With three key policy changes, the tourism sector in Latin America could rise to over USD 909 billion within 10 years, says a joint study by WTTC and VFS Global.

World Travel and Tourism Council (WTTC), in collaboration with visa firm VFS Global, has published a report saying that with some policy initiatives, the Latin American (LATAM) travel and tourism sector could add nearly USD 260 billion to the region’s economy over the next 10 years and create nearly 8 million new jobs.

According to the report, Unlocking Opportunities for travel and tourism Growth in LATAM, this potential growth is dependent on three key policies to unlock annualised growth of 3.4 pc, reaching a contribution of nearly USD 909.2 billion.

The report says that travel and tourism is a powerhouse sector in the region, with a contribution of more than USD 629 billion to the region’s economy in 2023, welcoming 86 million international travellers.

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

The report says that the regional governments should ease visa processes, improve transport infrastructure, improve biodiversity protection as well as launch marketing campaigns to attract more tourists and attain the potential cited in the report.

“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 President and CEO.

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

“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,” Simpson says.

“We are delighted to partner with WTTC to unlock the immense potential that travel and tourism offer in LATAM. 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,” says Zubin Karkaria, Founder and CEO of VFS Global.

“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,” he adds.

“This comprehensive report serves as a roadmap for stakeholders, including governments and National Tourism Boards, to formulate strategies that unlock the continent’s economic potential, attract crucial investments, and boost inbound arrivals. The region stands to gain significantly from our experience in simplifying cross border mobility through highly secure, reliable, efficient, and innovative technology solutions,” Karkaria adds.

WTTC says that despite all these challenges, the travel and tourism sector is on a path to recovery.

According to the global body, 2024 is projected to be a ‘record-breaking year’, achieving a GDP contribution of more than USD 650 billion, as well as the creation of an additional one million jobs, raising the total to 25.7 million.

The report underscores a strategic approach to enhance tourism by integrating investments in infrastructure, improving air connectivity, and simplifying visa procedures. 

It highlights the importance of protecting biodiversity and nature through better water management and the use of low-carbon energy. These efforts aim to attract more tourists while ensuring environmental sustainability.

The report says that leveraging digital technologies enhances the travel experience and can optimise marketing strategies, supported by data-driven insights. Investing in local people and natural preservation enriches the visitor experience and ensures travel and tourism is both sustainable and inclusive. 

The statement adds that ensuring safety measures builds trust and sustains growth in the travel and tourism sector. This cohesive strategy aims to strengthen the region’s position as a competitive and appealing destination globally.

These efforts could unlock the potential for environmental preservation, job creation, and economic development in the LATAM travel and tourism sector, says WTTC.