The World Travel & Tourism Council (WTTC), in collaboration with VFS Global, has revealed a promising outlook for the Travel & Tourism sector in Latin America (LATAM). Their study, titled ‘Unlocking Opportunities for Travel & Tourism Growth in LATAM,’ projects that the sector could boost the regional economy by nearly US$260 billion and create an estimated eight million new jobs over the next decade.
To achieve this significant growth, the study emphasizes the implementation of three key policy areas: enhancing transport infrastructure, streamlining visa processes, and bolstering tourism marketing efforts. By adhering to these strategic initiatives, the sector’s annual economic impact could potentially reach nearly US$909.2 billion, marking a 3.4% growth rate.
In 2023, the Travel & Tourism sector significantly impacted LATAM’s economy, generating over US$629 billion and attracting 86 million international visitors. This dynamic sector also played a vital role in job creation, employing over 24.6 million individuals, representing 9% of the total jobs in the region. The document highlights the sector’s resilience, having successfully navigated through various challenges, including the 2008 Global Financial Crisis, health pandemics, and political turmoil, demonstrating its remarkable recovery trajectory.
Julia Simpson, WTTC President & CEO, expressed her optimism: “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.” She added, “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, echoed this sentiment: “We are delighted to partner with WTTC to unlock the immense potential that Travel & Tourism offer in LATAM.” He highlighted VFS Global’s commitment: “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.”
The comprehensive report serves as a roadmap for stakeholders, including governments and National Tourism Boards, to develop strategies that unlock the continent’s economic potential, attract essential investments, and boost inbound arrivals. VFS Global’s expertise in simplifying cross-border mobility through secure, reliable, efficient, and innovative technology solutions is seen as a valuable asset for the region.
The WTTC anticipates 2024 to be a landmark year for the sector, with a possible GDP contribution exceeding US$650 billion and an additional million jobs, bringing the total to 25.7 million.
The report emphasizes a comprehensive approach to bolstering tourism, encompassing investments in infrastructure, improved air connectivity, and streamlined visa processes. Environmental conservation through improved water management and the adoption of low-carbon energy solutions are also highlighted as crucial for attracting visitors while promoting sustainability.
The integration of digital technologies is recommended to enhance the travel experience and refine marketing strategies through data analytics. Investments in local communities and environmental conservation are considered vital for enriching tourist experiences and ensuring the sustainability and inclusiveness of the Travel & Tourism sector.
The report emphasizes the importance of implementing safety measures to foster trust and sustain growth, aiming to position LATAM as a globally competitive and attractive tourist destination. These strategies are envisioned as key to unlocking LATAM’s potential for environmental preservation, job creation, and economic growth within the Travel & Tourism sector.
