for passenger transport. Viracopos registered 7.5 million passengers in 2011, up 39% over the previous year. The forecast is for the consortium Aeroportos Brasil, composed of Triomphe, UTC and France’s EGIS Airport Operation, to invest R$ 8.7 billion during in the 30-year concession. The investments scheduled to take place until the World Cup will be of around R$ 1.38 billion. A plan for a second runway is also in the works. Congonhas Airport, on the south end of São Paulo, built a new 40-meter high control tower in February 2012. The new tower will give the flight controllers a better view of the runway and takeoff lanes and the tarmac of the Congonhas Airport.

NEW TERMINAL AT THE LARGEST AIRPORT IN SP

7 million

is the capacity of the new terminal, which will be built at the Guarulhos International Airport of São Paulo in Cumbica

1,38 billion reais

is the investment required to build the terminal and expand the runways, yards and car parks

873 million reais

will be invested in Viracopos, located in nearby Campinas, until the World Cup so that the demand can be met

16 million passengers used the Congonhas Airport in 2011

São Paulo OUTLOOK

www.analise.com

HOW DO THE CITIZENS WANT THE CITY TO BE In 2040 Competitive 7%

Fluid 25%

Easy 9% Engaged 10% Polycentric 13% Fair 15%

Sustainable 20%

Strategy

SP RESIDENTS WANT A CITY THAT FLOWS AND IS sustainable

ão Paulo is creating a long-term plan, known as SP 2040 - The City We All Want, with goals set for the coming years. The first phase of the survey was to identify with the public the most valued features of the city and what the main challenges for the future are. The results, released in early 2012, show that the participants of the survey want a city that flows and is sustainable and fair. Among the biggest challenges is providing adequate urban infrastructure, restoring environmental quality and creating housing and jobs. The document should guide the public policies of the São Paulo city in the next years .

Events

INTERNATIONAL EXHIBITION IN THE CITY’S PLANS FOR 2020

ão Paulo, the Brazilian capital of trade fairs and business events, is a candidate to host the Expo 2020, considered to be the third largest event in the world, behind only the World Cup and the Olympics. The application of the capital was introduced last year, and if the city is chosen, it will be the first time that the event is held in Latin America. The Expo is recognized as a benchmark for innovative ideas in public management and it promotes the exchange of ideas between countries. São Paulo is competing to host the event in 2020 with four other cities and the announcement of the winner should occur in 2013. www.analise.com

Housing

SLUMS BECOME PLANNING NEIGHBORHOODS WITH URBAN

he city government has a program to urbanize the slums. In addition to improving housing conditions, the plan aims at integrating the settlement into the formal city through urban planning and land regularization. The goal is to give it conditions so it can become a neighborhood with infrastructure projects, improvement of urban mobility and installation of water networks, sewage and lighting. The projects also include public spaces, such as childcare and health centers, and recreation areas. The slum of Heliopolis, the city’s largest with 70 thousand inhabitants, is undergoing urbanization since 2005. A total of 3.8 thousand housing units in an area of 1 million square meters in the region of Ipiranga, southeastern part of the city is included in the plans. The total investment entails around R$ 570 million. One of the highlights of the plan are circular buildings designed by architect Ruy Ohtake.The second largest slum in São Paulo, Paraisópolis, is also being urbanized. Located in the Morumbi area, it is home to 60 thousand inhabitants. The construction work began in 2006. At the end of the program, 2.9 new housing units will be set up in the region, of which 1.1 have already been delivered. About 3 million people currently live in the city in a precarious situation. The urbanization programs of the slums and the mangroves have already provided 6.8 thousand units and over 14.5 thousand are under construction. Both programs will involve investments of R$ 3.5 billion. Since 2005, 150 thousand families have already benefited from the program.The city government also opened an architectural competition for 17 urbanized areas of the city. The Renova São Paulo projects will meet the need for 50 thousand houses and will remodel 120 settlements.

SP WANTS TO HOST MEGA EVENT, EXPO 2020 the 3rd largest in the world

6 months

is the duration time of the event

18 million

tourists are expected to visit the city in 2020

502 hectares

is the projected exhibition area

75%

of the trade fairs in Brazil are held in the capital

São Paulo OUTLOOK

Eduardo Anizelli/Folhapress

SÃO PAULO on the move

Ibirapuera offers leisure and culture: modern and contemporary art museums in one of the city’s greenest areas

São Paulo OUTLOOK

www.analise.com

A COLLECTION OF 15 THOUSAND ART PIECES IN THE PARK Transfer of contemporary art museum (MAC) consolidates the cultural center

Afro Brasil Museum Planetarium

. ave ral Cab res lva

ave.

oÁ dr

República do Líbano

e. av o i Ma de 3 2

Lake

Auditorium

Japanese ese Pavilion

Obelisk

Marquisee

Lake

Sculpture ulptu ul ulp Garden MAM Museum IBIRAPUERA PARK

Quar

(Building of Brazilian dept. of motor vehicles - Detran)

Biennial

ve. rio a á n e Cent

Berta ave. Rubem

Manequinho Lopes Nursery

Oca Museum

MAC Museum

Art Biennial

The 30th edition of the will be held in the park in 2012

The Ibirapuera auditorium can seat up to

800 people

Two museums and three exhibition centers at Ibirapuera

ith the move of the Brazilian Contemporary Art Museum (MAC) to the region of Ibirapuera Park, the place has consolidated itself as one of the main cultural complexes of the city. Opened in 1954, Ibirapuera was designed by architect Oscar Niemeyer and the landscape by Roberto Burle Marx.

MAC

The move of MAC from the University of São Paulo (USP) to the building that formerly housed the Motor Vehicle Department of São Paulo (Detran) was made in 2012 and will be a gradual process. A sculpture exhibition marked the start of the change. The implementation will be concluded in 2013, when the museum completes 50 years. MAC has a collection of 10 thousand pieces, considered to be the most important in the Southern Hemisphere.

www.analise.com

MAM

The Brazilian Museum of Modern Art (MAM) has a collection of 5 thousand pieces and is home to Brazilian and international exhibitions. Inaugurated in 1948, it was the first dedicated to modern art in Latin America. It also offers monitored visits, has a cinema, library, auditorium and a restaurant with a view of the park.

Oca and Bienal

The Oca building, also designed by Niemeyer, is used as an exhibition center for art and traveling shows. The Art Biennale of São Paulo, held in the park’s pavilion, reached its 30th edition in 2012. The international exhibition has registered in 29 editions a total of 13 thousand artists from 159 countries with 60 thousand art displays. In turn, the Afro Brasil museum is dedicated to Brazilian culture.

Marquise

The Marquise, which connects several points of the park, is being renovated and is scheduled to reopen at the beginning of the second half of 2012. The overhaul included the renovation of the floor, waterproofing, a change of lighting and the demolition of structures not in line with the initial project.

Auditorium

Designed in the 50s by architect Oscar Niemeyer, the Ibirapuera Auditorium was built to house the 450-year anniversary festivities of São Paulo and opened in 2005. The area can seat 800 and has a reversible stage for open-air shows. The auditorium’s program is dedicated to musical diversity. Ibirapuera also offers a Sculpture Garden, a Japanese Pavilion, the Manequinho Lopes nursery and a planetarium, inaugurated in 1957.

São Paulo OUTLOOK

SÃO PAULO on the move

Paulista

Berrini

MUSEUM, SHOPPING MALLS AND TOWERS REVAMP AVENUE

TRADE COMPLEX TO BECOME THE NEW ECONOMIC CENTER

he avenue that symbolizes São Paulo, Paulista, is undergoing a renovation process. In one of the last great plots of land available in the region, the Matarazzo Tower and the Shopping Cidade São Paulo mall will be built. The construction work began in 2011. The 13-floor office tower will be integrated to the shopping mall, which will offer 142 stores on five floors. The completion of the work is planned for 2015. The plans for the land also include a public open-air area spanning 2.3 thousand square meters. The parking lot will have seven underground levels and will offer 1.5 thousand parking spots. Near the avenue, the premises of the Hospital Umberto Primo will be transformed into a luxury hotel with a cultural complex including cinemas, theaters and shops. The Social Security Fund for Employees of Banco do Brasil (Previ) sold the area for R$ 117 million to holding company WWI and the French group Allard in 2011. French designer Philippe Starch will design the project. The property is listed and was abandoned 18 years ago. The avenue will also gain another cultural center. The museum of the Moreira Salles institute (IMS) will be opened between the streets of Bela Cintra and Consolacao on a plot of land that formerly held a parking lot. The building will have three floors only for exhibitions, theater and an auditorium for 200 people, a photo library and rooms for courses. The old building of São Paulo’s energy utility (Cesp), located above the Shopping Center 3 mall, will give way to two 20 and 21-floor towers in the first half of 2012.

new complex for expansion is developing in the southern region of the city and is already referred to as the future financial and economic hub of the capital city. With the consolidation of the region of Luís Carlos Berrini avenue in Brooklyn, as a business center, the growth is heading toward the neighborhood of Morumbi, on the banks of the Pinheiros river. The Berrini region concentrates most of São Paulo’s commercial high-end property and the estimates are that it will continue at the top of the list of upscale offices until 2013. The extended stretch of Berrini should gain between 2012 and 2013 over 100 thousand square meters of type A and AA offices. The region began to attract the attention of contractors as a result of the availability of free areas or areas housing old warehouses and factories. The new complex marks another stage of the migration of the city’s financial complex. After the saturation of the downtown area in the 1970s, companies began to move to Paulista avenue. The next move will be to move to the region of Faria Lima and then Berrini. With the low vacancy rate of offices and the strong demand, the construction potential on the banks of the Pinheiros river have drawn the attention of contractors. The forecasts are that the region may become the city’s largest office complex by 2016. In the area of an old company, the Brookfield Towers complex will be built with two corporate towers. The project is estimated to cost around R$ 703 million. In another area, which used to be a factory warehouse, a mixed use complex will be built.

Faria Lima

OFFICES, SHOPPING AND NIGHT LIFE IN A SINGLE COMPLEX

set of projects will soon change the profile of the region between the Marginal Pinheiros, Jusceli no Kubitschek avenue and Faria Lima in the region of Itaim Bibi. Inspired on the Rockefeller Center in New York, a real estate complex will offer in an area of 60 thousand square meters shopping malls, office towers, theaters and hip restaurants. This neighborhood, located in the city’s south end, offers the most expensive square meter for office space in São Paulo. One of the highlights of the WTorre JK project is to transform the building of luxury brand Daslu into a modern office building. The neoclassical facade will be replaced by mirrored glass and a white finish. Over six floors will be built, totaling 11 floors, which will be occupied by offices. Four restaurants will be opened on the ground floor, as well as a theater that is currently under construction

São Paulo OUTLOOK

and should help to jazz up the nightlife in the region. The theater, capable of seating 1.2 thousand people, will be targeted mainly at musicals. The project is estimated to cost R$ 125 million and is expected to be completed in 2013. The Shopping Iguatemi JK mall opened its doors in the first half of 2012. The project of the shopping center includes three suspended atriums, natural lighting and glass walls with views to the Do Povo park, a green city area made up of more than 30 thousand square meters, located alongside the project. It offers 230 stores mostly aimed at international brands. Two corporate building ares are also being built. The Santander Tower is also located in the region and is a semi-finished building that was abandoned for years until it was sold and remodeled in 2009. The complex includes six thousand parking spots and a bike path of 4.8 kilometers on the shores of the Pinheiros river. www.analise.com

THE CITY REINVENTS ITSELF COMPLEX IN ITAIM

EXPANSION IN THE SOUTH END Berrini will gain

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NEW VENTURES IN THE REGION OF PAULISTA AVE 1 2 3 4 5 6

Projects P Paulista P Tower Matarazzo M Tower and Shopping mall Paulista P Corporate Wtorre W Paulista Tower Museum M of the Moreira Salles Institute (IMS) Hotel H and cultural complex

www.analise.com

Location 91 Paulista Ave 1230 Paulista Ave Paulista Ave. x Plínio Figueiredo St. (next to Masp) 2064 Paulista Ave. Paulista Ave. between Bela Cintra and Consolation St. Quadrilateral of Itapeva St. and Alameda Rio Claro St.

Phase Opened in 2012 Project startup Concluded in 2012 Opened in 2012 In progress In progress

São Paulo OUTLOOK

SÃO PAULO on the move

SPORTS The host city of the World Cup games in 2014, São Paulo, prepares its stadiums and invests to improve public transport and the road system for the spectators

World Cup

WITH THE WORLD CUP, THE CITY WILL OFFER FOUR STADIUMS

ão Paulo is one of the host cities for the 2014 World Cup games in Brazil and it is gearing up its stadiums for the event. Through the construction and expansion projects, the city plans to have four modern largescale arenas. In addition to the Corinthians Arena, nicknamed Itaquerão, on the east end, São Paulo will remodel the Palmeiras Stadium, the Palestra Arena, the Morumbi stadium and traditional Pacaembu. The Itaquerão will host six World Cup matches, including the opening game and one of the semifinal matches. The arena will be able to seat 48 thousand people, 20 thousand seats will be removable in order to reach the capacity required by FIFA in the opening game. Budgeted at R$ 820 million, the arena should be ready by the end of 2013. With an investment of R$ 330 million, the old Palestra Italia stadium located in the western end, will become a multipurpose arena offering 45 thousand covered seats. The construction work should end in 2013. Morumbi, in the city’s southern region, was ruled out but will be remodeled with a covering for the seating area is covered, an expansion of the parking lot and the construction of a hotel.

Itaquerão

ROAD WORK WILL EASE ACCESS IN THE EASTERN REGION

ith the construction of the Itaquerão, several projects were announced to adapt the road network in the neighborhoods of Itaquera, Arthur Alvim and Cidade Líder to the east. The plan includes the construction of new avenues, connection ramps and access routes to the subway and train stations. The state and city government signed an agreement to carry out the interventions, valued at R$ 478 million, of which R$ 346 million from the state government and R$ 132 million from the municipal government. The plan includes new ramps at the intersection of the Jacu Pêssego and José Pinheiro Borges avenues at Nova Radial. The plans also include the construction of a new avenue between the Itaquera and Nova Radial avenues, including sunken passages on the subway and train lines. There will also be a sunken passage in the stretch in front of the subway and train stations. The public transport system is also being overhauled. The trains and signaling system of the 3-Red Line subway is undergoing a renovation, which expects to decrease the interval between the trains. The Eastern Express of São Paulo’s metropolitan train company (CPTM), which leaves the Luz Station and goes to the Corinthians Itaquera Station, has already been named the World Cup Express, because it will make the trip to the stadium without any stops during the World Cup. Even after the hosting sites of the games were changed, the monorail project from the Morumbi to the Itaquerão stadium in the south region has been maintained.

Cultural program

A SINGLE FINANCING SYSTEM FOR CULTURE HIGHLIGHTS SESC

he units of the Social Service of Commerce (Sesc) are increasingly becoming more consolidated as an option for leisure and culture in São Paulo. The project was created by entrepreneurs in 1946 and introduced a new model of cultural action. Besides offering a wide variety of events and activities, one of the entity’s objectives is to offer quality, affordable attractions. As such, it works with a subsidy policy that ensures tickets priced below the market. It even offers shows at no cost. The costs are funded by a monthly contribution from business establishments. Trade workers can sign up and get discounts, but the facilities are open to the public in general. Among the cultural options offered are plays, concerts, film, circus acts, storytelling for children and dance, as well as courses and reading areas. The network has 15 units in the capital and is expanding. The next is to be inaugurated on May 24 in the second half of 2013. Two

São Paulo OUTLOOK

Sescs were opened in 2011: Bom Retiro in the downtown area and Santo Amaro in the southern region. Another unit has already been announced and will include the redevelopment of an urban planning project at the Dom Pedro II park. Sesc Mercadão, as it is now called, will be erected on the land where the now-demolished São Vito building was located. Sesc’s model was the highlight of a The New York Times article in March 2012. The newspaper said the entity is a “unique cultural group” with a budget of US$ 600 million a year, it grows 10% a year, while organizations worldwide are having to streamline their expenses. The funding system was considered unique because it is private, nonprofit, guaranteed by the constitution and works with a budget that derives from a 1.5% deduction on the payroll of companies - so as the workforce of nearly 200 million expands, so does the organization’s budget. www.analise.com

Clayton de Souza /AE

Fashion show in downtown: S達o Paulo is the only city in Latin America included among the fashion capitals of the world www.analise.com

S達o Paulo OUTLOOK

SÃO PAULO on the move

EDUCATION AND SAFETY

HOMICIDE RATE DROPS IN SP Index of murders per 100 thousand inhabitants

51,2

The city increases the number of vacancies in the public network with the construction of new schools; in the public safety area, the capital registers its best index with a drop in homicides

43,7

31,5

Education

plan provides 192 public schools by the end of 2012

he city government announced the construction of 192 new schools by the end of 2012. To speed up the project, 155 units were built with pre-cast concrete structures. The average construction time of each school will be eight months. The use of pre-cast concrete walls facilitates the raising of walls and the placement of slabs. The investment value is estimated at R$ 731 million. A total of 59 early childhood education centers (CEI), 67 city children’s schools (EMEIs) and 29 elementary schools (EMEFs) will be built using the pre-cast structure. Thirty-seven schools will be built using the conventional method of construction. The south is the city’s region that will be favored the most by the pre-cast School and Daycare Center Construction Program with 71 new units, equivalent to 45% of the total. The east end, the second most favored, will house 53 new units. The distribution of the units was made according to the regional need for vacancies. Between 2005 and 2010, more than 71 thousand new enrollments in early childhood education were created in the city.

DID YOU KNOW THAT...

192 new

schools were built in São Paulo in 2012 Between 2005 and 2010, the city created more than

71 thousand openings in child education

São Paulo OUTLOOK

18,4

acceptable index 10 according to WHO 0

2000

11,5

10,6 9

2002

2004

2006

2008

2010

2011

Less violence

HOMICIDE RATE FALLS AND REACHES THE UN STANDARD

ão Paulo city’s homicide index in 2011 was, for the first time, below the rate of ten murders per 100 thousand inhabitants, a level that is considered acceptable by the World Health Organization (WHO). The rate was 9 per 100 thousand, with 1,023 homicides, down 14.4%, in relation to the previous year. The average rate in Brazil is 22.3 per 100 thousand. The reduction in crime has led the city to be mentioned in the Global Homicide Study of the United Nations Office on Drugs and Crime (UNODC) in 2011. The publication compared the evolution in the homicide indexes of São Paulo and Rio de Janeiro and showed that the capital city registered more deaths in 2001 but managed a greater drop in the homicide rate. In 2001, the state capital recorded 51.23 murders per 100 thousand inhabitants. The rate went into a sharp decline until it reached 9/100 thousand in 2011. WHO’s index is considered a leading crime indicator. Home to more than 11 million inhabitants, São Paulo city registered 1,023 homicides in 2011, 173 cases less than in 2010, which places the city among those with the lowest homicide rates in the Southern Hemisphere. The decrease in crime is attributed to the intensification of preventive police action and public policies to fight violence. Security has started to receive a larger chunk of the budget and specific measures have been adopted to fight crime, such as actions to take illegal guns off the streets. São Paulo city also recorded a drop in theft rates. In 2011, there were 963 occurrences in the capital, against 986 the previous year. The capital recorded, in the first quarter of 2012, the smallest number of kidnappings since 2001. www.analise.com

Carlos Cecconello/Folhapress

Pharmaceutical lab in São Paulo: 86 thousand people complete undergraduate and graduate courses every year

Research and education

USP ACCOUNTS FOR 1/4 OF SCIENTIFIC PRODUCTION IN BRAZIL

he city of São Paulo is home to the most important universities and research centers of the country. The University of São Paulo (USP) has been responsible, on average, for one quarter of Brazil’s scientific production over the last ten years. The university is among the 70 higher education institutions with the best reputation in the world and is the only one in Latin America that ranks in the Times Higher Education published in London. The institution is at the forefront in several areas of expertise. Since starting stem cell research in 2005, the Center for Human Genome Studies (CEGH), affiliated with the Institute of Biosciences of USP, has become a national and international benchmark. The center is leading cuttingedge research on genetic diseases and stem cells. University of São Paulo acquired in 2012, for R$ 1 million, a supercomputer that is considered to be one of the five fastest in the country. The machine will be used by www.analise.com

researchers from the Institute of Astronomy, Geophysics and Atmospheric Sciences (IAG). About 10% of its working time will be allocated to the astrophysical community of the country. In 2012, the city has become a reference center for theoretical physicists in South America The South American Institute of Fundamental Research, the first unit outside Europe of the International Centre for Theoretical Physics linked to Unesco was opened in the city. The State of São Paulo has 1,656 scientific researchers working in 19 research institutes linked to the secretaries of Agriculture, Health, Environment and Planning, and 14 are based in the capital. Expenditure on research and development (R&D) In the State of São Paulo totaled R$ 19.8 billion in 2010. São Paulo’s investment surpasses that of Spain, Italy, Russia and the major Latin American countries. São Paulo OUTLOOK

THE PROJECTS THAT WILL CHANGE... SEE ITAQUERA AND THE EAST SIDE Population

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Sﾃ｣o Paulo OUTLOOK

www.analise.com

HOW IT IS TODAY

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www.analise.com

São Paulo OUTLOOK

...THE FUTURE OF THE EAST SIDE THE PROJECTS 1 NNEW RADIAL N passes for the junction New of Jacu Pêssego Ave. with José Pinheiro Borges Ave.

PROJECTS FOR URBAN MOBILITY R$ 478 million will be invested by the government and the city government of São Paulo for five road interventions on the East Side.

ITAQUERA INSTITUTIONAL COMPLEX The educational and technological complex will encourage the urban renovation of Itaquera. A series of buildings will be built.

2 NNEW NORTH-SOUTH AVE Will lilink Itaquera Ave. to New Radial, including overpasses above the subway and railway lines. 3 UUNDERGROUND PASSAGE RRadial di Leste will pass over the front of the subway and railway stations.

CIDADE LÍDER

4 IITAQUERA BUS TERM TERMINAL Set up alongside the Corinthians/Itaquera Station, the terminal will cost R$ 18 million.

Switching yard at Subway

5 RRADIAL LESTE CORRIDOR Will lilink the region to the city’s downtown area through an exclusive public transport network made up of 14 km of roads. The project will cost R$ 150 million.

College of Technology (Fatec) Will receive investments of R$ 30 million

6 BBATTALION OF TAXIS The Th h ffederal lottery offered 1,200 taxi permits to ensure the service during the World Cup. 7 IINCUBATOR AND LABS Ai i Aimed at technological research and development Incubadora e Laboratórios

8 CCONVENTION AND EVEN EVENT CENTER Includes fairs, exhibitions and events. 9 A EXPANSION OF RADI RADIAL LESTE BIKE PATH The 12.2-km “Caminho Verde” bike path between Itaquera and Tatuapé will be extended to the downtown region of São Paulo reaching a total of 19.2 km. The project is scheduled to be ready by 2014.

Military Police Battalion

i Cur cio á n I uel Mig

. Ave

Dom Bosco Social Project

10 Rio Verde Park

10 RRIO VERDE PARK A new green area for the region, located alongside the river, which will be connected to Do Carmo Park.

São Paulo OUTLOOK

www.analise.com

HOW IT WILL BE

ITAQUERÃO Estimated cost: 870 millon Size of area: 200 thousand m2 Seating: 68 thousand (20 20 thousand removable seats) Delivery forecast: 2013 Amount of construction workers: 2 thousand

ARTUR ALVIM

Legal Forum Will be expanded to increase service capacity.

THE EFFECTS OF WORLD CUP IN SÃO PAULO Generation of jobs (direct and temporary): 34 thousand and 39 thousand Foreign tourist: 190 thousand, spending a total of R$ 1.2 billion Local tourist: 270 thousand, spending an average of R$ 1.7 thousand per day

ITAQUERA

Dr. Ai

Itaquerão

t. res S

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RADIAL LESTE

inheir CORRIDOR o Borg es Av e.

8 CConvention and

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Itaquera bus terminal

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ve. sA ge r Bo

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Radial Leste Bike Path

Pin he iro

Senai Itaquera Will graduate 20 thousand students a year and will receive investments of R$ 50 million

2 New Norte-Sul avenue

www.analise.com

São Paulo OUTLOOK

SÃO PAULO on the move

SUSTAINABLE INITIATIVES

Ecofrota

PUBLIC TRANSPORT INCREASES USE OF CLEAN FUELS

To ensure a greener future, the metropolis invests in actions to reduce pollution and waste and adopt practices to preserve the environment

Two wheels

BICYCLES GAIN GROUND AS A TRANSPORT AND LEISURE option

ão Paulo has 52 kilometers of bike lanes, which added to the leisure bike lanes, definitive lanes and bicycle routes total 168 kilometers in the cycling network. Projects are underway to build more than 55 kilometers of new bike lanes in the city. Bike lanes are trails used solely for the circulation of bicycles, located in middle lanes, sidewalks or in traffic lanes. The largest is on the Marginal Pinheiros freeway with 14 km, followed by that on the Radial Leste avenue. The places chosen for the new bike lanes were defined according to the Origin and Destination Survey, carried out by the subway in 2007, because they are areas that register more bicycle trips for work purposes. The leisure bike lane was created as a leisure option and to encourage bicycle use. It works on Sundays and holidays from 7 am to 4 pm. The main bike lane connects the parks of Ibirapuera, das Bicicletas, Villa-Lobos, do Povo, and reaches Jornalista Roberto Marinho avenue, totaling 45 kilometers. The proposed routes are designed to encourage bicycle use for short trips. The routes total 48 kilometers

he city has the Ecofrota Program, launched in 2011, whose goal is to progressively reduce the use of fossil fuels in public transport in São Paulo. The first 160 vehicles powered by the mix of 10% diesel from cane sugar in the B5 (5% addition of biodiesel to diesel) began to circulate in the city at the end of 2011. Tests show that the use of 10% of this type of fuel mixed into traditional biodiesel reduces by more than 40% the emission of black smoke from vehicles. The city’s fleet also has another 60 buses running on ethanol. In addition to São Paulo, only Stockholm has buses fueled by ethanol in commercial operation. Ethanolfueled buses reduce by 90% the emission of particulate matter in the atmosphere as compared to diesel vehicles. Furthermore, the use of 80% ethanol also reduces the emission of gases that cause global warming, 62% of the emission of nitrogen oxides (NOx) and it does not release sulfur, the main cause of acid rain. The initiative has made São Paulo the first city in Brazil to use entirely renewable and non-polluting fuel. There are still 1.2 thousand buses in operation fueled by a mixture of 20% biodiesel from grains and 80% from B5 and B20 diesel. The use of this type of fuel reduces by up to 22% the emission of particulate matter, 13% of carbon monoxide and 10% of hydrocarbonates. The rest of the fleet is fueled with B5 S50, a mixture of petroleum diesel and 5% biodiesel that has less sulfur. Hybrid and electric powered buses are also being tested. The city government also has a plan to remodel 140 of the 200 trolley buses circulating in São Paulo. Thirteen vehicles have been replaced and are in operation with zero emissions.

MORE EXCLUSIVE BIKE LANES

110 thousand people use the bike paths every Sunday

3,3 km

Bike path in Moema

67 km

are leisure bike paths

54,4 km are bike lanes

48 km

Bicycle routes

172,7 km is the cycling network of the city 56

São Paulo OUTLOOK

www.analise.com

Selective collection

Sweeping

CITY EXPANDS SCREENING OF RECYCLING MATERIAL

WITH A NEW SYSTEM IN PLACE, CLEANING STREETS SHOULD BE

he selective trash collection service of the city is maintained by the city government. Since its inception in 2003, the volume of material collected has grown eight times. The city is investing in recycling screening centers. At the end of 2011, a unit was opened in Butantã in the west section and four more are planned. The screening center of Butantã has the capacity to sort 460 tons of recyclable material per month in a two thousand-square-meter area. With an investment of R$ 1.6 million, the warehouse is the largest in the system. The space is used by a cooperative, which benefits around 60 households. The center houses a pioneering center for the training of members. The city plans to deploy four other new screening centers. The Lapa unit was in its final construction stages in early 2012. The other centers will be set up in the neighborhoods of Santo Amaro and Interlagos in the south end and in the former Bandeirantes landfill in the west end. The city generates daily 19 thousand tons of trash, which is sent to environmentally-controlled landfills. No waste is disposed of in the city dump. The selective collection program serves 75 of the 96 districts of the city. The city government has an agreement with 21 cooperatives, including one for electronic material, for the separation of materials. Around 1.2 thousand members are included in the program, with an average monthly income of approximately R$ 800. The daily average of recyclables collected is 214 tons, equivalent to 9% of the amount that can be recycled. The city has 3.8 thousand Voluntary Drop-Off Points (PEV) for recyclabes and more than 1.5 thousand will be installed by the end of 2012.

he city adopted a new public cleaning system in 2012 to ensure quality and efficiency. Sweeping is now being carried out on Sundays in places of heavy traffic and 150 thousand new bins will be installed, all equipped with a chip or a bar code to keep up maintenance through optical reading. Before the service was performed by five companies and the city was divided into five areas. The maintenance of dumpsters and the cleaning of drains was the responsibility of the subdistricts, which were also responsible for collecting recyclables in recycling containers and for CataBagulho Operations, which goes through the neighborhoods collecting large objects. Now, the city has been divided into two areas, as was done with the garbage collection service. In addition to sweeping and debris removal, the maintenance of bins and the unblocking of drains began to be performed by two consortia. The companies are also responsible for road cleaning, weeding and sidewalk painting services. In heavy-traffic places, machines are used to vacuum the dirt. The cleaning service covers 7.8 thousand kilometers of roads per day. The work is done by 10.8 thousand people and 660 vehicles. Another novelty is the uniform of the workers, which will include UV ray protection in 50% of its composition. The monthly assessment of the services performed by the city government, will be available at the city hall website so that the population can monitor the activities. In the downtown area, a partnership between the private and public sector has created a team of janitors who verify the cleaning and maintenance of roads in the so-called Historic Triangle.

Sanitation

RECOVERY OF STREAMS BENEFITS OVER TWO MILLION PEOPLE

he city of São Paulo adopts measures to clean, restore and revitalize polluted streams in the capital. In late 2011, the city announced the third phase of the Program Córrego Limpo (Clean Stream), which will clean up 50 streams by the end of 2012. The total extent sums 66 kilometers. Created in 2007, the program has cleaned up 97 streams in an area of 152 square kilometers, benefiting 1.6 million residents. The sewage inflow that will be removed from the streams daily in the third phase will reach 780 liters per second, equaling the volume of 24 Olympic swimming pools. In addition to the channeling of some streams, funds will be invested to develop urban planning for slum and to implement linear parks. The city government cleans up www.analise.com

the streams, builds containment structures on the margins and controls the sewage connections. About 770 thousand people will benefit. The city government plans to invest R$ 753 million in the cleanup. The Basic Sanitation utility of São Paulo state (Sabesp) will disburse more than R$ 42.5 million to build the extension projects and maintain the networks. The Tietê Project, under the responsibility of Sabesp, is another important initiative to reduce the levels of pollutants spewed into the rivers. The goal of the program, which began in 1992, is to collect and treat sewage from about 18 million people in the metropolitan area. The project is in its third phase, which is expected to be completed in 2015, increasing to 87% the rate of sewage collection. São Paulo OUTLOOK

alﾃｩcio cezar/futurapress

Sﾃグ PAULO on the move

Bikers on the margin of Pinheiros river: Sﾃ｣o Paulo has 173 kilometers of bike paths, bike lanes and bike routes

Sﾃ｣o Paulo OUTLOOK

www.analise.com

Biogas

CARBON CREDITS GENERATE MONEY FOR ENVIRONMENTAL PROJECTS

ão Paulo city has two biogas plants installed in landfills that have been closed down. The plants also produce carbon credits which are auctioned internationally and raise R$ 74 million. A new auction was scheduled for the first half of 2012, with 530 thousand Certified Emission Reductions (CERs). The first auction held in 2007 sold 810 thousand credits and earned R$ 33 million. The following year, 710 thousand credits were offered and R$ 41 million was collected. Each credit equals to one ton of carbon dioxide that is no longer released into the atmosphere. The proceeds are invested in environmental projects in the vicinity of the landfills: the region of Perus and Pirituba in the north, in the case of Bandeirantes, and São Ma-

teus and Cidade Tiradentes, neighborhoods to the east of the São João landfill. Since 2008, new parks and squares have already been opened with the money from the auctions and a reception center for woodland animals is being built. The landfills were shut down after reaching the limit of 25 million tons of waste. Through the treatment of urban waste, the power plants generate about 7% of the electricity consumed per household in the city. The units generate energy by capturing and burning methane gas. As such, the city keeps from releasing into the atmosphere 11 million tons of carbon until the end of 2012, a volume that equals the pollution generated by around two million gasolinefueled vehicles.

Public lighting

Environment

SAVINGS AND BRIGHTNESS AFTER LAMP CHANGE

WITH NEW PARKS, CITY NOW HAS 81 GREEN AREAS

he city government is extending the renewal of street lighting, replacing old light bulbs for more efficient and cost-saving models. The goal is to replace 255 thousand bulbs by the end of 2013, more than 11 thousand points have already been restructured. In addition, 19.3 thousand lighting units will be installed by the end of 2013, around 8% of this total was already working in early 2012. Nine tunnels in 2011 were equipped with metal halide lamps, which provide a greater distinction of contrasts and colors, and LED, which increases brightness levels. These fixtures are cheaper and have a longer life. With the reopening of the Municipal Theater, after the restoration work, the lighting of the region was also renewed. The downtown areas benefited from the interventions were the Ramos de Azevedo Square and the streets Conselheiro Crispiniano and 24 de Maio. In total, more than 40 sodium vapor lamps were replaced by white lamps of metal halide and mercury. The renovation of the lighting of Paulista Avenue, which received metal halide lamps, was also concluded. The city government redesigned the lighting of José Paulino street downtown and of the Campo de Bagatelle square to the north and of the Radial Leste bike path between the subway stations of Tatuapé and Guilhermina. The Estaiado D. Luciano Mendes de Almeida overpass in the eastern section was equipped with special lighting at the end of 2011. In addition to the conventional system, stage lighting was installed on the Octavio Frias de Oliveira bridge in the south end of the city. The overpass received 16 LED projectors and can be illuminated in shades of different colors. www.analise.com

ew green areas are planned for the city of São Paulo. In 2005, the city had 34 parks. Currently, it offers 81 public parks. Another 30 parks are being built. The opening of new green areas is part of the Program 100 Parques para São Paulo (Parks for São Paulo), which also includes linear and natural parks. One of the goals for creating linear parks is to prevent occupations in risk areas and to fight floods and preserve and restore environmental protection areas. In turn, natural parks have an important role in preserving biodiversity. The Integração Zilda Arns Park was opened in 2010 and is the fourth largest in Brazil. With the city program for the creation of parks, the distribution of green areas in the capital city has become more balanced. Currently, each borough has at least one park in place, under construction or in the design stage. In the eastern region, for example, the amount of parks jumped from 7 to 26 from 2005 to now. The municipal green areas have increased from 15 million square meters in 2005 to 29 million square meters. The goal is to reach 50 million square meters after all the planned parks have been opened. The linear park known as Várzeas do Tietê is the world’s largest, stretching 75 kilometers and covering 107 square kilometers, and it crosses Sao Paulo and another eight cities in the metropolitan area. The project has already been started and should only be fully completed in 2016. The Cantareira Park in the north of the city is considered the largest urban forest in the world, with 80 square kilometers. More than half of the park is located in the capital. São Paulo OUTLOOK

SÃO PAULO on the move

Climate

INVENTORY ABOUT GREENHOUSE GAS EFFECT WILL lead actions

he city of São Paulo is a pioneer in the development of a municipal policy on climate change. The development of a new inventory for greenhouse gas emissions was announced in late 2011 to adapt monitoring and planning actions. The previous study measured only the amount of carbon dioxide and methane. Now, all gases covered by the Kyoto Protocol will be included. A company was selected from 14 proposals and it is doing the inventory, with reference terms set by the Environmental Department. The deadline for the new inventory is 14 months. The base year is 2009 and the survey data will go as far back as 2003. The law of climate change, enacted in 2009, is composed of environmental goals, such as a 30% reduction in the emission of gases that cause global warming by the end of 2012. Countries such as England and Germany promise this performance by 2015 or 2020. The Municipal Committee for Climate Change and Ecoeconomy, which is aimed at proposing, encouraging, following and inspecting the adoption of environmental plans and programs, was also established. The law establishes a gradual reduction in the use of fossil fuels in the bus fleet. São Paulo is part of the International Council for Environmental Initiatives (Iclei) and the Executive Committee of the C40 Cities Climate Leadership Group. In 2011, the capital hosted the fourth edition of the biennial meeting of mayors from the C40. The meeting was attended by 17 mayors and delegations from75 cities. The first meeting was held in London, in 2005.

Car inspection

66% OF THE FLEET HAS THE EMISSION OF POLLUTANTS CONTROLLED

he Environmental Vehicle Inspection Program checks the emission levels of pollutants in city vehicles every year. The goal is to identify vehicles with emissions above the acceptable level so that adjustments can be made. The City of São Paulo is responsible for overseeing and defining the standards of the inspections performed by the concessionaire known as Controlar, which won the bid for the implementation and operation of the program. The initiative was created in 2008 by a law passed in São Paulo and has been adopted gradually until it became mandatory for the entire fleet in 2010. The Environmental Vehicular Inspection Program inspected 3.1 million vehicles in 2010, totaling 66% of the municipality’s target fleet, estimated at 4.7 million licensed vehicles. The total fleet of the city is seven million. The difference is due to the amount of illegal vehicles.

São Paulo OUTLOOK

The index was higher among the cars, with 70% of the fleet of 3.9 million vehicles inspected. With regard to motorcycles, 47% passed the assessment of the fleet. In terms of buses, the index reached 64% and trucks, 44.5%. Those who fail to undergo the inspection are subject to a fine. The pollution that is no longer emitted as a result of the maintenances equals to the removal of 750 thousand cars from the roads. Vehicles are subject to inspection of emissions and also noise. A study by a group of researchers from the Medicine College of the University of São Paulo (USP) concluded that the inspection made in diesel vehicles during 2010 decreased by 7% the amount of particulate matter in the air. Survey also showed that the city measure removed from the streets the pollution emitted by approximately 1.3 million cars. In addition, it showed that the program prevented the hospitalization of 298 people due to respiratory problems. www.analise.com

diego padgurschi/folhapress

Bus undergoing inspection in Tatuapé, east side of São Paulo: city’s vehicle fleet totals 7 million

Economy

TO FIGHT WASTE, WATER IS REUSED FOR CLEANING

he city’s public cleaning uses waste water in order to fight waste and preserve drinking water. Around 550 thousand liters of waste water are used a day to wash streets, sidewalks, public areas and roads that have been used for open-air markets. The companies in charge of cleaning the streets, contracted by the Municipal Services Department, use the waste water produced by the Sewage Treatment Stations (ETE). The use of the waste water accounts for savings of 80% in the cost for use of water in São Paulo city, compared with the same amount of drinking water, and also contributes to the preservation of water sources available in the mangroves. The procedures performed in the treatment stations make the waste water inert from a bacteriological point of view. The reused water can be used for many purposes, such as www.analise.com

power generation, cooling equipment, industrial processes, vehicle washing, cleaning of roads, irrigation of green areas and clearing of sewage and rainwater networks. Street cleaning is necessary because sweeping is not always enough for cleaning, particularly in the case of open-air fairs and flooding. Tank trucks, capable of storing up to 12 thousand liters of water, are used for the cleaning operation. The Rational Use of Water (Pura) in public buildings, starting with the Municipal Department of Education was created to fight waste. More than 1.3 thousand buildings have undergone an inspection to detect leaks and assess the need for plumbing repairs for the conservation of water, such as changing faucets. In turn, the program incorporated around 600 health units, such as hospitals, clinics and ambulatories. São Paulo OUTLOOK

SÃO PAULO on the move

Clean city

Plastic bags

NEW LAW ALLOWS ADS IN CLOCKS AND BUS SHELTERS

PRIVATE SECTOR MAKES AGREEMENT to reduce disposal

he city of São Paulo relies on the Clean City law to prevent visual pollution. Since it came into force in 2007, the use of billboards, advertisement panels, banners and leaflet handouts in the city has been banned. In 2011, the City Council approved a project that allows the exploration of advertising on street fixtures, such as digital clocks and bus shelters. The city will open bids for the creation, within six years, of 7.5 thousand new shelters and 14 thousand bus stops. One thousand clocks should be delivered within three years. The law passed in 2007 provided advertising on street fixtures, but it required a new law to authorize it and this new law was sent to the Executive Board to the City Concil in 2009. The winning concessionaires may sell spaces, determined by the Clean City Law, in shelters and clock faces for the display of advertising. According to the law, bus stops may not have advertising. Part of the proceeds from the sale of advertising will return to the city. Companies may use the urban fixtures for 25 years. Commercial establishments can only display signs that conform to a number of criteria, such as size proportional to facade. Around 1.4 million advertising vehicles, including signs, banners and posters, have been removed in this period. In all, 8,454 fines were written up. In 2011, the city created a special inspection group and the amount of banners and signs collected tripled in the previous year. The law has become a landmark in the regulation of outdoor advertising and a global case, copied by other cities. Commercial stablishments can only display signals that conform to a number of criteria, such as size proportional to facade.

he main supermarkets in São Paulo state agreed to suspend the distribution of disposable plastic bags to customers in 2012. The measure ended up causing a heated debate about consumer rights and the environmental efficiency of the decision. The goal is to reduce the disposal of plastic in the environment and the volume of waste that goes into landfills. The bags are made from petroleum and take up to one hundred years to decompose. This product also affects the urban drainage of streets and streams. It is estimated that before the ban 2.4 billion bags were used every month. The supermarkets were willing at first to offer cardboard boxes for the storage of groceries and biodegradable bags priced at R$ 0.19 each, in addition to selling ecobags, reusable cloth bags. Due to consumer complaints, a Term of Conduct Adjustment (TAC) between the supermarket association, the Public Prosecutor’s Office and the consumer protection agency (Procon) was signed to give customers time to adapt to the measure. Biodegradable bags began to be distributed free for 60 days. The establishment that failed to comply with the rule was fined. Besides having to seek an alternative for carrying purchases, many consumers complained about the measure because they reused the plastic bags to package household waste. The measure follows a worldwide trend to reduce the use of plastic bags for carrying groceries. The city of São Paulo passed a law banning the bags in 2011, which ended up being suspended by the Justice department. The end of the bags was achieved through an agreement between the supermarket chains and the government of São Paulo, which expanded the measure to the whole state. 0

NEW RULES FOR ADVERTISING IN PUBLIC PLACES

1 thousand

7.5 thousand 1.4 million

8.4 thousand

street clocks with advertising space will be installed

bus shelters will also receive advertising

fines were handed out for irregular advertising

São Paulo OUTLOOK

advertising mediums, such as signs, banners and posters, have been removed since the law went into effect

www.analise.com

daniel marenco/folhapress

Women taking a break in park in São Paulo: the capital city has 29 km² of green areas in 81 parks www.analise.com

São Paulo OUTLOOK

cristiano mascaro/sambaphotos

Art Biennale at Ibirapuera park in the south end of S達o Paulo: exhibition pavilion was inaugurated in 1951

The opinion of those who

live in

são paulo Análise Editorial interviewed businessmen, academics and executives to know their opinion about the creative economy and its implications for the future

Creativity

Metropolis

Investments

The opinion of the interviewees on the future of the creative sectors page 74

A comparison with developed and developing cities page 78

The city’s business appeal according to the executives page 81

OPINIon

The city’s

creative

future The third edition of the survey asked the 50 and more respondents who work in the city of São Paulo to give their opinion of the creative development of the metropolis

ão Paulo is a city destined to have a powerful and consolidated creative industry, likewise to other major global cities. Although there are many challenges ahead, the possibility of changing São Paulo into a creative city is promising. This is the impression of the 57 people interviewed by Análise Editorial for the 2012 edition of the SÃO PAULO OUTLOOK magazine. It is the third year we invite academics, entrepreneurs, lawyers, members, physicians, economists, executives and directors at the front line of their companies to give their opinion about the theme of the magazine and its consequences in the city’s economic development, its businesses and its future. The first interesting find of the survey relates to the pillars of São Paulo’s creative economy. According to the survey, the areas of education and culture and architecture, indicated as the most relevant today, will also be those that will stand out the most in ten years. The high level of trust in information technology and IT for the next decade also

São Paulo OUTLOOK

stands out. The sector, which is not in the list of the most important areas nowadays, appears among the five most promising areas for the next ten years. In turn, arts & crafts is the activity that least makes a mark on the interviewees from an economic point of view. Now and in the future, this activity shows no significant importance among the city’s creative sectors. The survey also revealed optimism in the economic development of the creative economy in São Paulo. Approximately 90% of the sample claimed that the industry can show growth equal to or even higher than the average of other traditional market segments. When it comes to comparison with developed cities, São Paulo appears as a city that already has the same characteristics as the wealthier regions. Among the respondents, half feel that the metropolis is on par with New York and London. In relation to the emerging cities, three quarters of the executives claimed that São Paulo is at the lead of the list of cities that are its direct competitors. Of this group, three out of every ten respondents said that São Paulo’s creative activity is still greater than that of the developing economies. www.analise.com

Photos: free stock

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1 Carmem Campos Pereira, president of Rede Energia 2 Horácio Lafer Piva, advisor at Klabin 3 Antonio Ferraiuolo, CEO of De’Longhi 4 Roberto Duailibi, founding member of DPZ Propaganda 5 Sérgio Sesiki, managing director of Companhia Melhoramentos de São Paulo 6 João Carlos Gomes de Oliveira, president of DT Engenharia de Empreendimentos 7 Claudio Oliveira, commercial director of civil construction at Eucatex 8 Chieko Aoki, president of Blue Tree Hotels 9 Julio Cezar Alves, legal advisor 10 Fátima Silvana Furtado Gerolin, assistance director at German hospital, Oswaldo Cruz 11 Gustavo Murad, Airline IT Sales for Latam of Amadeus IT Group 12 Esmeralda Rizzo, academic dean of Presbyterian University of Mackenzie 13 Anrafel Vargas, executive director of Inova urban management services 14 Paula Nader, head of branding and communications at Santander bank 15 Marcelo Mendonça, director of corporate matters of TAM Linhas Aéreas 16 Pierre Moreau, founding member of Ideabank, founder of Casa do Saber and founding member of Moreau & Balera Advogados

www.analise.com

São Paulo OUTLOOK

OpiniON

Another interesting find is the perception of the respondents that the creative variable is close to the creative business strategy of their company, nowadays. In this case, the matter was mentioned by 52%. However, this index rises to 70% when they imagine the situation in the next decade. Attractions of São Paulo – Once again Análise Editorial wanted to know from the entrepreneurs and executives, who work in some of the major companies based in the city, what are the main attractions that make São Paulo an economic and cultural hub. In this issue, 79% of the respondents stated that the high per capita income is the greatest incentive for São Paulo

NACHO DOCE/REUTERS

Theater group, Pombas Urbanas, presenting at Paulista Ave: São Paulo offers 600 plays a year

to become the business capital of Latin America. In the two previous surveys in 2010 and 2011, the supply of skilled labor, which now appears in the study as the second positive factor was identified as a main strength and differentiator for attracting investments to the city. The indication of the financial and consumer centers in the list of advantages of the city again confirms the important role of São Paulo in relation to major global economies. As for the drawbacks of the city, the assessment continues the same over the three editions of the survey. Mobility and public safety are the issues that weigh most against São Paulo and the main challenges that the city will have

to address in the future in order to continue standing out as one of the most competitive economies in the world. Although there are some bottlenecks that slow down urban and economic development, São Paulo stands out mainly for the services it offers in the sector of food, law and advertising, in the comparison with the emerging cities as well as the developing cities.

São Paulo’s creative economy –

In conclusion, the reader can see here the results pointed out by the survey that show which are the 14 activities included in the concept of creative economy that are currently the most important to the city’s economy and how they should perform in the next

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CURRENT AND FUTURE OUTLOOK The following table highlights the perception of the respondents in relation to creative activities today and in 10 years in the city’s economy

Today next decade

55%

EDUCATION AND CULTURE

63%

54%

ARCHITECTURE

59% 50%

PUBLICITY AND ADVERTISING

46% 48%

RESEARCH AND DEVELOPMENT

55% 45%

PERFORMING ARTS

30% 39%

COMPUTER TECHNOLOGY AND IT

50% 39%

FASHION

27% 38% 41%

Design

29%

PUBLISHING AND PRINTING

16% 25%

RADIO AND TELEVISION

13% 23%

VISUAL ARTS AND WRITING

29% 21% 25%

Cinema

20%

HERITAGE

30% 9%

ARTS & CRAFTS

The city's strong points The table shows the five main attractions of the city’s business environment and its variation over the three editions of the survey

FINANCIAL CENTER

CONSUMPTION CENTER

QUALITY OF WORKFORCE

PROXIMITY OF CUSTOMERS

São Paulo OUTLOOK

60%

2010

69%

67%

2011

80%

76%

60%

74%

77%

68%

71%

81%

82%

80%

90%

2012

91%

ten years. The reader can also see the variation of the five main attractions of the business environment of the city over the three editions of the survey, according to the perception of the 57 respondents who were contacted by the staff of SÃO PAULO OUTLOOK between April 16 and 30, 2012. In this presentation, we would like to take this opportunity to thank our entrepreneurs and executives (see the list of names of the interviewees on page 16) for having answered our questionnaire (see methodology on page 18), an important instrument within this x-ray of São Paulo city, which is gradually kindling its economic and mainly, creative, performance. 0

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Opinion | São Paulo O ut l o o k

The most significant creative areas of São Paulo

the city’s economy

today?

ão Paulo is going through a very active creative moment with a cultural diversity equal to that of the largest cultural cities. Entrepreneurship for the processing of knowledge, the encouragement of talent and the generation of wealth is also growing in the city. It is the pivot of opportunities linked to the creative economy that has helped Brazil’s largest economic center consolidate its position as a global city, a hub for business, financial services and culture. The survey conducted by Análise Editorial exclusively for this edition of SÃO PAULO OUTLOOK revealed a strong connection between the entrepreneurs operating in the city of São Paulo and urban development using the creative sectors. Among the interesting points raised in the survey is the perception of creative activities that are considered to be the most significant for the city’s economy today, in addition to those of lesser importance in the current scenario of the state capital. According to the interviewees, the five most relevant activities are education and culture (55%), architecture (54%), advertising (50%), research & development (48%) and performing arts (45%). On the other hand are those of less interest: arts & crafts (91%), heritage (80%), cinema (79%), visual arts and writing (77%) and radio and TV (75%).

“

What creative areas are the most relevant to

55%

54%

50%

Education Architecture Publicity and Culture

48%

R&D

45%

Performing arts

What creative areas are the least relevant to

the city’s economy today?

91% 80%

79%

77%

75%

Increasing investments in education and training is essential to the city

”

João Carlos Gomes de Oliveira

president of DT Engenharia de Empreendimentos

São Paulo OUTLOOK

Arts & Crafts

Heritage

Cinema Visual Arts and Writing

www.analise.com

Radio and TV

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“

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Business incentives related to urban planning and development of heritage appreciation will make the city friendlier

”

Pierre Moreau founder of Casa do Saber and founding member of Moreau & Balera Advogados

“

With its hugeness, effervescence and a population that comes from different places, São Paulo has the potential to make more room for the creative economy Chieko Aoki

”

president of Blue Tree Hotels www.analise.com

São Paulo OUTLOOK

Opinion | São Paulo O ut l o o k

The role of creativity in the São Paulo economy over the next ten years

f the opinion of the respondents is confirmed, in ten years the pillars of the creative industry of São Paulo will continue practically the same as those of today. In other words, in the next decade, the two most prominent areas will be education and culture, mentioned by 63%, and architecture, mentioned by 59%. The difference lies in the computer technology and IT industry, cited by half of the respondents. The amount of professionals in the computer industry in 2009 surpassed the milestone of 90 thousand, which re-

“

presents 44% of the creative jobs in the city, which already is home to 100 of the top 200 technology companies in the country. The São Paulo city also has six teaching institutions that now offer courses related to the area of research & development. In reference to the less important sectors in the next ten years, arts & crafts accounted for 96% of the responses. The list of the least relevant over the next decade continues to include radio and TV (88%), publishing and printing (84%), cinema (75%) and fashion (73%).

The public power must encourage investments and further the enhancement of education and research

”

Edson Luiz Vismona

executive president of the Brazilian Legal Institute and the National Forum against Piracy and Illegality

10 years from now,

which creative areas

Will be the most important

Will be less important

96% 88%

63%

59%

Education Architecture and Culture

55%

R&D

São Paulo OUTLOOK

50%

84% 75%

73%

Cinema

Fashion

46%

Computer Publicity Technology and IT

Arts & Crafts

Radio and TV

Publishing and Printing

www.analise.com

Positive impact on the city’s future

he respondents were almost unanimous in relation to economic gains from the development of creative activities in the state capital. A total of 89% of the respondents indicated that the creative economy may show a growth equal to or even higher than the average of the other sectors. In 2010, creative activities accounted for R$ 104 billion in the Brazilian economy, equivalent to 2.84% of GDP, a number that is greater than some of the traditional subsectors of economic activity such as mining, responsible for R$ 79 billion, and the production and distribution of electricity, gas, water, sewage and urban cleaning, which accounts for R$ 103 billion. The industry also employed almost 800 thousand formal workers, paying 45% above the average Brazilian wage.

How much does the city

gain today

with the

creative economy?

A lot because the area grows more than other activities

It doesn’t

44,5%

Only a little because the area grows less than other activities

The same as with other activities

44,5%

How much will

the city gain with the

creative economy in 10 years time?

A lot because the area grows more than other activities

“

São Paulo can become a center of reference and excellence in the creative economy areas by generating motivation and the exchange of knowledge, technology and new opportunities

”

Rose Koraicho

president of Koema Empreendimentos e Participações

www.analise.com

Only a little because the area grows less than other activities

77%

The same as with other activities

21%

São Paulo OUTLOOK

Opinion | São Paulo O ut l o o k

São Paulo is already a creative metropolis in comparison with other global cities

ão Paulo’s creative economy can most certainly be compared with this modern and innovative industry that has been present for much longer in more developed centers worldwide. Slightly more than half of the respondents claimed to trust São Paulo’s vocation in the good initiatives. Among those who said the increase was significant, or at least moderate, the rate was 36%.

Compared with developing nations, the scenario is even more promising. More than seven out of every ten respondents (75%) stated that São Paulo is ahead of the emerging economies in terms of the creative sectors. Of this group, 30% said that São Paulo’s creative economy is more advanced than that of developing cities. It is estimated that if this growth continues, São Paulo’s creative economy will reach the same level as that of London in less than a decade.

“

São Paulo compares to any city in developed countries when referring to availability of human materia

”

Januário Soares Dolores general director of Alstom Brasil

How does the

creative economy of São Paulo compare against the top Developed cities

Worse

8 Much better

46%

Developing cities Somewhat better

Worse

45%

The same

18%

Somewhat better

Much better

30%

32%

16%

São Paulo OUTLOOK

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“

Carmem Campos Pereira president of Rede Energia

“

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Two measures are essential for the growth of the creative economy in the city of São Paulo: more safety and less traffic

”

Providing free internet in the city would make education and culture accessible to all people

”

Jarbas Antonio de Biagi president of Banesprev www.analise.com

São Paulo OUTLOOK

Opinion | São Paulo O ut l o o k

Growing influence of creativity in the city’s business

ão Paulo accounts for 38% of the largest domestic private companies and 63% of the largest foreign business groups based in the city. These respondents have realized the need to be engaged with the creative economy. A total of 52% said that this driving force is very relevant to their daily business. Another 37% said that creative matters have moderate importance in their businesses. When thinking about how the situation may be in ten years from now, the respondents showed an even more optimistic outlook. Around 70% indicated that innovative and cutting-edge ideas carry much more weight in their business. In all, nine out of every ten respondents stated that their business is involved in some type of creative activity to some extent.

Is the progress of

the creative economy relevant

to your business

today?

Very relevant

Not relevant

52%

Little relevant

Somewhat relevant

37%

What will be the relevance

of the creative economy

to your business

in 10 years time?

Very relevant

Little relevant

70%

“

The subject must be valued and we must show that it is closely linked to entrepreneurship Airton Carlini

”

Somewhat relevant

CEO of Pritchett Brazil and vice president of relationships at the Executive Network

São Paulo OUTLOOK

21%

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For most, the high per capita income is the main attraction for new businesses

he survey also wanted to know how the business attractions of the city were doing. In this edition of the survey, the city’s biggest advantage, mentioned by almost 80% of the respondents, is the high per capita income of the municipality’s inhabitants. The second strong point of the city, which attracts more investors, cited by 68% of the respondents, was the ready supply of skilled labor. It is worthwhile noting that the in two previous surveys - 2010 and 2011 - this item received the most votes, mentioned by seven out of

“

every ten interviewees. The respondents also answered questions about the reasons why a company would set up or base itself in Sao Paulo. The majority, 91% of the respondents, mentioned the fact that the city is the main financial hub and one of the largest in the world, the same figure registered in the previous survey. The city as a major center of the country’s consumption was another reason mentioned by 82% of the research field. This year, the city also stood out for its offer of excellent IT services.

The natural vocation of São Paulo is to be the financial hub not only of Brazil but of South America

”

Yves Besse, CEO of Cab Ambiental

What are

the city’s strong points?

Infra and social structure High income per capita

Quality of workforce Infrastructure for events

79%

68%

64%

12 What most favors yours business Financial hub Consumer center

82%

67%

Networking

High level of education

61%

Proximity to customers

Communication infrastructure

59%

IT services

www.analise.com

91%

60%

38%

São Paulo OUTLOOK

Opinion | São Paulo O ut l o o k

The most remembered problems continue to be the city’s traffic and security

he survey again pointed out that São Paulo city’s villains are still traffic and safety, even though the share of both decreased when compared with the results of the 2011 survey. This year, 89% mentioned urban mobility as one of the drawbacks of the city, against 93% last year. About 75% mentioned security as São Paulo’s second greatest adversary. The share declined as compared with the 77% registered in the previous survey. Property prices, 66% versus 62% in 2011, cost of labor, 46% versus 43%,

continued to be mentioned. In regard to the points that directly affect business, entrepreneurs and executives, the same items as those in the 2011 survey were mentioned: service costs, tax burdens, both at a municipal as well as a state level, and quality of services. It is a fact that the only slice that increased was related to state taxes, which rose from 53% in 2011 to the current 56%. The biggest drop was in municipal taxes, from 52% in 2012 to 60% in last year’s study.

“

One of the major barriers is the urban infrastructure; lack of quality transport and hotels with a variety of affordable services Gustavo Murad, director of IT business - Airlines Lata of the Amadeus IT Group

”

In what points does the city

have to 13

Infra and social structure

improve? 14

That affects your business

89% 82% 75% 66% 56%

52%

46%

28%

Traffic and transport

Security

Real estate prices

São Paulo OUTLOOK

Labor costs

Cost of services State tax load

Municipal tax load

www.analise.com

Quality of services

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“

Improving the urban aspect of accessibility and mobility are measures that the city must take to increase the consumption of the creative economy

”

Esmeralda Rizzo

academic dean at the Presbyterian University of Mackenzie

“

Investing in education and environmental awareness would imply an innovation in the waste management model of the city

”

Carlos Alberto Jr. FREE STOCK

director of Vega Engenharia Ambiental

www.analise.com

São Paulo OUTLOOK

Opinion | São Paulo O ut l o o k

Restaurants are at the top of the list in the comparison with developed cities

n the comparison with the cities of developed countries, São Paulo stands out mainly in the food segment, the same result registered in the latest three editions of the survey. The restaurants headed the list and were cited by 59% compared to 48% of the sample in the 2011 survey. The 12.5 thousand restaurants and 15 thousand bars that work in the city help to attract the 11.7 million tourist that visit São Paulo every year. The city also appears in the lead in the provision of le-

gal, medical and advertising services, in addition to the offer of property. The main drawbacks of São Paulo in relation to developed cities continue to be the concern with mobility and safety. What draws the attention is the reversal in position of these two city problems. This year, transport topped the list with 79% of the responses while in 2011 it appeared in second place with 82%. In turn, safety, which was the main concern in 2011 with 84%, dropped to second place in the survey, registering 78%

“

The main thing is to strengthen measures in the sense of creating more safety for citizens and improving mobility in the city

”

Andrew Frank Storfer president of Interacta Participações and director of Anefac

How does the city

compare to of

15 Advantages

developed countries? 16

59%

Restaurants

the cities

Disadvantages 79%

Transport

Legal services

32%

Advertising agencies

32%

Real estate acquisition costs

66%

Real estate offers

30%

Property rentals

66%

Medical services

29%

78%

Security

São Paulo OUTLOOK

Broadband

59%

www.analise.com

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“

Paula Nader

FREE STOCK

We need to promote new business models that consider the local potential and production of value based on creativity and innovation

”

head of branding at Banco Santander

“

Investing in a faster data network is one of the ways for São Paulo to extend the relevance of the creative economy in the city

”

Horácio Lafer Piva advisor to Klabin www.analise.com

São Paulo OUTLOOK

Opinion | São Paulo O ut l o o k

In relation to emerging cities, the city of São Paulo has the best services

ompared with emerging cities, São Paulo stands out for its gastronomy and the provision of legal, medical and advertising services. The hotel chain, which appeared in the 2010 and 2011 surveys, did not appear on the list of the top five most important services this year. The item that ranked higher this year was infrastructure for events, cited by 49% of the respondents. According to the executives interviewed, a few of the main issues that disfavor the metropolis in comparison

with other developing countries are the high cost of labor and the purchase and rental of real estate. It is worth noting that the top three concerns mentioned were also noted in the previous survey. Only their positions have changed, the cost of labor switched places with the cost of rented properties, which rose from third to first position. Concern for security and transport continued, respectively, in fourth and fifth place in the list of drawbacks. The city of São Paulo has improved in the security area.

“

The city has an enormous vocation for trade and services. Themed streets should be broadened and better planned

”

Roberto Duailibi, founding partner of DPZ Propaganda

How does the city compare to

of 17

Advantages

developing countries? 18

71%

Restaurants

Disadvantages Cost of labor

71%

Legal services

55%

Real estate acquisition costs

66%

Advertising agencies

54%

Property rentals

66%

Medical services Infrastructure for events

the cities

São Paulo OUTLOOK

52%

49%

Security

Transport

64%

61%

www.analise.com

divulgação

“

São Paulo is on the right track, but needs more initiatives to spread the word of the creative economy

”

Antonio Ferraiuolo

CEO of De’Longhi

“

Events such as São Paulo Fashion Week, SPA Week and Restaurant Week are all highlights of the creative economy in the city of São Paulo

”

divulgação

Mari Gradilone associate director of Grupo Virtual Office www.analise.com

São Paulo OUTLOOK

Anúncio: DUPLA PG 07

Anúncio: DUPLA PG 08

stringer brasil/reuters

Formula Indy race in S達o Paulo: the two-day event attracts more than 60 thousand spectators

VISI

TORS’ PROFILE

Tourists visiting São Paulo begin to add leisure time to their work schedule while visiting the city

Tourists

Business

Events

See the profile of the visitors that come to São Paulo page 93

The infrastructure that shelters the city’s fairs and congresses page 96

The cultural, sporting and business events in the city page 100

TOURISM

Work and play in SP Business tourism is still the main reason visitors come to the city of São Paulo, but leisure travel is quickly gaining ground. In 2011, 12.5% of the tourists came to the metropolis to relax and have fun, 40% more than in 2009

In 2011, total revenue gained from tourism-related activities in the city was more than R$ 10 billion. With the increase, the collection of service tax (ISS) of the tourism sector was 26% higher in 2011 than in the previous year, totaling R$ 200 million in taxes for the municipal coffers. The city recorded 448 thousand jobs in the tourism sector in 2011, up 7% over the previous year.

Business is the main reason that leads tourists to visit São Paulo, followed by participation in fairs and events. One of the favorite leisure options of the foreigners is eating out and Brazilian tourists how more interest in shopping. Most visitors are under 49 years of age, are male and have a high education level. In the near future, the city will host the 2014 World Cup. PAULO FRIDMAN/CORBIS

he year of 2011 was a breakthrough period for tourism in the city of São Paulo. The metropolis received 12.1 million visitors. Airports serving the city recorded an annual surge in passenger of around 13.6% in 2011. Hotels also accounted for an annual average occupancy rate of 69.3%, the highest since 2005.

Marginal Pinheiros skyline, west end of São Paulo: the forecast is that 16.5 million tourists will visit the city in 2020

São Paulo OUTLOOK

www.analise.com

TOURISM

1 OUT OF EVERY 4 COMES TO SP TO PARTICIPATE IN EVENTS In % Events

Business

Leisure

Studies

56,1

Health

Visiting friends/relatives

Others

45 12,2

22,4

10,9

2009

4 2,5 2,6 1,4

25,3

11,3

2010

Where the local tourists come from*

29,4 16,0 9,5 São Paulo

Rio de Janeiro

Minas Gerais

7,2 Paraná

7,2

Rio Grande do Sul

The tourists that come to the capital are extending their stay, spending more money and have more time to have fun, seek medical treatments and do courses

Outsiders

FOREIGNERS spend more and more time in the city he amount of overnight stays of foreign visitors has increased in São Paulo since 2009. The average was nearly five in 2011 compared to 4.2 overnight stays in the previous year and 3.7 in 2009. The total of foreign tourists staying in São Paulo hotels jumped from 8.9% in 2009 to 17.6% in the second half of 2011. Foreign tourists visiting the city spend less than Brazilians: they have daily expenses in the city of R$ 465 while Brazilians spend around R$ 570 a day. For 58% of the visitors, the main reason for the trips is business. Participation in fairs and events comes in second with 21%. When the tourists decide to spend a few extra days in the city, work is the main reason claimed by 41% of the tourists. During their free time, the visitors shop, eat out and enjoy São Paulo’s night life. Among the foreigners who stayed in the city in the first half of 2011, 59% came from North America and Europe. Most of the tourists, around 31%, are Americans and Argentines come in second. Most tourists who come to the city stay at hotels and flats www.analise.com

24,4

2011

6,7 3 5,2 3,2

Where the international tourists come from*

The visitors’ profile

4,4 2,5 3,3 1,9

22,7 9,8 United States

Argentina

8,7 Japan

7,6

5,7

Germany

Spain

* second half of 2011

Brazilian visitors

Local TOURIST extends stay for leisure purposes

ost Brazilian tourists who visit São Paulo come for work. Visitors coming for work or to attend trade shows and corporate events account for almost 67% of the total. But when they decide to stay in the capital for a few more days, the main motivation for the extra day is not work. Among those who extend their stay, 52% want to enjoy the leisure and entertainment options of the capital city or just want to shop. A total of 30% of the tourists stay longer for business purposes. Among Brazilian tourists, São Paulo residents rank at the top of the visitor’s list. Residents of the cities of Campinas, Ribeirão Preto and Sorocaba are those who most visit the capital. Among other Brazilian States, Rio de Janeiro heads the list of tourists, followed by Minas Gerais, Paraná and Rio Grande do Sul Those who stay longer in the city want mostly to shop, eat out and enjoy the nightlife of the capital. Still others enjoy the free time to stroll in parks, museums and historical centers. Brazilians are spending more and more in São Paulo. In 2009, every traveler spent on average R$ 350 a day. This amount rose to R$ 400 in 2010 and reached R$ 570 in 2011. A survey conducted in 2011 with Brazilian passengers at the International Airport of São Paulo in Guarulhos showed that the most well rated services in the city of São Paulo were cuisine, shopping and cultural attractions and entertainment. According to the survey done at the airport, the main means of accommodation for tourists is the hotel, however staying at the homes of relatives and friends is also common among domestic visitors. The reason for not staying longer in São Paulo is no spare time – more than 65% - in both segments (brazilian and foreigner tourists). São Paulo OUTLOOK

TOURISM

Health reference

INCREASING VISITORS

Cutting-edge medical services attract tourists

In millions of tourists

16,5

he city’s extensive medical infrastructure has attracted increasingly more visitors in search of medical opinions or specialized treatment. In the first half of 2011, 3.4% of the tourists traveled to São Paulo for health reasons. In 2009, these patients represented 2.1% of the total amount of visitors, up 62%. Brazil receives annually about 31 thousand foreign tourists seeking medical treatment and nearly half go to the state capital. The foreigners come mainly from Angola, the United States, Spain, France and Indonesia. Besides having high-quality care, it is more advantageous for those coming from abroad to pay for the treatment in reais than in dollars or euros. The average daily expense of the tourists in this segment was R$ 623, up 54% over the average visitor who comes to town for other reasons. With an average stay of 3.5 nights, the amount disbursed in the period reaches R$ 2.180. With 2.5 thousand health clinics and 50 thousand physicians, São Paulo is an international benchmark in important medical areas. The visitors look for cutting-edge laboratories, advanced technology services and specialist clinics for visits, medical procedures or just for a simple checkup. The highlights are the treatments of heart disease and plastic surgery, among other branches of high complexity. The hospital sector has front-line services and there is an extensive diagnostics network at the disposal of the patients. In addition to the vast medical infrastructure, the visitors also enjoy the tourist options of the city. Research indicates that the secondary activities of health-oriented tourists in the city are shopping and dining. São Paulo is also seeing the expansion of the “day-hospital” concept.

GROWTH OF TOURIST REVENUE In billion reais 15

13,5 12,9

11,3 10,5

11,4

9,7 9

8,3

7,1 6

2005

2008

2010

2012

São Paulo OUTLOOK

2014

2016

2018

2020

15,1

14,9 14,9

11,8

12,6

9,5 5

2005

2008

2010

2012

2014

2016

2018

2020

Sports and culture

Mega events bring mega crowds to the capital

n addition to business and fairs, São Paulo has attracted more and more visitors interested in the highlights of its sports and culture agenda. Great shows, concerts and attractions, such as the Grand Prix of Formula 1 and the São Paulo Gay Pride Parade also attract tourists to the capital. Sports events attract an audience that is predominantly male, older, earns more and spends more and stays in hotels. Among the spectators of the F1 Grand Prix, for example, held in 2011, 47% had university degrees and 27% reported an income between 10 to 15 minimum wages. The average amount spent on the trip was R$ 1,612 and 74% stayed at hotels or flats. In 2011, November was the month that recorded the best occupancy rate in the hotel sector, 75.6%. Part of this result is attributed to mega events such as the Brazil F1 Grand Prix, which gathered 144 thousand spectators and the Duas Rodas auto show, which attracted 255 thousand visitors. The audience that comes to concerts is younger, made up largely of students from 18 to 24 who have a lower income. At the concert of the band Red Hot Chili Peppers, for example, 49% were students, with an average expenditure of R$ 448. The number of foreigners attending concerts in the city is not very significant and visitors from cities nearby or from neighboring states prevail. In sports events as well as in concerts, the average stay is three nights in the city. São Paulo is one of the host cities of the World Cup and is expected to receive 15 million tourists in 2014. Among the foreigners, more than 90% claimed that they would like to return to São Paulo to watch the games. São Paulo is investing in infrastructure, such as the expansion of airports, road works and hotels. www.analise.com

luludi/luz

TOURISM

Football Museum at the Pacaembu stadium, west end: World Cup is expected to bring 14 million tourists to the city www.analise.com

S達o Paulo OUTLOOK

TOURISM

Lodging

GREATER HOTEL OCCUPANCY

THE HOTEL NETWORK REGISTERS A RECORD OCCUPANCY RATE

he hospitality industry of São Paulo reached a 69% occupancy rate in 2011, up 1.4% over the average recorded in 2010, and it was also the highest since 2005, when it reached 58%. The city of São Paulo has more than 410 hotels, 68% of them are mid range, 24% are economy and 8% fall into the luxury category. The average price per room in 2011 was R$ 319. In the city, large international chains such as Hyatt, Sheraton and Hilton fight for customers with exclusive and luxury options, such as Fasano, Emiliano and Unique. Besides offering nearly 42 thousand rooms, hotels in São Paulo have an efficient structure to house conventions. Out of a total of 390 hotels and flats, 194 of the establishments have areas for events, totaling 939 rooms. An important indicator to show the growth of the tourism sector is the collection of Service Tax (ISS), a municipal tax on activities of companies and independent professionals. The total collected by the group that includes the tourist areas in 2011 was R$ 199.6 million, an increase of 25.7% as compared with 2010. The amount corresponded to 2.5% of the total of ISS collected in the year by the municipal administration. The largest concentration of rooms is in the downtown area and in the west and south section of São Paulo. The north section also has a high occupancy rate. Another lodging option in the city are the hostels, which recorded an average occupancy rate of 64% in 2011. The city has 23 hostels that charge on average R$ 41 per room. A survey conducted at the Tourist Information Centers (CITs) traced the profile of tourists who choose to stay with friends and relatives. Most are women, under 40, coming from several Brazilian cities, mainly São Paulo.

In %

64,7

2005

69,3

61,4

58,7 50

68,3

67,3

2006

2007

2008

2009

2010

2011

Average daily values in 2011 In reais

103

Economy Midscale Luxury Super Luxury

163 244 535

Entertainment

Leisure travel in the city increased 40% in two years

ão Paulo is known as a hub for business and events, but the tourist profile has changed. In the first half of 2009, 9% of the visitors came to São Paulo for leisure purposes. Two years later, this figure jumped to 12.5%, up 40%. Over 30% of tourists who plan to spend more time in São Paulo decide to stay for leisure reasons. An official city tour has started to be set up in 2012. The route will have nine main attractions: Luz, Market Hall, República, Pacaembu Stadium, Paulista Avenue, Ibirapuera, Liberdade, the College Courtyard and the Municipal Theater. São Paulo is not only the biggest economical center. It is the capital of culture, fashion and entertainment.

INCREASING CHANGE In millions of passengers

Airports

Bus terminals

Cumbica, Congonhas and Viracopos 16,0

54,2 15,8 50

47,7

33,7

15,6

35,0

2006

2007

35,1

15,4

15,2

2005

15,6 15,5

15,4

38,7

15,7 15,6

15,3

15,2

15,0

2008

São Paulo OUTLOOK

2009

2010

2011

2005

2006

2007

2008

2009

www.analise.com

2010

2011

ludovic maisant/corbis

Installation at store in Oscar Freire street in the city’s west end: São Paulo has 59 specialized shopping streets

What brings tourists to SP

Business and events are the reason 70% of the visitors

he main reason for visitors to come to São Paulo is work. Business is listed first, at 45%, among the reasons to visit the state capital. Secondly, are the fairs and events, with 24.4%. In addition to concentrating the largest companies in Brazil, the capital city has a vast network of hotels, good restaurants and the infrastructure to host large corporate events. The city has 2.5 million square meters of exhibition area for the lease and has a multitude of service providers for the organization of conventions. São Paulo is home to 75% of the Brazilian fair markets. The capital records the performance of 90 thousand events per year, generating nearly R$ 4 billion in revenue. In São Paulo, an event is held every six minutes, which makes the city the 12th destination in the world for international events. The city launched in 2012, the website Mice São Paulo Meetings, Incentives, Conventions and Exhibition (www. cidadedesaopaulo.com/mice), which brings together more than 200 areas for events in the capital. The purpose of this tool is to help companies find locations for conventions and trade shows. A law was enacted in 2012 establishing the Expo-SP Park Event , a complex for large events in the neighborhood of Pirituba in the western zone of the city. The area will include a fair and exhibition pavilion, a convention center, a shopping center, a business center, hotels and ofwww.analise.com

fices. The creation of a hub to launch São Paulo as the host city of the 2020 Universal Exhibition, Expo 2020, is strategic. If the city is chosen, it will be the first time that the event will be held in Latin America. The complex covers an area of five million square meters, four times larger than the Anhembi Park, currently the largest in Latin America.

TOURISM EMPLOYS MORE In thousand 600

526 500

448

427 400

300

2005

396 399

2006

2007

412

396

2008

2009

419

2010

São Paulo OUTLOOK

2011

2020

events

City

hosts

joel silva/folhapress

mega events

events

ão Paulo has a busy schedule. Every six minutes an event is held in the capital city, which hosts 75% of the country’s trade fairs. But the city also has space on its agenda for mega sports such as Formula 1 racing and Formula Indy, and for culture, with the Art Biennial. In all, 90 thousand events are held in the city every year. See main events below.

January

Campus Party

www.campus-party.com.br This is a gathering of users, companies and members of the public administration who get together to exchange technologyrelated knowledge and activities. Its sixth edition will be held in 2013.

Public 110 thousand Held once a year

SÃO PAULO Fashion Week www.ffw.com.br

São Paulo’s fashion week is one of the world’s most important and compares to the fashion

Couromoda

www.couromoda.com International Fair for Footwear, Sports Items and Leather Articles. It has over a thousand exhibitors and importers from 64 countries.

Public 85 thousand Held once a year

WORLD BIKE TOUR

www.worldbiketour.net Since 2009, this event has brought together, on the city’s anniversary, about seven thousand cyclists who travel a five-mile path by the main tourist and historical attractions of the capital city.

weeks of London, Milan, New York and Paris. It is held twice a year in January and June. It will feature its 33rd edition in 2013.

Public 100 thousand Held twice a year

Public 7 thousand Held once a year

February

Carnival

www.spturis.com/carnaval This popular festival has been celebrated in São Paulo since 1935. More than 30 samba schools take part in the parade and compete for a prize based on several points of the presentation.

Public 110 thousand Held once a year

Osesp

www.osesp.art.br Since 2000, the State Symphony Orchestra of São Paulo performs concerts at popular prices and opens its rehearsals to the public between March and December.

Public 120 thousand Held once a year Date March

São Paulo OUTLOOK

101

events

Virada cultural

March

It’s all true

www.etudoverdade.com.br International Documentary Film Festival, which awards long and short films and will hold its 18th edition in 2013.

Public 40 thousand Held once a year

April

Hospitalar

www.hospitalar.com This event brings together products, services and technology for health entities. This four-day fair includes 1250 exhibitors and 60 guest countries, which generate R$ 6 billion. The 20th edition aimed at health professionals will be held in 2013.

Public 90 thousand Held once a year

Formula Indy

www.saopauloindy300.com.br São Paulo is part of the international Formula Indy calendar since 2010 . The event is held at the circuit of Anhembi street in the northern sector of the city. The fourth edition will be held in 2013.

Public 60 thousand Held once a year

Adventure Sports Fair

www.adventuresportsfair.com.br Dedicated to sports and adventure tourism, this fair is the most important event of its kind in Latin America. It will feature its 14th edition in 2013.

Public 67 thousand Held once a year

May

Challenge Day

www.sescsp.org.br/diadodesafio City residents join this event to do exercise and take part in competitions at SESC units . Challenge Day celebrated its 15th anniversary in 2010.

Public 2,8 million Held once a year

102

São Paulo OUTLOOK

www.viradacultural.org The event has provided since 2005 24 hours of more than one thousand free cultural activities. The shows take place on stages, theaters, cultural centers and schools. The 9th edition will take place in 2013.

Public 4 million Held once a year

Casa Cor São Paulo www.casacor.com.br

This is the world’s second biggest event in architecture and decoration, second only to the Milan Exhibition. In 2013, it will be in its 27th edition.

Public 150 thousand Held once a year

CIEE Expo

www.ciee.org.br A fair for internships and training programs which brings together students, businesses and educational institutions. Its 15th edition was held in 2012 with the presence of stands from the University of São Paulo, the Vunesp Foundation, among others.

Public 60 thousand Held once a year

virada sustentável

www.viradasustentavel. com This event is aimed at promoting environmental awareness. In its first edition in 2011, it featured 480 cultural and educational activities held in 78 areas of the city.

Public 500 thousand Held once a year Date June

www.analise.com

carlos cecconello/folhapress

lalo de almeida/folhapress

Junho

parada do orgulho lgbt

www.paradasp.org.br Since 1997, the city hosts the Lesbian, Gay, Bisexual & Transgender Pride Parade, considered the largest event of its kind in the world. The parade takes place on Paulista Avenue and its 17th edition will be held in 2013.

Public 4 million Held once a year Date June 104

São Paulo OUTLOOK

Fispal Tecnologia

ABF Franchising Expo

This is Latin America’s largest fair for packaging, processes and logistics for the food and beverage industry. The event, which will be the 29th edition in 2013, launches new products and market trends.

Considered the largest fair of franchises in Latin America, this fair features over 500 exhibitors and co-exhibitors from various sectors and offers also lectures and courses. In 2013, the event will have completed 22 editions.

Public 65 thousand Held once a year

Public 50 thousand Held once a year

Francal

SP Marathon

The International Trade Show for Footwear and Fashion Accessories includes more than a thousand exhibitors showcasing their latest footwear, handbags and accessories. Its 45th edition will be held in 2013.

This 43-kilometer race has included around 20 thousand athletes every year in the city since 1995. The race starts at the Octávio Frias de Oliveira bridge and ends at Ibirapuera park. The 19th edition will be held in 2013.

Public 60 thousand Held once a year

Public 20 thousand Held once a year

www.fispaltecnologia.com.br

www.feirafrancal.com.br

www.abfexpo.com.br

www.maratonadesaopaulo.com.br

www.analise.com

events

July

September

Tourism Fair

Anima Mundi

Bienal de Arte de São Paulo

Showcases Brazilian tourism for those who wish to travel or do business. Promoted by the Ministry of Tourism. The event will complete its 8th edition in 2013.

The International Animation Festival offers varied languages and techniques. It screens films from all continents and offers courses and workshops. Its 21st edition will be held in 2013.

This international art exhibition held in the capital city will complete its 31st edition in 2014. Until 2011, 30 exhibitions were held with the participation of 13 thousand artists and almost seven million visitors.

Public 115 thousand Held once a year

Public 95 thousand Held once a year

Public 530 thousand Held every other year

www.salao.turismo.gov.br

www.animamundi.com.br

www.bienal.org.br

bOOK BieNnIal

www.bienaldolivrosp.com.br The third largest publishing event in the world, second only to the Frankfurt Book Fair and the International Book Fair of Turin. It offers books and cultural programming and celebrates its 23rd edition in 2013.

silvia zamboni/folhapress

Public 730 thousand • Held every other year • Date August

events

BEAUTY FAIR

www.beautyfair.com.br This is the world’s third largest beauty, health and wellbeing event. It serves the entire production chain of the segment and also offers services for professional development and qualification. It will feature its 9th edition in 2013.

Public 110 thousand Held once a year

Equipotel

www.equipotel.com.br Aimed at the sectors of hospitality, gastronomy and tourism, this is the largest fair of its type in Latin America. It gathers more than 1.3 thousand companies in 672 stands from 60 business sectors. In 2013, it will be in its 51st edition.

Public 110 thousand Held once a year

October

Automobile Fair

www.salaodoautomovel.com.br This is the largest car fair in Latin America. The event, which will be in its 28th edition in 2014 and will feature over 100 exhibitors, will showcase the latest models of sports, utility and concept cars.

Public 750 thousand Held once a year

Duas Rodas Auto Fair

www.salaoduasrodas. com.br This trade show includes over 400 exhibitors presenting the latest in motorcycles and bicycles. In 2013, it will be in its 12th edition.

divulgação

Public 240 thousand Held every other year Date October 106

São Paulo OUTLOOK

www.analise.com

Danilo verpa/folhapress

Ononono nonon onono nonono nonon ononon onono nonon onono nonon onon ononon onon ononon

virada esportiva www.viradaesportivasp.blogspot.com This event offers 24 hours of sports, recreation and leisure. It is spread out in over one thousand points and offers 2,500 free activities to those living in the city. It will feature its 7th edition in 2013.

Public 3.5 million • Held once a year • Data September

São Paulo’s International Film Festival

Fenatran

www.fenatran.com.br

This is a São Paulo’s important event. Presents a two-week overview of world cinema with 400 films from many countries around the world. The movies are displayed in 22 museums, cinemas and cultural centers throughout the capital city. The 37th edition will be held in 2013.

This is the main Brazilian event for the railway sector and is one of the five largest in the world in the area for products and services for urban transport, freight and logistics, in addition to safety and tracking equipment. It includes 335 exhibitors from 15 countries including Scania and Renault. It will feature its 19th edition in 2013.

Public 20 thousand Held once a year

Public 50 thousand Held every other a year

www.mostra.org

www.analise.com

November

F1 GP Brazil

www.gpbrasil.com.br The Interlagos racetrack hosts the Formula One Gran Prix race in Brazil. Most of the international spectators come from Argentina, Chile, Ecuador, Mexico and England. In 2012, the Formula 1 will complete 41 years in the country and 31 in the state capital.

Public 140 thousand Held once a year São Paulo OUTLOOK

107

Almeida Rocha/folhapress

events

December

BRAZIL NGO

www.ongbrasil.com.br This nonprofit event aims at promoting the best social practices. In 2012, its 4th edition will showcase Brazil’s Third Sector, corporate social responsibility and public policies. More than 196 lectures and workshops will be held in this 3-day event and will include the participation of 500 NGOs, foundations and public and private entities.

Public 10 thousand Held once a year

new year’s on the paulista www.reveillonnapaulista.com.br

New Year’s is celebrated with a huge party on Paulista Avenue, the city’s main sightseeing spot, featuring concerts and a firework display. The 16th edition will be held from 2012 to 2013.

Public 2.4 million Held once a year

São Silvestre RACE

www.saosilvestre.com.br This is Brazil’s most popular street race. This 15-kilometer race is held on the last day of the year and leaves from MASP museum located on Paulista Avenue, crosses through the old city center, and ends at the São Paulo Obelisk in Ibirapuera Park. It is run by 21 thousand athletes and the 89th edition will take place in 2013.

Public 21 thousand Held once a year Date December

São Paulo OUTLOOK

109

Anúncio: DUPLA PG 07

Anúncio: DUPLA PG 08

PAULO GUERETA/FUTURAPRESS

Suspended pianist at Virada Cultural weekend: the event attracts, during 24 hours, more than 4 million people

The creative paths

of são paulo The creative economy will be one of the drivers of global economic growth in the next decade. Understand what this phenomenon is and why it is gaining more strength in São Paulo

The concept

Promising

Model

Creative economy and how it is already a part of São Paulo page 114

New creative areas and programs gain ground in the city page 124

Cities around the world and the benchmarks in creativity page 144

creative economy

Creativity

fuels GDP The concept born in Australia and made popular in the United Kingdom won over the world and reached Sao Paulo. See what it is and how the creative economy is doing in S達o Paulo and in Brazil

Mural on 23 de Maio Street in the south end created by twin brothers, Osgemeos, among other graffiti artists: the brothers have exhibited their work at MoMA in New York

creative economy

the 2010 edition. In general, the creative economy involves economic activities focused on knowledge generation that are arise from creativity and individual talent, with potential to generate wealth and create jobs by exploring the intellectual property produced. There are many niches: architecture and design, performing arts, visual arts, arts and crafts, publishing and printing, fashion, multimedia (film, video, television and radio), music, cultural heritage, research and development, publicity and advertising, and technology and games. For some countries, such as Brazil, the sectors of cuisine and toys are also included in the list. For each of these segments, there are related support activities, which form a chain of industries that enhances their potential. “There may be the impression that the activities of the creative economy

ricardo nogueira/folhapress

efining the creative economy is not the simplest of tasks. There is a heated debate in universities and various world governments about what in fact constitutes the industry. Incidentally, the name, which may appear as creative economy, creative industries, cultural industries and others, is also under debate. The definition that came closest was the consensus of Unctad, the UN agency aimed at the trade and development of countries, that conducted two global surveys on the subject. “The creative industries sector lies at the crossroads between arts, business and technology, in a close relationship that is mutually reinforcing,” stated the document in

are ‘only’ art, something light. This is completely wrong, it’s hard work,” said John Howkins, creator of the term ‘creative economy’ and author of Creative Economy (as yet unedited in Portuguese) launched in 2001. Howkins, one of the first academics to study this topic, added: “It’s not easy to make money from ideas.” Ideas that already generate a lot money worldwide. Unctad estimates show that the industry has globally jumped from US$ 831 billion to US$ 1.3 trillion between 2000 and 2005, with an average growth rate of 7% a year. More recent data is scarce but the estimates of experts point to the creative sector accounting for 9% of the world’s gross domestic product in 2009 and the forecast is that the sector will double its share in world GDP over the next ten years. Creativity in Brazil – With less than twenty years in the making, the creative economy has already been consolidated in many countries worldwide. When speaking of Brazil, the scenario is different. The Brazilian government is taking its first institutional steps into the topic. The national secretary of the creative economy was created in December 2011. The first challenge, according to Cláudia Leitão, secretary of Creative Economy for the federal government, is to map the sector throughout the country. For such, the organization promises to create in June 2012 a national monitoring agency of the creative economy in partnership with the Brazilian statistics and geography bureau, IBGE. The initial idea is to unify the assessment methodology and the creative economy areas in the country and to define more effectively their contribution to the country’s gross domestic product. It also includes creating state monitoring units that will be in charge of developing the creative industries across the country. As yet there is still no date set for the launch of the Brasil Criativo plan, with estimated investments of R$ 30 million, and which will offer tax breaks for small and medium creative businesses as well as enhancements for the training of creative Brazilian professionals. São Paulo OUTLOOK

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creative economy

“The concept of the creative economy is recent and we are starting now. We must hurry, Brazil must take the lead in creativity,” stated Cláudia Leitão. As yet without the effects of a structured policy for the sector, Brazil’s creative economy continues without growth in the share of revenues in relation to GDP. In 2010, creative Brazilians turned over US$ 93 billion, representing 2.5% of the Brazilian gross domestic product, according to a study by the Federation of Industries of Rio de Janeiro (Firjan). In 2006, the creative industries share in the GDP was about the same, - 2.4%. Just for comparison purposes, the United Kingdom, one of the global benchmarks in this subject, has a 5.6% share in the country’s total creative wealth. “There is a belief that the Brazilian is creative and, therefore, everything is resolved. This is not the case, we need training, investment and technology to perform better in the creative economy,” said Ana Carla Fonseca, at a lecture she gave at an event held in Sao Paulo at Sesi in April 2011 on the creative economy. Brazil’s performance in international rankings of creativity confirm this gap. According to the Global Creativity Index, developed by the think tank Martin Prosperity Institute, Brazil is in 46th position among the most creative countries in the world, behind countries such as Singapore, in 9th, Taiwan, 18th and Russia in 31st place. What is not always remembered when discussing the creative industries according to Lidia Goldenstein, an economist specialized in creative industries, is that they are deeply rooted in the economy in general and are an essential arm for leveraging the modernization of an entire country. “The mentality in both the public and the private sector in Brazil, is still focused on the traditional industrial sector, pre-information society,” she said. Creativity in São Paulo – The lack

of a national policy does not preclude that some regions have performed well in the creative economy. São Paulo is the main hub of the country in this subject. It is the state with the highest share in the creative economy in gross

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CREATIVE ECONOMY WORLDWIDE

Share of the creative economy in the global gross domestic product

21%

7% 4% 1999

2008

2020*

* forecast

domestic product, 3.7% versus 2.5% on average, according to Firjan. When referring solely to the city, this value jumps to 10%, representing R$ 40 billion in 2010. This is no coincidence. São Paulo has been featured in several areas of the creative economy. In technology, one of the major creative industries of the city, São Paulo has 2,500 companies ranging from subsidiaries of giants of the sector who have chosen the city to work out of in Latin America and small businesses involved with software development, gaming and web technologies. Another strong point of São Paulo is publicity and advertising. São Paulo is home to 43 of Brazil’s largest advertising agencies, in a ranking of the top 50 according to IBOPE polling and research firm. In all, 1,270 agencies of all sizes have their headquarters in the capital, which represents 25% of the 5,000 agencies

in Brazil. The capital city also absorbed investments in advertising of R$ 25 billion in 2011, equal to 28% of the sector’s overall figure. The fashion industry is also a creative highlight of São Paulo. Headed by São Paulo Fashion Week, the fifth largest fashion fair in the world with projected sales of US$ 2 billion in both 2012 editions, São Paulo fashion is composed of 8.7 thousand companies and employs, along with the positions filled in the textile and garment industry, 500 thousand professionals. The presence of successful creative businesses has led to the mass arrival of creative class to São Paulo. The capital city concentrates 15% of all the country’s creative professionals, according to Fundap. The pace of growth of the creative jobs was higher than that recorded in the traditional economy. Formal creative positions rose 28% between 2006 and 2009 and reached www.analise.com

ludovic Maisant/corbis

creative economy

Oca at Ibirapuera is the venue for traveling exhibitions: SP has the largest consumer market for creative products 141 thousand, according to Fundap, while traditional jobs rose 18% in the period reaching 4.6 million. Creative professionals in São Paulo earn the second highest salary in Brazil. The average monthly value of R$ 2,775 a month is 75% higher than the average earnings of employees in traditional sectors. The city of Rio de Janeiro offers the highest salary for the creative sector aimed at TV, 90% more representing R$ 3,014 a month. The challenge for São Paulo’s future, claimed Edna dos Santos-Duisenberg, head economist of Unctad’s Creative Economy program, will be to take advantage of its positions as the industrial center of Brazil to become the post-industrial hub of the country. “São Paulo is the largest consumer market for creative products in the country, due to the increased purchasing power of São Paulo and the vast number of people who consume culwww.analise.com

ture, leisure and entertainment,” she claimed. “The city needs to use this as a springboard for the transition to creativity,” she added. Benefits beyond money – The economic growth and the increase in employment are the first results of the investments made in the creative economy. Since it is composed of very dynamic sectors that are powered by new projects, the creative economy depends on people so it can function, which in turn creates hiring and economic dynamism. A study of the World Intellectual Property Organization (WIPO) with 30 countries, released in February 2012, shows that creative growth was on average 2.5 times faster than that of the traditional economy. The amount of employments in the creative economy in Brazil increased over the past four years. In 2006, this number totaled

599 thousand, an amount that went to 771 thousand in 2010, an average annual increase of 8.5%, a rate higher than the total recorded for traditional positions, which stood at 5.8%. And it is not about hiring more people, but also of having a higher wage income. Workers in Brazil’s creative industries have higher wages than those in other sectors. In 2010, the average monthly income of the professionals hired formally by the creative sector in Brazil was 45% higher when compared with the traditional one, with an average value of R$ 2,296 a month compared to R$ 1,588 a month. Direct economic results are only part of what the creative economy can offer to a city. The facilitation of creativity works for the arrival (and, more importantly, the stay) of the creative class. These are the professionals of these various sectors that are living in the city. In addition to being fundaSão Paulo OUTLOOK

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creative economy

mental towards ensuring that the city has a continuous source of innovation, they create new projects that help improve degraded areas. The strength of the creative class is very evident in redevelopment projects in degraded areas. In the Brownfield sites in poor areas, such as Poblenou in Barcelona, Shoreditch in London or Barracas in Buenos Aires, creative people not only agreed to live in these degraded areas but also to work in the region and have gradually breathed new life into them. The examples mentioned above (see more on page 144) are just some of the cases where neighborhoods were recovered based on the creative class. Another key benefit of the creative economy is its resilience to crises. A study of the United Nations shows that the overall exports of the creative industries suffered less from the economic crisis than the sales of traditional manufactured products. Creative exports more than doubled between 2002 and 2008, reaching US$ 600 billion worldwide. The average annual rate of creative growth was 14% in the period, even when the foreign trade of traditional products took a dive of 12% in 2008. Moreover, the creative economy makes room for innovation by simplifying the cast-in-stone processes of traditional cities. “The key factor of the creative economy is human creativity. And this is connected to the information society of today,” said Rubens Ricupero, director of the Economics College of FAAP and ambassador. “Previously, companies of higher market value on the stock exchange that had a higher price on the stock exchange were the steel mills and the automakers. Not today, those with a greater presence in the stock market work with human ingenuity,” he added. The first steps of the creative economy in the world – The speed

in which the creative economy swept the globe is even more impressive if considered that historically the discussion on the subject is less than twenty years old. A policy for creative areas within the economy was only officially defined and developed for the first time by the Australian government in

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1994 through Creative Nation. The Australian project involved increasing the value of Australian cultural events of various ethnic groups in the country, it invested heavily in granting scholarships and sponsoring artists from various areas and offered tax breaks to industries such as television and technology. The annual government investment in the sector is, until today, US$ 740 million divided between government initiatives and subsidies. The pioneer program was highlighted by linking Australian government actions to the economic results of the sector. “Culture creates wealth, employs, adds value. The level of our creativity determines our ability to adapt to new economic realities,” claimed the document of the project’s launch. Since then, the results for the Australians have been very positive. The creative economy represents US$ 31 billion of the gross domestic product, equivalent to 4% of GDP. The creative industries grew on average twice as much as Australia’s economy, registering 5.8% a year. With the investment, the creative industries now employ half a million people, but with one detail - the average income of the professional is 30% higher But the creative economy only won over the world when it reached the UK. The good results of Australia attracted the attention of the British and three years after the implementation of the creative economy in Australia in 1997, a British policy was created to encourage the creative industries (see more details about Britain’s creative economy on page 150 in London, Model City). A national department of culture was created with strategies to develop the sector and restore various British industries that were losing ground, especially the sound and film and technology sectors. Over time, the positive results began to appear. The creative industries accounted for 3% of England’s added value (equivalent to the gross domestic product, minus taxes), or US$ 59 billion and 1.5 million jobs. In 2011, the exports of the creative industries accounted for 11% of the total sold in the UK, a jump in comparison with the 4.5% in 2005.

Prerequisites for the creative economy – To bring about the ben-

efits described, the creative industries are fueled by a number of features that are critical to their development. The main one is the consumer market. There is no point in creating a series of creative products if there are no people willing to buy them. Another important point, especially in a delicate topic as recent as the creative economy, is the need to recognize the characteristics of the creative businesses themselves. In this type of industry, the uncertainty in a project is much greater than that in productions aimed at mass consumption. In practice, it is very difficult to predict consumer behavior in the face of a creative product. In addition, the even more critical importance of the www.analise.com

charles platiau/reuters

Graffiti alongside cathedral in Paris, France: creative economy is already consolidated in Europe creative team, the withdrawal of an employee can lead the end product to be different (or worse), which makes everyday business situations such as turnover become a serious concern. This is aside from the need to establish tools to control copyrights, a critical factor in the technology and multimedia areas. “There are many more failures in the creative economy than in traditional sectors such as mining, for example,” said John Howkins. “It is an activity that is much more difficult to understand, to get right. On the other hand, the failure is not so disastrous.” This helps explain the aversion that many governments have to the matter. “Building a hospital, regardless of its complexity, is much easier than inwww.analise.com

vesting in the creative economy. There is a guarantee of success - the building will be there. It is a challenge to make politicians understand the nature of the creative business risk,” he added. Above all, we must be aware that the creative economy is not a cureall. The transformation of the creative economy in a preferred marketing term contributes to this, said Jenny Mbaye, a postdoctoral researcher at the African Centre for Cities at the University of Cape Town, South Africa. “As a concept and practice, the creative economy offers a number of promising prospects, particularly for global competitiveness, employment and generation of alternative income, but it is far from being a panacea,” she said. That is what Berlin is finding out.

Even after spending 15 years investing heavily in the creative economy and becoming a hub for communications and technology, the city has failed to end the unemployment rate of 12% double the national average and the highest rate in the four largest European economies – or to reduce the 22% of the population that receives some kind of social aid. “The promising future of Berlin depends on promoting the traditional economy while continuing to move forward in the creative industries. They must go hand in hand,” explained Eva-Emenlauer Blomers, project director of the Department of Economics, Technology and Research in Berlin and a director of Project Future, the creative economy program of the German capital. 0 São Paulo OUTLOOK

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creative economy

The creative sectors need to rebuild their cities Foreigners talk to Análise Editorial about the current stage of the creative economy

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DIVULGAÇÃO

Until today, the governors of São Paulo did not see creativity as a high priority. But this has begun to change and São Paulo has a lot of potential

John Howkins

Englishman John Howkins is one of the world’s leading academics in creative economy. He coined the term in 2001 in his book Creative Economy (as yet unpublished in Portuguese), which shows the benefits of creativity and innovation for the economy in the

“

”

information society. He participates in events and seminars worldwide and visited Brazil in 2012 to give a lecture. Howkins is a visiting professor at the University of Lincoln, England and vice dean of the School of Creativity in Shanghai, China.

The construction industry is determining how the city of São Paulo works, engineers cannot create the city alone

Charles Landry

”

English architect and town planner Charles Landry is a world benchmark when it comes to the creative economy. He is the author of the book, The Creative City: A Toolkit for Urban Innovators (as yet unpublished in Brazil), launched in 2000, which became a bestseller

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worldwide and heated up the debate about the need for cities to become more creative Landry was in São Paulo for the first time in 2012 to deliver the lecture Creative Cities. In São Paulo, he highlighted the great potential of Augusta Street.

The results of the creative economy can only occur under a state policy, it cannot only be something political. And in Latin America, this is a great challenge

Enrique Avogadro 120

São Paulo OUTLOOK

”

Enrique Avogadro is the general director of foreign trade and creative industries of the city government of Buenos Aires. As a recurring speaker at events of the creative economy worldwide, including Brazilian TED,

Avogadro is also the director of the Metropolitan Design Center - the basis for the successful creative policy of Buenos Aires. He also serves as a juror in important design awards such as IDEA/ Brazil in 2010. www.analise.com

creative economy

The challenge to develop São Paulo talent Brazilian experts highlight the positive points and hurdles faced by the city today

“

In the creative economy, human talent makes the difference. But for it to develop, the private sector and civil society have to get involved

Ana Carla Fonseca

Ana Carla Fonseca is a visiting professor at the Getulio Vargas University/ SP, the University of Candido Mendes/ RJ, the National University of Cordoba (Argentina), Universidad Rey Juan Carlos (Spain) and a member of several associations worldwide, including the

”

Ibero-american Research Laboratory for Research and Innovation in Culture and Development (Unesco). She lectures internationally in five languages, having given lectures in all Brazilian states and in 22 countries and is the author of several books.

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Undoubtedly, São Paulo has strengths in the creative economy. One of them is its cultural diversity. To have more people producing art is something that makes a world of difference

Leonardo Brant

Leonardo Brant is a strategic consultant in the creative economy and a creative entrepreneur. He is a recognized professional in cultural planning and consulting for traditional companies, media companies and cultural organiza-

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”

tions. He is the author of the book The Power of Culture and he was the director of the documentary Ctrl-V. Brant is the editor of the Culture and Market website and the creator of Cemec, a training center for creative business.

PHOTOS: cláudio rossi

In 2011, foreign gaming companies began to take notice of Brazil, mainly because of the crisis. Three major ones came to São Paulo and this will help to transform the city into a huge gaming hub

Emiliano Castro www.analise.com

Emiliano Castro is one of the major references in the games industry in Brazil. He is the founder of games producer 2Mundos, the vice president of corporate relations of the Brazilian Association of Electronic Game Deve-

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lopers (Abragames), a trade entity that represents the sector and that accounted for R$ 300 million in 2011. One of the banners of the organization is to reduce taxes on games, which currently stands at 80%.

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121

SECTORS OF THE CREATIVE ECONOMY See how many employees each sector of the creative economy employs in São Paulo, how many companies are involved and the neighborhoods where they are located

PERCENTAGE OF CREATIVE OPENINGS IN SÃO PAULO TECHNOLOGY

PUBLISHING AND PRINTING

35 35

FORMAL CREATIVE JOBS

49,985

26,425

23,730

17,463

8,424

COMPANIES

2,496

1,344

1,266

723

8,700

CREATIVE COMPANIES IN THE CITY

29.6%

15.9%

15%

8.6%

29%

ROLES OF SECTOR

Software development; consulting services; software service providers and internet hosting services; gateways; content providers and others.

NEIGHBORHOODS THAT MOST EMPLOY

Jardim Paulista

Sé Liberdade

Publishing of books, newspapers and magazines; editing integrated to the printing of registrations, lists and other printing products; news agencies.

Santa Cecília Jaguaré

Publicity agencies

Manufacture of musical instruments; production, post-production and film screening, of videos and TV programs; sound recording and music editing activities; radio activities; open and cable TV activities; rental of video tapes, DVDs and equivalents.

Alto de Pinheiros

Mandaqui Perdizes Barra Funda

Pinheiros

Jardim Helena

Itaim Bibi

Morumbi

Itaim Bibi

Morumbi

Cidade Dutra

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São Paulo OUTLOOK

www.analise.com

Stylists; technicians; models; tailors and seamstresses

Barra Funda Bom Retiro Itaim Bibi

Brás

PUBLICITY

PERFORMING ARTS

ARCHITECTURE AND DESIGN

CULTURE AND EDUCATION

ARTS & CRAFTS

FASHION

ARTS AND WRITING

SOUND AND FILM

RESEARCH AND DEVELOPMENT

4 4 4

6,161

5,198

4,701

662

466

803

7.8%

5.5%

9.5%

Language teaching; art and culture lessons.

Drama, shows and complementary activities; management of areas for drama, shows and other artistic activities; activities of associative organization linked to culture and art.

República

Santa Cecília Vila Mariana

Santo Amaro

Bela Vista Itaim Bibi

Architecture, design and interior decorating services; gem cutting and gold smithing and jewelry; manufacture of costume jewelry and similar artifacts.

www.analise.com

2,579

1,425

Undisclosed

540

102

Undisclosed

6.4%

1.2%

0.4%

Arts & crafts; mosaic making; weaving; jewelry design.

Sé Itaim Bibi

HERITAGE

2,832

Bom Retiro

Pinheiros

Ipiranga

Campo Limpo

4,348

3 2 2 11

Photographic activities and equivalents; artistic creation.

Vila Leopoldina Santana

Research and development of physical and natural sciences; experimental research and development in social and human sciences.

Activities related to libraries and files, museums and exploration, artistic restoration and conservation of places and historic buildings and equivalents, activities linked to botanical gardens, zoos, national parks, ecological reserves and environmental protection areas.

Cambuci

Freguesia do Ó

Sé Campo Belo

Saúde Santo Amaro

Itaim Bibi

Parque do Carmo

Itaim Bibi

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Jaguaré

123

Initiatives

a laboratory for business

and new ideas S達o Paulo is at the forefront of the creative economy and surprises the world with new products and services; successful initiatives spur the economy, attract tourists and renovate neighborhoods

E3 game fair in Los Angeles: the games were recognized as a cultural segment in 2011 and may now be sponsored under the Rouanet law

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S達o Paulo OUTLOOK

www.analise.com

Initiatives

達o Paulo, a center of knowledge production and a reference in many creative areas, is a lab at full throttle always testing new formulas. The capital continues open to new trends and proves that creative ideas can become big business. One of the niches that is booming is that of electronic games and mobile applications. S達o Paulo-based companies offer solutions to the new demands of the digital world, created by the constantly MARIO ANZUONI/REUTERS

increasing use of tablets and mobile phones. The games are no longer just for fun, they are also used to train employees of companies and to advertise products. The city has created well-rounded examples of the increasing importance of the creative economy. Once a year, it is the stage of artistic simultaneous and free-of-charge attractions that attract four million viewers. It is known as the Virada Cultural weekend, a mega event to promote culture and that fuels the creativity engine, attracting tourists and generating revenue. Another success story is the cultural center that was opened in the northern end of the city in a crowded neighbor-

hood that lacks any kind of leisure option and is aimed at giving young people the opportunity to get in touch with the creative industries. More than education and culture, the Ruth Cardoso Cultural Center is a gateway for the training of creative occupations. Former industrial neighborhoods have been reborn and taken over by the warehouses of companies in the creative sectors. Studios and galleries give new color to Barra Funda in the west end. A cluster of film and sound companies have earned Vila Leopoldina, also to the west. In the central region, samba circles and alternative theater performances enliven the region of the Rep炭blica.

table of contents 125 CREATIVITY IN DEMAND New businesses show the creative potential

138 Cuisine 139 Computers

126 Games

139 Fashion

126 Cultural center

140 Heritage

128 Virada Cultural

140 Research and development

129 Creative clusters

141 Publicity and advertising

132 SECTORS OF THE CREATIVE ECONOMY Role of creative activities and their indicators

144 global references Large cities are relying on creativity to grow

132 Architecture and design

146 Berlin

133 Performing arts

148 Buenos Aires

134 Visual arts and writing

150 London

135 Arts & crafts

151 Amsterdam

135 Sound and video

152 Montreal

136 Publishing and printing

153 Barcelona

137 Education and culture www.analise.com

S達o Paulo OUTLOOK

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Initiatives

Games

COMPANIES INVEST IN MOBILE GAMES AND APPLICATIONS

ão Paulo, an important complex for the development of electronic games, is now also following the requirements that arise with the growth of new media. Mobile application development is the big trend for upcoming years in games as well as work tools. São Paulo has at least ten large companies working on developing applications for tablets and smart phones. About 3 thousand professionals are directly involved in the development of games and other applications in São Paulo alone, according to 2009 data from the Annual Social Information List (Rais) of the Labor and Employment Ministry (MTE). A total of 300 local companies have been identified operating in this field. In addition to software development professionals, the games industry also employs graphic designers and programmers. A change in the Rouanet Law in November 2011 favored the games industry and made it even more promising. Through an ordinance, electronic games have now become recognized as a cultural segment able to receive donations and sponsorships. The demand for gaming developments also increased with the social networks. Games tend to be the gateway of companies in the sector. Popular games have the advantage of already having pre-established rules, which are transferred to the virtual world. With this, companies can create and develop their structures and develop their logistics to be able to take on new segments. São Paulo stands out for the number of companies that develop games and also for the large amount of publishers. The studios create games and publishers take care of business, purchase rights and translate if necessary. Publishers in other countries are opening offices in the capital city,

NEW MEDIA

3 300 3 bln 40 mln 12 bln

126

thousand people work with games and applications companies operate in the area in the capital reais is the games market potential in the country consumers is the gaming market in Brazil reais is how much games turn over in the world

São Paulo OUTLOOK

keeping an eye on the Latin American market. Technology companies need to also meet a new demand in the corporate world. A niche that is growing in São Paulo is that of learning and training games. Instead of gathering employees and making power point presentations, companies are using games to convey information to their employees. It also increases the demand for advergames, a marketing strategy that uses games to promote brands and products. Advertising agencies often outsource the development of these games to meet the needs of their customers. São Paulo is home to the country’s top agencies, which makes partnerships with São Paulo-based technology companies easier. Additionally, the websites of companies now have to be adapted to suit the users of tablets and smart phones, which requires the work of specialized companies. Due to the rising popularity of tablets, a growing number of companies rent these devices. Executives do not want to carry laptops and folders full of papers, schools are introducing the unit into the classroom and even restaurants are replacing their menus with the devices. The client can view the dish, its ingredients and photos, but it is the waiter who takes the order. The next step is for the customer to send the order directly to therestaurant kitchen.

Cultural center

INITIATIVE ATTRACTS YOUNG aDULTS TO CREATIVE ACTIVITIES

he Ruth Cardoso Cultural Youth Center, managed by the city of São Paulo, is considered a successful case of a public policy for youngsters. The initiative was evaluated in a survey made by the Administrative Development Foundation (Fundap) about the positive impact of São Paulo experiences in sectors of the creative economy. Erected on the site where a market operated in Vila Nova Cachoeirinha in the north end of the city, the cultural center has helped to disseminate cultural expressions in a densely populated region lacking recreational facilities. With workshops and activities, it attracts young people to activities related to the creative economy. The center was created in 2006 with the proposal to host free activities for recreation and culture and also provide space to discuss issues related to the youngster’s universe, such as health, education and employment. It has a library, amphitheater, arena theater, free access to broadband internet, language lab, music recording studio, islands of video and audio editing, studio art room, workshops and a gallery for exhibitions. The staff of employees consists of a young team of monitors and trainees who attend theoretical and practical classes at the Tomie Ohtake Institute, a cultural center in the west end of the capital, which showcases exhibitions and educational action programs, with courses and seminars. www.analise.com

DANILO VERPA/FOLHAPRESS

The show of the Man or Astro-man band on the Virada Cultural in São Paulo: the event offered 1,000 free attractions About 600 people attend the cultural center daily. In 2009, 497 events were held, with 80 thousand vacancies in various workshops. The activities for learning foreign languages and cultures are among those most sought after by the members. Research conducted in 2010, with users of the Ruth Cardoso center, showed that 90% of the respondents considered the service good or very good, indicating that the initiative has managed to establish itself as a unique space for young people. A large part of the users are between 19 and 29 years of age, but the center has also become an option for culture and leisure for children under 18 who have their afternoons free. The cultural center has undergone adjustments in programming and in the management model to meet the needs and demands of the users. In addition to facilitating the access of youngsters to artistic and cultural spaces, the intention is to train them for the creative economy market. www.analise.com

LEARNING AND LEISURE

600 54% 80 48% 8

people attend the cultural center daily of young people use the area for Internet access thousand positions are offered in workshops of the users are under 18 thousand m2 is the area's cultural center

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Initiatives

Virada Cultural

EVENT PROMOTES CULTURE, TOURISM and GENERATES REVENUE

he impact of the Virada Cultural weekend in São Paulo goes beyond a wide range of free 24-hour artistic activities. The event has an economic impact to generate revenue and increase tourism in the city. In 2012, it held its eighth edition, which accounted for four million spectators. The event has been sponsored by the city government since 2005, once a year. In 2012, it offered during the 24 consecutive hours of the event, 1.2 thousand attractions, including music concerts, theater, circus acts and other cultural activities. The shows were presented in 253 different locations in the capital, including open-air stages, cultural centers, cinemas and theaters. Most of the larger attractions were set up in the downtown area to attract the public to that region. In 2012, the Virada week expanded its area in the downtown region by adding dance floors in the Nova Luz region and stands with renowned chefs located in the Elevado Costa e Silva, known as Minhocão. In the 2009 edition, according to a study made by the Administrative Development Foundation (Fundap),São Paulo city’s government spent R$ 4.8 million in the event. The State Government and the Social Service of Commerce (SESC) also invested R$ 400 thousand. The event brings in visitors from the suburbs of São Paulo and from other states. In 2009, the Virada Cultural weekend attracted 400 thousand tourists, of which 59.9% came to São Paulo solely to take part in the event. The average spent by the tourists in the city is R$ 349, including lodging, meals, transport and shopping. This adds up to R$ 83 million spent by the visitors during the course of the Virada Cultural weekend. A survey was conducted during the Virada Cultural weekend in 2011 to profile the public and assess the event. The survey was coordinated by the staff of the Tourism Observatory of São Paulo Turismo (SPTuris). According to the survey, 9.7% of the audience is made up of people from out of town, of which 99.4% of these visitors are from other Brazilian states, mainly Rio de Janeiro, Santa Catarina, Minas Gerais and Bahia. Participants also come from cities in the state of São Paulo, Campinas, Limeira, Jundiaí, Sorocaba and Bragança Paulista. Half of the visitors showed interest in extending their stay in the city, with 51.9% of them staying to enjoy the leisure options offered by the capital. The evening program was mentioned by 54.5% of the respondents. According to a survey of SPTurism, the Virada Cultural weekend has a great effect on social networks. In 2011, almost 98 thousand mentions of the event were made between 11 and 18 April and 78.3% on Twitter. The repercussion of these posts reached 90.5 million Internet users. The financial transaction is not limited to the hiring of bands, companies of actors and other artists involved with the simultaneous presentations of the Virada Cultural week-

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end. For a mega event of this magnitude to be successful, a large production team involving hundreds of professionals from different sectors is required. In the 2011 edition, the work and logistics structure involved 700 people, including contracted parties for cleaning, the fire brigade and movers. For the production of the attractions and the theaters, 250 employees and 150 assemblers were called in. About 300 technicians supervised the sound, light and the projection of the shows. In the downtown area alone, 12 big screens were installed. To meet the demand for power, 56 generators were needed. The mega event also requires a strategic plan for security and medical care. A coordination base was created with mapping of the entire area of the Virada. This center was controlled by 250 firefighters and 38 ambulances and 15 portable intensive care units (ICUs). Police stations and four medical centers were also installed at the busiest points to serve the public. In addition to the military police and agents of the Metropolitan Civil Guard, around 900 private security guards were hired for the event. The success of the initiative led to the creation of another two events held once a year for 24 hours: The Sports Weekend with free activities in various types of sports and the Sustainable Weekend, with cultural attractions and leisure events geared towards the environment. The Sports Weekend, which reached the fifth edition in 2011, attracted 3.5 million participants. In all, it offered 2.5 thousand sports activities held at over one thousand different points of the São Paulo city. There were also 18 attractions for children, the so-called the Viradinha Esportiva weekend. Around 500 thousand people attended the first edition of the Virada Sustentável weekend in 2011. The schedule offered 480 attractions in 78 areas spread throughout the São Paulo city. 0

24 HOURS OF ART AND ENTERTAINMENT

400 98 4,8 mln

thousand tourists are attracted to the Virada thousand mentions were made on social networks reais were invested by the city government*

83 mln

reais was spent by tourists in the capital*

52,3%

of the tourists have shown interest in stay more

*in 2009

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maria do carmo/folhapress

Initiatives

Tablets replace menus at São Paulo’s restaurants: the city’s restaurant sector employs 14 thousand people

Neighborhoods become creative clusters Concentration of companies helps to renovate areas that were degraded and transformed districts of the capital into alternative art and culture circuits

he construction of creative activities helps to change the profile of the neighborhoods where they are concentrated. The Barra Funda district in the west end of São Paulo is an example of this transformation. A former industrial area, the old warehouses have begun to give way to art galleries, studios, clubs and offices linked to creative professions such as architecture and design. The rebirth of the neighborhood came about as a result of the availability of land, easy access by subway and its strategic location between the Marginal Tietê and suburbs, such as Higienópolis. The region also has important cultural centers such as the Memorial da América Latina museum and the Theatro São Pedro playhouse. An urban development plan is in the works to boost the population density on the banks of the railway that cross the region. The redevelopment project also plans to add another 60 thousand residents in the region within 15 years. The region of Praça da República downtown is also being consolidated as an alternative area for theater and bars with musical shows. In the 1960s, the region was

www.analise.com

populated by jewelry stores, travel agencies and was frequented by popular Brazilian singers and songwriters. It gradually lost its glamour and went into decline. Between the 1980s and the 2000s, it lost 13 thousand of its 61 thousand residents. Its cultural revival began to bring these residents back in 2007. One of the tourist attractions of the city, the Copan building, surpassed the degradation process that occurred in the 70s and the profile of the residents has changed. Today it is desired by artists, architects and other creative professionals interested in living in the downtown area, which offers a more efficient transport network and more cultural options. Another building that stands out in the region is the Louvre, designed by architect Artacho Jurado. In 2011, the Mário de Andrade Library reopened after its façade and furniture were renovated. The Mário de Andrade library is Brazil’s second largest public library. Next to it is the Dom José Gaspar square surrounded by bars and samba dancing on Saturdays. The neighborhood of Vila Leopoldina in western São Paulo is also undergoing an overhaul. The industrial area has become a hub of film production, after the construction of video companies, studios and offices of professional photographers and multimedia. The film district has even been nicknamed Sampaullywood.

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Creative sectors Architecture and design

Caio Esteves/Folhapress

SÃO PAULO FIRMS MAKE THEIR MARK AND CREATE BRANDS THE SECTOR IN SP Professionals employed Creative jobs Companies Creative companies

16,000 7,7% 803 9,5%

he city of São Paulo has some of the country’s most influential architects, who have helped shape the capital and Brazil with their creations. These professionals have also left their mark abroad after they were invited to plan buildings, bars and hotels. More recently, a new generation of São Paulo architects has begun to attract attention for their breakthrough projects and construction methods. A successful example is Arthur Casas, a Architecture and Urbanism graduate of Mackenzie University in São Paulo. He has offices in São Paulo and New York. Among his most prominent work is the World Bar project in New York and the C-House in Chicago. In 2012, he was featured in French magazine Artravel. São Paulo-born Ruy Ohtake was the architect responsible for the creation of hotel Unique, one of the city’s most luxurious, and also for the housing projects at the slums of Heliópolis, one of São Paulo’s largest favelas. His work abroad include a soccer stadium in Ecuador. Likewise to Ohtake and Casas, other architectural offices in São Paulo have been invited to develop overseas projects. The office of Anastassiadis Arquitetos branched out into the international market in 2000. Architect Patrícia Anastassiadis has already been contracted to create projects in Portugal, Spain, Angola and the United States. Another professional with work abroad is Débora Aguiar, who has worked in the United States, Argentina, Uruguay and Luanda. Headquartered in São Paulo, the Brazilian Architecture Association (Asbea) has begun to promote Brazilian architecture abroad. One initiative

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Unique hotel in São Paulo, a project of architect Ruy Ohtake: city has more than 800 architectural firms, totaling around 10% of the creative companies is the creation of an international gateway with a virtual catalog of the main offices and their projects. The actions have the support of Apex-Brazil, the federal export promotion agency. In 2011, seven offices of the new generation of São Paulo architects exhibited their projects in New York, within the program “New Practices” developed by the American Institute of Architects (AIA). The invitation to the show came after a representative of the institute visited São Paulo, was surprised by what he saw and considered that the new offices in São Paulo, with less than ten years of activities, have much to teach, especially with regard to construction methods. The architecture and design sector accounts for 7.7% of the creative jobs in the capital city. It is responsible for around 16 thousand professionals - in-

cluding architects, urban planners, designers and decorators – in more than 800 offices in São Paulo, representing almost 10% of all creative businesses in the city, according to a survey published in 2012 by the Administrative Development Foundation (Fundap), with data from 2009. In amount of creative jobs it is the fourth most relevant sector, behind information technology, education and sound and video. Fundap’s study considers this business class to include services for the production of architectural prototypes. In the case of design, creative activities are classified as interior decoration, jewelry, gem-cutting, gold working and furniture design. The neighborhoods with the most companies are Pinheiros in the west end, Jardim Paulista, Itaim Bibi and Moema to the south. www.analise.com

Creative sectors

Performing arts

SÃO PAULO’S AGENDA INCLUDES PLAYS AND CIRCUS PERFORMANCES THE SECTOR IN SP Professionals employed Creative jobs Companies Creative companies

17,000 0,8% 466 5,5%

is included in the international tour of the French-Canadian troupe. The 2011 season, the fourth presentation of Cirque du Soleil in São Paulo, attracted 250 thousand spectators. São Paulo’s Carnival has increasingly gained prominence and has attracted more tourists every year. In 2012, carnival brought together 110 thousand people at the Sambadrome, of which 10.3% were tourists. Investments in artistic production, such as costumes and floats, accounted for R$ 35.3 million, up 31.2% over 2011. The companies of the sector that are operate in the areas of arts and entertainment, such as the production of plays, musicals, circus acts and popular events, are considered creative. It is not only the shows themselves but also activities related to the management of the areas where they take place, such as theaters, are also included in this category. The category also includes book clubs and collectors’ associations.

tuca vieira/folhapress

he performing arts sectors is one that contributes greatly to the cultural exuberance of the city, with its wide range of shows and presentations. In addition to plays, ranging from large-scale productions to alternative group presentations, the stages of the city are featuring more and more musicals, which have earned São Paulo the title of Brazilian Broadway. It also offers popular festivals such as Carnival, which has received more investments and is attracting a larger audience every year. São Paulo features around 600 plays a year. It is home to 280 theaters and seven houses for larger shows. It has

places for classical scripts and experimentation. With 54 years of activity, Teatro Oficina is one of the highlights of artistic activity in São Paulo. The group has helped to revolutionize Brazilian drama with controversial plays of several hours of duration and public participation. In 2011, it staged Macumba Antropófaga, inspired by the Manifesto Antropófago of Oswald de Andrade. The great musicals have become a favorite in São Paulo and are now a highlight in the city’s theatrical scene. Big productions, like Priscilla Queen of the Desert opened in 2012 in São Paulo after having been shown in New York, Australia and London. The Addams Family, A Fiddler on the Roof, Hair and Tim Maia – Vale Tudo were also applauded by the city’s audiences. Circus tradition is kept alive in the city, either through presentations of small companies that bring back the stories of the ring or as huge shows such as Cirque du Soleil. São Paulo

Municipal Theater in downtown São Paulo: overhaul of main stage in 2011 cost R$ 28 million www.analise.com

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Creative sectors

Visual arts and writing

A PLACE TO HOST THE CREATIONS OF SEVERAL LANGUAGES Professionals employed Creative jobs Companies Creative companies

2,800 2% 540 6,4%

anging from street graffiti to the works of renowned artists exhibited in galleries, São Paulo makes way for a variety of artistic creations. São Paulo has an important art market. It is the headquarters of the Biennale of Contemporary Art and it held, in 2012, the eighth edition of SP Arte, which has placed the city on the international art fair circuit. Graffiti, once seen as vandalism, has now earned the right to be shown in specialized art galleries that stand on par with other more renowned and traditional venues. A painting of artist Beatriz Milhazes, represented by Fortes Vilaça, was placed on sale for R$ 5.5 million in SP-Arte. Since 2010, 20 galleries were opened in the capital. The Biennial of Contemporary Art, based in the city, is one of the most important in the world. Since its inception in 1951, it has received more than seven million visitors and has featured more than 13 thousand artists. The 30th edition of the event was held in 2012. SP-Arte, the main art fair in the country, tripled in size since it was created in 2005. The eighth edition of the event, with 110 galleries, of which 27 were foreign ones, was held in May 2012. The public has defied expectations and has exceeded 20 thousand people. The fair also inspired the creation of two other similar events and the establishment of the Brazilian Association of Contemporary Art (Abact). Research by the association shows that US$ 18.6 million were exported by the galleries in 2011, US$ 16.4 million were traded by the São Paulo venues. Brazilian contemporary art has become gradually more in demand abroad and São Paulo also produces

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global artists. The brothers Humberto and Fernando Campana are the only Brazilians with pieces displayed at MoMa in New York and at the Museum of Decorative Arts in Paris. The duo likes to test new materials and use sustainable elements. Brothers Gustavo and Otavio Pandolfo, known as Osgemeos, are an example of this. They were raised downtown and began their career with graffiti on São Paulo’s walls. Their work now has international repercussion. In 2003, they held their first solo exhibition in San Francisco (USA). Two years later, their work graced the walls of the Deitch Projects gallery in New York. In São Paulo, they display their work at the Fortes Vilaça Gallery. The Campana brothers, Humberto and Fernando, are the only Brazilians to have their art on display at MoMA, in New

York and at the Decorative Arts Museum in Paris. The Choque Cultural Gallery has become a benchmark in pop culture and urban art. In synch with the new language used by the younger generation, it displays the work of new artistic genres. According to the research of the Administrative Development Foundation (Fundap), companies in the field of artistic creation in its different forms, including painting, sculpture, animation, technical and literary texts and photography are all considered creative in the sector of Visual Arts and Writing. The capital has 540 companies in the area, around 6.4% of the city’s creative units. The neighborhoods with the most companies are Pinheiros and Perdizes in the west end and Jardim Paulista and Itaim Bibi to the south. FREE STOCK

THE SECTOR IN SP

SP-Arte put the capital city on the map of international art fairs: the eighth edition welcomed 20 thousand people in 2012 www.analise.com

Creative sectors

Arts and crafts

VARIED HANDMADE GOODS ARE ANOTHER SHOPPING OPTION THE SECTOR IN SP Professionals employed Creative jobs

4,300 2,1%

raft fairs are part of the sightseeing route of the state capital. In a city with so many shopping options, fairs represent an option for those looking for unique and differentiated products. São Paulo is home to 43 weekend fairs that carry the products of many artisans. One of the biggest is the fair held at Praça da República downtown, which was first set up at the end of the 50s and currently displays the work of over 600 exhibitors. The Liberdade fair is one of the most traditional, held for 30 years at the stronghold of the city’s Asian

colony. Among the items sold are costume jewelry, pillows, lamps and Japanese bonsais. It also offers food stalls with typical dishes such as tempura and yakissoba. In addition to São Paulo Museum of Art (MASP) antique fair, Paulista Avenue also has a craft fair at Trianon Park, which offers ornaments, carved wooden objects and jewelry, among other items. Professional artisans are those who work with mosaics, weaving, jewelry and others that meet the criteria of the Brazilian Classification of Occupations (CBO). The craftsmanship is normally connected to the production of a professional who acts alone or in cooperatives, often not formalized. Therefore, the Brazilian classification of economic activities does not allow

arts and crafts to be defined from a corporate point of view. The neighborhoods of the capital with the greatest number of professionals working in the area of handicrafts are Bom Retiro and Sé in the center and Santo Amaro and Campo Belo in the south. In addition to traditional craft production, a new type of activity based on recycled materials has begun to arise. The so-called urban craft recycles waste, such as plastic and aluminum, to give origin to new objects. The originality of the products that use recycled materials is one of the differentials of the Social Store, which is part of the Program for Incentive for Fair Trade Network of São Paulo’s city government. Located downtown, the store sells items made by users of municipal health care services and social entities.

Sound and video

SÃO PAULO LANDSCAPES ARE THE BACKDROP OF SOAP OPERAS THE SECTOR IN SP Professionals employed Creative jobs Companies Creative companies

16,200 7,8% 723 8,6%

ith a setting for movies, soap operas and advertisements, the city of São Paulo has an important sound and video market. A number of factors favor recordings in the capital: diverse landscapes, trained and skilled professionals and a good technical park. The options for scenarios range from old to modern, including slums, luxury buildings and parks. To cut the red tape of filmmaking, the city has an entity to facilitate contact between producers and the government. The assistance of the Film Office (ECINE), created by the Municipal Secretary of Culture www.analise.com

of São Paulo is optional. To shoot in the city, a permit must be requested, predefined rates must be paid and the Traffic Engineering Company (CET) must be informed if traffic is to be compromised. In 2010 and 2011, 50 films were shot in the city in each year, including short, long and documentaries. Among the feature films shot recently in the capital are 2 Rabbits, Blindness and the Pass Line. In the international market, São Paulo is valued for its contrasts and can even be considered on par with first world cities. According to a survey by the Administrative Development Foundation (Fundap) related to São Paulo’s creative economy, services related to the audiovisual sector include, in addition to film production and exhibition, radio and television and video rental activities. The sector also comprises CD and DVD recording and the manufacturing of musical instruments, both handmade and mass produced.

The sector employs in the city 16,232 professionals, including set designers, broadcasters, commentators, writers, audio and video technicians, luthiers and musicians. Formal employment links represent 7.8% of the creative jobs in the city. São Paulo has 723 companies in the sound and video industry, concentrated mainly in the districts of Moema, Jardim Paulista and Itaim Bibi to the south and Pinheiros in the west end. The number of units represents 8.6% of the city’s creative companies. The region of Vila Leopoldina in the west end has become an important sound and video center in the city. The former industrial area has given rise to large warehouses that house studios and networks with equipment for filming and the editing of sound and image. The region was chosen by the companies due to the availability of large tracts of land and easy access for large trucks needed to transport materials. São Paulo OUTLOOK

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montenegro/editora abril

Readers at bookstore on Paulista Avenue: publishing sector is made up of 1.3 thousand companies in the city

Publishing and printing

EDITORIAL MARKET PRODUCES FOR BRAZIL AND ABROAD

ão Paulo’s editorial complex releases publications throughout the country and even abroad. The city has 21 daily newspapers. In the magazine area, it has 220 titles in publications affiliated to the Distribution Checking Institute alone. There are magazines aimed at different segments of readers, specialized in many areas such as fishing, motoring and decoration. Seven of the ten most read magazines in the country are developed by Editora Abril, which is based in the state capital. Abril published 54 titles in 2010, with a circulation of 196 million copies. Abril is the largest magazine printer in Latin America in production volume. Another prominent publisher is Editora Globo, which published 14 magazines in 2010, with 3.3 million copies published per month. Headquartered in São Paulo, the Folha Group is one of the largest media conglomerates in the country. It owns

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the Folha de S. Paulo newspaper, the most widely distributed newspaper, and has the largest printing complex in Brazil, Plural. The book market is also strong in the state capital. The 22nd International Book Fair of São Paulo, scheduled to take place in August in the city, is expected to welcome 800 thousand visitors. The 11-day event features the main editorial releases and a wide variety of book titles. In addition to bringing together representatives from the book production chain to enhance business, the parallel cultural programming attracts the general public, especially children and teenagers. The creation of comic books is a successful example. The Monica’s Gang comic books sold over a billion copies in Brazil and in 80 countries by 2011. The adventures of Monica and her gang are read by Chinese children since 2008. The author Maurício de Sousa has already created 200 char-

acters and has 2.5 thousand licensed products. His studio is the fourth largest in the world, with over one hundred artists producing about a thousand pages of comics per month. The publishing and printing sector includes the activities of the production chain of all types of printed materials such as books, newspapers and magazines. Also included are services of news agencies because of their direct connection with the production of printed material and for professionals with the same profile of those working in the publishing of newspapers and magazines.

THE SECTOR IN SP Professionals employed Creative jobs Companies Creative companies

www.analise.com

15,000 7,1% 1,300 15,9%

Creative sectors

Education and culture

OFFER OF COURSES ATTRACTS STUDENTS AND ART ENTHUSIASTS THE SECTOR IN SP Professionals employed Creative jobs Companies Creative companies

15,000 7,2% 662 7,8%

tivities such as dance and capoeira, among others. The west region offers Tendal da Lapa, a culture house that works in a warehouse of a former meatpacker and that provides courses in different genres of dance and visual arts. The education and culture sector also includes as creative activities those related to the teaching of art and culture, such as dance classes, theater, music and visual arts. The neighborhoods with the greatest concentration of education and culture institutions are Moema, Vila Mariana, Itaim Bibi and Jardim Paulista, all in the south end of the capital. It is comprised of 662 institutions and schools, which represent 7.8% of the companies with creative activities in São Paulo. In regard to the occupational aspect, 14,974 professionals, including teachers and course instructors work in these areas. This number corresponds to 7.2% of the creative jobs that exist in the city.

Eduardo Knapp/Folhapress

ão Paulo stands out in the offer of courses in various areas of expertise. Universities, specialized schools and free courses attract students from various parts of the country and even abroad. Those who want to learn or improve themselves in activities related to the arts will find several options in the capital. The teaching of languages, which are also part of the activities considered to be creative, is in frank expansion in the city. With the rise of class C driven by the good economic moment that the country is experiencing, investments in education are increasing. Furthermore,

the proximity to the completion of the World Cup in Brazil in 2014, has caused increased demand for language courses. The forecast is that the language training sector will grow 30% to 40% a year until 2014. English and Spanish courses are the most popular and there are many options of duration and price. But São Paulo stands out for the variety of languages that can be learned in the city. The Center for Language and Culture and the Yuan De Chinese Mandarin Institute offer courses in Mandarin, a language that is very valued by the market. Those who want to learn Russian, can enroll at the Russian Culture Club or at Yázigi. The city government also offers free options for language courses in 20 Culture Houses based in the capital. Courses are offered free of charge in languages, drawing, painting and music. These areas also offer workshops that provide approximately 6 thousand positions throughout the city, with ac-

Trapeze lesson at circus school: São Paulo has a vast array of specialized schools and creative courses www.analise.com

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Creative sectors

Cuisine

AWARDS CONFIRMS THE CITY’S FINE DINING VOCATION

THE SECTOR IN SP Professionals employed Creative jobs Companies

131,000 2,85% 12,500

thousand bars, ranging from corner pubs to contemporary houses offering sophisticated drinks and nibbles. Bakeries, a traditional meeting place in São Paulo, are becoming increasingly more diverse. In addition to the Brazilian buns, they offer snacks and meals. A total of 3.2 establishments are based in the capital, selling 10.4 million loaves a day. Those who prefer to stay home instead of eating out also have an array of options. The city offers 2 thousand home delivery services. Only in pizzerias, São Paulo has 1.5 thousand producing 1 million pizzas a day. The

city even has a Pizza Day celebrated on July 10. The restaurant industry and other food and beverage service areas account for 140.5 thousand formal jobs in the city of São Paulo, a 3.04% share of the total employed population of the capital city. Although the food is not listed as one of the creative industries in the survey conducted by the Administrative Development Foundation (Fundap), the area is considered an indicator of creativity in cities, for its ability to generate new products and services. The Creative Cities Network, organized by UNESCO has seven sectors, one of which is cuisine. Currently, the network consists of 28 cities on four continents. More than twenty other cities await assessment to join the Creative Cities Network. São Paulo has the potential to integrate the group as a city of Cuisine. zé carlos barretta/folhapress

hat do São Paulo, Copenhagen, Modena and Madrid have in common? The four cities are home to the five best restaurants in the world, according to the ranking of British magazine Restaurant. In 2012, the São Paulo-based restaurant D.O.M. of Chef Alex Atala, rose from seventh to fourth position in the list. It was the first time a Latin American restaurant was ranked among the five best in the world. France, historically regarded as an example of fine dining, has no representative in the top ten list. The award gives preference to bold and inventive chefs. Another restaurant in São Paulo improved its placement on the list. Maní of Helena Rizzo and Daniel Redondo rose from 74th place in 2011 to 51st place. São Paulo has no less than 12.5 thousand restaurants representing 52 world cuisines. It is also home to 15

Inside of Taberna 474 in the downtown region of São Paulo: city offers more than 27 thousand bars and restaurants

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www.analise.com

Creative sectors

Computers

TECHNOLOGY INDUSTRY ACCOUNTS FOR 44% OF THE CREATIVE JOBS THE SECTOR IN SP Professionals employed Creative jobs Companies Creative companies

92,000 44,1% 2,400 29,6%

he computer sector is the crowning glory of São Paulo’s creative economy. According to a survey conducted by the Administrative Development Foundation (Fundap), the area ranks first in the ranking of people employed in creative occupations. Almost half of all creative workers in the city are employed in computer-related industries. In 2009, 92 thousand working professionals, including software engineers, systems analysts, programmers and computer technicians, totaled 44.1% of the creative jobs in the capital. A combination of factors favored

technology companies in the state capital. Besides relying on major universities and a large supply of skilled labor, the city promotes exchange and partnership with companies in other sectors. In São Paulo, for example, businesses are close to the advertising market, which is investing heavily in electronic content for advertisements and for partners. One of the factors that encourage the opening of start-ups is the low investment required for the business, such as call centers and computers since the work can be performed remotely. Small businesses are involved with software development, gaming and web technologies. One of the main highlights of the industry is games production. São Paulo is home to the largest companies. With the international financial crisis, foreign companies in 2011 began to show interest in investing in the city. Large companies have opened offices in the

capital to oversee their operations in Brazil and Latin America. São Paulo has 2,500 companies ranging from subsidiaries of giants of the sector. With the increasingly intense use of technology and the popularization of computers, the trend is that the sector will continue to grow. According to the Brazilian Institute of Geography and Statistics (IBGE), the Gross Domestic Product (GDP) grew 2.7% in 2011 compared to the previous year and the computer sector registered the highest growth rate, 4.9%. The government of São Paulo is developing laws to improve the competitiveness of companies based in São Paulo city in areas such as technology research and the new law is being called the Municipal Innovation Law. The work is being conducted by the City Council for Science, Technology & Innovation, which has started to draw up a draft.

Fashion

CITY IS INCLUDED IN THE INTERNATIONAL FASHION CIRCUIT THE SECTOR IN SP Professionals employed Creative jobs

8,400 4%

ão Paulo Fashion Week consolidated the fashion calendar and has turned the capital into a trendsetting center. In addition to providing the supply chain of the sector, generating business and jobs, the event has a cultural side. With SPFW, the capital has joined the international circuit of fashion alongside Paris, Milan, London and New York. With two editions a year, the event brings together the creations of the most renowned designers. The first Brazilian fashion week, held in 1996, had four shows and an audience of 300 people. Since then, it has evolved and become more professional. Two ediwww.analise.com

tions are held every year to introduce the spring-summer and autumn-winter collections. Each one has about 50 runway shows, followed by 100 thousand guests on average. In 2008, the group was bought by Inbrands, a holding company for luxury brands. The deal spurred professionalization and market growth. The event turns over about R$ 1.5 billion in the city. Around 38 thousand tourists from Brazil and abroad come to São Paulo to take part in the event and spend around R$ 85 million in the city. SPFW receives, every edition, about 150 representatives of large retail chains in Europe, America, Middle East and Latin America. Investments in infrastructure are R$ 11.7 million per year, plus R$ 15 million for the direct investments of brands and designers. The production of the event involves nearly 4

thousand professionals from different areas such as transport, security and lighting, plus 2 thousand media professionals including filmmakers, journalists and photographers. São Paulo’s designers are also successful abroad. Carlos Miele presented his collections in the fashion weeks of New York and London. Alexandre Herchcovitch also participates of the event in New York and Paris. The fashion sector includes technicians involved in product development, seamstresses, tailors, pattern makers and models to show off the garments and accessories. A total of 8,424 formal workers are employed by the fashion sector. The neighborhoods with the greatest concentration of workers in the sector are Barra Funda in the west, Bom Retiro and Brás downtown and Itaim Bibi to the south. São Paulo OUTLOOK

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Creative sectors

Heritage

CONSERVATION AND RESTORATION SERVICES HELP PRESERVE THE CITY’S MEMORY THE SECTOR IN SP Professionals employed Creative jobs Companies Creative companies

8,000 3,9% 36 0,4%

he city of São Paulo was founded in 1554 under the name of Piratininga. It transformed into the Province of São Paulo and is now home to 11 million inhabitants. Since its foundation, it maintains the buildings of Patio do Colégio located downtown. Several other buildings raised in the last 458 years help to tell the story of the village that turned into a metropolis. São Paulo has about 2 thousand listed properties. São Paulo has 110 museums and 88 libraries. The city’s history is preserved in São Paulo’s Historical Archive, which holds the documents considered the oldest in Latin America, comprised of the Minutes of the Board of Santo André da Borda do Campo (1555). The institution also has

custody of four million documents. It is difficult to specify the date of creation of the entity, but it is estimated to have been opened on January 7, 1899 together with the establishment of the General Secretariat. For the training of professionals, the Catholic University of São Paulo (PUC-SP) offers a Conservation and Restoration Technology course, which trains specialists to oversee the work to protect the historical heritage. The city also has the Paulista School of Restoration, which has training courses for skilled labor and free courses for those who want to specialize in the subject. The University of São Paulo (USP) maintains the Center for Cultural Preservation, which works with the collection, conservation and research of cultural heritage. The sectors that are considered creative are related to preservation and conservation of goods, including libraries, archives, museums and art restoration services. Also included are activities related to the conservation of zoos, botanical gardens and protected environmental areas.

Research and development

CAPITAL CITY IS A BENCHMARK IN SCIENTIFIC RESEARCH THE SECTOR IN SP Professionals employed Creative jobs Companies Creative companies

10,400 5% 102 1,2%

he city of São Paulo is home to the most important universities and research centers of the country. The University of São Paulo (USP) alone accounts for one quarter of Brazil’s scientific production. The institution is among the 70 institutions of higher education with

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São Paulo OUTLOOK

the best reputation in the world. In the Biosciences Institute of USP, the Center for Human Genome Studies, which conducts research on genetic diseases and stem cells, is a national and international benchmark. In the private sphere, the city has centers of excellence. The Sirio-Libanês Hospital maintains research centers in the area of stem cells, diagnosis and treatment of cancer and pain. The Albert Einstein Hospital also has an experimental research sector. The research & development sector is included among the activities considered creative because it produces knowledge, goods and services that

are covered by intellectual property. The companies that are considered creative in the sector of Research & Development are those that operate in the fields of research in physical and natural sciences, including medicine, biology, physics, pharmacy, astronomy, agronomy, and earth sciences, among others. It also covers research in social and human sciences, such as sociology, economics, psychology, law, linguistics, art and archeology. As such, it includes also the production of research institutions and laboratories in all areas of expertise. The sector accounts for 10,432 formal jobs. www.analise.com

Fernando Donasci/Folhapress

Bronze statue on the façade of the Municipal Theater: the city’s cultural heritage includes 110 museums

Publicity and advertising

CENTER OF GLOBAL EXCELLENCE IN ADVERTISING PRODUCTION THE SECTOR IN SP Professionals employed Creative jobs Companies Creative companies

19,600 9,4% 1,200 15%

ão Paulo is the headquarters of Brazilian advertising. In 2011, the local agencies reached an all-time record of Lions awards at the Festival of Cannes: 67, including six gold. With offices in the southern city of São Paulo, AlmapBBDO was chosen as the Agency of the Year for the www.analise.com

second consecutive year. The five largest global advertising agencies - WPP, Omnicom, Publicis, Interpublic and Dentsu - have offices in the city. Altogether, the city of São Paulo has 1.2 thousand advertising companies, around 15% of all creative businesses based in the city, according to a survey conducted in 2009 by the Administrative Development Foundation (Fundap). The neighborhoods of Jardim Paulista, Itaim Bibi and Moema to the south and Pinheiros in the west end are the favorites of the publicity agencies. In the ranking of creative sectors that most employ people, advertising ranks

second in São Paulo, behind only the computer and information technology segment. It employs 19,633 professionals among advertisers, market research analysts, advertising editors and managers. The sector consists of publicity agencies and also includes activities directly related to advertising, such as sales promotion, creation of stands for fairs and consulting. Services related to the marketing of advertising space does not belong to it because it does not represent work defined as creative. The city concentrates large Brazilian and multinational companies and, therefore, the largest advertisers. 0 São Paulo OUTLOOK

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THE CREATIVITY MAP OF SÃO PAULO See why São Paulo is one of the world capitals of arts, cuisine, entertainment, culture, fashion and many other areas

EDUCATION

SÃO PAULO

11.2 million inhabitants R$ 389 billion of GDP in 2009 12% of wealth produced in Brazil 10% Creative Economy in GDP

SIT

FO R

MERS

CONSU

Out of the 59 streets dedicated to specialized trade, the most popular one is 25 de março street. It is visited by 1.5 million people a day in the festive seasons.

EPT

R$ 420 million

AND FUNDI REC

DIV

More than 21 million people frequented the 240 cinemas of the capital amounting to

INCENTIVE

26 25 24 23 23 22 21 20 19 18 17

Index of cultural vibration assesses factors such as quality and variety of theater performances, films, cuisine, among other. Source: PriceWhiterhouseCoopers.

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EA TIV

ITY

São Paulo is one of the largest colonies of Italy, Japan, Lebanon and Portugal.

TOP WORLD CITIES IN CULTURAL VIBRATION New York London Los Angeles Berlin Peking Paris Tokyo San Francisco Sydney Chicago São Paulo

IVIT

DESCENDENTS OF SAO PAULO'S LARGEST COLONIES 6 million

Immigrants from South American countries, such as Bolivia and Paraguay, began to arrive in the city at the end of the 90s. São Paulo is home to 250 thousand Bolivians and 80 thousand Paraguayans.

2 million 1 million 160 thousand Italians

Lebanese

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Japanese

Portuguese

Technology is the most popular course among the creative

LARGEST SCIENTIFIC PRODUCTION IN THE WORLD

courses and is offered by 61 São Paulo-based universities.

São Paulo 2003 2008

43 institutions offer degrees in Publicity and Advertising and the sector is a benchmark in São Paulo. In addition to the 404 awards in Cannes, the capital has 43 of the country's 50 largest agencies.

São Paulo University accounts for most of the scientific production in São Paulo and for 25% of Brazil’s production.

38th city 17th city

TOTAL OF GLOBAL SURVEYS Brazil 2003 2008

1,3% 1,6%

Source: UK's Royal Society Science Academy.

R$ 12.5 million will be invested to build nine Factories of Culture in São Paulo to create 1.4 thousand openings in cultural studios for children and teenagers from 8 to 19.

THE LARGEST OPEN-AIR EVENTS WELCOME MILLIONS: The Lesbian, Gay, Bisexual and Transexual (LGBT) Pride Parade reached its 15th edition with 4 million participants. The eighth Virada Cultural weekend welcomed 4 million people. Almost 12 million tourists come to São Paulo every year, of which 1.6 million are foreigners.

SESC em São Paulo welcomed in 2011 17.5 million people in its 36 units MAIN RECIPIENTS OF ROUANET LAW IN 2011 Midwest: 2.9%, South: 11% 33 million reais 124 million reais WORLD VISITORS In millions of tourists 20 18

London

Paris

São Paulo

Northeast: 5.5%, 62 million reais

North: 0.4% 4,2 million reais

Southeast: 80,3% SP: 43%, 487 million reais RJ: 28%, 315 million reais

900 fairs of arts & crafts, art and antiques are held in São Paulo. EXHIBITORS AT THE SP-ARTE FAIR 2005 2011

EVOLUTION OF PUBLIC AT SP ARTE Public in thousands 15 12

41 110

7 The Clean City law changed in 2011 to allow graffiti and murals on the façade of buildings.

www.analise.com

2006

2008

2010

São Paulo OUTLOOK

2012

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Global References

In search

of creative

complexes How some of the world’s largest cities are investing in creative activities to fuel their development

he creative economy accounts for 7% of all the wealth produced in the world and it grows on average 10% per year, according to data from the United Nations agency, Unctad, responsible for trade and development. According to the entity’s assessment, creative activities are also underused “wasting the great potential to generate economic resources and jobs in the industry, despite the rich cultural heritage and an inexhaustible talent base,” in addition to enabling less waste production and pollution as compared with the more traditional sectors of the economy and to contribute to revamping degraded metropolitan regions. The potential for growth and the advantages of the creative sector have led many cities to develop an aggressive policy of incentives in their long-term planning. Among them, some created models of creative development, mainly starting in the 90’s, that

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are used as examples for other parts of the world. Six of these examples are shown on the next pages. The experiences of Berlin, Buenos Aires, London, Barcelona, Amsterdam and Montreal indicate a series of possible paths. Some cities have incentive laws for the creative industries and established public policies while others depend more on the private sector and rely on the strength of entrepreneurs, companies and entire economic sectors that are seeking funding and new markets. Regardless of how, the consequences of this creative boost are very interesting to the cities. Among the many positive side effects, especially if combined with other public policies, is the introduction and expansion of educational institutions and a resulting improvement in the training of labor, the arrival of new residents and businesses opening offices that help to recover degraded areas and ease the difficult process of urban planning redevelopment. An enhancement in other areas, such as tourism, and the increase in creative exports can also lead to the creative effort of the cities. www.analise.com

juergen richter/getty images

Global References

Casa Batlló of architect Antoni Gaudí in Barcelona, Spain: The Olympic games were the springboard for renovation www.analise.com

São Paulo OUTLOOK

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Global References

Reconstruction after the fall of the wall In numbers inhabitants GDP 2010 (US$) Creative economy in GDP

3,5 mln 126 bln 16%

he fall of the Berlin Wall in 1989 unified a destroyed city. Both systems of government that divided the same city generated harmful economic consequences for the German capital. The withdrawal of traditional Berlin industries from sectors, such as mechanical engineering, machinery and equipment and food, was particularly traumatic. The 1990s saw the German capital having to cope with mass unemployment. Estimates indicated the disappearance of 300 thousand to 400 thousand jobs between 1990 and 1995. At this point, the city took a risky decision - to look towards the future instead of trying to revive the past. The target of the reconstruction was not to bring back the Berlin of pre-World War II, which lived off heavy industry but a creative metropolis that would be able to generate results and create jobs by investing in the initiatives of sectors which were almost ignored before such as fashion, design, music and arts. The change began in 1997. The city’s governors created Projekt Zukunft (Project Future) that relied on tax reductions and exemptions, improvements in the city’s infrastructure and the creation of a multi-discipline group to increase the creation of jobs in creative niches that were interesting for the city. There was also a more discrete goal to restore the aura of Berlin, which in the 20’s and just before WWII, was one of the cultural capitals of Europe and the world. According to Eva-Emenlauer Blomers, project director of the Department of Economics, Technology and Research in Berlin and a director of Project Future, the greatest challenge was

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to make room for other sectors such as technology, communications and media to flourish in the city. “Berlin had to make the transition from the industrial to the information society and this was the direction we chose,” she said, at an event on the creative economy held at SESI in São Paulo. Divided into three main phases, the project began by modernizing public Berlin entities from 1997 to 1999. Schools, hospitals and governmental entities went through a modernization process based on public-private partners and received new equipment, in particular hardware for internet access. Then, from 2000 to 2003, policies to facilitate the arrival of new companies into the city’s creative economy and investments in new technologies such as digital television, information security and the creation of room for companies with call centers, multimedia production, electronic trade and electronic government went into effect. Since 2004, Berlin’s government has begun to invest in the adoption of clusters: a network of manufacturers and suppliers that serve different areas of the same niche within the creative economy. In total, the steps required €12 million. All the stages were monitored by a work group with professionals from various backgrounds. The aim was to ensure that through this mix of exper-

tise, several viewpoints could be addressed in search of a multiplicity of visions. After 14 years in operation, Project Future registered notable results, especially because the cabinet change did not shut it down. The turnover of the creative economy in the city more than doubled to €22.4 million, 16% of the total gross revenue produced by the city, while companies quadrupled in number to reach the current 30 thousand corporations and the employees hired by the industry rose from 65 thousand to 222 thousand in the period. Today, 40% of all of Berlin’s public funds are directed directly to the creative economy cluster - whether it is in technology, media, communications, design or others. One of the symbols of this turnover in the German capital was the Velotaxi, an evolution of the Indian Rickshaw combining sleek design, improved mobility, job creation and its ability to be environmentally sustainable. It has been used to transport visitors to the sights and landmarks since 2003 based on the driver’s strength since it is powered by pedals, as well as a small electric motor. The Velotaxi is made of recycled polyethylene and is equipped with 21 gears to enhance the efforts of the pedaling taxi driver. If it gets too heavy, an electric motor kicks in reaching speeds of up to 11 km/h. thomas peter/reuters

BERLIN

Art gallery in downtown region of the city is revamped www.analise.com

Thomas peter/REUTERS

Designer in hat store in downtown Berlin: the creative economy was responsible for generating US$ 22.4 billion German fashion week supports new designers – One of the main

successes of creative Berlin was the creation of a fashion week. Competing with heavyweight competitors from the four largest fashion hubs in the world, London, Milan, New York and Paris, the German capital has achieved great results by focusing more on street wear, which can be used daily by its inhabitants, instead of delving into haute couture which is the mainstay of the weeks of its rivals worldwide. The motto of the Berlin week has been to focus on new talent and its 2012 edition seems to have supported this choice. The event registered an all-time record by welcoming 400 thousand visitors and generating an estimated revenue of US$ 250 million by introducing newcomers to the www.analise.com

market that would otherwise have difficulty appearing in other weeks, but without leaving behind the world’s top

40%

of all public funds are directed from Berlin directly to the cluster of creative economy brands. Currently, the sector employs about 50 thousand people. Of these, some 600 designers who – supported by Project Future – received help

to sell their collections to Berlin-based retailers or to open their own stores. This whole industry is fueled by nine fashion schools based in the German capital, making Berlin the city with the highest concentration of fashion universities in Europe. The focus on young professionals and companies also enables the fashion week to address issues that are problematic to the fashion world industry. One of the main themes of Berlin’s 2012 fashion week was ecofashion and sustainable design. The idea of how to propose responsible consumption in an industry that profits from impulse buying is a touchy subject, but in Germany’s capital it found a strong foundation for exploration and for the emergence of new specialized companies. São Paulo OUTLOOK

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Global References

buenos aires Design as foundation for creativity In numbers inhabitants GDP 2010 (US$) Creative economy in GDP

12,8 mln 110 bln 10%

inflow of creative people who opened companies and brought new business to the city. Despite the relatively short time in practice, the policies of the creative economy have already managed to bring a number of creative businesses to Buenos Aires. “In 2004, there was no technology company in that region. At the end of 2011, it had 107,” said Avogadro, who gave a lecture on the creative economy at SESI in São Paulo in April 2012.”The south side of Buenos Aires is much poorer than the rest of the city and that is why we are working to renovate several neighborhoods as was done with CMD in Barracas,” he added. Between 2004 and 2009, the last year with details of the creative industries published by the city, the sector registered a growth of 54%, a rate higher than the 39% registered by the economy of Buenos Aires during the period. In 2009, the creative industries produced in Buenos Aires $23 billion sergey rusakov/shutterstock

he involvement of Buenos Aires as a creative economy is recent, the official policies for the sector only started in the middle of the 2000s. In less than ten years, it has accounted for US$ 11 billion in creative sales and the sector’s share in the gross domestic product doubled to 10%. The core of the creative project is the Buenos Aires Metropolitan Design Center (CMD), opened completely at the end of 2010 and which cost

$60 million (US$ 13.6 million) in nine years of construction and renovations. The 14 thousand-square-meter building replaced the old fish market in the neighborhood of Barracas in the impoverished southern region of the city, a few meters from Argentina’s main slum, Villa 21, and the polluted river of Riachuelo. In the space dedicated to design, CMD also houses the city’s foreign trade and creative sector office and 70 offices for the incubation of start-up companies (creative start-ups), classrooms, library, auditorium for events and presentations, exhibition hall and a cafeteria. In all, 1.5 thousand people work in the building. Enrique Avogadro, the general director of creative sectors and foreign trade for the government of Buenos Aires and the director in charge of Argentina’s design center, stated that in little over a year CMD was the spearhead for a strategy to revitalize the area, which was home to a group of abandoned buildings and to ensure an

La Flor Gigante, the symbol of design in Buenos Aires: creative companies generated US$ 11 billion in revenue

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www.analise.com

(US$ 5.2 billion), three times more than the $7.1 billion (US$ 1.6 billion) registered in 2004. Among the creative sectors that most grew in the five-year period are the sound and video (67%), creative and cultural services (64%), publishing, printing and phonographic sectors (28%) and drama and visual arts (25%). But the metropolitan design center is only part of Buenos Aires’ strategy for the creative economy. Policy incentives and tax exemptions for these sectors of the economy marked the beginning of the search for creative industries in the Argentine city. The most prominent current project is the multiplication of clusters in various areas of the city. The strategy, which combines creative economy with urban renewal and incubation of new businesses, relies on the offer of tax exemptions and subsidies granted by Banco da Cidade de Buenos Aires to encourage the arrival of newcomers. The start-ups receive support from the bank to pay half the cost of the quality certifications, for example. The initiative began with the cluster of technology that brought in just over two years, 80 creative IT companies to the region of Parque Patricios. In order to transform Buenos Aires into the Latin American capital of technology, the IT cluster expects to employ - in late 2012 - 30 thousand people. Currently, the cluster has 8 thousand employees. The next sector was the sound and video segment. In mid 2010, the Argentine government passed a law that required Argentine television channels to devote three hours a day to children’s programming and that half of them had to be produced in Argentina - which reinforced the local sound and video industry, increased the sector’s exports, which hit US$ 500 million in 2010, and made room for the creation of the Audiovisual district. Specifically for the music industry, the government promotes annually the Bafin - Buenos Aires Feria Internacional de la Musica. After it debuted in 2006, the fair enabled 160 local companies to make deals with 84 international music companies invited to the event. Another sector of the creative www.analise.com

Enrique Marcarian/reuters

Global References

Couple dances on street in Buenos Aires during open-air tango festival economy which had the creation of a cluster approved was that of design which will be located in the surroundings of Metropolitan Design Center (CMD) in Barracas. “We are thinking of the city for the next 50 years. We want to make the

is the participation of the creative industry in the total number of jobs in Buenos Aires whole city understand the importance of the creative economy and a key challenge is to show that this commitment cannot be of only one party,” added Enrique Avogadro, the general director of creative sectors.

The capital of design – In 2005, the cpital of Argentina was the first of the ten cities defined by UNESCO, the agency of the United Nations Organization dedicated to cultural and educational initiatives, as a heritage of design due to its projects and its dedication to the theme. Two years later, in 2007, the capital of Buenos Aires received the title, again by the same agency, of “City of Design.” Human capital is the main reason for this. Training courses, both undergraduate and graduate, took off in Buenos Aires and estimates show that there are over 15 thousand design students in public universities alone in the capital of Argentina, representing the largest contingent of students in this sector anywhere in the world. In addition to public schools, it also offers thirty private design teaching centers. As such, Argentine designers are currently everywhere in the city offering new ways to look at and produce clothing, furniture, industrial products, toys, graphic design, among other activities. São Paulo OUTLOOK

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Global References

Andrew Winning/REUTERS

LONDON The cradle of creative economy In numbers inhabitants GDP 2010 (US$) Creative economy in GDP

7.6 mln 694 bln 15%

ondon was one of the first cities in the world to adopt a structured policy for the creative economy. The first reduction initiatives and tax breaks for the niches of the sector began in 1997 and now the British capital is reaping the results. The creative sector is the second most representative of its economy with 15% of the value-added management total (amount equal to the gross domestic product minus taxes), which summed US$ 32 billion in 2011. Currently, the city is home to almost 40% of all the creative companies in the United Kingdom, 38 thousand of the 107 thousand companies of the sector registered in 2011. London accounts for a series of successful creative projects in the sector, which currently employs 400 thousand people. One of the main ones is London Fashion Week. The biennial event, one of the four largest fashion fairs in the world, debuted in 1984 and registered sales in 2011 of US$ 162 million, displayed the work of 150 designers and welcomed more than five thousand buyers. Another highly successful creative industry in London is audiovisual. The city’s multimedia hub employs 77 thousand people and has generated investments amounting to US$ 1.1 billion in the city for the production of films alone. London offered more than US$ 130 million of tax exemptions from 2008 to 2009 and has managed to attract blockbusters such as Iron Man and Sherlock Holmes. The sector began to be addressed directly by the labor government through culture secretary Chris Smith in 1997 and since then more than US$ 1.6 billion has been invested in the sector. The

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House decorated with graffiti: city is the cradle of the creative economy greatest leverage of the investments was the National Lottery. Through the lottery, London managed to reform and improve the infrastructure of its museums and galleries, such as the British Museum, the Science Museum and the Tate Modern, and increase investments in theaters such as Shakespeare’s Globe and in theater companies, operas, orchestras and ballets. London’s creative projects have also been successful in the redevelopment. The renovation of the docks in Shoreditch, which once was a port complex of the city in the 19th century, ensured that the region could once again become an important place in the 21st century by investing in technology companies. The neighborhood became home to 15 high-tech companies in 2008, a number that jumped to 512 in 2011. One of the companies of the region is Last.fm. There is promise of further development. The government forecast until 2015 is a venture funding of £200 million for businesses with high growth rates.

New opportunities with the Olympics – With the looming Olympics,

London wants to take a step further in its creative economy. The British capital wants to follow the example of Barcelona and use the flood of investments to end the vicious cycle of neglect and degradation that has taken over the east end of the city, which in the 19th century changed from a heavy industry complex to a cluster of trinket shops and abandoned buildings. East London is currently home to the least amount of residents and employed people of the city. With an estimated budget of US$ 4 billion, the projects for the preparation of the Olympics involve the construction of an Olympic park with 2.8 thousand new apartments that will be sold after to bring new residents to the region. The public transport infrastructure will also be revamped with highspeed trains out of the International station of Stratford to the European continent, new internal train services leaving the Olympic park and a specific subway line for the region. www.analise.com

Global References

Investment in creative and sustainable actions In numbers inhabitants GDP 2010 (US$) Creative economy in GDP

790 mln 50 bln 4,5%

ith a share of the creative economy in gross domestic product smaller than São Paulo’s, Amsterdam has the numbers to place it among the model cities in this area. The capital of Holland only begun to work with official projects in the creative economy in 2007 and it does not have the mountain of financial resources that its European counterparts have. The practice of the creative economy in Amsterdam shows that positive results can happen anyway. At the beginning of the benefit and tax exemption policy for creative companies in Amsterdam, the sector accounted for 2% of the gross domestic product of the city, a value that more than doubled in three years to reach 4.5% of GDP compared with the 10% of São Paulo that includes the sales of sectors such as gastronomy which are not part of the Dutch equation. Besides the result in creative sales, Amsterdam saw the amount of companies of the sector double to 2.2 thousand companies. In 2011 alone, more than 50 thousand jobs were generated in the sector, up 6% over 2010. The banner that Amsterdam chose for its creative projects was environmental sustainability. The fashion week, which happens twice a year in the city, triggered a series of initiatives to raise two flags - creativity and sustainability - in the city. Ecofab was the project that registered the best results. Created in 2010, it was created to recycle old clothes through several donation points spread around the city. Ecofab encourages the creative economy by awarding points for donations that can be redeemed in Ecofab fashwww.analise.com

ion stores - which are supplied by the designers who display their garments at fashion week. Another interesting initiative is the “green fashion” contest. This contest, which is the world’s first and was launched in 2011, aims to find new talent and encourage the use of sustainable fabrics. Among the many examples, design company Krejci was highlighted for using old tires that would otherwise go to waste at the hundreds of bicycle body shops of Amsterdam, the bike capital of the world. After participating in Amsterdam Fashion Week, Krejci managed to create its online store and enter the Dutch market. The good results have ensured the company’s presence at design fairs worldwide. The Dutch capital has a festival of green films and documentaries dubbed Strawberry Earth. The annual event screens films on the subject and offers seminars to discuss ways of transforming the sound and video

industry into a more sustainable activity. The highlight of Strawberry Earth festival is the “Green Film of the Year” contest, which awards the filmmakers of short ten-minute films with €20 thousand. Green fashion – The green prod-

ucts created by the Amsterdam Fashion Week are already coming to market. Environmentally sustainable footwear, created in 2011, is a prime example. Biodegradable sneakers developed in the capital of the Netherlands took second place in the Green Fashion Award as most innovative product. Shoes made by OAT footwear can be buried after aging and are made from a material that is not harmful to the environment. The sneakers have seeds in their soles so after they are buried and have decomposed, they sprout a tree. The collection has sold more than €15 thousand. The product is sold on the internet and costs, on average, €140 to 150. Helen King /Latinstock

Amsterdam

Biker in Amsterdam: city is a global benchmark in sustainable creativity São Paulo OUTLOOK

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Global References

Montreal Technology and science In numbers inhabitants GDP 2010 (US$) Creative economy in GDP

3.8 mln 103 bln 14%

he Canadian city of Montreal invested in advanced technology to incorporate the creative economy. The first initiatives began in the mid-90’s with the construction of a complex with two towers to shelter the first technology and science companies. The project involved tax breaks for companies that moved there. In 2005, 2.7 thousand companies in these sectors were attracted to the sector. An amount that rose to 5 thousand in 2010 and generated an estimated turnover of US$ 9 billion. Over two decades, the advanced technology sector flourished in Montreal under the name Montréal Technopole and took over an area of 15 blocks, replacing old abandoned buildings and warehouses for creative offices. From 2008, Montreal started to gain prominence in video game production, attracting subsidiaries for the development of large companies of the sector such as Ubisoft, Eidos and Electronic Arts. One of the main attractions for the companies is the availability of qualified labor, a problem faced by games manufacturers in almost all markets. The reason for this is that Montreal has more than 15 graduate courses in games. The first international games fair in the city, the Montreal World Video Games, which is expected to attract 50 thousand visitors and over 2 thousand industry participants, is scheduled to take place in 2013 and is expected to generate US$ 8 million in business. From 2012, the city government of Montreal will take this creative development model to another level: scientific research and development. To do so, US$ 2 billion will be invest-

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ed by 2015 to create the Quartier de l’innovation (innovation district). The goal is to create a cluster composed of private companies, universities and scientific organizations to encourage the emergence of new technologies and innovative start-ups, creating a meeting point for science, academia and business, inspired by California’s Silicon Valley. Design is the next step – Design accounts for the second largest share of the niches of the creative economy of Montreal and in 2010 represented US$ 750 million and employed 22 thousand people. These numbers are the result of an old policy in favor of design that started in 1991 after the creation of the design commissioner

office. In 2006, the Design secretariat was created in Montreal with tax exemption policies to attract companies. In addition, Montreal awards the best ideas in design in the Commerce Design Montréal contest, established in 1995 and that receives the international Montreal International Interior Design Show and offers annually in May, the month of design, a series of design events such as lectures and debates. The dedication led to international recognition. In 2006, the city became one of the ten cities defined by UNESCO, the agency of the United Nations Organization dedicated to cultural and educational initiatives, as the city of design. Since then, Montreal continues among the ten cities of design in the world after Buenos Aires.

Jazz festival in Montreal in 2011: creative workers accounted for US$ 9 billion www.analise.com

Global References

Barcelona Urban renovations inspired by Olympics In numbers inhabitants GDP 2010 (US$) Creative economy in GDP

3.2 mln 177 bln 25%

he creative drive of Barcelona began with the 1992 Olympic Games. The majority of the investments were aimed at the city’s infrastructure, such as the real estate overhaul that occurred in the four-ki-

Perry Mastrovito /Latinstock

www.analise.com

lometer stretch along the beaches, previously populated by abandoned warehouses and low-yield factories. After a series of city redevelopment projects aimed mostly at the construction of Olympic apartment buildings, the region changed its appearance. The city of Barcelona, which in 2011 had about 25% of its GDP deriving from creative activities, used the 1992 Olympic Games as a springboard to start a process to recover the city, targeted at reforming old industrial neighborhoods in order to encourage creative professionals and companies to move in. The first official step occurred in 1996 with a series of policies for tax exemption and breaks for the many creative niches. The city began to allocate 8% of its total revenue to the creative sector, whether through the various government support entities or via direct contributions of venture capital funded by the city of Barcelona itself. Started in 2000, the @ 22Barcelona project has become a global benchmark in urban revitalization. The government of the Spanish city invested €180 million to renovate Poblenou, an industrial neighborhood that housed large factories until the 70s and that can be compared to the Brás in São Paulo. At the beginning of the initiative, around 3.5 thousand companies set up shop in the region. In 2011, the number jumped to more than 7 thousand and 4.5 thousand are startups. It is estimated that the district has received since 2000, 56 thousand workers to work in the creative sector, a total that should reach 150 thousand by 2015. The renovation of the old industrial area generated a positive effect in the district of Poblenou which witnessed a veritable population boom: an increase of 26 thousand residents in 2000 to around 90 thousand in 2011. This 12-year project is in line with the target to transform the place into a creativity and technology complex. And it seems to be working. The revitalization process has reached over 70% of the district of Poblenou. Three of every ten companies in the area operate in the scientific, research & development or tech-

nology area. The volume of economic activity of these new companies reaches US$ 12 billion a year. According to Jordi Pardo, coordinator of the Tourism and Culture Laboratory of Barcelona Media, the Olympics were the kickoff for the creative change that is still ongoing in the city. He pointed out, however, that the positive results were only reached because the Games were linked to a long-term vision. “Instead of giving priority to the Olympic area, something that ends in a few months, we worked so that the whole region could benefit. And most importantly, the personality of Barcelona was respected,” he said. Barcelona is studying an urban and economic development model for neighborhoods beyond Poblenou. With investments of €4.5 million, a government project wants to expand the logistics and transport of the east and west regions of the Catalan city. The first phase of the initiative aims to expand the international airport, El Prat, integrate all modes of transport in the city with the Sagrera station and expand the rail infrastructure. The idea is to turn the entire city into a major hub of innovation that goes beyond the region of Poblenou. City invests in full fiber optics coverage – Barcelona’s creativity

now heads towards technology. During 2011, the city council in partnership with the University of Catalonia and private companies are investing in fiber optics to offer speeds that are 10 times faster than traditional cable and to generate 5 thousand direct jobs. The city governments expectation is that the city will be connected with optical fiber until the second half of 2012. The project arose from the city’s technology cluster. Created in 2008, the TIC cluster is one of the most successful in Barcelona and is coordinated by the Barcelona Digital Technology center. A combination of training center and business incubation start-ups, it currently has 50 research & development projects in the sectors of technology-oriented healthcare (eHealth), sustainable energy, information security, food and environment. In total, the project cost € 3 million. 0 São Paulo OUTLOOK

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CREATIVE

PEOPLE

The profile of some of São Paulo’s top professionals, who used their creativity to build their careers and create companies

THE CARTOONIST Cartoonist Mauricio de Sousa began his career in 1954 as a crime reporter for the Folha da Manhã newspaper. In downtown São Paulo, where the second largest newsroom in the country is located, he created the fictional neighborhood of Limoeiro and Turma da Mônica, a group of characters who paved the way for the creation of the fourth largest comic book studio in the world and the largest in Brazil. In 1959, when he decided to start his career as a cartoonist, he participated in the creation of a

children’s supplement for the Folha de S. Paulo newspaper, Folhinha, and Estado de S. Paulo, both of the country’s largest newspapers. Mauricio de Sousa Produções has about 200 designers and more than 400 characters, producing cartoons for national and international networks and product licensing. His studio has also been involved in the creation of theme parks and feature length films. At 76 and the father of ten children, Mauricio’s creations have been translated into over 50 languages.

Guilherme Gomes/Anรกlise Editorial

Claudio Rossi/Análise Editorial

THE BUILDERS São Paulo is a city of almost 12 million people in constant growth and in recent years has witnessed a jump in its real estate activity. In 2011 alone, it accounted for US$ 30 billion in sales. The need to renovate and build new homes generates an urban sprawl, a phenomenon common in fast-growing centers with rising income. Octavius Zarvos (left), owner and one of the developers of Idea! Zarvos, is one of São Paulo’s businessmen who has

since 1990 put some order to the urban sprawl and, at the same time, created a new generation of buildings for the city. Many of the company’s projects are signed by internationally acclaimed architect Isay Weinfeld (right) and the winner of major awards, such as that granted by British magazine Architectural Review. The W305 building, pictured, is one of these joint projects and is located in the neighborhood of Vila Madalena, west of São Paulo.

Rodrigo Schmidt

Creative people

THE MUSICIANS Entertaining and educating children is no easy task, but Palavra Cantada knows how to make everything more fun. In almost 20 years of career, Paul Tatit and Sandra Peres created a brand that became a reference in children’s entertainment. The duo has more than 12 awards under their belt, including the best children’s CD granted by the Brazilian Music Award in 2008. Even before this project, the partners were working on musical productions. Tatit was part of the Rumo Group, one of the www.analise.com

bands at the forefront of the São Paulo scene in the 80s. Sandra is a pianist and has participated in concerts since the age of 17. They could have furthered their careers but decided instead to devote themselves to children and creating songs that respect the child’s intelligence and encourage learning. They have produced more than 150 tracks, 14 CDs and six DVDs. One of Palavra Cantada’s songs is “Criança Não Trabalha,” created in collaboration with composer Arnaldo Antunes.

“

Behind every small fan of Palavra Cantada, there is always an informed father or mother tuned in to what their children are thinking, feeling and consuming

”

Paulo Tatit São Paulo OUTLOOK

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The creative economy encourages professionals to improve their work, besides being a good development strategy for the country

THE DESIGNERS São Paulo-born Sergio Fahrer (to the left) and his brother Jack are among the heavyweights in Brazilian contemporary design. Sergio won the Design Biennial prize in 2006 and the 2006/2007 IF Award for the furniture designs that he creates at his studio in Vila Madalena and produces at his plant in Barra Funda. With 15 years of experience, his work is guided by organic design and the use of certified wood and other materials. Sergio has exhibited his pieces in trade fairs in Germany, Argentina, United States, France and England. One of his most prominent creations is the chair, Blues, made from a technique of multiple wood laminates. He can be found in São Paulo every afternoon at his store in Vila Madalena, the district that is home to most of the creative activities of the city with over 90 shops, studios and workshops.

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Sergio Fahrer

Guilherme Gomes/Anรกlise Editorial

Guilherme Gomes/Análise Editorial

Creative people

THE CURATOR Since the 80s, most of the streets of São Paulo city have turned into openair art galleries, thanks to the work of graffiti artists, like Alex Vallauri, Carlos Matuck, OsGêmeos and Binho Ribeiro. Recently, graffiti has become more popular in specialized art galler-

ies, is now valued as a work of art and has gained market value. One of the first galleries to encourage and promote street art was Choque Cultural, founded in 2003, in the district of Pinheiros. This gallery’s walls are never white, informality reigns and the pric-

es range from R$ 50 to prints worth R$ 50 thousand for original work. By 2011, 120 street art’s exhibitions had taken place there. One of the founders is Baixo Ribeiro, a fashion professional and enthusiast of skateboarding, rock and graffiti.

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Choque Cultural was born to connect artists and collectors. Through collections it can encourage street art and expand production

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Baixo Ribeiro São Paulo OUTLOOK

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Claudio Rossi/Análise Editorial

THE PUBLICIST São Paulo is home to Brazil’s main domestic and international advertising agencies. And when referring to this sector, Luiz Lara is one of the top names to be mentioned. Along with Jaques Lewkowicz, he founded Lew’Lara\ TBWA, the third agency to gain the most customers in 2011, according to a survey conducted by Meio & Mensagem. In charge of the positioning of major brands such as Nokia, Banco Real and Tim, Lew’Lara partnered with TBWA of the Omnicom Group, and today has over 200 employees in 77 countries. The executive is also at the head of the Brazilian Association of Advertising Agencies (Abap), the largest organization of the sector in Latin America. In 2012, Lara was in charge of the V Congress of the Communication Industry, which brought together industry leaders to discuss policies and advertising standards.

THE CONSULTANT Reis. With 15 years experience in administration, economics, culture and marketing, she decided to study the creative economy and has become a leading authority on the subject. Ana has taken part in conferences in over 20 countries and published several books, among them, Economy of

Culture and Sustainable Development – The Kaleidoscope of Culture, winner of the Jabuti award in 2007. She founded Garimpo de Soluções, a consulting firm that enables programs and business in economy, culture and development. She is also a UN consultant and professor at FGV-SP.

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Creative cities have three characteristics: innovation in problem solving, connections between different areas and culture

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Ana Carla Fonseca Reis

Guilherme Gomes/Análise Editorial

The concept of a creative economy first appeared in Australia, but only gained popularity in the UK. In Brazil, the first mention was at the meeting organized by Unctad, the UN conference on Trade and Development. One of the experts on the subject is São Paulo-born Ana Carla Fonseca

Fábio Guinalz/Fotoarena/Folhapress

THE PRODUCER In less than 20 years, São Paulo Fashion Week (SPFW) has become the fifth largest fashion week in the world, second only to Paris, Milan, New York and London. With two editions a year, the event features more than 60 designers, is viewed by nearly one million people and turns over around R$ 2 billion. One of the largest contributors to SPFW is Paulo Borges. Since its first edition in 1993,

named Phytoervas Fashion, the event owes its current scale to the efforts of this producer. Borges was born in 1963 in São José do Rio Preto, São Paulo and began working with fashion in Vogue magazine. Currently, he is the partner of the Grupo Luminosidade, a company established in 1995, responsible for the production of many events, like SPFW, Hot Spot, Fashion Rio and Rio Summer.

Germano Luders

THE ENTREPRENEUR S達o Paulo is the greatest cultural complex of the country, hosting more than 90 thousand events a year. And one of the leaders in the entertainment industry in the metropolis is Fernando Alt辿rio, CEO of Time For Fun. The entrepreneur got his inspiration from the Canec達o in Rio de Janeiro and then built his first major concert hall in the city, the former Palace. He also opened Credicard Hall, the largest venue in Latin America, with the capacity to seat around 4.5 thousand. Alterio was responsible for bringing major international artists to Brazil, such as U2, Pearl Jam, Roger Waters and Paul McCartney. In addition to performances of Cirque Du Soleil and major Broadway musicals such as Phantom of the Opera. In 2011 alone, T4F promoted 396 live performances and sold over two million tickets.

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S達o Paulo OUTLOOK

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THE BEAUTY EXPERT Celso Kamura is one of the most prominent beauty professionals in Brazil. With over 30 years of expertise, he oversees more than 140 professionals in two salons, one in Jardim Paulista, west end of São Paulo, and another in the Galleria Mall in Campinas. Celso knows how to value and produce looks according to the lifestyle, routine and profession of his customers.

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In addition to serving TV, theater and music personalities, he is also responsible for changing the look of the country’s current president. Kamura enhances the femininity of Dilma Rousseff since 2010 without taking away her seriousness and determination. In addition, he also uses his talent and experience to enhance the catwalks of São Paulo Fashion Week (SPFW), of Fashion Rio and the fashion editorials of several publications. Celso also has a line of beauty, makeup and hair products.

São Paulo OUTLOOK

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Anúncio: DUPLA PG 07

Anúncio: DUPLA PG 08