The business travel market in Brazil will overtake that of the UK within two years provided supply can cope, a report by the Global Business Travel Association has concluded.
Brazil currently ranks eighth in the global corporate travel rankings but will overtake Italy, France and the UK by 2015. Spend in Brazil this year is set to reach $34.5 billion, an increase of 14.3%. The bulk of this, $27 billion, is spent on domestic travel, but the growth rate of international outbound travel, at 20% last year, is outstripping this.
The GBTA says demand for hotel rooms has been strengthening from domestic and international outbound travellers but that there is a gap in supply.
Wellington Costa, GBTA Brazil president, said: “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’s business travel spend has almost tripled since 2000 despite the global recession and is set to reach $40 billion next year. The World Cup and Olympics will add to demand.
The GBTA concludes that the outlook is positive but warns that investment is needed. The report adds:
“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.”