Latin America Travel & Tourism Market Size
| Study Period | 2019-2028 |
| Base Year For Estimation | 2022 |
| Market Size (2023) | USD 49.5 Billion |
| Market Size (2028) | USD 64.42 Billion |
| CAGR (2023 - 2028) | 5.41 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Travel & Tourism Market Analysis
The Opportunities in Latin America Travel and Tourism Market size is expected to grow from USD 49.50 billion in 2023 to USD 64.42 billion by 2028, at a CAGR of 5.41% during the forecast period (2023-2028).
With increasing internet penetration in the region, improving the economic status of the countries and, as a result, more availability and ability to travel across and within the country. Outbound travel is a major reason for the industry's growth. Argentina and Brazil include the highest growth in outbound tours, with the Americas being the most favored destination. The increasing disposable income among the population and the growing middle class helped the tourism sector flourish even when the economy was sluggish.
With the advent of Covid at the end of 2019, restrictions were imposed on travel tourism, and the travel business paused globally. In Latin America, tourism GDP contribution declined from USD 490 billion in 2019 to USD 300 billion in 2020, causing many job losses and economic contraction. With a total number of jobs of 23 million in 2019, it declined to almost 18 million in 2020, with a loss of around 5 million in jobs related to travel and tourism in Latin America.
As the global economy is recovering from covid and the easing of restrictions, the number of jobs and contributions to GDP by the travel and tourism industry is observing a continuous increase and reaching pre covid era. Mexico, Brazil, and Argentina are among the fastest-recovering countries in the travel and tourism sector.
Latin America Travel & Tourism Market Trends
Rising Tourism Industry Investment affecting Latin America Travel and Tourism Industry.
In Latin America, tourism became one of the most important contributors to economic development, job creation, and environmental protection. International tourist arrivals increased by 7%, according to the World Tourism Organization (UNWTO).
Latin America stands out as a travel destination. Countries like Mexico, Peru, Colombia, Chile, and Argentina made new investments, and new international travel players, such as Norwegian Airlines, are emerging in the region. UNWTO forecasts that Latin America will receive 78.2 million tourists by 2027, generating USD 82 billion for the local economy. In 2021 domestic travel contributed around 89%, with international travel of 11% for the Latin American travel and tourism industry.
The rise of the middle class is one of the most important achievements regarding economic expansion in Latin America. The reduction of poverty allowed people to see further and comprise other perspectives on their own lives. Economic growth plays a big role when talking about the growth of the outbound travel market. It means that the rise of the middle class slowly opens up opportunities for people who could barely get by just a few years ago. Most Latin American countries experienced an economic slowdown over the past few years. However, tourists keep searching for outbound destinations worth the trip inside and outside Latin America.
Leading Latin American countries affecting Travel and Tourism Industry
Mexico, Chile, Brazil, Costa Rica, Uruguay, Colombia, Panama, Argentina, Peru, Ecuador, and the Dominican Republic are among the leading countries for tourism in Latin America. Based on the Travel and Tourism Development Index, Mexico and Chile leads Latin American countries with an index of 4.3.
In 2021, Latin America and the Caribbean had a total of (20.28 and 2.35) million jobs related to the travel and tourism industry. Tourism contributes to almost 6.6% of Mexico's GDP. Among the tourism industry, accommodation, restaurants, bars and nightclubs, passenger transport, handicrafts, and other goods are among the leading tourism sectors in Mexico. Regarding tourist arrival, Mexico leads all the Latin American countries far above 24.3 million in 2020, making Mexico an attractive destination for travel and tourism business investment.
Latin America Travel & Tourism Industry Overview
The unstable economic and political situation in many Latin American and Caribbean countries and regions' popularity as attractive destinations for travelers are affecting tourism and travel in the region. The Latin America Travel and Tourism industry includes players active from international markets like North America and Australia competing with local travel and tour operators.
Brazil, Mexico, Colombia, Argentina, and Chile are leading in online travel start-ups with existing start-ups of 164,79,65,52, and 45, respectively, during 2022 in these Latin American Countries. Mariott International, Hilton Worldwide, Acor Hotels, InterContinental Hotels Group, and Hyatt are leading Hotel Franchise companies in Latin America.
Latin America Travel & Tourism Market Leaders
Latin American Escapes, Inc.
Tangol SRL
Central America Journeys
Latin America Travel
Cox & Kings
*Disclaimer: Major Players sorted in no particular order
Latin America Travel & Tourism Market News
- October 2022: Delta Airlines received federal regulatory approval for a joint venture with South America Airlines group LATAM. This partnership will increase routes to Brazil, Chile, Colombia, Paraguay, and Peru.
- October 2022: Mariott International acquired the City Express Hotel Brand paying an amount of USD 100 million. With this acquisition, City Express will become part of the Marriotts franchise system across Mexico, Costa Rica, Colombia, and Chile.
- May 2022: Two South America Airline groups, Avianca and GoI, combined to create a European-style aviation holding company for dominating Air Travel in Latin America. The new group Abra would own Avianca, GoI, and Viva Air and a minority stake in Chile Sky Airline.
Latin America Travel & Tourism Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Market
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMERY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 International Tourism
5.1.2 Domestic Tourism
5.2 By Purpose
5.2.1 Adventure Tourism
5.2.2 Business Travel
5.2.3 Conference or Seminar Travel
5.2.4 Family, Friends Visit
5.3 By Country
5.3.1 Brazil
5.3.2 Mexico
5.3.3 Colombia
5.3.4 Chile
5.3.5 Argentina
5.3.6 Rest of Latin America
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Tangol SRL
6.2.2 Latin American Escapes, Inc.
6.2.3 Condor Travel
6.2.4 Central America Journeys
6.2.5 Latin American Travel
6.2.6 Cox & Kings Travel
6.2.7 South America Odyssey
6.2.8 Mariott International
6.2.9 Hilton Worldwide
6.2.10 Inter Continental Hotels
6.2.11 Hoteis Angola
6.2.12 Eco Hotels & Resorts
6.2.13 Mobibrasil*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Latin America Travel & Tourism Industry Segmentation
The travel and Tourism Industry is a network of commercial and non-commercial organizations that serve the needs of travelers and tourists during their journey.
The Latin America Travel and Tourism industry is segmented by type (international tourism and domestic/local tourism), purpose (adventure tourism, business travel, conference or seminar travel and family, friends visit), and country (Brazil, Mexico, Colombia, Chile, Argentina, and rest of Latin America) The report offers Market size and forecasts for Opportunities in the Latin America Travel and Tourism Industry in value (USD million) for all the above segments.
| By Type | |
| International Tourism | |
| Domestic Tourism |
| By Purpose | |
| Adventure Tourism | |
| Business Travel | |
| Conference or Seminar Travel | |
| Family, Friends Visit |
| By Country | |
| Brazil | |
| Mexico | |
| Colombia | |
| Chile | |
| Argentina | |
| Rest of Latin America |
Latin America Travel & Tourism Market Research FAQs
How big is the Opportunities in Latin America Travel and Tourism Market?
The Opportunities in Latin America Travel and Tourism Market size is expected to reach USD 49.5 billion in 2023 and grow at a CAGR of 5.41% to reach USD 64.42 billion by 2028.
What is the current Opportunities in Latin America Travel and Tourism Market size?
In 2023, the Opportunities in Latin America Travel and Tourism Market size is expected to reach USD 49.5 billion.
Who are the key players in Opportunities in Latin America Travel and Tourism Market?
Latin American Escapes, Inc., Tangol SRL, Central America Journeys, Latin America Travel and Cox & Kings are the major companies operating in the Opportunities in Latin America Travel and Tourism Market.
Latin America Travel and Tourism Industry Report
Statistics for the 2023 Latin America Travel and Tourism market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Travel and Tourism analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
