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Brazil hotels benefit from World Cup visitors

Among the host cities, Rio de Janeiro reported the strongest performance in occupancy and average daily rate.

LONDON – The 2014 FIFA World Cup, held from 12 June through 13 July, led host country Brazil to experience strong hotel performance gains during the months of June and July.

STR Global tracks data for nine of the 12 cities that hosted matches throughout the tournament: Belo Horizonte, Brasilia, Curitiba, Fortaleza, Manaus, Porto Alegre, Rio de Janeiro, Salvador and Sao Paulo.

“The FIFA World Cup is a very popular tournament that draws visitors from around the world”, said Elizabeth Winkle, managing director of STR Global. “Not only did the tournament draw global visitors but it attracted visitors from across the country. As we anticipated, the World Cup had a positive impact on Brazil hotel performance during June and July”.
Among the host cities, Rio de Janeiro reported the strongest performance in occupancy and average daily rate. All host cities, except Fortaleza, reported higher occupancy during June than in July, despite Sao Paulo that had nearly the same occupancy performance for both months. In June, during the Group Phase of the tournament there were more matches/teams playing, which offers an explanation for the higher demand levels.

Rio de Janeiro, which hosted the media centre as well as seven matches, including the finals, was able to maintain high occupancy and ADR levels throughout the entire tournament.

Overall, hotels in Brazil saw a 50.1-percent ADR increase in June and a 36.1-percent ADR increase in July. The ADR increase was reflected across all host cities, however, occupancy levels across all host cities decreased when compared to 2013.

Brazil saw a 2.0-percent supply increase in June 2014 on a 12-month-moving-average basis. Rio de Janeiro and Sao Paulo, off the back of a high supply base, increased supply by 1.4 percent and 0.6 percent, respectively. Brasilia saw a supply increase prior to the World Cup of 4.2 percent.

Tatiana Rokou

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She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.