Sponsored
by Visa, key highlights include:
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GBTA BTI™ indicates that strengthening domestic and global
economies will place Brazil on a strong growth path in 2013, with the
index increasing by over 40 points
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Brazilian total business travel spending is expected to grow 14.3% in
2013 to $34.5 billion
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Domestic business travel spending has grown 8.3% a year over the last
12 years, and is forecast to grow 12.9% to $27 billion in 2013
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International outbound travel spending is on target to expand by
20.2% in 2013, reaching $7.1 billion
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Demand for hotel rooms and air travel has been strengthening from
both domestic and international outbound travelers; however there is
an increasingly large gap in supply
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Brazil currently ranks 8th in the business travel global rankings,
and is on track to surpass Italy, France and the UK over the next two
years
Wellington
Costa, President of GBTA Brazil commented: “Brazil has shown
remarkable economic resilience and we see this reflected in the
latest GBTA business travel data. Although business travel spending
slowed toward the end of 2012, growth rates for both travel spend and
the economy are now rising again. The major challenge facing the
Brazilian business travel market is whether the country’s travel
infrastructure and supply can keep pace with its growing demand.”
“Brazil
continues to be a bright spot globally when it comes to travel, with
both domestic and international
travelspending
continuing to see strong growth,” said Diego Rodríguez, Head of
Commercial Solutions, Visa Inc. Latin America and Caribbean.
“According to the findings, Brazilian business travelers will
surpass Italy, France and the UK over the next two years, as it
continues rapid economic growth and development. With events such as
the 2014 FIFA World Cup and the Rio 2016 Olympic Games helping fuel
both business and tourism travel, Visa is committed to helping Brazil
maximize their economic potential with electronic payment
infrastructure.”
While
it appears that the current economy is weighing on the minds of
travelers, for the first half of this year, we saw U.S. and
international travelers increasing their spend on Visa accounts,”
said Tad Fordyce, head of global commercial solutions at Visa Inc.
“From January to June of 2012, international travelers increased
travel spend on their Visa accounts by nine percent in the U.S. to
$20.1 billion. U.S. travelers were also active for the first six
months, increasing travel spend on their Visa accounts by seven
percent to $17 billion. 2012 has the ability to be the year of the
traveler if we can continue this momentum of business and leisure
travel.”
The
path to growth
Despite
the recessionary years of 2008 and 2009, Brazil’s business travel
spending has continued to grow at an impressive rate, and has nearly
tripled since 2000. From an estimated $11 billion in 2000 travel
spend expanded at an average rate of 8% per year to over $30 billion
in 2012.
In
2013 growth rates are expected to return to double digit figures,
boosted by upward trends in key economic indicators – particularly
business confidence and employment – both highly correlated with
business travel spend. Business travel spending is forecast to
increase by 14.3% to $34.5 billion in 2013. This growth momentum will
continue, with total business travel spending forecast to grow
another 16.1% to $40 billion in 2014.
Moving
up the world rankings
Brazil’s
business travel industry has been performing strongly compared to
other developed markets. Brazil is currently ranked 8th in the world,
up one place from 2011. With current growth rates, Brazil is forecast
to continue its rise through the rankings as a major business travel
market, overtaking Italy, France and the UK over the next two years.
Challenges
ahead
The
forecast for Brazil is positive; however there are challenges which
must be addressed if the business travel market is to reach its full
potential. The demand for hotel rooms and air travel has been
strengthening from both domestic and international inbound travelers,
and is set to increase over the next few years in the run-up to the
World Cup and Olympics. The key challenge will be whether this demand
can be met going forward. Currently the supply of hotel rooms and air
travel remains constrained, and the manner in which this is addressed
will impact the continued growth of the business travel market in
Brazil.
