The World Travel and Tourism Council (WTTC), in collaboration with VFS Global, has revealed that the travel and tourism sector in Latin America (LATAM) could add approximately US$260 billion to the region’s economy over the next decade and create approximately 8 million new jobs.
According to the report, “Unlocking Travel and Tourism Growth Opportunities in LATAM,” this potential growth relies on three key policies to unlock 3.4 percent annual growth and reach a contribution of nearly US$909.2 billion.
The report includes a policy package focused on improving LATAM’s growth based on transport infrastructure, visa facilitation and tourism marketing.
Travel and tourism is a major industry in the region, expected to welcome 86 million international travelers in 2023 and contribute more than US$629 billion to the regional economy.
The sector was essential for employment last year, supporting the livelihoods of more than 24.6 million people and accounting for 9 percent of total employment in the region.
Julia Simpson, WTTC President and CEO, said: “Latin America’s travel and tourism sector has undergone an incredible transformation, growing significantly over the past few years and contributing significantly to the region’s economies.”
“The growth potential for travel and tourism in Latin America is huge. It has already grown significantly since 2000 and, with the right policies, could generate an additional $260 billion in revenue over the next decade.”
“Countries in the region need better transport infrastructure, simplified visa procedures, improved biodiversity and nature protection, and effective marketing campaigns that highlight the richness of this vibrant region’s tourist destinations.”
Zubin Karkaria, Founder and CEO of VFS Global, said: “We are pleased to partner with WTTC to unlock the immense potential of travel and tourism in Latin America.
“Since establishing our presence in LATAM in 2009, we are now a trusted partner to 18 governments, serving 29 cities across 17 countries in the region. With our expertise in visa services and tourism promotion, VFS Global is committed to playing a pivotal role in harnessing LATAM’s potential. Our involvement also enables us to support destinations in improving their workforce, a key component of the tourism sector.”
“This comprehensive report will serve as a roadmap for governments, national tourism boards and other stakeholders to develop strategies to unlock the continent’s economic potential, attract vital investments and increase arrival numbers. The region will greatly benefit from our experience in simplifying cross-border travel through safety, reliability, efficiency and innovative technological solutions.”
This report details the historic journey of Latin America’s travel and tourism industry – a story that has faced challenges head-on, from the 2008 global financial crisis to setbacks caused by disease outbreaks and political unrest.
Despite all these challenges, the travel and tourism sector is on the path to recovery.
According to the international organization, 2024 is predicted to be a record-breaking year, contributing more than $650 billion to GDP and creating an additional one million jobs, bringing the total to 25.7 million.
Opportunities for LATAM
The report highlights a strategic approach to strengthen tourism by consolidating investments in infrastructure, improving air connectivity and streamlining visa procedures.
The report highlights the importance of protecting biodiversity and nature through improved water management and the use of low-carbon energy.
These efforts aim to attract more tourists while ensuring environmental sustainability.
Leveraging digital technologies enhances travel experiences and optimises marketing strategies supported by data-driven insights, while investing in local people and conservation enriches visitor experiences and ensures travel and tourism is sustainable and inclusive.
Finally, ensuring safety measures are in place will build confidence in the travel and tourism sector and sustain growth. This cohesive strategy aims to strengthen the region’s position as a globally competitive and attractive tourist destination.
These efforts could unlock potential for environmental conservation, job creation and economic development in LATAM’s travel and tourism sector.
To access the full report, please visit the WTTC Research Hub.
