São Paulo Outlook 2013 - Turismo (Inglês)

São Paulo Outlook

Yearbook 2013

THE VISITORS’ PROFILE who are the tourists THAT visit SÃO PAULO AND WHAT THE CITY has to offer them

Business Business trips are what drives the city’s tourism

Tourism 300 facts to evaluate the sector in São Paulo

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São Paulo outlook

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BUSINESS ATTRACTS

more TouriSts Business trips, in addition to fairs and events, are the fuel of the tourism sector which represented an income for the city of around R$ 10.5 billion in 2012

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São Paulo OUTLOOK

Juvenal Pereira/pulsar

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he amount of tourists arriving in the city of São Paulo has been growing steadily in the past decade, hitting 12.6 million visitors in 2012. Business continues, along with the events, to be the main reason for tourists to come to the city: 76%.

Year by year the state capital consolidates its place as a business center.

In 2012, business travel accounted for 57.3% of the visits; in 2011, the share stood at 45%. The 12.6 million visitors in 2012 accounted for an estimated income of R$ 10.5 billion, leading the hotel sector to close the year with an occupancy rate of 66%.

The overall expenses of tourists staying in hotels were higher in the second half of 2012 compared to the first half, R$ 1,400 against R$ 1,300.

Airports that serve the city of São Paulo also recorded an annual 7.4% increase in passengers in 2012. The government of São Paulo estimates that by 2020 the number of tourists will reach 16.5 million.

First, however, the city is preparing to receive a greater flow of visitors on account of the 2014 World Cup. The city has been busy carrying out improvements in airports and urban mobility in order to welcome the football fans.

The International Airport of São Paulo will be able to receive up to 47 million passengers a year.

The following pages offer an analysis of the main points related to the tourism sector, events and hospitality in São Paulo and the indicators that point to the progress of the segment and its highlights.

View from Congonhas Airport and Washington Luis avenue in the south region of São Paulo: 2.15 million foreign tourists visit the capital every year www.analise.com

Domestic tourists

Foreign tourists

BRAZILIANS SEEK BUSINESS, DINING OPTIONS AND SHOPPING

FOREIGN VISITORS SPEND INCREASINGLY MORE IN THE CITY

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usiness is the main motivation of tourists from other Brazilian cities and states arriving in São Paulo. These visitors represent 55.4% of all those who came to the city in the second half of 2012. Those who came to participate in trade shows and corporate events totaled 19%. These visitors spend 2.7 nights in the state capital and spend per day R$ 432. Out of the average R$ 1,200 spent during the entire stay in São Paulo, 56.3% is used for accomodation, 23.8% for food and 9.3% for shopping.

Most Brazilians visiting São Paulo travel alone (60.3%) or with a spouse (15.6%) and work colleagues (13.9%).

They check into the hotels, according to statistics from the second half of 2012, on Mondays (20.2%) and check out on Thursdays or Fridays (22.1%). Of all the Brazilian visitors who come to the capital city and stay in hotels, most are from cities within the state (27.3%), followed by residents of the states of Rio de Janeiro (17.1%) and Minas Gerais (11.3%). The main means of transport are flights (68.2%) and driving (19.2%).

A few of the preferred activities during the trip are dining out (22.7%), shopping (15.3%) and enjoying the night life (14.3%). Theater, cinema, concerts, museums, visits to the historic center and the parks and public gardens, as well as sporting events attract 19% of the Brazilian visitors.

Residents of São Paulo city have also been checking into the hotels, particularly on weekends. These local tourists seek business (30.1%) or leisure and entertainment (27.9%) and usually stay 3.7 nights in hotels and spend daily R$ 460.

ore foreign visitors are coming to São Paulo for business reasons. In the second half of 2012, 57.3% traveled to the city for this reason versus 45% in the same period of 2011. In turn, events, such as fairs and congresses, attracted 16.3% of the foreign visitors in the same period. Most visitors travel alone (61.3%) or with a co-worker (17.4%). They usually check into São Paulo’s hotels on Mondays (24.9%) and check out on Thursdays (23.3%).

Foreigners are spending more in São Paulo. In the second half of 2012, the average daily expenses revolved around R$ 551. In 2011, international tourists spent R$ 464 a day. The average is also higher than the amounts disbursed in 2009 and 2010, R$ 540 and R$ 545 a day, respectively.

During the stay, foreigners take advantage of the dining options (25.1%), go shopping (16.4%) and enjoy the city’s night life (14.4%). Of the average of R$ 2,500 spent during the entire stay in the country, 48.2% is spent on accommodation, 23.9% for food and 10.9% for transport.

Foreigners are also spending more time in the capital, averaging 4.6 nights in the second half against 3.7 in the first half of 2012. The total number of tourists from abroad staying at São Paulo’s hotels jumped from 8.9% in 2009 to 14.7% in the second half of 2012.

Among the foreigners staying in the city in the second half of 2012, 31.8% are from countries in Europe, 30% from North America, 23% from South America and 9.2% from Asia. United States, Argentina, Germany, Spain and France are the primary countries of origin.

1 IN EVERY 5 COME TO SP TO TAKE PART IN EVENTS Business

Events

Leisure

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Health

11.3

4,4 2.5 3.3 1.9

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24.4

Where the domestic tourists come from*

25.2 16.2 9.9 São Paulo

Rio de Janeiro

Paraná

8.3 Minas Gerais

Other

57.3

45 12,2

25.3

Visiting friends/relatives

COVER PHOTO: Detail of the bridge Octávio Frias de Oliveira Santos in the south end of the city (Edu Lyra /Pulsar)

In %

2011

6,7 3 5,2 3,2

9.9 18.7

2012

5.9 3.3 2.1 2.8

Where the international tourists come from*

7.4

Rio Grande do Sul

7.7 United States

7.6

Argentina

2.9 Chile

2.6 France

2.6 England

* Second half of 2012

www.analise.com

São Paulo outlook

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ToURISM

Business

40% MORE VISITORS IN 8 YEARS

2.2 Million WERE AT FAIRS HELD IN São Paulo IN 2012

In millions of tourists 20

16.5

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orporate tourism is still the reason that brings most visitors to the city of São Paulo. The two main reasons for coming to the city, business and events, increased from 70.9% in the 1st half, to 76% in the 2nd half of 2012. As such, São Paulo established itself as the leading business destination in Brazil.

In the second half of 2012, 57.3% of the visitors who landed in São Paulo came to do business and 18.7% arrived to participate in trade fairs, congresses and events.

The fairs held in the city are opportunities to showcase products, make deals and present trends and new technologies. A total of 82 exhibitions were held in the city in 2012 for 2.2 million visitors.

In order to increase the revenue generated by business tourism, the Municipality of São Paulo created a program to encourage executives and businessmen visiting the city to stretch their stay for one or more days so they can take advantage of the cultural and leisure attractions that the capital offers. The “São Paulo - Stay Another Day” program aims to assist business visitors to discover the city and offers a unique guide with one-day route suggestions in English and Spanish.

In the second half of 2012, dining out was one of the preferred activities, surpassing interest in the city’s nightlife (15.6%) and shopping (14.3%). The greatest movement of visitors is registered during the week. Most of these guests checked into their hotels on Monday (25.6%) in the second half of 2012. The check out was divided between Thursday (20.8%) and Friday (19.8%). Foreign tourists come mostly from the United States, Argentina, Germany, Spain and France.

TOURISM REVENUE DOUBLES IN 15 YEARS In billion R$ 15

13.5 12.9

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11.3 10.5

11.4

9.7 9

8.3

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*2020 forecast made by the Tourism Observatory

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São Paulo OUTLOOK

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14.9 14.9

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Leisure

TOURIST EXTENDS STAY IN SEARCH OF FUN AND SHOPPING

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any of the tourists who come to São Paulo are looking for a good time and shopping. Cultural and leisure options accounted for 14.3% in the first half and 9.9% in the second half of 2012.

Even business tourists enjoy the leisure options available in São Paulo. A survey showed that out of the 15% of tourists scheduled to spend more time in the city, half of them stay to enjoy the entertainment options. Among the respondents, 24.1% were interested in the nightlife, 20.7% wanted to shop, and 16.3% wanted to go to the theater.

Of the average expense of R$ 1,400 spent by visitors for a 3 night stay in São Paulo, 9% was used for shopping and 5.6% for leisure in the second half of 2012. The main preferred activities of the visitors were shopping (15.6%) and enjoying the nightlife (14.3%).

São Paulo has plenty to offer in these two areas. For shopping, the city has 86 malls offering more than 13,000 stores, not to mention the specialized shopping streets and establishments located away from the malls. The 15,000 restaurants and 20,000 bars are another option for visitors.

In the culture and leisure area, São Paulo offers no less than 164 theaters and 39 cultural centers, not to mention 125 museums and 95 parks and public gardens.

But it is the vibrant nightlife that makes the city stand out. Various nightclubs cater to every type of visitor. One of them, known as D-Edge, was voted the 32nd best club in the world, according to DJ Mag magazine.

Another club, The Week, is considered one of the best GLS clubs in the world. São Paulo is also the 4th best destination for gays in the world, according to the specialized portal GayCities.com. www.analise.com

Paulo Whitaker/Reuters

Presentation of Cirque du Soleil in 2013 in S達o Paulo: 14.3% of the tourists see the city through the cultural programs www.analise.com

S達o Paulo outlook

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ToURISM

AIRPORTS RECEIVE 58 MILLION PASSENGERS In millions of passengers

Airports

Bus terminals

Cumbica, Congonhas and Viracopos

58.2

60

15.7

54.2

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16 16.0

15.6

15.6

15.5

47.7 38.7

40

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15.4

15.3

35.1

15.3 15.2

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Hospitality

Health

VISITORS HeAD TO LUXURY HOTELS AND HOSTELS

MEDICAL TREATMENT MAKES TOURIST SPEND MORE IN SP

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he city has the largest number of hotel rooms in Brazil: 42,500 and it offers many styles of accommodation. The city has more than 400 hotels, 68% of them are mid range, 24% are affordable and 8% fall into the luxury category. In addition to large international chains such as Hyatt, Sheraton and Hilton, the capital also has exclusive boutique hotels like Fasano, Emiliano and Unique. The hotel industry of São Paulo reached 66% average occupancy in 2012. The average daily price for a hotel room in São Paulo, in 2012, was R$ 295. Another option are the hostels. The city has 23 hostels that charge an average daily fee of R$ 43.

OCCUPANCY OF HOTELS IS 66% In % 80

70

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61.4 50

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Average values of rooms in 2012 In reais Affordable Midrange Luxury Super luxury

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154 262 380 728 São Paulo OUTLOOK

2012

ncreasingly more visitors are coming to São Paulo in search of medical treatments and specialized exams.

São Paulo is an international benchmark in important medical areas. In the first half of 2012, medical tourism accounted for 3% of the reasons that led visitors to the state capital. In 2010, these patients represented 2.5% of all the tourists.

The estimate is that São Paulo will receive at least half of the 31,000 international tourists who come to Brazil every year in search of medical treatment. The estimate of the Primal Medical Travel Agency is that this will grow 35% by 2016. Foreigners come mainly from Angola, United States, Spain, France and Indonesia. Two of the reasons for making the trip to São Paulo is so they can receive quality treatment and can pay in reais, instead of dollars or euros. Besides the difference in rates, the treatments can cost up to 50% less in Brazil.

The visitors look for cutting-edge laboratories, advanced technology services and specialist clinics for visits, medical procedures or just for a simple checkup.

Altogether, it offers 2,500 health facilities and 50,000 doctors. The highlights are the medical treatments for heart disease and plastic surgery, among other branches of high complexity.

The average daily expense of the tourists according to city hall in 2011 was R$ 623, up 54% over the average spent by a visitor coming to the city for other reasons.

With an average stay of 3.5 nights, the amount disbursed in the period reaches R$ 2.180. In addition to the vast medical infrastructure, the visitors also enjoy the sightseeing and dining options of the city. São Paulo is also seeing the expansion of the “day-hospital”concept. www.analise.com

Transport

CUMBICA AIRPORT WILL WELCOME 60 M passengers

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In thousands 600

526 500

448

427 400

396 399

412

396

419

300

2005

2006

2007

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2020

* 2020 forecast made by the Tourism Observatory

ies, 21 states and five countries.

Transportation accounts for most of the visitors’ spending: 8.6% in the second half of 2012. Tourists have a public transport system consisting of the subway and metropolitan (under state government responsibility) and urban (under city government responsibility) trains and buses. The São Paulo Metro has 5 lines and 61 stations and is undergoing expansion works. 0

Evelson de Freitas/AE

ost tourists who visit São Paulo, 60.7% in the second half of 2012, arrive by air. The International Airport of São Paulo/Guarulhos, or Cumbica, 25 km from the downtown area, offers domestic and international flights and can be accessed by common bus lines as well as an executive line. Closer to the center, 8 km, is the Congonhas Airport, which operates only domestic flights and is also served by common and special bus lines. The Campo de Marte airstrip, located 5 km from the downtown area, is used only for executive aviation, air taxi and flying schools.

Cumbica, the busiest airport in all of South America, privatized in 2012, is being overhauled and remodeled.

By the time the World Cup comes around, the airport will be able to receive up to 47 million passengers a year. Currently it serves 35 million annually. After the World Cup, Terminal 3 will be doubled and the capacity will reach 60 million passengers a year.

The city has three tourist bus terminals. The Barra Funda terminal serves six states.

The Jabaquara terminal serves the southern coast of the state. The Tietê terminal, Brazil’s largest, serves 1,033 cit-

RECOVERY OF JOBS IN TOURISM

Public waiting to visit exhibition at the Museum of Art of São Paulo (Masp): the metropolis has more than 100 museums www.analise.com

São Paulo outlook

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city of

global e vents São Paulo is preparing to receive major international events like the 2014 World Cup and the 2016 Olympics and plans to build a events center to host Expo 2020

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ão Paulo city’s vocation for business tourism, corporate events and conferences is well known. An annual survey of the tourism sector shows that the revenue of the events segment is 23.3% higher in 2012 as compared with 2011. The events sector accounts for 35,000 exhibiting companies, with revenues of R$ 2.9 billion a year. The capital also has the world’s leader in event organization, which emerged from a joint venture between Reed Exhibitions and São Paulo’s Alcantara Machado, the largest event company in Latin America. Events such as the Book Biennial, the third largest editorial meeting in the world and the Auto Show, the biggest automobile show in Latin

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São Paulo OUTLOOK

America, are already part of the city’s calendar. These events attracted 750,000 visitors each in 2012.

Among the highlights in the business world is the world’s biggest franchise fair, ABF Franchising Expo, which registered 63,000 visitors and generated R$ 480 million in business in its 22nd edition in 2013.

The largest construction material fair of Latin America, Feicon registered 128,000 buyers in its 2013 edition. Other expos, such as the International Art Biennial, the Two-Wheel Fair and Couromoda also leave their mark on the city.

Currently, the state capital houses 72% of the entire fair and convention market of Brazil and holds the 28th position in the world in international events, according to the 2012 ranking of the International Congress and Convention Association (ICCA).

The city hosts about 90,000 events a year or an event every six minutes. São Paulo www.analise.com

STRINGER Brazil/Reuters

American tennis player Serena Williams during opening match in São Paulo: the city hosts 90,000 events a year

receives 120 of the 176 major fairs in Brazil or a trade show every three days. The city now has about 2.54 million square meters in large spaces for the organization of events. Anhembi alone has around 400,000 square meters and is the largest event complex in Latin America. To meet this demand of visitors, the city has 42,000 rooms in 410 hotels. The tourists have three points of entry: Congonhas, Cumbica and Viracopos airports.

Leisure and culture – Sports competitions also spur the city’s economy.

São Paulo hosts the Brazil Grand Prix Formula 1 race, the only one in Latin America, in addition to the São Paulo Marathon and the International São Silvestre Race, which will reach its 90th edition in 2014. The city is also home to stages in the races of Formuwww.analise.com

la Truck and Stock Car, in addition to games of the World Women’s Basketball Championship and the World Volleyball League.

São Paulo’s calendar if full of activities that have made the city a bustling metropolis. The highlight is the Virada Cultural weekend which offers free cultural attractions for 24 hours.

In 2013, its ninth edition brought together more than 4 million people in 900 attractions held all over the city.

Other record-breaking events are the LGBT Pride Parade, which registered an audience of 3.3 million people, and is considered one of the largest events of its kind in the world.

In addition, the city is also the stage of events held every year or every other year, such as the São Paulo Fashion Week, the Anima Mundi Festival and the International Film Festi-

val. The city’s agenda with the main annual and biennial events, as well as an overview of the schedule for 2014, starts on page 150.

World Cup and Expo 2020 – The

city of São Paulo is expected to welcome 15 million tourists in 2014 due to the World Cup. The city hosts the opening event and five matches, as well as Fifa’s Congress and the FIFA Fan Fest. During the 2016 Olympics in Rio de Janeiro, the Olympic football matches will be held in São Paulo. And if the city’s bid is approved, the state capital will also host the Expo 2020. São Paulo’s rivals in the dispute are Ekaterinburg (Russia), Ayutthaya (Thailand), Izmir (Turkey) and Dubai (United Arab Emirates).

The decision on the venue will be announced in November 2013.

São Paulo outlook

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ToURISM

THE LEGACY OF APPLYING TO HOST EXPO 2020 São Paulo is a candidate to receive the world’s third largest event and plans to create an event center that will be built even if the city is not chosen to host the expo

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ão Paulo will benefit from its application to host the 2020 Universal Exposition, regardless of whether it achieves the position of the first Latin American country to host an edition of this historic event. A few of the benefits that the event may provide are urban renewal, an increment in tourism and opportunities for entrepreneurs and service providers.

The exhibition is considered the third largest event in the world behind the Olympics and the World Cup. The project for Expo 2020 is expected to involve an investment of US$ 1.2 billion in infrastructure and construction projects for the exhibition complex. The revenue raised from the proceeds of sponsorships, booth rentals and ticket sales is US$ 2.9 billion. The federal government has announced investments of R$ 680 million to set up the event center. São Paulo Expo 2020 is a national project, requiring the participation of São Paulo’s city government as well as the state and the federal government.

The Centro de Exposições de São Paulo, as it will be called, will be built in the neighborhood of Pirituba, in the northwest end of the city. The development will cover a total area of 5 million square meters (more on next page).

Renewal – The Expos usually generate development and renewal for the cities that host them. The renovation of the ports zone in Shanghai was one of the legacies of Expo 2010. Lisbon also benefitted a great deal from hosting World Expo 1998. The creation of the Park of Nations, in the north end of the Portuguese capital, provided new rec-

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São Paulo OUTLOOK

reational areas, housing projects and a joint transport system.

The Pirituba complex project should create a new development center in the city. It will be built with or without Expo 2020 and aims to create a greater area for events, conventions and exhibitions in the city of São Paulo and may also include a hotel complex and a highly accessible business hub.

Furthermore, the buildings of the project of the São Paulo Expo 2020, after the event, will be transformed into

EXPO HIGHLIGHTS

1851 London hosts the first Universal Exhibition, whose highlight was the Suez Canal

1876 The Expo was held in Philadelphia, USA, where the phone and typewriter were launched 1900 The unveiling of inventions such as the escalator and talking films marked Paris’ Expo 1958 The Atomium, a 103-meter building, was built for the Expo in Brussels and became a symbol 1970 Revolutionary design was the theme of the Expo in Osaka, Japan: buildings resembled science fiction films

2010 The last Expo 2010 in Shanghai, China was visited by 73 million people and featured a São Paulo stand

educational institutions, research & development centers, technical schools and local health clinics. The area will also be aimed at leisure, sports and culture activities. The apartments of the Expo Village will be converted into housing projects.

Mobility – Improvements for the cre-

ation of an integrated transport network to ensure easy access to the site are planned for around the project. The site is currently served by two metropolitan train stations that will be connected to the metro network by 2020. The plan is for the subway’s Orange Line 6 to stop at the convention center. The city also plans to improve the roadways in the vicinity of the complex.

For visitors from other cities, the Expo area has a direct connection to the Bandeirantes expressway and will have access to the northern stretch of the beltway, still under construction.

For São Paulo residents, there will be bus lines departing from strategic points in the city with direct access to the complex. And those who choose to go in their own vehicle will have decentralized parking.

Most of the visitors will have to navigate through the complex on foot but there will be alternatives for people with limited mobility. Electric buses and electric bicycles will be available.

Event structure – The world fair is scheduled to open its doors on May 15, 2020 and close them on November 15, 2020, with an estimated audience of 30 million people, including visitors from Brazil and abroad. The expectation is that the Expo 2020 will receives an average of 166,000 visitors a day. www.analise.com

FREE STOCK

Design of the Pirituba complex, with a solar tower, pedestrian walkway and the exhibition area at the back

EXHIBITION CENTER IN THE HEART OF GREEN RESERVE Avenue for conventions and events, malls and a hotel will be set up in a natural reserve that covers 5 million square meters

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green area of 5 million square meters in the Pirituba district to the northwest was chosen to house a new complex of events, the São Paulo exhibition center. The development will comprise an expo area, shopping malls, hotels and other service establishments. It will be the largest exhibition and event center in Latin America and its construction is not linked to the approval of São Paulo as host of Expo 2020 since it meets the needs of the capital to expand its offer of areas for fairs and congresses.

The choice of the location downtown, 25 kilometers from the city’s center, aims at creating a new development hub in the region comprising the www.analise.com

districts of Anhanguera, Brasilândia, Casa Verde, Freguesia do Ó, Jaraguá, Perus, Pirituba and São Domingos, where about 1.3 million people live.

Investments in infrastructure and improvements in the coming years will directly benefit this population, rekindling economic development.

The investments include improving the public transport network and the means of access to the complex.

Mobility was a decisive factor for the choice of location, close to the Bandeirantes highway, the Beltway and the Marginal Pinheiros and Tietê highways.

With 160 square meters of floor space, the area will become the largest event venue in Latin America. To serve the residents and visitors of the convention center, a shopping mall and a new hotel are also included in the project. A major concern of the project of the Centro de Exposições de São Paulo was to preserve the natu-

ral reserve located where the convention center will be set up. The internal circulation of the event will occur using routes that cross the green area and that include raised walkways and paths along mirrors of water.

A tower designed for the production of solar energy and that will also be equipped with wind generators will be installed in the area. The expectation is for the system to be able to produce 150 megawatt-hours (MWh) of clean energy per year, which will be used to supply the needs of the event.

The structure will have a cable car and will offer a panoramic view of the entire complex to visitors. Upon completion of Expo 2020, the region will be transformed into a public park, and the cable cars to take passengers to the tower’s observation deck will be extended to the peak of Jaragua mountain, the highest point of the city of São Paulo. A forest corridor will be built under the trajectory of the cable car. 0 São Paulo outlook

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S達o Paulo yearbook 2013

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S達o Paulo OUTLOOK

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