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Upcoming Tourism Destinations in South America: Flows & Spending in Argentina, Brazil, Chile, Colombia and Peru

Upcoming Tourism Destinations in South America: Flows & Spending in Argentina, Brazil, Chile, Colombia and Peru

Summary

South American economies have great growth potential, although both Brazil and Argentina have struggled in recent years. However, Argentina’s economic recovery is on its way and growth is projected for the coming years as the impact of recent reforms and changes in economic policy start to gain traction. Colombia has the most promising economy of all countries, with an average annual rate of 4% real GDP growth up to 2025.

Colombia has the most promising economy of all countries, with an average annual rate of 4% real GDP growth up to 2025. However, current economic conditions in certain countries such as Brazil (recession) and Argentina (hyperinflation) are adversely affecting outbound tourism and benefitting domestic tourism. Furthermore, weak exchange rates in the region make consumers price sensitive impacting outbound travel, particularly to the US and Europe. On the other hand, the weak exchange rate encouraged the growth of arrivals from the US and European countries such as Spain, France, and Germany to South American countries. International arrivals grew the most (23%) in Chile in 2016.

Brazil, the number one country for natural attractions according to the World Economic Forum Tourism Competitiveness Report of 2017, has not reaped the benefits of its potential. Having realized this, the Ministry of Tourism in Brazil aims to take over and manage areas in the country which have the ‘high potential for the development of tourism’. The move is expected to boost inbound and domestic tourism. Nevertheless, in 2016, Brazil was the most visited country in South America with 6.6 million tourists, mainly driven by the Summer Olympics, which were held in Rio.

Tourism is a priority sector for most South American countries. Chile identified tourism as a strategic sector and allotted US$100 million to develop tourism over 2015 to 2018. Argentina aims to create 3000 new jobs over the period 2016-2019 with the promotion of tourist destinations. These efforts are expected to support the growth of inbound tourism over the coming years

Over the years, the growth in South America’s tourism infrastructure has been developing constantly, enabling the region to position itself as a destination for MICE. However, MICE business is primarily centered on major cities and the penetration is still low (15% share).

The report Upcoming Tourism Destinations in South America: Flows & Spending in Argentina, Brazil, Chile, Colombia and Peru provides key insights on the emerging tourism destinations in South America. It covers domestic, inbound and outbound tourism flows and spending and, analyses key trends, drivers and growth inhibitors.

Scope

  • Brazil, the number one country for natural attractions according to the World Economic Forum Tourism Competitiveness Report of 2017, has not reaped the benefits of its potential. Having realized this, the Ministry of Tourism in Brazil aims to take over and manage areas in the country which have the ‘high potential for the development of tourism’. The move is expected to boost inbound and domestic tourism. Nevertheless, in 2016, Brazil was the most visited country in South America with 6.6 million tourists, mainly driven by the Summer Olympics, which were held in Rio.
  • Tourism is a priority sector for most South American countries. Chile identified tourism as a strategic sector and allotted US$100 million to develop tourism over 2015 to 2018. Argentina aims to create 3000 new jobs over the period 2016-2019 with the promotion of tourist destinations. These efforts are expected to support the growth of inbound tourism over the coming years
  • Over the years, the growth in South America’s tourism infrastructure has been developing constantly, enabling the region to position itself as a destination for MICE. However, MICE business is primarily centered around major cities and the penetration is still low (15% share)
Reasons to buy
  • Gauge an idea about how the market is expected to grow using historic and forecast market data related to key travel and tourism markets in South America
  • Understand the demand-side dynamics within the industry to identify key market trends, growth opportunities
  • Direct the promotional efforts on most promising markets by identifying the key source and destination countries


Executive Summary
Introduction
Predicted future issues for the South American tourism industry
Key Economic Drivers
Argentina on growth track with recent reforms in place
Weak exchange rates adversely affecting South American outbound tourism
Peru’s tourism sector has the highest contribution to GDP in South America
Domestic Tourism
Chile ranks number one in terms of the percentage of income spent on domestic trips
Weak real encouraging Brazilians to prefer domestic trips over outbound
As outbound becomes more expensive due to strong dollar, domestic spending is forecast to grow
Inbound Tourism
Tourism risk assessment for South America
Brazil banking on tourism boost after 2016 Olympics
Colombia to attract more European tourists with more flights being added between Colombia and Europe
As inbound market is largely dependent on neighboring countries, spending is relatively low
Tourists spend most on accommodation in Brazil as many tourists are from developed countries
MICE tourism mainly centered around big cities
Outbound Tourism
Due to high inflation domestically, Argentines left with less money to spend on overseas trips
Brazil - the country that travels the most outside South America
Trips to the US decrease in 2016 due to strong dollar
Brazilian outbound tourism expenditure declining due to poor economic situation
South Americans spend primarily on transportation as air is the major mode of travel
Market Data
Appendix
List of Tables
Table 1: Domestic trips per capita
Table 2: Brazilian outbound departures (in 000s)
Table 3: Argentina -Trips (domestic and outbound combined) taken by residents by month (in thousands), 2012-
Table 4: Argentina -Trips taken by residents by trip type (in thousands), 2012-
Table 5: Argentina -Average length of by type of trip (number of nights spent), 2012-
Table 6: Argentina -Domestic trips by region (in thousands), 2012-
Table 7: Argentina -Domestic trips by purpose of visit (in thousands), 2012-
Table 8: Argentina -Inbound trips by mode of transport (in thousands), 2012-
Table 9: Argentina -Inbound trips by region (in thousands), 2012-
Table 10: Argentina -Inbound trips by purpose of visit (in thousands), 2012-
Table 11: Argentina -Outbound trips by mode of transport (in thousands), 2012-
Table 12: Argentina -Outbound trips by region (in thousands), 2012-
Table 13: Argentina -Outbound trips by purpose of visit (in thousands), 2012-
Table 14: Argentina -Number of overnight stays by type of trip (in thousands), 2012-
Table 15: Argentina -Holiday Takers (domestic and outbound trips combined) by age group (in thousands), 2012-
Table 16: Argentina -Inbound business trips by type (in thousands), 2012-
Table 17: Argentina -Outbound business trips by type (in thousands), 2012-
Table 18: Argentina -Domestic trips by mode of transport (in thousands), 2012-
Table 19: Argentina -Outbound trips by user type (in thousands), 2012-
Table 20: Argentina -Inbound trips by user type (in thousands), 2012-
Table 21: Argentina -Arrivals from top-10 source markets (in thousands), 2012-
Table 22: Argentina -Departures to top-10 destination markets (in thousands), 2012-
Table 23: Argentina -Domestic tourism expenditure by sector (in LCU million), 2012-
Table 24: Argentina -Domestic tourism expenditure by sector (in US$ million), 2012-
Table 25: Argentina -Inbound tourism expenditure by sector (in LCU million), 2012-
Table 26: Argentina -Inbound tourism expenditure by sector (in US$ million), 2012-
Table 27: Argentina -Outbound tourism expenditure by sector (in LCU million), 2012-
Table 28: Argentina -Outbound tourism expenditure by sector (in US$ million), 2012-
Table 29: Argentina -Direct tourism output by sector (in LCU million), 2012-
Table 30: Argentina -Direct tourism output by sector (in US$ million), 2012-
Table 31: Argentina -Indirect tourism output by sector (in LCU million), 2012-
Table 32: Argentina -Indirect tourism output by sector (in US$ million), 2012-
Table 33: Argentina -Total tourism output by sector (in LCU million), 2012-
Table 34: Argentina -Total tourism output by sector (in US$ million), 2012-
Table 35: Argentina -Average domestic tourism spend per day of trip (in LCU), 2012-
Table 36: Argentina -Average domestic tourism spend per day of trip (in US$, 2012-
Table 37: Argentina -Average outbound tourism spend per day of trip (in LCU), 2012-
Table 38: Argentina -Average outbound tourism spend per day of trip (in US$), 2012-
Table 39: Argentina -Average expenditure per domestic tourist by sector (in LCU), 2012-
Table 40: Argentina -Average expenditure per domestic tourist by sector (in US$), 2012-
Table 41: Argentina -Average expenditure per inbound tourist by sector (in LCU), 2012-
Table 42: Argentina -Average expenditure per inbound tourist by sector (in US$), 2012-
Table 43: Argentina -Average expenditure per outbound tourist by sector (in LCU), 2012-
Table 44: Argentina -Average expenditure per outbound tourist by sector (in US$), 2012-
Table 45: Argentina -Online travel sales to country residents (in LCU million), 2012-
Table 46: Argentina -Online travel sales to country residents (in US$ million), 2012-
Table 47: Brazil -Trips (domestic and outbound combined) taken by residents by month (in thousands), 2012-
Table 48: Brazil -Trips taken by residents by trip type (in thousands), 2012-
Table 49: Brazil -Average length of by type of trip (number of nights spent), 2012-
Table 50: Brazil -Domestic trips by region (in thousands), 2012-
Table 51: Brazil -Domestic trips by purpose of visit (in thousands), 2012-
Table 52: Brazil -Inbound trips by mode of transport (in thousands), 2012-
Table 53: Brazil -Inbound trips by region (in thousands), 2012-
Table 54: Brazil -Inbound trips by purpose of visit (in thousands), 2012-
Table 55: Brazil -Outbound trips by mode of transport (in thousands), 2012-
Table 56: Brazil -Outbound trips by region (in thousands), 2012-
Table 57: Brazil -Outbound trips by purpose of visit (in thousands), 2012-
Table 58: Brazil -Number of overnight stays by type of trip (in thousands), 2012-
Table 59: Brazil -Holiday Takers (domestic and outbound trips combined) by age group (in thousands), 2012-
Table 60: Brazil -Inbound business trips by type (in thousands), 2012-
Table 61: Brazil -Outbound business trips by type (in thousands), 2012-
Table 62: Brazil -Domestic trips by mode of transport (in thousands), 2012-
Table 63: Brazil -Outbound trips by user type (in thousands), 2012-
Table 64: Brazil -Inbound trips by user type (in thousands), 2012-
Table 65: Brazil -Arrivals from top-10 source markets (in thousands), 2012-
Table 66: Brazil -Departures to top-10 destination markets (in thousands), 2012-
Table 67: Brazil -Domestic tourism expenditure by sector (in LCU million), 2012-
Table 68: Brazil -Domestic tourism expenditure by sector (in US$ million), 2012-
Table 69: Brazil -Inbound tourism expenditure by sector (in LCU million), 2012-
Table 70: Brazil -Inbound tourism expenditure by sector (in US$ million), 2012-
Table 71: Brazil -Outbound tourism expenditure by sector (in LCU million), 2012-
Table 72: Brazil -Outbound tourism expenditure by sector (in US$ million), 2012-
Table 73: Brazil -Direct tourism output by sector (in LCU million), 2012-
Table 74: Brazil -Direct tourism output by sector (in US$ million), 2012-
Table 75: Brazil -Indirect tourism output by sector (in LCU million), 2012-
Table 76: Brazil -Indirect tourism output by sector (in US$ million), 2012-
Table 77: Brazil -Total tourism output by sector (in LCU million), 2012-
Table 78: Brazil -Total tourism output by sector (in US$ million), 2012-
Table 79: Brazil -Average domestic tourism spend per day of trip (in LCU), 2012-
Table 80: Brazil -Average domestic tourism spend per day of trip (in US$), 2012-
Table 81: Brazil -Average outbound tourism spend per day of trip (in LCU), 2012-
Table 82: Brazil -Average outbound tourism spend per day of trip (in US$), 2012-
Table 83: Brazil -Average expenditure per domestic tourist by sector (in LCU), 2012-
Table 84: Brazil -Average expenditure per domestic tourist by sector (in US$), 2012-
Table 85: Brazil -Average expenditure per inbound tourist by sector (in LCU), 2012-
Table 86: Brazil -Average expenditure per inbound tourist by sector (in US$), 2012-
Table 87: Brazil -Average expenditure per outbound tourist by sector (in LCU), 2012-
Table 88: Brazil -Average expenditure per outbound tourist by sector (in US$), 2012-
Table 89: Brazil -Online travel sales to country residents (in LCU million), 2012-
Table 90: Brazil -Online travel sales to country residents (in US$ million), 2012-
Table 91: Chile - Trips (domestic and outbound combined) taken by residents by month (in thousands), 2012-
Table 92: Chile - Trips taken by residents by trip type (in thousands), 2012-
Table 93: Chile - Average length of by type of trip (number of nights spent), 2012-
Table 94: Chile - Domestic trips by region (in thousands), 2012-
Table 95: Chile - Domestic trips by purpose of visit (in thousands), 2012-
Table 96: Chile - Inbound trips by mode of transport (in thousands), 2012-
Table 97: Chile - Inbound trips by region (in thousands), 2012-
Table 98: Chile - Inbound trips by purpose of visit (in thousands), 2012-
Table 99: Chile - Outbound trips by mode of transport (in thousands), 2012-
Table 100: Chile - Outbound trips by region (in thousands), 2012-
Table 101: Chile - Outbound trips by purpose of visit (in thousands), 2012-
Table 102: Chile - Number of overnight stays by type of trip (in thousands), 2012-
Table 103: Chile - Holiday Takers (domestic and outbound trips combined) by age group (in thousands), 2012-
Table 104: Chile - Inbound business trips by type (in thousands), 2012-
Table 105: Chile - Outbound business trips by type (in thousands), 2012-
Table 106: Chile - Domestic trips by mode of transport (in thousands), 2012-
Table 107: Chile - Outbound trips by user type (in thousands), 2012-
Table 108: Chile - Inbound trips by user type (in thousands), 2012-
Table 109: Chile - Arrivals from top-10 source markets (in thousands), 2012-
Table 110: Chile - Departures to top-10 destination markets (in thousands), 2012-
Table 111: Chile - Domestic tourism expenditure by sector (in LCU million), 2012-
Table 112: Chile - Domestic tourism expenditure by sector (in US$ million), 2012-
Table 113: Chile - Inbound tourism expenditure by sector (in LCU million), 2012-
Table 114: Chile - Inbound tourism expenditure by sector (in US$ million), 2012-
Table 115: Chile - Outbound tourism expenditure by sector (in LCU million), 2012-
Table 116: Chile - Outbound tourism expenditure by sector (in US$ million), 2012-
Table 117: Chile - Direct tourism output by sector (in LCU million), 2012-
Table 118: Chile - Direct tourism output by sector (in US$ million), 2012-
Table 119: Chile - Indirect tourism output by sector (in LCU million), 2012-
Table 120: Chile - Indirect tourism output by sector (in US$ million), 2012-
Table 121: Chile - Total tourism output by sector (in LCU million), 2012-
Table 122: Chile - Total tourism output by sector (in US$ million), 2012-
Table 123: Chile - Average domestic tourism spend per day of trip (in LCU), 2012-
Table 124: Chile - Average domestic tourism spend per day of trip (in US$, 2012-
Table 125: Chile - Average outbound tourism spend per day of trip (in LCU), 2012-
Table 126: Chile - Average outbound tourism spend per day of trip (in US$), 2012-
Table 127: Chile - Average expenditure per domestic tourist by sector (in LCU), 2012-
Table 128: Chile - Average expenditure per domestic tourist by sector (in US$), 2012-
Table 129: Chile - Average expenditure per inbound tourist by sector (in LCU), 2012-
Table 130: Chile - Average expenditure per inbound tourist by sector (in US$), 2012-
Table 131: Chile - Average expenditure per outbound tourist by sector (in LCU), 2012-
Table 132: Chile - Average expenditure per outbound tourist by sector (in US$), 2012-
Table 133: Chile - Online travel sales to country residents (in LCU million), 2012-
Table 134: Chile - Online travel sales to country residents (in US$ million), 2012-
Table 135: Colombia -Trips (domestic and outbound combined) taken by residents by month (in thousands), 2012-
Table 136: Colombia -Trips taken by residents by trip type (in thousands), 2012-
Table 137: Colombia -Average length of by type of trip (number of nights spent), 2012-
Table 138: Colombia -Domestic trips by region (in thousands), 2012-
Table 139: Colombia -Domestic trips by purpose of visit (in thousands), 2012-
Table 140: Colombia -Inbound trips by mode of transport (in thousands), 2012-
Table 141: Colombia -Inbound trips by region (in thousands), 2012-
Table 142: Colombia -Inbound trips by purpose of visit (in thousands), 2012-
Table 143: Colombia -Outbound trips by mode of transport (in thousands), 2012-
Table 144: Colombia -Outbound trips by region (in thousands), 2012-
Table 145: Colombia -Outbound trips by purpose of visit (in thousands), 2012-
Table 146: Colombia -Number of overnight stays by type of trip (in thousands), 2012-
Table 147: Colombia -Holiday Takers (domestic and outbound trips combined) by age group (in thousands), 2012-
Table 148: Colombia -Inbound business trips by type (in thousands), 2012-
Table 149: Colombia -Outbound business trips by type (in thousands), 2012-
Table 150: Colombia -Domestic trips by mode of transport (in thousands), 2012-
Table 151: Colombia -Outbound trips by user type (in thousands), 2012-
Table 152: Colombia -Inbound trips by user type (in thousands), 2012-
Table 153: Colombia -Arrivals from top-10 source markets (in thousands), 2012-
Table 154: Colombia -Departures to top-10 destination markets (in thousands), 2012-
Table 155: Colombia -Domestic tourism expenditure by sector (in LCU million), 2012-
Table 156: Colombia -Domestic tourism expenditure by sector (in US$ million), 2012-
Table 157: Colombia -Inbound tourism expenditure by sector (in LCU million), 2012-
Table 158: Colombia -Inbound tourism expenditure by sector (in US$ million), 2012-
Table 159: Colombia -Outbound tourism expenditure by sector (in LCU million), 2012-
Table 160: Colombia -Outbound tourism expenditure by sector (in US$ million), 2012-
Table 161: Colombia -Direct tourism output by sector (in LCU million), 2012-
Table 162: Colombia -Direct tourism output by sector (in US$ million), 2012-
Table 163: Colombia -Indirect tourism output by sector (in LCU million), 2012-
Table 164: Colombia -Indirect tourism output by sector (in US$ million), 2012-
Table 165: Colombia -Total tourism output by sector (in LCU billion), 2012-
Table 166: Colombia -Total tourism output by sector (in US$ million), 2012-
Table 167: Colombia -Average domestic tourism spend per day of trip (in LCU), 2012-
Table 168: Colombia -Average domestic tourism spend per day of trip (in US$, 2012-
Table 169: Colombia -Average outbound tourism spend per day of trip (in LCU), 2012-
Table 170: Colombia -Average outbound tourism spend per day of trip (in US$), 2012-
Table 171: Colombia -Average expenditure per domestic tourist by sector (in LCU), 2012-
Table 172: Colombia -Average expenditure per domestic tourist by sector (in US$), 2012-
Table 173: Colombia -Average expenditure per inbound tourist by sector (in LCU), 2012-
Table 174: Colombia -Average expenditure per inbound tourist by sector (in US$), 2012-
Table 175: Colombia -Average expenditure per outbound tourist by sector (in LCU), 2012-
Table 176: Colombia -Average expenditure per outbound tourist by sector (in US$), 2012-
Table 177: Colombia -Online travel sales to country residents (in LCU million), 2012-
Table 178: Colombia -Online travel sales to country residents (in US$ million), 2012-
Table 179: Peru - Trips (domestic and outbound combined) taken by residents by month (in thousands), 2012-
Table 180: Peru - Trips taken by residents by trip type (in thousands), 2012-
Table 181: Peru - Average length of by type of trip (number of nights spent), 2012-
Table 182: Peru - Domestic trips by region (in thousands), 2012-
Table 183: Peru - Domestic trips by purpose of visit (in thousands), 2012-
Table 184: Peru - Inbound trips by mode of transport (in thousands), 2012-
Table 185: Peru - Inbound trips by region (in thousands), 2012-
Table 186: Peru - Inbound trips by purpose of visit (in thousands), 2012-
Table 187: Peru - Outbound trips by mode of transport (in thousands), 2012-
Table 188: Peru - Outbound trips by region (in thousands), 2012-
Table 189: Peru - Outbound trips by purpose of visit (in thousands), 2012-
Table 190: Peru - Number of overnight stays by type of trip (in thousands), 2012-
Table 191: Peru - Holiday Takers (domestic and outbound trips combined) by age group (in thousands), 2012-
Table 192: Peru - Inbound business trips by type (in thousands), 2012-
Table 193: Peru - Outbound business trips by type (in thousands), 2012-
Table 194: Peru - Domestic trips by mode of transport (in thousands), 2012-
Table 195: Peru - Outbound trips by user type (in thousands), 2012-
Table 196: Peru - Inbound trips by user type (in thousands), 2012-
Table 197: Peru - Arrivals from top-10 source markets (in thousands), 2012-
Table 198: Peru - Departures to top-10 destination markets (in thousands), 2012-
Table 199: Peru - Domestic tourism expenditure by sector (in LCU million), 2012-
Table 200: Peru - Domestic tourism expenditure by sector (in US$ million), 2012-
Table 201: Peru - Inbound tourism expenditure by sector (in LCU million), 2012-
Table 202: Peru - Inbound tourism expenditure by sector (in US$ million), 2012-
Table 203: Peru - Outbound tourism expenditure by sector (in LCU million), 2012-
Table 204: Peru - Outbound tourism expenditure by sector (in US$ million), 2012-
Table 205: Peru - Direct tourism output by sector (in LCU million), 2012-
Table 206: Peru - Direct tourism output by sector (in US$ million), 2012-
Table 207: Peru - Indirect tourism output by sector (in LCU million), 2012-
Table 208: Peru - Indirect tourism output by sector (in US$ million), 2012-
Table 209: Peru - Total tourism output by sector (in LCU million), 2012-
Table 210: Peru - Total tourism output by sector (in US$ million), 2012-
Table 211: Peru - Average domestic tourism spend per day of trip (in LCU), 2012-
Table 212: Peru - Average domestic tourism spend per day of trip (in US$, 2012-
Table 213: Peru - Average outbound tourism spend per day of trip (in LCU), 2012-
Table 214: Peru - Average outbound tourism spend per day of trip (in US$), 2012-
Table 215: Peru - Average expenditure per domestic tourist by sector (in LCU), 2012-
Table 216: Peru - Average expenditure per domestic tourist by sector (in US$), 2012-
Table 217: Peru - Average expenditure per inbound tourist by sector (in LCU), 2012-
Table 218: Peru - Average expenditure per inbound tourist by sector (in US$), 2012-
Table 219: Peru - Average expenditure per outbound tourist by sector (in LCU), 2012-
Table 220: Peru - Average expenditure per outbound tourist by sector (in US$), 2012-
Table 221: Peru - Online travel sales to country residents (in LCU million), 2012-
Table 222: Peru - Online travel sales to country residents (in US$ million), 2012-
List of Figures
Figure 1: Real GDP growth in %
Figure 2: Exchange rates LCU per US$, yearly changes in %
Figure 3: Direct tourism output 2009-2021(US$ million)
Figure 4: Domestic trips in (millions)
Figure 5: Average spend per domestic trip in US$
Figure 6: Tourism risk assessment in South America
Figure 7: Inbound visitors in South America (in millions)
Figure 8: Inbound visitors in South America by continent in %
Figure 9: Inbound visitors in Colombia in %
Figure 10: Inbound visitors in Chile (000’s)
Figure 11: Average spend per international tourist in US$
Figure 12: Inbound tourism expenditure by sector, South America, in 2016 (%)
Figure 13: Inbound tourism expenditure by sector, by country, in 2016 (%)
Figure 14: Top 10 cities based on meetings and events activity in Central/South America
Figure 15: Business trips by country in 2016 (000’s)
Figure 16: Percentage of Resident Income Spent on International Trips
Figure 17: Outbound flows (in millions)
Figure 18: Outbound flows (in thousands)
Figure 19: Average spend per outbound trip in US$
Figure 20: Outbound tourism expenditure by sector, by country, in 2016 (%)
Figure 21: Outbound tourism expenditure by sector, South America, in 2016 (%)

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