Business Tourism Market in Brazil
Brazil is the target for many foreigners on vacation, for all the well-known reasons. But beaches and nice weather are also responsible for another type of tourism: the business one. This article will cover the growth of this market.
It is hard not to associate Brazil as the perfect destination for vacations, with beautiful landscapes, rich cultural diversity and happy people. Beyond all of this, though, there is a true economic potential.
In 2013, thetourism industry in Brazil had a total revenue of BRL 62.7 billion, around BRL 5 billion more than 2012. The industry created more than 116,000 jobs, while the total of all the activities related to tourism were responsible for nearly 3 million new jobs. One of the major contributors for this growth is tourism related to business.
Market Size
Brazil is the country that hosts the largest number of events, and is number 7 in the world ranking.
According to the Ministry of Tourism, around 26% of all the foreigners coming to Brazil are so called “business tourists”. They come to participate in expositions, fairs, congresses and other events realized in the country.
This market has been growing continuously in the past years. Data from the National Confederation of Trade in Goods, Services, and Tourism (CNC) points out that the business tourism industry generated a revenue of BRL 36.79 billion in 2013, which represented a growth rate of 13.8% from the year before.
Why Is It Growing?
There is not one single answer for this question, but the sector believes that growing investments, price increases and a bigger appearance of Brazil in the media are keys to keeping this market solid.
The Brazilian Ministry of Tourism has invested around BRL 1.5 billion in business tourism in the past ten years. These resources were directed to the renovation and construction of event and congress venues in more than 900 Brazilian cities.
Investments from private companies have also been growing due to the increased attention of Brazil in the international media and its recognition as a business tourism pole. Major events, like the FIFA World Cup, in 2014, and the Summer Olympic Games, in 2016, have contributed to the country’s visibility, although some companies avoid organizing events during these dates. The main reasons are the fear of logistical problems and abusive prices.
Main Hosts and Visitors
The city of São Paulo is the main destination for business tourists. In 2012, the city welcomed 7.5 million visitors that fit this profile.
The estimates made by the São Paulo Convention & Visitors Bureau, the sector’s representative organization, is that in 2013 this number increased to at least 12 million visitors, and the generated revenue for the city was more than BRL 8 billion.
Rio de Janeiro is also seen as one of the largest business touristic poles in the country. Other traditional hosts of expositions, events and meetings are:
Main Visitors
Most foreigners that visit Brazil come from South America, Europe and United States. based on information from the Ministry of Tourism, the most relevant facts about the country of origin of foreign business tourists are:
- Around 30% of the Germans, Canadians, Spanish, Portuguese, French, and Italians that visit Brazil are business tourists
- Almost 60% of the Mexican tourists visiting Brazil come to the country for business purposes
- 35% of the American tourists that come to Brazil do so because of business purposes
- Even though South American countries form a big part of the foreign tourists visiting Brazil, most tourists from this region come for leisure purposes