Brazil became an economic star over the past decade, boosted by a commodities boom that helped move it into sixth place among the world’s economies. The country expanded its export reach to become one of the top suppliers of oil, food and raw materials to even faster-growing China. Annual growth rates regularly topped 4 percent, and the resulting jobs eased poverty nationwide. But, today, the prolonged global economic slowdown has dampened Brazil’s prospects, putting its growth on par with that of the developed nations it once surpassed.
Business travel industry insight
Despite the country’s general economic woes, business travel demand—and prices—continue to rise. Travel is bolstered by the country’s meetings and conferences industry and by bookings related to the 2014 FIFA World Cup and the 2016 Olympics in Rio de Janeiro. A recent Industry Forecast by Advito, BCD Travel’s consulting arm, predicts hotel rates will increase as much as 20% in Brazil next year.
- Brazil ranks ahead of other emerging markets in economic stability, education and access to technology.
- Mobile penetration is an extraordinary 87%. Although most Brazilians now use their phones only to talk and text, there is a great opportunity for smartphone growth if carriers follow through on planned infrastructure improvements.
- A Growth Acceleration Program, begun in 2007, prioritizes infrastructure investments in utilities, transportation, sanitation and housing—boosting prospects for business and business travel.
- More than 30,000 new hotel rooms are under construction in Brazil—a capacity increase of nearly 14%.
- In September, Brazil’s central bank forecast 1.6% growth for Events and meetings in Brazil2012, down from the previous estimate of 2.5%.
- Inflation is growing, in large part because of the government’s policies to promote growth.
- The discovery of new oil-extraction techniques elsewhere in the world make Brazil’s offshore oil reserves less crucial to other markets.
- Homegrown tax and currency problems have hampered business growth.
- When your business expands into new markets, BCD Travel can get your travelers where they need to be. Talk to your account manager to find out more about how we can support your company’s growth.