German companies have traditionally been glad to do business in Sao Paulo, but these days many investors are scared off by the large number of German firms there already and the Brazilian city's notorious crime problems.

Sao Paulo's loss has been Blumenau's gain. Each year hordes of tourists flock to the southern Brazilian city's Octoberfest, the largest of its kind in Latin America. But as Vanessa Fischer reports, this city of 300,000 inhabitants has much more to offer.