The Latin American (LATAM) Travel & Tourism sector is set to add nearly $260 billion to the region’s economy and create almost eight million new jobs over the next 10 years.
This exciting potential was revealed in a report by the World Travel & Tourism Council (WTTC), in collaboration with VFS Global.
The report, “Unlocking Opportunities for Travel & Tourism Growth in LATAM,” outlines three key policies needed to achieve this annual growth of 3.4%, resulting in a total contribution of nearly $909.2 billion. The policy package focuses on improving transport infrastructure, visa facilitation, and tourism marketing.
Travel & Tourism is a powerhouse in LATAM, contributing more than $629 billion to the region’s economy in 2023 and welcoming 86 million international travelers. The sector also provided jobs for over 24.6 million people, representing 9% of all employment in the region.
Julia Simpson, WTTC President & CEO, praised the sector’s transformation, highlighting its significant economic impact. She noted that with the right policies, LATAM could unlock an additional $260 billion in the next decade, emphasizing the need for better transport infrastructure, simplified visa processes, biodiversity protection, and effective marketing campaigns.
Zubin Karkaria, Founder and CEO of VFS Global, expressed enthusiasm about the partnership with WTTC. He highlighted VFS Global’s role in visa services and tourism promotion, noting their presence in LATAM since 2009 and their partnerships with 18 governments across 17 countries. Karkaria emphasized the importance of upskilling the workforce to harness the sector’s potential.
The report also details the historical journey of LATAM’s Travel & Tourism sector, showcasing its resilience in overcoming challenges like the Global Financial Crisis in 2008 and various disease outbreaks. Despite these setbacks, the sector is on a path to recovery.
According to the WTTC, 2024 is projected to be a record-breaking year, with a GDP contribution of more than $650 billion and the creation of an additional one million jobs, bringing the total to 25.7 million jobs.
The report underscores the need for strategic investments in infrastructure, improved air connectivity, and simplified visa procedures to enhance tourism. Protecting biodiversity and nature, managing water resources, and using low-carbon energy are also crucial for attracting more tourists while ensuring environmental sustainability.
Leveraging digital technologies can enhance the travel experience and optimize marketing strategies, supported by data-driven insights. Investing in local communities and natural preservation will enrich visitor experiences, ensuring that Travel & Tourism is both sustainable and inclusive.
Ensuring safety measures builds trust and sustains growth in the Travel & Tourism sector. This cohesive strategy aims to strengthen LATAM’s position as a competitive and appealing destination globally.
These efforts could unlock significant potential for environmental preservation, job creation, and economic development in the LATAM Travel & Tourism sector, paving the way for a prosperous future.
