In the first ten months of this year, revenue from business travel in Brazil recorded its highest ever. The latest figures show that income from this tourist sector has surpassed levels registered before the pandemic and consolidated Brazil’s position as a business destination.
Higher revenue than pre-pandemic
Data from the Brazilian Association of Business Travel Agencies (ABRACORP) reveals that business travel is enjoying its best year on record. In revenue terms, the sector earned over R$11.37 billion between January and October.
The figure is higher than the total for 2022 and on par with that registered in 2019. Business air travel saw a sharp uptick in October when revenue from flight tickets reachedR$818 million, 11.9% more than in 2019.
With two months still to go, including the high summer season, analysts believe business travel in Brazil should record a revenue of around R$13 billion by the end of 2024. The figure would be the highest ever.
October was a particularly busy month for business travel. Revenue reached R$1.25 billion, 16.5% more than October 2023 and, more significantly, 11% higher than October 2019.
ABRACORP predicts an even better month for revenue during November. Many businesses chose this month for their annual conventions and, as a result, it’s traditionally one of the busiest for business travel in the country. Revenue is forecast to reach around R$1.4 billion.
Moving the Brazilian economy
Celso Sabino, the Minister for Tourism, celebrated the latest figures for business travel. “They’re unprecedented for the sector and illustrate how business travel boosts the economy,” he said. He also pointed out how it promotes wealth distribution in popular business travel destinations as travellers stay in local hotels and eat out in local restaurants.
The Brazilian hotel sector has reaped the benefits from the rise in travel, particularly in business, so far this year. Occupancy rates have risen in the country’s ten largest cities and RevPAR increased by nearly 35%.
The job market reflected this economic boost with a surge in employment in the tourist sector. In October, it created some 20,700 new jobs throughout the country, four times more than in September. According to the Ministry of Employment (MTE), the increase is due to the large number of conferences and conventions held during the month.
Event tourism as an example
Events are one of the clearest indicators of the rise in business travel, and many destinations have experienced unprecedented demand over the last year. Ceará in Northeast Brazil is one example.
Event tourism, including business conferences, conventions and fairs, has risen in the state throughout 2023 and is forecast to increase by 30% in 2024. Events next year at the Fortaleza Conference Centre include high-level G20 meetings.
The Ceará Tourist Board welcomes the rise in business travel, particularly in revenue terms, because business travellers spend an average of R$700 a day, double the amount spent by holidaymakers.
(Sources: ABRACORP, MTE)