LATIN America is set to miss out on economic and social benefits from travel and tourism unless it invests sufficiently in its lagging infrastructure, says David Scowsill, president and CEO of the World Travel and Tourism Council (WTTC).
Scowsill says, “The current state of travel and tourism-related infrastructure within Latin America is relatively poor compared to many mature travel and tourism economies. Forecasts of tourism demand are greater than forecasts of travel and tourism investment growth. This means there is a strong possibility the sector’s growth within parts of the region over the next decade will be limited. Given the large footprint and growing dependence on travel and tourism within much of the region, the ongoing development of and support for the sector will be central to the future broader economic prosperity of Latin America.”WTTC forecasts that $46billion will be invested in travel and tourism in Latin America over the next decade. However, with the annual growth in travel and tourism investment forecast to grow by an average of 5.2 per cent per annum and the lagging state of current infrastructure, the research suggests that the forecast investment will not be enough to sustain and support future demand.“Firstly, countries need to maintain and grow their market share from their competitors and appeal to evolving consumer tastes. They need to build, upgrade and expand visitor facilities. Secondly, they need to increase airport capacity, as insufficient capacity can lead to bottlenecks and a limit on growth, as well as an upward pressure on prices which will affect competitiveness. Thirdly, visitor attraction capital projects should be considered as a way of generating additional demand.”Scowsill says investors and companies from all over the world will be looking for opportunities to invest and governments need to act. “With confidence being restored to the financial sector, Latin American countries have a crucial chance to attract much needed investment for travel and tourism infrastructure. Governments within the region need to ensure that they are an attractive location for this investment.” Link for the WTT's recent report on Latin America: