An article from supply management shows that Brazil is still a hot destination for corporate travel.
“Despite the relative volatility in Brazil, we have been encouraged by real GDP growth and a significant rise in Brazilian export volumes,” says Wellington Costa, president of GBTA Brazil. “As the global economy regains double-digit growth, we remain confident that Brazilian business travel spend will return to double digit growth this year. This is nothing but good news,” he adds.
The GBTA’s research also suggests that Brazil’s business travel market will surpass that of South Korea, France and Italy over the next few years.
Despite the social unrest and economic difficulties, businesses in the travel sector have not seen a drop in corporate travel spend. Client spending continues to be strong, and is increasing, according to Mario Hidalgo, alliance manager, LATAM at corporate travel provider Egencia. “Clients consistently spend above forecasted levels and previous years,” he says. “There are also no signs of significant measures for them to reduce their spend in the coming months.”
South America’s largest country is one of the most popular corporate travel destinations, with capital city Brasilia identified as the second most important destination for business’ growth, according to the Guild of Travel Management Companies. It bases its findings on business travellers’ views and analysis of travel management companies’ “round-trip” sales to growth economies.
Different figures, this time from Abracorp – Brazil’s Corporate Travel Agencies Association – show that the business travel sector grew by 13 per cent in the first six months of 2013. The association expects revenue of R$13 billion (£3.3 billion) this year, and companies within the sector are predicted revenues of approximately R$25 billion (£6.3 billion).
Travel providers are willing to invest in the country too. BCD Travel has forged a joint venture with Brazilian provider Avipam which will employ 300 people. Its aim is to create a strong presence in a market where its clients need to be, says Barbara Blue, BCD Travel president for Latin America.
It is not just the large-scale events taking place in Brazil that have led to this positivity. “Brazil has been in the global spotlight for some years, with a very healthy growth in corporate travel,” says Hidalgo. “Global companies are expanding already in the Brazilian market, so I don’t believe the sporting events will change the current trend much. There might be some impact on specific business areas directly related to the events.”
One reason is its increased connectivity with the rest of the world. “Brazil to Asia, for instance, is a new corridor that will impact directly on the corporate travel business,” says Hogg Robinson’s Moane. “We also see many Brazilian companies expanding their businesses worldwide, from many different sectors – construction, food, oil and gas and technology among others.”
Hidalgo agrees: “Brazilian companies are becoming global; making acquisitions not only in Latin America, but all over the world.” On the other side of the coin, multinational companies are also consistently expanding their investments in Brazil. Read the whole store here.