Travel and Tourism in Latin America Expected To Be a Boon for the Region in Coming Years

by Mia Taylor
Last updated: 3:35 PM ET, Tue July 2, 2024

The Latin American travel and tourism industry is growing into an economic powerhouse that's on target to create millions of jobs over the next decade and generate billions for the region’s economy.

A new report from the World Travel & Tourism Council (WTTC), developed in collaboration with VFS Global, reveals that the Latin American travel market is likely to generate $260 billion and create eight million jobs by 2025.

There is a caveat to the rosy predictions however. The report, titled ‘Unlocking Opportunities for Travel & Tourism Growth in LATAM,’ says the projections are dependent on three key policies that could “unlock” the type of annual growth that is being forecasted.

The report includes a policy package that’s aimed at improving LATAM’s growth based on transport infrastructure, visa facilitation, and tourism marketing.

With the proposed policy measures in place, the region could realize annualized growth of about 3.4 percent and potentially generate an annual economic contribution of $909 billion.

Already, Latin America’s travel industry has generated impressive economic output for the region. In 2023, it generated $629 billion amid welcoming 86 million travelers.

The sector was also essential for employment last year, providing livelihoods to more than 24.6 million people, which equated to 9 percent of all the jobs in the region.

“LATAM's travel and tourism sector has witnessed an extraordinary transformation. In the past years, it has grown significantly, contributing immensely to the region's economy,” Julia Simpson, WTTC’s president and CEO, said in a statement.

“Growth potential for travel and tourism in LATAM is significant,” Simpson added. “It has already seen substantial growth since 2000, and with the right policies it could unlock an additional $260 billion in the next decade.”

The new report also delves into the historical journey Latin America’s travel and tourism sector has been on, including the many challenges it has faced beginning with the global financial crisis in 2008 to setbacks caused by disease outbreaks and political instability.

Despite all these challenges the region’s travel and tourism sector appears to be on a path to recovery.

For 2024, the industry is expected to have a record-breaking year, achieving a GDP contribution of more than $650 billion. An additional one million jobs will also be created this year, raising the industry’s regional total to 25.7 million.