World Travel & Tourism Council (WTTC) revealed a new report titled Latin America City Travel & Tourism Impact. The study covers 65 cities, six of which are in Latin America. Here are the details for Santiago, Bogotá, and Lima.
Santiago
Santiago accounts of half of Chile´s Travel & Tourism activity (48.9%), a total US$3.9bn, as Chile´s capital city is an important hub for domestic and international flights.
Although the sector´s importance to Santiago´s economy has strengthened since 2006, its share of overall city GDP is relatively low compared to other cities in the study, at 3.2%, as the city relies heavily on other industries such as clothing production and copper mining.
Travel & Tourism GDP in Santiago has seen 7.5% growth over the past decade and the trend is set to continue with a further doubling of revenue over the next ten years and a growth rate of 7.1%, mirroring that in the country at large. The sector will benefit more from additional connectivity once the city opens a new international airport terminal in 2020. Over 110,000 jobs in the capital, 3.3% of all employment in Santiago, are directly attributed to Travel & Tourism.
The international market is now playing a bigger role in Santiago´s tourism; its share of spending rose from 21% in 2006 to 24% in 2016. Nearly a third of the international demand comes from the United States. In contrast, US visitors comprise only 5% of all international spend throughout Chile, suggesting that many Americans do not venture beyond the capital.
Looking beyond the capital, the total contribution of Chile´s Travel & Tourism to GDP was CLP16,852.1bn (US$24.9bn), 10.1% of GDP in 2016. The total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry was 9.8% of total employment (793,500 jobs). Over the next ten years, 160,500 new jobs are expected to be created through Travel & Tourism activity across the country.
Bogotá
Bogotá's tourism GDP accounts for 2.5% of the city´s economy, a total of US$1.8bn.
International spend accounts for 41% of Bogotá’s tourism revenue, highlighting the importance of international visitors for the city. Most trips are for leisure rather than business purposes. The top international markets are United States (27%), Mexico (10%), Spain (5%), Brazil (5%) and Argentina (4%). Domestic demand is still responsible for 59% of tourism revenue, and spending from Colombian arrivals is forecast to double by 2026.
The total contribution of Colombia’s Travel & Tourism sector to GDP is COP51,05bn (US$16.7bn), or 5.8% of GDP. The total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 6.1% of total employment (1.3 million jobs). Over the next ten years the sector is forecast to generate 219,500 jobs.
Lima
Lima accounts for 59% of Travel & Tourism GDP in Peru, as the city is a pivotal hub and gateway to the rest of the country, with 90% of visitors to Peru spending at least one night in the capital.
Travel & Tourism contributes 4.6% of Lima’s GDP, a total of US$4.5bn in 2016. International spend is responsible for 35.4% of tourism revenue, and the United States tops the source market list (25%), followed by Argentina (7%), Brazil (6%), Spain (5%) and Mexico (4%).
The total contribution of Peru´s Travel & Tourism to GDP was PEN66.2bn (US$19.6bn), 10.1% of GDP in 2016. The total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 8.2% of total employment (1,3 million jobs). Over the next ten years, 552,000 new jobs are expected to be created through Travel & Tourism activity in Peru.
