CTC News

Banking on growth from Brazil.

New Market Insights report delves deep into long-haul travel motivations, visa challenges and future marketing prospects.

31 May 2012
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With a population bursting past 190 million, Brazil is already the seventh-largest world economy (with PwC predicting it will rise to No. 5 by 2025). That makes this country a logical choice to be the next Canadian Tourism Commission (CTC) key market to go under the Market Insights report microscope.

This series of reports lifts the lid on long-haul travel in each market and peeks into future marketing and sales considerations in Canadian terms. The Brazil Market Insights—2011 report is broken down into various sections: Market conditions; Brazil and Canada; Competitive environment; Market potential; Marketing to Brazilian travellers; SWOT; Considerations and Implications.

Some key findings:

  • Brazilians took an increased liking to long-haul travel (beyond South America) between 2005 and 2010. Annual growth of 15% was fuelled by a growing middle class that had more money and a strong currency.
  • Uncle Sam holds great appeal in Brazil: more than a quarter of long-haul Brazil trips went to the USin the same six-year period—an average 20% annual growth—despite its stringent visa conditions. A strong emotional pull, combined with the draw of shopping and cheap airfares, create an irresistible travel combo for many Brazilians.
  • There is currently only one daily nonstop flight to Canada from this market: São Paulo to Toronto, ON. Although the two countries signed an updated bilateral air agreement in 2011 to pave the way for a new air service, a reciprocal visa requirement has put the brakes on travel in both directions.
  • Despite visa and air-service challenges, Canada has enjoyed significant rises in arrivals from Brazil in 2010 (25%) and 2011 (13%).
  • There are opportunities aplenty for more, including: Canada is the No. 1 study destination for Brazilians abroad; 750,000 Brazilians have shown a strong intent to visit these shores in the next two years; and Canada is competitive on pricing when all costs are factored in.
  • Multi-cultural travel experiences tick the wanted box on Brazilian consumers’ wish lists. Canada is well placed to offer trips that have a balance between good-value shopping and culture.
  • It’s time to improve Brazilians’ perceptions of Canada. By introducing the Signature Experiences Collection® into marketing and encouraging local travel trade to highlight its members, CTC aims to lose the association with cold, barren landscapes and unaffordable travel.

CTC’s Market Insights reports draw on stats from four of its own studies—Global Tourism Watch, Advanced Path to Purchase, Explorer Quotient® research plus Ad Evaluation and Conversions—alongside data from other recognized sources. Twenty-one industry and research organizations partnered with CTC for this report.

Read the Brazil Market Insights—2011 report in full.

 

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