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Travel & Tourism in Latin America Could Boost Region’s Economy by US$260BN Over the Next Decade

The World Travel & Tourism Council (WTTC), in collaboration with VFS Global, has released a report indicating that the Travel & Tourism sector in Latin America (LATAM) could add nearly US$260 billion to the region’s economy and create almost eight million new jobs over the next decade.

The report, titled “Unlocking Opportunities for Travel & Tourism Growth in LATAM,” outlines the potential for annualized growth of 3.4%, which would result in the sector’s contribution reaching nearly US$909.2 billion. Key policies identified to achieve this growth include improvements in transport infrastructure, visa facilitation, and tourism marketing.

In 2023, Travel & Tourism contributed more than US$629 billion to LATAM’s economy, welcoming 86 million international travelers and providing livelihoods to over 24.6 million people, which accounts for 9% of all jobs in the region.

Key Highlights from the World Travel & Tourism Council Report

• Economic Growth Potential: The LATAM Travel & Tourism sector has significantly grown since 2000. With the right policies, it could unlock an additional US$260 billion in economic contribution over the next decade.
• Infrastructure and Visa Facilitation: Improved transport infrastructure and simplified visa processes are essential for sustaining growth. This includes enhancing air connectivity and making visa applications more straightforward for tourists.
• Tourism Marketing: Effective marketing campaigns are crucial to highlighting the diverse destinations within LATAM, making the region more attractive to international travelers.
• Environmental Sustainability: Protecting biodiversity and nature through better water management and low-carbon energy usage is essential. This approach ensures that tourism growth does not come at the expense of environmental health.
• Technological Integration: Leveraging digital technologies can enhance the travel experience and optimize marketing strategies through data-driven insights. This will help in attracting more tourists while ensuring that their experiences are memorable and sustainable.
• Workforce Upskilling: Investing in local workforce development is critical. Training programs can help local communities benefit from tourism, creating a more inclusive and sustainable sector.

Statements from Key Leaders

Julia Simpson, World Travel & Tourism Council President & CEO, emphasized the need for better transport infrastructure, simplified visa processes, improved protection for biodiversity, and effective marketing campaigns to unlock the sector’s potential.

Zubin Karkaria, Founder and CEO of VFS Global, highlighted the importance of simplifying cross-border mobility through secure and innovative technology solutions. VFS Global aims to support LATAM destinations in upskilling their workforce, a crucial component in the tourism sector.

Future Outlook

The report outlines a strategic approach to enhance tourism by integrating investments in infrastructure, improving air connectivity, and simplifying visa procedures. By focusing on these areas, LATAM can attract more tourists and ensure the sector’s growth is both sustainable and inclusive.

2024 is projected to be a record-breaking year for LATAM’s Travel & Tourism sector, with a GDP contribution expected to exceed US$650 billion and the creation of an additional one million jobs.

For more detailed insights, the full report can be accessed on the WTTC Research Hub.

About WTTC

The World Travel & Tourism Council (WTTC) represents the global travel and tourism private sector. Members include 200 CEOs, Chairs, and Presidents of the world’s leading travel and tourism companies. WTTC has been committed to raising awareness of the economic and social significance of the travel and tourism sector for more than 30 years.