Major events stimulate Brazilian hotel industry
The performance of the Brazilian hotel industry during the first half of 2014 benefited from major events, including the FIFA Confederations Cup and the World Cup. Rio de Janeiro, in particular, watched its hotels full, as it held the Press Centre and the national teams of Holland and England, besides several games, including the finale.
A study by FOHB (Fórum de Operadores Hoteleiros do Brasil) named "Perspectives on Hotel Performance" shows good indicators by the end of 2014, predicting that hotel occupancy, average daily rates and revenue per available room (RevPAR) for Brazilian hotels should be higher than last year by the end of 2014. Interestingly, so far May was the month with the highest occupancy in the hotel network studied, which can be explained by the anticipation of some events and conferences to the month prior to the World Cup.
One should remember that in 2016 Rio will host the Olympic and Paralympic Games, which will move around € 2.2 billion, according to the Local Organizing Committee. These events will affect the performance of part of the hotel industry in the country. The games will be played in four regions of the city of Rio de Janeiro, with the exception of football, once the matches will alsotake place in Belo Horizonte, Brasília, Salvador and São Paulo stadiums. It is expected that the hotel industry in these cities is impacted by the event, but to a lesser extent than that observed during the World Cup. The exception is Rio de Janeiro, where a similar scenario to that seen in the World Cup is expected, the FOHB study predicts.
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