Sao Paulo - Several million people took part in the world's largest gay pride parade in the Brazilian commercial capital Sao Paulo which wound down early Monday after 10 hours of partying.

Dressed in colourful costumes and dancing and singing to samba and techno music, the crowds made their way along the central Avenida Paulista Sunday.

The rainbow flag, which has come to symbolize the modern gay community, filled the streets.

Organizers estimated that 5 million people took part in the parade.

Total strangers embraced and kissed on the streets of the business district. Media reports spoke of a "real carnival."

The 12th annual Gay Pride Parade was a celebration of gay pride, but there was also a serious element with many carrying banners protesting homophobia.

Alongside the fun and excitement, the parade was "primarily about rights for homosexuals," parade coordinator Manoel Zanini said.

"We don't just want to arouse ethnic or anthropological interest," Zanini said.

The parade also remembers all the gay men and women who have died from AIDS or homophobic violence.

Under the motto "homophobia kills," the parade was also intended to protest discrimination, hatred of gay people, racism and the macho culture, Zanini said.

The Gay, Lesbian, Bisexual and Transgender Pride Parade also drew crowds of families, pensioners, foreigners and personalities from sport, politics and culture.

"You could see mothers pushing prams and so many children. It was great," gay activist Alexandre Santos said.

"A festival like this gives gays in other countries a lot of hope," the organizer of the Moscow gay pride parade, Nikolai Alekseev, said. Gay pride events in Moscow have been attacked by thugs and the police in recent years.

Tourism Minister Marta Suplicy was among the partying crowds and said parliament must finally approve a draft bill outlawing homophobia.

Brazil wanted to attract more gay tourists into the country, she said.

As in many South American countries, homosexuals in Brazil face persecution and attacks.

In Sao Paulo alone 98 cases of anti-gay violence were reported between January and April.

The authorities have said they want to combat homophobia.

The central government said its project, Brazil Without Homophobia, financed more than 300 events, including parades, seminars, exhibitions, plays, and sport and film festivals in 2007.

State firms like the oil giant Petrobras also sponsored the 2008 parade to the tune of some 470,000 dollars.

The Sao Paulo parade started in 1996 with just 2,000 people taking part.

Since 2004, it has entered the Guinness World Records list as the world's largest, with 3.5 million people the previous year.

The official figure for the number of participants in 2008 is expected to be announced Monday.

Police have complained the event's size has caused problems.

In 2008, there were more crimes committed than ever in the city's history because of the number of mobile phones stolen and drugs consumed during the parade. (dpa)