Brazilian business travel spending will increase by 13 percent in 2012 and 15.7 percent in 2013, to $31.1 billion and $36 billion respectively, the Global Business Travel Association (GBTA) reports.
The results of its inaugural GBTA BTI Outlook – Brazil, sponsored by VISA, notes significant increases in real, actual travel. International outbound business travel spending will grow at a faster rate than domestic business travel spending, GBTA reports.
GBTA says real GDP in Brazil will increase by 3.8 percent in 2012 and nearly 5 percent in 2013. Brazilian business travel spending shows a strong correlation with domestic job growth. By 2013, domestic business travel spending in Brazil will constitute 78 percent of the overall total.
International, outbound business travel spending will record double digit growth levels over the next two years and reach $7.3 billion by the end of 2013, GBTA says, moving from ninth to eighth in the BTS world rankings
Michael W. McCormick, executive director and COO of the GBTA, commented: ''This inaugural report has highlighted some fascinating trends and bodes well for Brazil’s continued economic expansion and growth in the country’s international trade." The GBTA report is the first in a series being undertaken by GBTA.
Wellington Costa, president of GBTA Brazil remarked: “Business travel is crucial to economic growth, and with its vibrant economy, Brazil is poised to become a major business travel hub in the next few years. The growth of the business travel market has been remarkable, especially in light of the economic slowdown of 2008-9. In fact, Brazil’s business travel spend currently ranks ninth in the world at $28 billion, but this report shows that it will overtake its closest competitor within the next three years.”
The report also details a strong correlation between Brazilian job growth and travel expenditure. GBTA’s analysis of the Brazilian and the U.S. markets indicates that domestic business travel spending is ahead of gains in job creation by approximately one quarter.
Domestic business travel spending in Brazil makes up a large proportion of the country’s total travel expenditure. The amount spent on domestic travel is four times that of international outbound travel in 2012, and by 2013 it is expected that domestic travel spending will contribute 78 percent of the total business travel spend.
While domestic business travel spending makes up a large proportion of total spending, GBTA forecasts that international outbound business travel spend will return to double digit rates this year and continue in 2013.
The rate of growth in international outbound business travel spending declined slightly as a result of the global economic crisis, however as the Brazilian economy recovers it is expected that international outbound business travel spending will grow at a faster rate than domestic business travel spending.
The fourth quarter of 2011 saw the GBTA BTI come in at 238, after being relatively flat the previous three quarters. GBTA BTI for Brazil is pointed to return to a stronger upward trajectory in 2012-2013 on the continued growth of the domestic and global economies. By the end of 2012 the GBTA BTI is expected to reach 274 and a year later GBTA predicts it will reach 318.
The GBTA BTI for Brazil has been derived from total business travel spending and an index base year of 2005 was chosen for consistency with GBTA BTI in other countries. Specifically, the GBTA BTI in Brazil is set equal to 100 in 2005 Q2.