Brazil is expected to surpass South Korea, France and Italy in the business travel global spending rankings, according to the Global Business Travel Association (GBTA). The GBTA has released its latest GBTA BTI Outlook report on Brazil as part of its semi-annual series.
Sponsored by Visa, key highlights of the GBTA BTI include:
- GBTA BTI has downgraded its near-term outlook for Brazilian business travel as forecasted in the first half of 2013 due to experienced volatility as a result of slower than expected, but still robust economic growth at home and abroad, particularly through June 2013.
- However, Brazilian total business travel spending is forecasted to grow 6.3 percent in 2013 to $31.8 billion and another 12.6 percent in 2014 to $35.8 billion, as the global economy gains momentum along with Brazilian domestic demand.
- The weaker external environment and the subsequent drop-off in trade with Europe and the U.S. have hit Brazilian international outbound business travel spending particularly hard. In 2013, international outbound business travel suffered negative growth over the first two quarters, but is expected to get back on track in 2014, advancing at a high growth rate of 12.7 percent.
- Domestic business travel spending continues to show a strong correlation with job growth and has expanded 8.1 percent per year, on average, over the last 12 years. Domestic spending growth is expected to reach 7.7 percent in 2013 and accelerate further in 2014 as the Brazilian economy strengthens to 12.6 percent.
- Brazil currently ranks 9th in the business travel global rankings and, assuming the high growth rate in Brazil resumes, will climb the ranks of the top business travel markets in the world surpassing South Korea, France and Italy over the next few years.
Wellington Costa, President of GBTA Brazil commented: “Despite the relative volatility in Brazil, we have been encouraged by Real GDP growth and a significant rise in Brazilian export volumes. As the global economy regains double-digit growth, we remain confident that Brazilian business travel spend will return to double digit growth in 2014, this is nothing but good news.”
“Business travel to and from Brazil will continue to benefit from the country’s growing economy, as Brazil continues to be a globally important market,” said Tad Fordyce, Head of Global Commercial Solutions, Visa Inc. “According to the BTI findings, Brazil’s business travel market will surpass South Korea, France and Italy over the next few years and is projected to see double digit growth into 2014.”