Explaining the Boom of Tourism in Latin America

Today, tourism in Latin America has become a major game-changer, just as it has for other economies all around the world. It is a very popular industry and investors worldwide are looking to put their money somewhere that promises medium and long-term investments. In Latin America, that may involve local company formation in order to start operations.

According to the UNTWO Tourism Highlights 2018 report, tourism is a leading driver of economic growth and development that represents USD$347bn in the Americas alone. For many countries in the region, this is a vital way to receive FDI and open up their economies to international trade.

At Biz Latin Hub, we can help you deal with tourism in Latin America, across a range of subsectors. Our market-leading array of back office services can help get you started and stay compliant through annual accountancy requirements, legal obligations and all the rest. With a network of 18 local offices across the region, we have you covered wherever you are and whatever you’re doing.

The Tourism Industry in Numbers

Nonetheless, one can’t discuss tourism without taking a closer look at the Latin American region. It is a part of the world where tourism has become one of the most important contributors to economic development, job creation and even environmental protection.

Numbers given by the WTTC in their report on Economic Impact in Latin America, show that the region stands as the fourth most important for tourism in the world. Tourism provides 15,778,000 jobs (7.6% of total employment).

Although the statistics for the region are promising, Latin America still must compete with top tourism destinations such as Europe, Asia and North America in a battle to capture the hearts and wallets of international tourists and investors.

However, despite the disadvantage that Latin America might have in comparison to other regions, this underdog of the tourism industry is facing a bright future for the year. By the year 2028, it is predicted that the general contribution of travel to GDP will reach USD$136.2 billion, compared with just 80.5 billion in 2018.

Trending Tourism Topics in Latin America Today

Latin America is the new kid on the block and has become one of the most exciting regions in the tourism industry. Travellers nowadays are seeking for something different and meaningful for their holiday experiences. As a result, interesting trends are arising in relation to this boom of tourism. Axon Marketing and Communications prepared a report on the top types of tourism to the region:

• Nature (25%)
• Adventure (23%)
• History and Culture (22%)
• Gastronomy (18%)

These areas present opportunities for countries and firms to focus on while trying to promote tourism in their region.

Colombia’s Amazing Ecotourism

Colombia is one of the best examples in Latin America of ecotourism. As a country that hosts the greatest variety of birds in the world (approximately 20% of all bird species worldwide), naturally one of the most attractive activities related to ecotourism in Colombia is bird watching.

According to the National Audubon Society, bird enthusiasts from the United States are willing to pay more than USD$300 per day during their travels in Colombia to see the different species of birds. This represents a very lucrative and attractive business venture for local and foreign investors.

Nonetheless, not all aspects of Colombia’s tourism industry shine so brightly, leading the government to create a local plan for tourism development. This plan focuses on defining permitted and restricted areas of tourism. There is also a general consensus that firms should start involving local communities in areas affected by tourism.

Mexican Cuisine For Everyone

Apart from being declared an Intangible Cultural Heritage of Humanity by the UNESCO, Mexican cuisine is famous worldwide and represents a major driver of attraction to the country. As said by the UNWTO, foreign travellers spend 30% of their budget on culinary experiences during their stay in Mexico.

This is a huge percentage and represents a genuine competitive advantage for the country to promote and grow gastronomical tourism. Places like Oaxaca, Yucatán, and Ciudad de México (Mexico City) market themselves as gastronomic hotspots that offer a variety of breathtaking distinct dishes with unique aromas.

However, despite the fact that Mexico receives millions of international visitors each year and has a successful tourism industry, security is an issue. The Mexican government needs to assume responsibility and resolve security issues in order to keep its position as a leading Latin American tourist destination.

The AMLO administration took this subject very seriously by working with different governmental institutions to design new models of security involving additional police presence in the most insecure areas, and the incoming administration is expected to continue in the same vein.

Business Opportunities in tourism in Latin America

The booming industry for tourism in Latin America is full of opportunities ready to be taken advantage of. We can help you organise company formation in the region and keep you compliant.

Whether its identifying key niche activity within the world of ecotourism or creating a service that bridges tourists with quality experiences, possibilities await.

If you have an idea you would like to explore, get in touch with the team at Biz Latin Hub for personalised advice.