Challenges Facing Tourism Markets in Latin America and the Caribbean Region in the New Millennium

Abstract

Latin American and Caribbean (LAC) region outbound tourism will remain highly sensitive to current and future income and employment growth. As such, LAC outbound travel volumes and spending patterns will be adversely affected by the region’s worsening macroeconomic conditions and gloomy employment outlook. Weaker regional income and job growth will lead to lower consumer buying power and lower demand for such discretionary spending as travel. In addition, weaker LAC currencies will further discourage outbound travel flows, especially long-haul pleasure travel, in favor of cheaper and closer tourist destinations. The outbound flow of LAC travelers will most likely remain at a steady or possibly even at a slower pace instead of reaching rapid speeds in coming years. Competition to attract new LAC outbound tourists and encourage repeat travelers will get more difficult.