Andréa Novais

Andréa Novais


The Brazil Business

Updated

Hotel Capacity in São Paulo

Andréa Novais

Andréa Novais


The Brazil Business

Updated

This article will give an overview of the current status of the hospitality industry in São Paulo, the major financial center in Latin America.

Background

As mentioned on the article “Brazilian Regions for Foreign Investors”, out of 10 jobs created in Brazil, six are in São Paulo. As the city concentrates a highly skilled workforce as well as many universities and institutions, it hosts many of the business events happening in the country.

Business tourism in São Paulo bills annual 9,6 billions and is responsible for 60% of the touristic activity in the city, turning São Paulo into an Latin American giant in terms of accommodation, beating cities like Rio de Janeiro and Buenos Aires.

Such demand is a benefit to the city, as it generates jobs and speeds up the economic growth, but the lack of infrastructure is threatening the development of this market.

Totally Overcrowded

Although ranked among the 10 major hotel networks in the world, São Paulo still faces problems regarding accommodation. The city is likely to host many important events, from business events to fairs, concerts, parades and Formula 1. The calendar for these events is usually planned ahead, but if for some reason Formula 1 and a major business event are happening at the same time, customers are likely to face long lines at the reception of major hotels.

The occupation level of the city during weekdays is of 80% and on the weekends, the number decreases to 60%. São Paulo has been working to become a major cultural center and with that, change its touristic profile, attracting not only businessmen but also regular tourists.

Such enterprise allied with major events as the 2014 World Cup have started to worry hotel chains. Concerns are not only related to availability, but also to workforce. If only 24% of the Brazilian executives speak English, this number is much lower when it comes to receptionists, waiters and maids.

What Are My Options?

São Paulo Convention & Visitors Bureau ( SPCVB) estimates the construction of 4.000 new apartments until 2012 to serve the demand. Currently, São Paulo has 42.000 apartments and 105.000 beds.

While these new apartments are not build, the solution is to plan ahead your trips to São Paulo, especially when being aware that main events, congresses and concerts will be takind place in the city.

SPCVB provides a calender with all the events taking place in São Paulo (to see the calendar, click here ). A look to this calendar will help you avoiding inconveniences. In cases of unavailability, there is also the option of staying in nearby cities. Alphaville, for example, an upscale neighborhood located 30 minutes away from São Paulo, is a place where you can find decent hotels and good quality services.

Another option is the cities located in the ABC region, corresponding to the municipalities of Santo André, São Bernardo and São Caetano do Sul. These three cities are as developed as São Paulo and São Caetano do Sul, for example, has the highest level of life quality in the country.

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