Annual spending on business travel in Brazil has tripled since 2000, according to the results of the latest GBTA BTI™ Outlook – Brazil report.
The report, sponsored by Visa Inc., includes the GBTA BTI™; an index of business travel spending that distills market performance over a period of time.
Despite two quarters of weaker economic growth in 2013, GBTA projects total spending on business travel will grow 12.5 percent in 2014 to $37 billion USD, and another 5.9 percent in 2015. The upcoming presidential elections could positively impact these numbers as well.
Brazil's business travel industry moved up one spot in the rankings from last year to become the 8th largest business travel market in the world. If Brazil can get economic growth back on track, GBTA expects it to continue to climb the ranks of the top business travel markets in the world, likely surpassing South Korea and France during the next 10 years.
Domestic business travel spending growth in Brazil has slowed significantly off its aggressive pace earlier in the decade, mostly due to the slowdown in the once-charging domestic economy. GBTA expects domestic business travel spending will strengthen a bit in 2014, however, as firms and policymakers continue to take strides to boost productivity and competitiveness. GBTA expects 12.3 percent growth in 2014 before it moderates to 5.4 percent in 2015.
Growth in international outbound (IOB) business travel was hit hard in recent years mostly due to the external environment, but the worst appears to be in the past as a recovery in the Euro Area, Brazil's largest trading partner, is underway. GBTA expects IOB spending will advance 13.1 percent in 2014 followed by another 8.1 percent in 2015 hitting $7.2 billion USD.
World Cup Impact on Business Travel
Travel managers who already have arrangements in place for travel during the World Cup are in a good position. Those looking to make arrangements during that timeframe should act quickly as it's possible they could face higher prices and limited availability as the event nears.