We continue with our sights set on Brazil, and after making the case that it is one of the emerging markets for the tourism sector, it’s now time to analyze that country’s opportunities for developing a business.
Although Chile is the South American country with highest growth in tourism and Brazil ranks third, there are reasons for the business sector to maximize efforts in the Brazilian market. As an anecdotal note, the Spaniard gets higher marks than other Europeans in terms of friendliness and hospitality, although his voice can be the louder.
There has been a positive and steady evolution in both international tourism to Brazil and the inflow of foreign currency, but there is no doubt that the 2014 Football World Cup and the 2016 Olympics open a multitude of opportunities. Due to the dimensions of this competition, to its technical demands and the large number of visitors that will arrive in Brazil, major investments are taking place by both public and private sector companies.
The benefits generated in the host city will exert a direct influence on nearby municipalities, generating jobs, investment and development in general as an integral part of this effect, which will continue to contributing benefits once the tourism of these events passes, making use of the entire infrastructure and, above all, the sector’s momentum.
In addition, we can add other points about the country:
- Political and financial stability continues to grow, generating confidence for foreign investment.
- Increase in the use of the Internet to search for information on tourist destinations and to organize trips. In addition, it is increasingly being used as a means of payment for tourism products – Brazil ranks fifth globally in the number Internet connections.
- Development of subsectors such as the organization of conventions and business events, fairs, workshops, etc.
- Capacity to attract large multinationals. According to the study published by America Economy Intelligence, Sao Paolo is the best city for doing business in the South America.
- Capacity for generating new businesses.
- A growing technological development is underway.
- Cost of living.
Consequently, as part of the business that surrounds infrastructure construction, the country is an incubator for businesses that give support to the above and fulfill a demand that will have its peak in the World Cup and Olympics. These are:
- Distribution and commercialization of products/services, feeding on the wide and growing offer, to meet the growing demand in coming years.
- Tourist information and support of all kinds.
- Online and strategic marketing both for lodgings and service businesses.
- Tech support for hotels, both in management and sales/booking engines.
In subsequent posts we will look at the entrance strategy in Brazil for each of these businesses.