Brazil Hotels

Up until 1994 when the famous Plano Real was introduced, Brazilian inflation was astronomical, and the country was a very cheap destination for anyone who had hard currency like the dollar. At a stroke, the Plano Real stabilized inflation, and the tightly controlled exchange made Brazil no longer cheap to foreigners. In early 1999, however, the global markets lost confidence - virtually overnight - in the Brazilian economy, sending ripples of hardship throughout the country as prices of imported goods shot up, in some cases doubling, and property values dropped, along with the value of the real against the dollar. As a consequence, Brazil has once again become a relatively inexpensive destination for foreigners, certainly noticeably cheaper than Europe or the USA.

US dollars are easy enough to change in banks and exchange offices anywhere, and are also readily accepted as payment by luxury hotels, upmarket restaurants, tour companies and souvenir shops in the big cities. Given the current instability of the real, we quote prices in this book in US dollars; this should give a reliable idea of what you'll be paying on the spot. At the time of writing, the Brazilian real is worth just over half a dollar - R$1.75=US$1 and R$2.80=?1 - but it is strengthening against it.

Money and prices

The Brazilian currency is the real (pronounced "hey-al"), plural reais (pronounced "hey-ice"). It's written as R$ and is made up of one hundred centavos, written ?. Notes, all the same size but different colours, are for 1, 5, 10, 50 and 100 reais; coins are 1, 5, 10, 25, 50 centavos and 1 real. Coins are irritatingly similar, and have to be scrutinized closely to tell them apart.

The cost of living in Brazil is higher than in most other parts of South America (Argentina excepted) but lower than in the Plano Real era. Some things, fortunately, are still cheap by European and North American price levels, particularly budget and mid-range hotels, most foodstuffs (including eating out in most restaurants), clothes and bus travel. Other things are more expensive: plane tickets (unless part of an air pass), film, sun cream and anything electrical. One hangover from hyperinflation is that prices are still not quite standardized from place to place, and you can still find bargains if you have the time and patience to shop around.

All the same, Brazil is very much a viable destination for the budget traveller, especially in urban areas. The cheapness of food and budget hotels - and the fact that the best attractions, like the beaches, are free - still makes it possible to have a very good time for under $50 a day. Staying in good hotels, travelling by comfortable buses and not stinting on the extras will cost you from around $100 a day.

Changing Money

In large cities, only the head offices of major banks (Banco do Brasil, HSBC, Banco Itau, Banespa) will have an exchange department (ask for cambio); whether changing cash, travellers' cheques or making a credit card withdrawal, you'll need your passport, unless you're simply using an ATM. You can also change cash and travellers' cheques in smart hotels and in some large travel agencies. The best rates, however, are usually to be found in a casa de cambio , but these only operate on any scale in Rio and Sao Paulo.

Exchange departments of banks often close early, sometimes at 1pm, although more often at 2pm or 3pm, and it can take up to two hours to complete all the necessary paperwork. Some banks will only change a minimum of $100 per transaction. Airport banks are open seven days a week, others only Monday to Friday. You'll find life much easier if you bring only US dollar banknotes and travellers' cheques . Only in casas de cambio in Rio and Sao Paulo will you be able to change other currencies.

Outside large cities it can sometimes be difficult to change money at all, but an ever-increasing number of branches of the Banco do Brasil provide this service. If you get stuck, travel agents or smart hotels are worth a try, though most will only accept dollar banknotes; if they don't buy themselves, they will know who does.

The main credit cards are all now widely accepted in Brazil, even in rural areas. Mastercard and Visa are the most prevalent, with Diners Club and American Express also widespread. Even so, don't expect to rely entirely on cards, as some businesses - even ones you would expect to - don't accept them or accept only a very limited range. And when hotels offer low-season discounts, they may make a condition that the bill is paid with cash. If you do pay by card in a shop which doesn't have an automatic swipe register, the shop will have to use chronically overloaded phone lines to check the balance, which can take an inconvenient amount of time. Note also that Brazilians are quite fussy about your signature matching that on your card.

You can obtain cash advances on all major cards at most bank branches in big cities; in smaller towns only the main branch of Banco do Brasil will do it. Visa is much the easiest card to get a cash advance on. Try to avoid joining the queues for the tellers, but look for a sign saying Cartao or Saques por Cartao; if there aren't any, wave your card at one of the managers behind a desk, and they will point you in the right direction.

Far easier and much faster is to use one of the ever-increasing number of ATMs . Again, Visa cards are the most widely accepted, Mastercard less so. Visa cards can be used at the ATMs of Banco do Brasil and Banco Bradesco; Mastercard at HSBC, Itau and Banco Mercantil.

You should never rely entirely on credit card withdrawals, however; computers or satellite communications can sometimes be down for days, which can put a hold on all potential credit card transactions for several days at a time.

To change Brazilian currency back into dollars when you leave, you need to show bank exchange receipts to the value of what you want to change. These receipts are called comprovantes, and banks will type one out for you on request when you buy Brazilian currency - casas de cambio do not issue them.

Exchange Rates

You will see two rates being quoted for cash: the oficial, which is what a bank will pay you, and the turismo, which is what you will get in a hotel or travel agency; travellers' cheques have slightly lower rates, even in banks. The turismo is usually only two or three points less than the oficial and, unless you're changing large amounts of money, it's often worth living with this lower rate to avoid the inconvenience of changing your money in a bank.