The World Travel & Tourism Council (WTTC), together with VFS Global, disclosed that the Travel & Tourism sector in Latin America (LATAM) could potentially enhance the regional economy by nearly US$260 billion and create approximately eight million new jobs within the coming decade.
The study, titled ‘Unlocking Opportunities for Travel & Tourism Growth in LATAM’, suggests that achieving this growth would require adherence to three pivotal policies, potentially elevating the sector’s economic impact to nearly US$909.2 billion annually, a growth rate of 3.4%.
The strategic focus of the policy package includes enhancing transport infrastructure, streamlining visa processes, and amplifying tourism marketing efforts.
In 2023, the Travel & Tourism sector significantly influenced the region’s economy, generating over US$629 billion and welcoming 86 million international visitors. The sector played a crucial role in job creation, employing over 24.6 million individuals, representing 9% of the total jobs in the region.
The document also explores the sector’s resilience through various adversities, such as the 2008 Global Financial Crisis, health pandemics, and political turmoil, demonstrating its recovery trajectory.
Julia Simpson, WTTC President & CEO, said: “LATAM’s Travel & Tourism sector has witnessed an extraordinary transformation. In the past years, it has grown significantly, contributing immensely to the region’s economy.
“Growth potential for Travel & Tourism in LATAM is significant. It has already seen substantial growth since 2000, and with the right policies it could unlock an additional US$260 billion in the next decade.
“Countries in the region need better transport infrastructure, simplified visa processes, improved protection for biodiversity and nature, and effective marketing campaigns to highlight the wealth of destinations in this vibrant region.”
Zubin Karkaria, Founder and CEO of VFS Global, said: “We are delighted to partner with WTTC to unlock the immense potential that Travel & Tourism offer 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 assist destinations in upskilling the 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 stands to gain significantly from our experience in simplifying cross border mobility through highly secure, reliable, efficient, and innovative technology solutions.”
The WTTC anticipates 2024 to be a landmark year with the sector possibly reaching a GDP contribution exceeding US$650 billion and adding an extra million jobs, bringing the total to 25.7 million.
Strategic Enhancements for LATAM’s Sector
The document emphasizes a holistic strategy to bolster tourism, including investments in infrastructure, better air connectivity, and simplified visa processes.
It also highlights the critical role of environmental conservation through improved water management and adoption of low-carbon energy solutions, aiming to attract more visitors while promoting sustainability.
The integration of digital technologies is recommended to improve the travel experience and refine marketing strategies through data analytics. Investments in local communities and environmental conservation are seen as vital to enriching tourist experiences and ensuring the sustainability and inclusiveness of the Travel & Tourism sector.
Furthermore, the report stresses the importance of implementing safety measures to build trust and sustain growth, aiming to position LATAM as a globally competitive and attractive tourist destination.
These strategies are seen as key to unlocking LATAM’s potential for environmental preservation, job creation, and economic growth within the Travel & Tourism sector.
Source: WTTC
