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

The travel and tourism industry in Latin America is evolving into a significant economic force, poised to generate millions of jobs and contribute billions to the regional economy over the next decade.

A recent report by the World Travel & Tourism Council (WTTC), in partnership with VFS Global, projects that the Latin American travel market could generate $260 billion and create eight million jobs by 2025.

However, these optimistic forecasts come with a caveat. The report, titled "Unlocking Opportunities for Travel & Tourism Growth in LATAM," indicates that these projections depend on the implementation of three crucial policies. These policies, designed to enhance growth in the region, focus on transport infrastructure, visa facilitation, and tourism marketing.

If these measures are enacted, the region could see an annual growth rate of about 3.4 percent, potentially resulting in an annual economic contribution of $909 billion.

Already, Latin America's travel industry has made significant economic contributions. In 2023, it generated $629 billion and welcomed 86 million travelers. The sector also provided employment for over 24.6 million people, accounting for 9 percent of all jobs in the region.

"LATAM's travel and tourism sector has undergone an extraordinary transformation. It has grown significantly in recent years, greatly benefiting the region's economy," said Julia Simpson, WTTC’s president and CEO. "The growth potential for travel and tourism in LATAM is substantial. With the right policies, it could unlock an additional $260 billion in the next decade."

The report also explores the historical development of Latin America's travel and tourism sector, highlighting challenges such as the 2008 global financial crisis, disease outbreaks, and political instability.

Despite these challenges, the region's travel and tourism sector is on the path to recovery. In 2024, the industry is expected to have a record-breaking year, with a GDP contribution exceeding $650 billion and the creation of an additional one million jobs, bringing the total number of industry jobs in the region to 25.7 million.