For the next decade, Brazil’s carnival atmosphere will be tried and tested outside the confines of the big annual jamboree in Rio. Proud hosts of both the FIFA World Cup in 2014 and the Olympics and Paralympics in 2016, a series of high profile events is set to raise the country’s international meetings industry standing and boost infrastructure investment.
According to Reed Travel Exhibitions’ EIBTM’s latest annual Industry Trends and Market Share Report, the emerging markets Brazil, Russia, India and China (BRIC) represented about 20 per cent of the global gross domestic product (GDP) in 1999, yet now account for almost 50 per cent.
Brazil’s economy has seen a strong rebound in business confidence since the recession and this is reflected in its growing meetings industry. “The crisis affected Brazil of course, but on a level less critical than that of Europe or the US,” says strategic council member of Reed Exhibitions Alcantara Machado in Brazil, Eduardo Sanovicz. “The economic activity, stimulated by the development of the internal market and the national economic growth generated a beneficial improvement in the national MICE industry,” says Sanovicz, who previously spearheaded the state tourism agency Embratur.
“In a challenging environment, the winners in 2010 will be those destinations that target a diversified business base where downturns in one area of the meetings industry can be compensated for opportunities in other areas,” says the author of the Trends report, senior lecturer in business travel and tourism at the University of Westminster in London, Rob Davidson.
Speaking at the World Conference of the World Travel and Tourism Council in May, Brazil’s President Lula stated that Brazil will maintain its investments during the economic downturn, with emphasis on the infrastructure sector, which includes roads and the construction of airports.
Lodging Econometrics’ first 2011 Forecast for New Hotel Openings in Latin America, compliled at the end of last year, had projected 132 hotels and 23,693 rooms in August 2009. By November 2009, the projection had increased to 140 hotels with Brazil accounting for a 58 per cent share.
Business and event tourism represent close to 30 per cent of Brazil’s annual activity. In the International Congress and Convention Association (ICCA) annual rankings for 2009, which cover meetings organised by international associations, which take place on a regular basis and rotate between a minimum of three countries, Brazil has steadily increased its worldwide ranking from 21st in 2002 (59 meetings) to seventh place (293 meetings) in 2009, behind the US, Germany, Spain, Italy, UK and France.
Of the 667,000 business travellers that visited Latin America in 2008, Brazil hosted 175,000.
Reed’s Sanovicz, who is also the former VP of ICCA, says: “The latest rankings are related to the tremendous evolution of our capacity to receive and organise international meetings, spread across the country.
“In 2003, when the Brazilian government restructured the international promotion of the country there was the creation of a programme to support, increase and promote MICE industry,” he adds.
The congress, business and incentive manager at Embratur, Wilson Freitas, says: “Last May, Embratur launched a new funding and promotion of international events support programme. The main objective is not only to bring events to the country, but also to diversify the economies of the cities that host them.”
When my baby smiles at me I go to Rio de Janeiro
The International Olympic Committee (IOC) selected Rio de Janeiro in October 2009 as the host for the 31st Olympic and Paralympics Games in 2016, beating competition from Madrid, Chicago and Tokyo. As the first South American city to host the Games, Rio, which already owns the largest convention centre in Latin America, Riocentro, will experience an enormous infrastructure boom in coming years, estimated at US$10bn.
Twenty-five thousand of the 48,000 planned hotel rooms are due before the event, however, the city is considering cruise ships to provide extra accommodation. Also due in 2016 is a high-speed train between Sao Paulo and Rio de Janeiro, at a cost of US$20bn.
“New hotels will be built, public transport will be improved, many hotels will be renovated, the city will have a better and wider tourism infrastructure,” says congresses and events manager for the Rio Convention and Visitors Bureau (RCVB), Lilia Macedo. “Of course, that will be a wonderful legacy for the city and for the MICE market in our city.”
Having the Olympic Games follow the World Cup in 2014 means a huge investment legacy with direct impact for tourism, says the president of Embratur, Jeanie Piresm, “but it also creates a tremendous advertisement campaign that will change the image of Brazil for at least four years”.
Sanovicz argues that for Brazilians, and Latin Americans in general, Europe is becoming an important destination due to the development of cultural and economic links between both regions. The UK’s national tourism agency VisitBritain and Embratur have signed an official partnership agreement to increase tourism between the two countries around the London 2012 and Rio 2016 Olympic and Paralympic Games.
Crucial to this is joint lobbying for increased air capacity between the UK and Brazil.
The improving of air access is constantly on the agenda for the national tourist board. At the moment, the country receives more than 850 regular weekly flights from all continents, accounting for an average of 55m passengers per year.
The region of Recife is presenting itself for future MICE development given it is just over a six-hour flight from Europe, compared to Rio and San Paolo’s 11 hours.
Sao Paulo means business
In terms of business travel and convention-related tourism, Rio ranks second with 24.7 per cent, following Sao Paulo. In the leisure sector, the cities are reversed with Rio taking a 30.2 per cent share.
Sao Paulo, which generates 30 per cent of Brazil’s GDP, is the most important destination for business tourism in Latin America, says Sanovicz. “And of course, the city offers tremendous cultural, gastronomic and entertainment possibilities.”
Freitas says that Brazil’s meetings offering, which includes more than 129 conference centres over the 58 cities, is also a satisfying product among international visitors. “Over 86 per cent of visitors plan to return to Brazil and 94 per cent recommend the country to their friends and relatives.”
Last year, Rio de Janeiro won more than 60 per cent of the international congresses it bid for. A total of 15 international meetings decided upon Rio with the help of the RCVB, such as the General Conference of the International Council of Museums 2013 and the International Congress of Physiological Sciences, both estimated to attract 2,500 delegates. “In 2010 up to now, we are bidding for 27 international meetings,” says Macedo.
International professional conference organiser, the Kenes Group, will organise 30 congresses this year and 50 in 2011. One such event is the World Stroke Organisation’s annual conference, due to be held in Brasilia in 2012 for the first time.
“The industry views Brazil as appealing yet problematic as it is so far, however, Brazil open up this region to medical professionals, who cannot afford the international or European congresses,” says group director from business development, Quirine Laman Trip. “Brazil is growing in relevance and importance, therefore worth the extra effort.”
The next 10 years will be pivotal for Brazil’s meeting and convention offering. The hosting of two world-renowned events, with millions of eyes cast upon its shores, will create an immense events legacy that its convention industry can build upon.
If all goes to plan, the increasing of its events offering with advanced infrastructure and transport networks and a higher level of meetings efficiency, will allow South America’s largest economy to attract the convention business it is aiming for.
Without the commitment to that infrastructure, and confirmed association convention forward bookings, the 2014 and 2016 carnival experiences might leave the local meeting industry with a headache.
