Tourism in Latin America has been a major economic driver in the region for decades, generating jobs and attracting millions of tourists each year.
The initial impact of the pandemic was devastating for the tourism industry, with hotels, tourist attractions and restaurants being forced to temporarily close internationally due to travel restrictions and social distancing measures. Many people canceled their travel plans due to health and safety concerns, although due to the heavy losses, tourism companies had to adapt to the new health conditions and rules.
According to estimates from the World Tourism Organization (UNWTO) more than 900 million tourists made international trips during 2022, which is equivalent to double what it was in 2021, for this year the figure is expected to increase and everything will recover from the very low ranges that were obtained due to the COVID19 pandemic.
Tourism continues to grow in Latin America
As the world begins to recover from the pandemic, the tourism sector is starting to take off to slowly recover.
After the sharp drop in tourism in the Caribbean in 2020 due to confinement, forecasts show a recovery of the industry and, therefore, of its contribution to the gross domestic product (GDP) of the region until 2025. During the latter This sector is expected to represent 11 percent of GDP this year, thus registering values similar to those reached in 2019, before the confinement began.
According to Statista Market Insights, revenue from the travel and tourism market is projected to increase by around 60 percent in Latin America and the Caribbean this year, returning to pre-pandemic levels. In Brazil, the income generated by reservations for cruises, hotels, vacation rentals and tourist packages is expected to reach approximately 16,360 million dollars, compared to 13,150 million the previous year, precisely this country is positioned as the leader with the greatest projection In this sense, Mexico is positioned in second place.
With the demand for hotel reservations nearly tripling after the pandemic in 2020, Mexico’s travel and tourism billing is forecast to exceed $14 billion this year. In the case of Argentina, it is expected that the income of the sector will reach 6,700 million dollars, while in Colombia it would be around 3,700 million. Likewise, the market is expected to experience growth of more than 30 percent this year in Chile, Peru, the Dominican Republic and Bolivia.