There are several factors driving the current economic growth in Latin America. Such factors include investment stimulation by regional governments and an increase in skilled labour. This is causing a surge in new business arrivals from outside the region and more Latin American tourism.
Simultaneously, the increasing wealth of the middle class and the elimination of visas required between nations, among other reasons, have caused an even greater spike in Latin American tourism. As the sector booms, more people are considering company formation in the region or via foreign investment.
As we are experts in Latin America and the Caribbean, Biz Latin Hub is ideally placed to help you with this. Our network of 18 dedicated local offices spans the region, including all the hotspots for Latin American tourism. We can sort out the bureaucracy and detail, allowing you to focus on building your business with the peace of mind that comes from knowing there are no legal issues to worry about.
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The growing number of travelers
The growing interest in Latin American tourism has benefited both regional and international airlines, as well as hotel chains.
According to a report by ALTA (Latin American and Caribbean Air Transport Association), by the end of 2018, fourteen new regional and international air routes were opened, with the goal of providing better connections between Latin America and the Middle East, Asia and Africa. Additionally, the hotel sector considers Latin America as a growth focus for their industry.
Increased tourist demand in countries such as Argentina, Chile, Colombia, and Mexico has led international hotel chains to desire a stronger presence in the region. Rufino Perez, COO & Global Transformation Leader of the NH Hotel Group chain, affirmed that the group will open 11 new hotels in Latin America to cater to expected demand.
The tourism sector has been transformed by the use of e-commerce. In a population where 60% of people have access to the Internet, more and more Latin travellers are using different mobile applications and internet platforms to reserve hotels, book tours and organize transport, foregoing traditional travel agencies.
Here lie opportunities for firms to enter the Latin American market to leverage technology and provide new and exciting platforms totravellerss.
Overview in Numbers
Despite various political and social problems that affected some countries of the region, Mexico, Brazil, Costa Rica, and Panama are in the top 50 nations with the most competitive tourism sector, according to the World Economic Forum.
Naturally, Latin American tourism boosts job creation and according to a WTO report, approximately 10.6 million jobs were generated in 2018, and the figure will rise to 13.2 million within ten years.
Both the private and public sectors are receiving the benefits of increased tourism in the region. Foreign firms need to be sure to complete the correct procedures and regulations concerning work visas and hiring staff in different countries.
What’s the Appeal of Latin American Tourism?
Despite social and political problems faced by Latin America, many nations have the chance to present their finest attributes through tourism. Visitors travel from Europe and North America to experience its natural beauty, landscapes, and rich history.
According to a study conducted by Axon Latam, the top reasons for foreign tourists to visit Latin America are:
- Landscapes and nature (25%)
- Adventure tourism (23%)
- Historical significance (22%)
- Food and drink (18%)
Recently, visitors from Asia have also grown, motivated by their taste for exotic multi-nation trips.
Additionally, ethnic-tourism has been encouraged in places such as the Sierra Nevada de Santa Marta and parts of the Amazon rainforest in Colombia, along with the Cusco region in Peru. This gives visitors a closer look at the native and indigenous cultures, past and present.
Homegrown Travel
Latinos are also traveling in greater numbers. Millennials are searching for destinations with a thirst for adventure and new experiences.
Pensioners and retirees in search of tranquil destinations and a growing interest in luxury destinations by the middle class, add to the mix. Naturally, technology has been an important factor.
According to a study made by the Amadeus company on Latin American tourism, 58% of Argentines choose their destinations depending on recommendations from acquaintances and by word-of-mouth.
In Brazil, there is a 43% trend in consulting social networks, when making travel decisions and 27% of travel is bought via smartphone.
Firms in the industry need to have clear strategies set on how to best reach their customers. Additionally, a report published by Expedia Group shows that good deals, destination information, and advertising are the three biggest determining factors for Latino travelers.
The use of social media and tourism portals through mobile phones, though still basic, are now the biggest sources for destination choice and trip activities.
Biz Latin Hub can help with Latin American tourism businesses
The Latin American tourism sector has evolved to be one of the most attractive sectors within the region. Market opportunities, especially in sustainable tourism and technological solutions attract the attention of local and foreign investors.
Our team at Biz Latin Hub can provide you with professional business services to support your business operations in Chile. Do not hesitate to contact us now for more personalized information about viable business opportunities.
