Against all reasonable expectations, tourist arrivals in South America keep growing, and in some cases at two-digit rates.
Figures for the first half of 2012 are truly remarkable. Chile has gone up by 15 percent, Peru by 11 percent, Brazil, by 5.4 percent, and Colombia by 4 percent. An encouraging start gearing up to face the next six months, which historically are the hottest business-wise in the region. Regardless of the impact of the European crisis, we venture to say that growth this year will be well above the world average.
Argentina is perhaps the exception. After a 100 percent rise in 2002-2011 and an increase from 2.8 to 5.6 million in 2011 that consolidated the country’s regional leadership over Brazil, tourist arrivals, according to the International Visitor Survey (IVS), have come to a standstill. This situation will very likely put Brazil back in first place. Despite some ups and downs in the economy, Brazil is getting ready for two major international events that will to consolidate the country’s exposure in the world; the FIFA World Cup 2014 and the Olympic Games 2016. Brazil expects to jump from 5.4 million arrivals in 2011 to 11.1 by 2020.
The region’s second group (the CPC Group) is made up of the recent rising stars; Chile accounting for 3.1 million arrivals in 2011, Colombia for 3 million, and Peru for 2.6 million. However, given the panorama both in the group and worldwide, it seems that those countries can aspire to grow by 50 percent in the coming years and achieve similar figures to Argentina and Brazil. The good news is that the CPC group is capable of absorbing the new demand appearing in the capital cities and in the interior.
In the case of Brazil, apart from an increase in foreign visitors, there has been an expansion of domestic travels. The number of domestic tourists showed a year-on-year increase of 21 percent in 2011, vis-à-vis 2010, and of 8 percent in the first half of 2012 (as compared to the same period in 2011), which illustrates Brazil’s current economic slowdown.
All these factors are clearly attracting investor interest in the region. And figures indicate that the CPC Group (Chile, Peru, and Colombia) has good reasons to hold such a preferential position as evidenced in the last couple of years.
No doubt, SAHIC 2012, scheduled for September 10-11, will be a great occasion to learn more about business opportunities in the region.
We look forward to seeing you!
South America E-News – July 2012 – www.hvssouthamerica.com/e-sur/editorial_eng/arturosletter-eng.html