São Paulo – Figures related to business fairs in Brazil show a sector that is already great, and that should grow even further. In 2012, the number of fairs should rise from the current 180 to 201, with the participation of 50,000 companies, of which 8,000 foreign, as against 43,000 in 2011. Annually, fairs receive 48,000 buyers from abroad, from 65 countries, generating not only business but also turnover for the country’s tourism economy, staying at good hotels and spending more than leisure tourists do. Thus, fairs show that they are among the best Brazilian windows for the foreign market, as well as contributing to tourism in the country.
According to figures disclosed by the da Brazilian Union of Fair Promoters (Ubrafe), revenues of sector fairs in Brazil are approximately 3.5 billion Brazilian reals (US$ 1.9 billion) a year, including the lease of exhibition space, payment of services at pavilions, as well as travel costs, housing, food and purchases made by participants. Regarding public, this year, fairs should receive 4.65 million visitors, a figure expected to rise to 5.4 million in 2012.
“Brazil sells much in commodities. When the case is industrialized products, the country participates little in the global market. In this respect, fairs help promote country products,” said Alfredo Fróes, the Ubrafe director. “The shoe industry, for example, trades between 40% and 50% of produce at fairs,” he pointed out.
The fairs that received the greatest number of visitors are clearly those open to the public in general, like the Car Salon and the Book Biennial, in São Paulo. Together, these two events receive over one million people. In terms of the fairs turned exclusively to sector professional, the main ones are the International Shoes, Fashion Accessories, Machines and Components Fair (Francal), the International Shoes, Sports Goods and Leather Goods Fair (Couromoda) and the International Fair of Technology and Packaging for the Food Industry (Fispal Technologia). The two former fairs receive approximately 100,000 visitors each, the latter, 60,000.
To Fróes, the number of fairs in Brazil has been growing alongside the country economy. “We have reached the same level of fairs as other countries. There are also other fairs being born, like those turned to sustainability,” said the executive. “Previously, Europe had ten building fairs, now it has two. These events have been transferred to the Middle East and Asia, where the nations demand heavy construction,” he said.
In Brazil, 70% of the large fairs are concentrated in São Paulo. Rio Grande do Sul, Santa Cataria and Paraná also have many events. “The transformation industry base is in this region,” said the Ubrafe director. “In the North and Northeast there is still not much, but that is changing, as the market is growing,” he points out.
Regarding the profile of foreign visitors to fairs in Brazil, Fróes says that many are seeking partnerships. “They come to prospect. Brazil is the country with most ISO certified companies (a reference in quality and process). This provides guarantee,” he said. “The domestic market has grown much and is attractive. Foreign companies are coming to learn, while Brazilians are seeking competitiveness in markets in which they were not competitive before. Fairs are exchange of experience,” he pointed out.
According to the executive, foreign buyers are mostly from the United States, Asia and Europe. With regard to the Arabs, he pointed out an event in special. “At Couromoda, one of the main caravans is that of the Arab buyers,” he explained. However, he believes that the country does not yet know how to sell to this public. “Brazil does not know how to sell to the Arab market. It is a market that we do not know so well. You have to be much guided to sell there, and we have to get ready now, not in two years’ time.”
Beyond business
Of the 3.5 billion reals in turnover in the fair sector in Brazil, the hospitality sector, including travel, food, housing, transportation and purchases is approximately 1.4 billion reals (US$ 750 million). In the city of São Paulo, for example, these visitors spend on average three days. In housing, 60% prefer midscale hotels, closer to the convention centres, according to figures provided by the São Paulo Turismo (SPTuris), an organisation connected to the São Paulo City Hall.
Despite not staying in the city as long as leisure tourists, business tourists spend more. “Business tourists demand better quality housing, have lunch in better restaurants,” said Caio Luiz de Carvalho, SPTuris president. “On average, expenses in the city total 1,800 reals (US$ 960) in the three days they are here. Leisure tourists, in turn, spend on average five days in the city, but spend less in total, approximately 1,090 reals (US$ 580). These are tourists that tend to stay in cheaper hotels or at friends’ houses,” he explains.
Leisure options for visitors are also many, pointed out Carvalho. “There are hundreds of theatres, museums, cultural centres and movie theatres. That is not to count the over 12,000 options for gastronomy, 50 shopping centres and 60 trade streets. This stimulates tourists that com to fairs or on business to stay longer in the city,” he pointed out. He also adds that over 30% of these tourists plan to spend longer in the city than the event they are coming to. “It was thinking on this that SPTuris recently developed project ‘Fique Mais Um Dia’ (Stay Another Day), with one-day tourism routs under themes ‘Family’, ‘Sophisticated’, Cultural’ and ‘Hype’,” he pointed out.
Today, according to Carvalho, the city of São Paulo has 600,000 square metres of great exhibition spaces for events. “There are some 20 centres for large-scale fairs and conventions, including Anhembi, the largest in South America, which has 80% of its agenda filled up to 2016,” he pointed out. Apart from the existing pavilions, there are others to come. “The construction of a modern exhibition area, Expo São Paulo, is underway in Pirituba. It should strengthen São Paulo’s position in this small international business travel sector, strengthening the city’s position as a global city that attracts and hosts events,” he finished off.
*Translated by Mark Ament
