2014 World Cup impact on Brazil business travel and infrastructure
GBTA’s report reveals overall business travel in Brazil is estimated to grow 12.5% in 2014 to $37 billion USD, and 5.9% in 2015. Presidential election outcome too could positively impact such growth. Annual business travel spending in Brazil has tripled since 2000.
The country has moved up a rank to become the 8th largest business travel market globally. If economic growth can be sustained, then Brazil can surpass South Korea and France during the next 10 years to as a business travel market. Slowdown in the domestic economy has lowered domestic business travel spending growth. Brazil’s domestic business travel spending is estimated to grow a bit through 2014.
Brazil has undertaken transportation infrastructure expansion in prep as 2014 world Cup host. Travel managers who ensured arrangements were in place during the World Cup find themselves 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.
The country will also host Summer Olympics in 2016, so infrastructure growth will be ongoing. World Economic Forum’s 2012-2013 Global Competitiveness report sees Brazil ranked 107 of 144 countries for infrastructure quality, having fallen 2 spots since the year before.
Brazil has turned to privatization to bring on modernisation of ports, expansion of airports and repair highways. While all projects have not been completed in time for World Cup, it helps strengthen trade and business travel in Brazil for the next few years. Increase in business travel to and from Brazil makes travel an important contributor for growth in Brazilian economy.