Brazilian property investment opportunities 'to improve with global tourism growth'
Date added: 25th January, 2011 at 13:55
(view all articles from January, 2011)
Categories: Economy, Tourism, Property News, Hotels, Olympics 2016, World Cup 2014
Investment in Brazilian property may become more popular this year, as the country becomes one of those leading the growth of global tourism.
This is according to a recent report from Ernst & Young titled Hospitality Insight: Top thoughts for 2011, which explained speculators are taking note of the potential for developing markets to support the holidaymaking industry worldwide.
"Emerging economies are expected to serve as the catalysts of growth for tourism in the next decade," the report stated, saying major sporting events such as the World Cup - being held in Brazil in 2014 - and the Olympics, which will be hosted by the country in 2016, will play a part in the influx of travellers to the nation.
According to the report, the tournaments will see speculators "pouring billions of investment dollars" into Latin America's largest economy.
Ernst & Young stated the hospitality industry was recovering from two years of "turmoil", which may be good news for those seeking hotels for sale in Brazil. Meanwhile, an increase in the wages of those living in developing markets is pushing them to the forefront of the industry, with investors primarily targeting these nations.
With a rise in disposable income, people in emerging economies are entering the middle class demographic and are keen to travel, the report stated, with Goldman Sachs projecting as many as two billion individuals will move into this section of society worldwide by 2030.
Explaining the availability of credit and higher amounts of cash accessible to people in emerging economies are "closely correlated to domestic and international visitation", the report said the asset management firm had forecast developing markets would account for 60 per cent of global gross domestic product contributed by the tourism industry by 2050.
Last year, emerging economies led the way in the stronger-than-expected growth of global tourism, which expanded by an estimated two per cent, four times the prediction of the World Trade and Tourism Council.
The report asserted countries such as Brazil would need more than increased incomes to support a sustainable tourism industry, with investment needed in infrastructure. However, it noted public money would likely be poured into this area in preparation for the influx of visitors expected to arrive for the World Cup and Olympics.
Speculators are "taking notice" of the opportunities provided by emerging economies, with a survey by Bloomberg News recently showing speculators currently prefer to invest in Brazil, China and India, the publication said.
Indeed, Michael Cembalest, chief investment officer of asset management bank JP Morgan, recently told Forbes that Brazil represents a good opportunity for investors as consumerism in the country rises.
"Overall, vibrant stories, such as those of China, Brazil and Russia, will continue to make headlines in the mid to long term, thereby creating attractive investment opportunities across emerging markets for real estate players around the globe," Ernst & Young's report concluded.
For anyone wishing to invest in the full potential of Brazil, Property Bond Brazil has an excellent array of opportunities for investment in Brazil. 
Related Articles
Hotels for sale in Brazil to be popular as 'Brics lead tourism growth'?
Date added: 24th January, 2011 at 13:29
(view all articles from January, 2011)
Domestic demand 'creating opportunities' for investment in Brazil
Date added: 24th January, 2011 at 09:16
(view all articles from January, 2011)
Investment in Brazil to rise on IPO predictions?
Date added: 21st January, 2011 at 13:55
(view all articles from January, 2011)