Travel In LATAM: A Look at the Current Travel Behaviors of Latin Americans

Much like travelers worldwide, Latin Americans embark on travel journeys for a multitude of reasons. These reasons are incredibly diverse, often being influenced by personal preference and financial situation. Whether it's for leisure and tourism, seeking adventure and exploration, embarking on religious pilgrimages, pursuing culinary experiences, accessing healthcare, or simply visiting distant family and friends, the array of motivators appears endless.

Domestic traveling.

Talking about traveling is by no means limited to traveling abroad. Traveling within one's own country is a widespread form of travel, with trips ranging drastically in duration. Domestic travel offers a wonderful opportunity to explore various cities and environments, immerse oneself in diverse lifestyles and traditions, and to recharge and take a break from one’s daily routine.

Several Latin American countries have made substantial investments in enhancing their public road networks and upgrading the infrastructure in renowned tourist destinations. This strategic focus on cities with booming tourism economies aims to boost both domestic and international tourism (and the money that comes with it).

A notable example is El Salvador's extensive government initiatives that have transformed one of their most beautiful and sought-after beaches into what is now internationally known as the vibrant “Surf City.” This project encompassed the development of the country's incredible coastline, including the revamping of roadway infrastructure to reduce connectivity time. Bolstered roadways helped boost local commerce and elevated the tourist experience.

Furthermore, it was and continues to be actively marketed to attract surf enthusiasts from across the globe. In El Salvador's case, these efforts are projected to yield a significant increase in tourism revenues within this sector, with an estimated growth of 40% (Government of El Salvador, 2021).

Another remarkable case is Costa Rica, a trailblazer in ecotourism in Central America (Investment Monitor, 2023). This nation has achieved global acclaim as a premier ecotourism destination and is a leader in conservation efforts.

Costa Rica's success in this regard is fueled by strong economic and political policies that prioritize environmental concerns, a feat that was highlighted and rewarded by their Earshot Prize win in 2021. The government's initiative to reward local citizens for safeguarding forests, planting trees, and restoring ecosystems has undeniably paid off. Costa Rica stands as the most visited country in Central America, with a significant portion of these visits dedicated to ecotourism.

Traveling abroad

The Latin America travel and tourism market is projected to expand significantly between 2023 and 2028, with its size anticipated to increase from USD 49.50 billion in 2023 to USD 64.42 billion by 2028 (Mordor Intelligence, 2023).

Economic growth serves as a crucial driver in the expansion of the outbound travel market, and vice versa, opening up opportunities for individuals who, just a few years ago, faced intense financial challenges due to Covid-19. Traveling has transitioned from being a privilege exclusive to a few, to becoming accessible to a more diverse range of people from various backgrounds.

Although it remains a pursuit limited to those who can cover the expenses, there has been notable progress with reduced poverty rates in several Latin American countries. And despite economic slowdowns experienced by various Latin American nations in recent years, tourists are still drawn to attractive outbound destinations, both within and beyond the region (Salazar-Xirinachs, 2023).

According to Mordor Intelligence (2023), the rise of the middle class marks a significant milestone in the growth of Latin America's tourism sector. This sector has demonstrated resilience, continuing to thrive even in challenging economic times following the pandemic and amid an impending global recession.

Major players.

When it comes to the Latin American countries with the most travelers to destinations abroad, the 4 top players are Brazil, Mexico, Argentina and Colombia. According to the most recent Statista (2023) report about outbound tourism spending in Latin America, the above mentioned countries topped the list for the most substantial international tourism expenditures in Latin America and the Caribbean in 2020. In that specific year, Brazilian tourists spent approximately 6.5 billion U.S. dollars on their travels overseas.

Top destinations: Regional and Abroad Travel.

As of the early months of 2023, the top three international travel destinations for Latin Americans are the United States, Canada, and the United Kingdom, according to Mastercard data & services (2023). When it comes to regional travel, South America continues to be very popular among Latin Americans. Some of the most popular destinations are Colombia, Brazil, Argentina, Peru, Uruguay, Chile, Ecuador, Paraguay, Bolivia, and Venezuela (GlobalData, 2023).

Why Businesses Should Keep a Close Watch on This

Being that Latin America is a region made up of countries whose GDP relies significantly on tourism, it's crucial to closely monitor the travel habits of distant travelers and those within the region if one wants to truly understand the economic landscape and forecast of the region.

It's also important to recognize that changes in travel habits have the potential to impact a wide range of stakeholders within the tourism industry, positively or negatively. This includes, but is not limited to, businesses in hospitality, airlines, travel agencies, booking platforms, travel tech and contactless solution providers, ground transportation services, tourism destinations and attractions, travel insurance providers, travel retail, language services and translators, and various others.

Social media has paved the way for even small local businesses to gain visibility among travelers, presenting a significant opportunity that should be harnessed. Moreover, it has created remarkable opportunities for local businesses to attract domestic travelers, encouraging them to explore and enjoy their own surroundings before seeking travel experiences abroad.

This could potentially lead to the strengthening of the local economy in a more robust, long-lasting way. While it's crucial to leverage the current travel momentum to its fullest extent, it's equally important to create the conditions that facilitate and enhance both domestic and international travel experiences in a way that’s sustainable. The ultimate goal should always be to provide the best service, regardless of the type of customer being served, while making sure that our business practices are built to last.