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DE RUEHSO #0787/01 2671821
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RUEHBR/AMEMBASSY BRASILIA 8614
RUEHRI/AMCONSUL RIO DE JANEIRO 8342
RUEHRG/AMCONSUL RECIFE 3797
RUEHBU/AMEMBASSY BUENOS AIRES 2879
RUEHAC/AMEMBASSY ASUNCION 3122
RUEHMN/AMEMBASSY MONTEVIDEO 2451
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RUEHSG/AMEMBASSY SANTIAGO 2153
RUEHLP/AMEMBASSY LA PAZ 3500

UNCLAS SECTION 01 OF 03 SAO PAULO 000787 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR CA/P, CA/VO/F/P, ECA/EC/PS, ECA/EC/CU, WHA/BSC 
 
E.O. 12958: N/A 
TAGS: CVIS KFRD OEXC ELAB SMIG BR
SUBJECT: BRAZILIAN EXCHANGE STUDENTS FLOCKING TO THE UNITED STATES 
 
SAO PAULO 00000787  001.2 OF 003 
 
 
¶1.  (U) SUMMARY: AmConsul Sao Paulo had a 23 percent increase in J 
visa applicants during the first semester of 2007 compared to the 
same period in 2006.  This is the continuation of a trend that has 
resulted in a 185 percent increase in demand for J visas over the 
past five years.  The increased popularity of au pair and summer 
work travel programs is driving this demand, combined with ever 
increasing interest among Brazilian youth to study or conduct 
exchanges overseas.  END SUMMARY. 
 
----------------------- ------------------------------ 
Au Pair and Summer Work Travel Programs Driving Growth 
----------------------- ------------------------------ 
 
¶2.  (U) AmConsul Sao Paulo had a 23 percent increase in J visa 
applicants during the first semester of 2007 compared to the same 
period in 2006, and a 35 percent increase compared with 2005.  This 
growth is attributed primarily to the increasing popularity of the 
J1 work programs, notably au pair and summer work travel.  Brazil's 
largest exchange organization, Student Travel Bureau (STB), reported 
a 130 percent increase thus far in 2007 in au pair clients and a 65 
percent increase in summer work travel clients compared to the same 
period in 2006.  AmConsul Sao Paulo expects to interview 
approximately 11,000 summer work travel candidates in October and 
November, a 57 percent increase over the 7,000 that applied in 
¶2006. 
 
¶3.  (U) While the popularity of J1 work programs is on the rise, the 
J1 high school program is increasingly losing students to other 
countries.  According to Tereza Fulfaro, Educational Director of 
another large agency, Central de Intercambio (CI), this can be 
attributed not to decreased interest, but rather to difficulties in 
securing host families and schools.  In 2005, 66 percent of CI's 
high school clients went to the U.S.  That percentage dropped to 55 
percent in 2006 and 44 percent in 2007.  The same trend is noted by 
STB, which has had to redirect students to Canada, New Zealand, 
Australia, and Switzerland. 
 
¶4.  (U) The overall increase in J1 numbers corresponds to expanding 
demand within the Brazilian student population for exchange and 
study opportunities overseas.  Exchange organizations Experimento 
and CI, for example, have grown 40 percent in each of the past five 
years in worldwide exchange and study programs.  STB is growing 
around 30 percent a year, with U.S. programs growing above this 
average.  Word-of-mouth is the biggest factor driving this growth, 
buttressed by a well-developed exchange industry and a strong 
Brazilian currency. 
 
--------------------------------------------- ---- 
J Programs Growing Since 9/11 Despite Competition 
--------------------------------------------- ---- 
 
¶5.  (U) The overall popularity of the United States among Brazilian 
students is rebounding after leveling off post-9/11.  While interest 
in J1 exchange programs was not affected to the same degree as F1 
language and academic programs, real and perceived obstacles in the 
visa process - combined with security concerns and the devaluation 
of the Brazilian currency - drew many Brazilians away from the U.S. 
and towards Canada, the United Kingdom, Australia, and New Zealand. 
 
 
¶6.  (U) According to Patricia Zocchio, CEO of Experimento, the U.S. 
has historically been the top destination for Brazilians 
participating in study and exchange programs.  Until 2000, 40 
percent of her clients studying abroad (F1 visa holders) chose the 
U.S.  After 2001, Canada and Australia surpassed the U.S. as the top 
destinations for students looking for academic and language study, 
diminishing the U.S. market share for such programs to 20 percent. 
 
¶7.  (U) J1 work programs have gone in the opposite direction.  After 
J visa applications decreased by 5.4 percent in 2001 compared to the 
previous year, demand has increased every year: by 1.1 percent in 
2002, 10.7 percent in 2003, 68.1 percent in 2004, 39.3 percent in 
2005, and 8.8 percent in 2006.  This is a 185 percent increase over 
the past five years.  Brazilian exchange organizations have been 
selling the summer work travel program since 1998.  Combined with 
the rising popularity of the au pair and trainee/intern programs, 
the U.S. has dominated this market over the past decade.  While 
similar work programs have opened up in England, Ireland, Australia 
and New Zealand, Experimento maintains that "the programs offered in 
the U.S. are second to none" as they combine "reasonable costs, 
attractive salaries, and the renowned American work ethic." 
 
 
SAO PAULO 00000787  002.2 OF 003 
 
 
---------------------------- ------------------------------ 
Residual Perception of Difficulty in Obtaining Student Visa 
---------------------------- ------------------------------ 
 
¶8.  (U) Conoff asked four of the country's largest exchange agencies 
about how visa requirements weighed on a client's decision to choose 
the U.S. over another destination.  While all four organizations 
noted recent improvements in the visa application process - shorter 
wait times and a general increase in clarity - all confirmed that 
U.S. visa requirements do push potential students and exchange 
visitors towards other countries.  Among the obstacles, real and 
perceived, include the need to appear in person for an interview, 
fear of being denied, difficulties in proving ties to Brazil, and 
the wait time. 
 
¶9.  (U) The visa issue certainly looms large when comparing U.S. 
visa demands to those of other potential destination countries.  New 
Zealand, Ireland and the U.K. do not require visas for Brazilians on 
short-term programs.  The process for Australia and Canada is less 
complex and usually does not require the applicant to appear in 
person, a huge consideration in a country that is larger than the 48 
contiguous U.S. states.  According to Felipe Jendiroba, Managing 
Director of Intercultural, the fact that foreign students can also 
work part-time in Australia, Canada, Ireland and England is a big 
draw.  According to a recent study conducted by the Brazilian 
Education & Language Travel Association (BELTA), the cost of the 
program is the most important factor in deciding location, followed 
by visa requirements, availability of work permits, and the cost of 
living. 
 
¶10.  (U) COMMENT: In 2006, AmConsul Sao Paulo denied 10.3 percent of 
J1 visas, compared to the overall visa denial rate of 13 percent. 
The denial rate of F1 visas is 27 percent.  The Canadian Consulate 
in Sao Paulo has similar statistics.  While their overall visa 
denial rate is around 12 percent, they estimate that about 20 
percent of students are denied.  Sao Paulo has prioritized student 
appointments, and the current wait for F1 and J1 applicants is less 
than a week, compared with over two months for tourist visas.  END 
COMMENT 
 
------------------ 
CONSULATE OUTREACH 
------------------ 
 
¶11.  (U) The Brazilian exchange market is exceptionally 
well-developed.  AmConsul Sao Paulo is in regular contact with over 
fifty organizations that assist students with J1 programs, although 
a handful of for-profit organizations dominate the market.  STB, for 
instance, has 51 branch offices across the country and sends 5500 
clients annually to the U.S. on F1 and J1 programs.  These agencies 
serve as "one-stop shops" for students wishing to travel to the 
U.S., selecting the program that best fits the student's goals. 
 
¶12.  (U) AmConsul Sao Paulo has held over 30 meetings with exchange 
agencies over the past year, in addition to a summer work travel 
planning meeting that brought together almost fifty exchange 
organizations.  In preparation for the Summer Work Travel season 
that begins in October, ConOffs have attended six job fairs and 
pre-orientation meetings for student candidates, in addition to 
meetings with agency heads. Through this outreach, ConOffs have 
directly reached about 1,400 students, 20 U.S. employers and six 
U.S. designated J1 sponsors.  In the coming months, ConOffs plan to 
expand existing outreach. 
 
----------------------------------------- 
Growth in J Programs Expected To Continue 
----------------------------------------- 
 
¶13.  (U) Despite the obstacles, indications are that Brazilians will 
continue to seek out exchange opportunities in the U.S. over the 
coming years.  A strong currency, a competitive and globally 
integrated labor market, and a well-developed exchange industry all 
make J1 exchange programs an easy sell.  The perception within the 
industry and among potential participants is that the U.S. au pair, 
summer work travel and trainee programs are the best when considered 
on a cost-benefit basis.  For high school exchange students, demand 
currently surpasses supply, but the demand itself does not seem to 
be diminishing. 
 
¶14.  (U) As the total number of exchange students has increased, so 
has the refusal rate.  Whereas the refusal rate in 2005 for J1 visas 
was 5.6 percent, that number jumped to 10.3 percent in 2006. 
 
SAO PAULO 00000787  003.2 OF 003 
 
 
Interviewing officers and Fraud Prevention Unit (FPU) are paying 
close attention to possible fraud trends within the program and 
carefully monitoring applicants and their sponsors.  An unfortunate 
problem ConOffs have encountered involves unscrupulous agencies 
motivated by profit that fail to screen applicants appropriately. 
Isolated incidents of agencies using the J program as a vehicle for 
immigration are being investigated by FPU. 
 
¶15.  (U) COMMENT: While setting high standards for applicants and 
exchange organizations, AmConsul Sao Paulo hopes to encourage the 
continuing growth of J exchange programs for Brazilian youth, 
particularly among social classes that may not be able to access 
more costly F1 study programs, and among young adults who may not 
otherwise have the opportunity to visit the United States.  ConOffs 
are disseminating this message through post's ELO outreach program 
targeting several universities that have not had close contact with 
the Consulate.  AmConsul Sao Paulo will continue these efforts and 
look for new opportunities to highlight exchange and study 
opportunities in the United States.  END COMMENT. 
 
¶16.  (U) This cable was coordinated with Embassy Brasilia. 
 
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