Tourism Becomes Top Economic Powerhouse for South America

Tourism is one of the important pillars for the South American economy. A rich culture and immensely diversified nation with architectural wonders, natural and scenic beauty, lively and colorful cities, and beautiful landscapes are the key reasons why millions of tourists visit the South America every year.

The recently concluded Olympic Games and Football World Cup in Brazil also created a positive impact on the development of tourism in South America.

The sectors that contribute to the tourism spend are – the hotel industry, the food and beverages industry, the travel industry and the entertainment industry among many others. The tourism industry contributes to the economic development of every region and assist by being the main employment generator.

With growing economic prosperity all over the world, particularly in the Asia-Pacific region is positively effecting tourist arrival in the South America region. Besides, the relative political stability in the South America region along with it being safe for foreign visitors is also driving the flow of tourists into the region.

A growing disposable income and rise in ageing population who have the time as well as monetary resources for travel also have a positive effect on the tourism in the South America region.

Nevertheless, the frequency of the spread of the Zika virus in the South America region, particularly in Brazil, had a negative effect on the tourist inflow to some extent in the region.

According to the data provided by the World Travel and Tourism Council, in the year 2014, in South America, the travel and tourism sector contributed US$ 152.3 Bn to the GDP of the region, which comprises 3.4 percent of the total GDP of the South America region.

This is expected to rise by 3.6 percent per annum from 2015 to 2025, reaching US$ 221.1 Bn by the end of 2025, comprising 3.5 percent of the total GDP of this region in 2025.

As per the World Travel and Tourism Council data, visitor exports amounted to 5.6 percent of the total exports in the year 2014 in the South America region, churning out a total of US$ 43.5 Bn in revenues.