CEARÁ, THE LAND OF LIGHT

Karyna Saraiva Leão Gaya *

It is not only for reason of its natural beauty that the State of Ceará is known as the “Land of Lights”. The hardiness and warmth of its people have been known around the world since the time of the Empire, when a sailor called the “Sea Dragon” refused to take slaves aboard the ships anchored in Fortaleza harbor, from where they were to be taken to the south of the country. This was a contributing factor to the State of Ceará being the first province in Brazil to abolish slavery in 1884. It was for this reason that the State was named the “Land of Light”.

It is widely known that the “Land” has many natural attractions and is establishing itself as a major tourist destination, attracting both national and international investors.

Besides the all year round sunshine, the tropical weather and the hospitality of its people, Ceará has a 573 km coastline and beautiful mountains and countryside. Its excellent geographic location makes it an ideal location for international markets. Its capital city, Fortaleza, has over 2 million inhabitants and in 2006 the GDP reached almost R$ 40 billion.

Ceará’s reputation among businessmen and national and international financial institutions is underpinned by its successful development policy, securing ongoing private investment and long-term loans. Likewise, the state’s systematization and modernization of public administration has been praised nationwide.

The arrival of large-scale investment is the fruit of the efforts the State has made towards development. Major initiatives include the Port of Pecém Industrial Complex, the Multiuse Terminal, the Metropolitan Train, the Castanhão dam and a series of wind-power plants. Not to mention the investment in infrastructure, such as the construction and improvement of national and State roads and the building of a new Convention Centre, which were priorities for the current administration.

Tourism has also been regarded as a key factor in turning round the State’s economy. In addition to the aforementioned projects, the Administration has laid more emphasis on policies specifically designed for this industry, investing in the training of the local workforce at a competitive cost, bolstering the State’s already acknowledged strengths in services and commerce.

The administration strongly supports investment in the hotel industry, particularly the horizontals for leisure, with the aim of meeting the demand of some areas that are still lacking in accommodation. The area on the East and West coastline, near the Capital, also has easily accessible beauty spots.

There is also room for investment in smaller hotels and, in order to encourage this, the State Government offers a loan in conjunction with Banco do Nordeste do Brasil called “Finactur”, which is specially designed for smaller businesses.

Furthermore, a number of other lines of credit are available for those wishing to invest in this State. Financial institutions such as BNDES, BNB and Banco do Brasil have special services for investors in the tourism industry.

As for tax incentives, it is worth mentioning the Federal Government’s FINOR (the Northeast Investment Fund) which provides financial support by way of releasing funds and/or underwriting shares or debentures. The State Government, in turn, offers the FDI – the Industrial Development Fund, analysis of the impact of the ICMS (tax on the circulation of goods and services) on machines and imported equipment. Finally, many municipalities offer partial exemption from the ISS (tax on services) and the IPTU (land tax) according to local legislation .

Ceará, the Land of Light, beaches, mountains and countryside is known for the warm welcome it extends to tourists. Now, with a more enterprising approach, it is becoming a land of opportunities, especially for those interested in sustainable investment.

Fortaleza, March 2008.

* Karyna Saraiva Leão Gaya is a partner at TRIGUEIRO FONTES  Advogados.

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