Fecomercio Alagoas: Federation of Trade in Goods, Services and Tourism

Interview with Wilton Malta de Almeida, President of Fecomercio Alagoas

What is your institution’s role in the development of the trade of goods, services and tourism in the local economy?

Our federation primarily represents trade in goods and services, and then afterwards in tourism. If tourism grows in the state of Alagoas, the service sector will most certainly also grow because it is an intermediary. If the tourism increases, the commerce sector will grow as well because the state is a referential point in the Northeast region. The state of Alagoas is in the fifth place in terms of development in the Northeast region. So, in terms of growth, there is economic stability.

Alagoas is currently going through a very positive phase in terms of investments and there is evidence that we are also developing in the tourism sector. We have beautiful beaches and we have an enchanting waterfront, and that’s why we need to increase our investments in this area, whether it is in the hospitality sector, or whether it is in the area of infrastructure. For example, we need a port terminal for passengers because of our state’s advantageous position. We need to bring more cruise ships to our cities and by getting the cruise ships here we will also be developing our area of internal tourism, which is the tourism that makes Brazil develop. It’s important to show our country and the rest of the world what we have here in terms of beauty.

How do you think the state of Alagoas is seen by the rest of Brazil and the rest of the world?

Based on the conversations that I have had with people abroad, those that know the Northeast region described Alagoas as a friendly state and also as a state of very rich cuisine. If you visit several of our restaurants, you will see that we have a lot of variety in terms of cuisine and in a sense, the prices are also very pleasant. There are also many differences in our popular culture which are also a part of tourism. They are a part of that moment when a tourist arrives and wants to learn a bit more about what the people from Alagoas are like. We have been working on all of this in the modest terms and I hope that our political leaders will keep moving forward in this field. In the education sector, we also need to improve in terms of getting better thinkers in Alagoas, we need people that can contribute their knowledge towards the development of the state.

What is the federation’s main role in terms of Alagoas’ development? What does the federation do?

As a federation of commerce, it is our role to represent the business community, whether it is to defend the economic interests of a company, or whether it is in the interest of the clients that supply the region. Fecomercio is also a part of several councils that exist here today. The Federation of Commerce has a seat in 17 councils: local councils, pertaining to the state; state councils; and even national councils as part of the Federation of Commerce. For example, this has given us the experience of knowing what is happening in terms of supplying electric energy for our population and in terms of supplying electrictricity for our business consumers. The federation basically steps in with the demands of this aforementioned public so we can represent them in dealings with the municipal, state or federal government.

What is the message you would like to pass on to the entrepreneurs, businessmen or the investors that would like to set themselves up in the Northeast of Brazil?

I would tell these investors that they should look at Alagoas. Alagoas has very strong tourism potential, and there is also potential in terms of the workforce. The size of the state may be small but we are in a central location within the Northeast of Brazil. Near our state, there are also some states that are very populated, which is the case of Pernambuco and Bahia. We are in a privileged region. The interior of Alagoas also has the potential of providing a good labour force, since today there still is an idle labour force in the state. There are also certain logistics that can help investors that come here, either in the industrial sector or in the commercial sector, so that they can do things with ease in terms of their business ventures.

What are the main challenges within business in Alagoas?

I guess there are always challenges. Challenges can vary throughout different fields. I mentioned the port terminal, which is a big challenge; the infrastructure also needs to be improved upon; and the state still needs to develop new techniques so it can provide a differentiated energy supply. We do not have energy that comes from wind power yet. We still do not have companies that take advantage of the amount of sun that we get here. These are opportunities that national and international entrepreneurs can start to look into as a future investment here. There are also companies here with which a public or private partnership can be formed in order to bring investments into the state of Alagoas.

What are the Federation’s main goals and projects regarding Alagoas’ development?

One of the federation’s greatest challenges is to make the entrepreneur aware of his/her role in the economic context of the state of Alagoas. We are also partners of the state, acting within the state to generate jobs, and to generate tax revenue for the state. Alagoas differentiates itself because it is an economically good state; it is a state that doesn’t suffer great consequences of political change at a federal government level. Today the state of Alagoas has a governor that is from the opposition and from a different political party than the federal government, but we don’t feel this opposition and we aren’t forgotten by the central government. In terms of resources there are federal transfers for the state of Alagoas that are very important. The federal government doesn’t deny the state of these resources just because of the opposition. So basically, Alagoas as a whole isn’t the opposition, perhaps in terms of political parties it is different from the federal government, but here we don’t feel like that. Even the investments that are coming into the state of Alagoas have some contribution from the federal government.

What are the results you would like to achieve in the short term, for example within three years?

In economic terms, we intend to generate new business ventures, such as national networks/chains and if possible, even international networks/chains because of the federal transfers. There are resources that are coming to Alagoas today through these federal transfers and this justifies expanding commerce here in Alagoas. There is a city of 220,000 inhabitants, Arapiraca, which is rapidly developing. There is still a lot of room for investments, especially investments from abroad. For example, our airline network is still very limited, there is no way that we can bring in more domestic tourism due to the lack of a better airline network. It’s an investment that should be looked at closely by investors. Technology and IT are other areas that also need to be explored. Our telecom companies also need greater investments in our region, so we can also develop and communicate better.

Do you participate in events with other entrepreneurs? For example, when the governor goes on an international business related trip, do you accompany him?

I personally haven’t accompanied the state government on any agendas with entrepreneurs whether on a national or international level. However, amongst us entrepreneurs we have been to some events to show what there is and who we are here in Alagoas. We recently went to China and India, and others went to Russia, Germany and Spain to show Alagoas’ potential, especially in the tourism sector.

Was this done via Fecomercio or via another entity?

It was via Fecomercio as well as via the state’s economic actors. The Federation of Industries and the Federation of Agriculture participated, as well as some businessmen and some class entities connected to the government.

Is there anything else that you would like to mention about doing business or investing in Alagoas?

I mentioned our labour force, which is idle and inexpensive. There are still market segments that can make use of this labour force. We still have a lot of room for a technology sector. And in terms of investments in the state, we have areas that can be explored by potential investors interested in the state.

Can you describe the type of areas?

For example, in terms of infrastructure here in the capital city of Maceió, we need to look at what kind of investment or partnership could be created. Perhaps a metro line could be the solution, either an outdoor subway line (tram) or a conventional underground subway line (metro). Another idea of an investment would be something that contributes to facilitating travel from one place to another.

What is your final message to everyone?

To sum things up I would have to say that the state of Alagoas is still a virgin state for the majority of international investors. It should be looked at better; people should get to know it so that we can take more advantage of our natural beauties and also our economic development. We have a secular tradition of the sugar cane culture and it is a development that up to this point maintained us here as a state on the domestic scene, but we are gradually losing out to other places in that.