The report 'Unlocking Opportunities for Travel & Tourism Growth in LATAM', prepared by WTTC and VFS Global, shows that the sector would contribute 260 billion dollars, as a result of three key policies: transport infrastructure, visa facilitation and tourism marketing
The World Travel & Tourism Council (WTTC), in collaboration with VFS Global, revealed that Latin America's travel and tourism sector could contribute nearly US$260 billion to the region's economy and create nearly eight million new jobs over the next 10 years.
According to the report 'Unlocking Opportunities for Travel & Tourism Growth in LATAM', this potential growth depends on three key policies to achieve an annual growth of 3.4%, reaching a contribution of almost 909.2 billion dollars.
The report includes a package of policies focused on improving LATAM's growth based on transport infrastructure, visa facilitation and tourism marketing.
The travel and tourism sector plays a major role in the region, contributing more than $629 billion to its economy in 2023, when it welcomed 86 million international travelers.
The sector was also essential for employment levels, providing more than 24.6 million livelihoods among the Latin American population, equivalent to 9% of the total jobs in the region.
Julia Simpson, President and CEO of WTTC, said: “LATAM’s Travel & Tourism sector has witnessed an extraordinary transformation. In recent years, it has grown significantly, contributing enormously to the region’s economy.
"The sector's growth potential in the region is significant. It has already seen substantial growth since 2000 and, with the right policies, could unlock an additional $260 billion over the next decade.
“Countries in the region need better transport infrastructure, streamlined visa processes, enhanced protection of biodiversity and nature, and effective marketing campaigns to highlight the richness of this vibrant region’s destinations.”
Zubin Karkaria, Founder and CEO of VFS Global, said: “We are delighted to partner with WTTC to further boost the immense potential offered by travel and tourism in LATAM.
“Since establishing our presence in LATAM in 2009, we are now the trusted partner of 18 governments, serving 29 cities across 17 countries in the region. VFS Global, with its expertise in visa services and tourism promotion, is committed to playing a pivotal role in harnessing LATAM’s potential. Our involvement can also help destinations upskill their workforce, a crucial component in the tourism sector.”
“This comprehensive report serves as a roadmap for stakeholders, including governments and National Tourism Boards, to formulate strategies that unlock the continent’s economic potential, attract crucial investments and boost inbound arrivals. The region will benefit significantly from our expertise in streamlining cross-border mobility through highly secure, reliable, efficient and innovative technological solutions.”
This report delves into the historical journey of the Travel & Tourism sector in LATAM. It is a story of facing challenges head on, from the global financial crisis of 2008 to delays caused by disease outbreaks and political instability. Despite all these challenges, the Travel & Tourism sector is on the road to recovery.
According to the world body, 2024 is expected to be a record year, achieving a contribution to GDP of more than 650 billion dollars, as well as the creation of one million additional jobs, raising the total to 25.7 million.
Opportunities for LATAM
The report outlines a strategic approach to enhancing tourism by integrating infrastructure investments, improving air connectivity and simplifying visa procedures.
The report highlights the importance of protecting biodiversity and nature through better water management and the use of low-carbon energy.
These efforts aim to attract more tourists and ensure environmental sustainability.
Leveraging digital technologies enhances the travel experience and can optimize marketing strategies, supported by data-driven insights. Investing in local people and nature preservation enriches the visitor experience and ensures travel and tourism is sustainable and inclusive.
Finally, ensuring safety measures builds trust and ensures growth in the travel and tourism sector. This strategy aims to strengthen the region's position as a globally competitive and attractive destination.
