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Latin America City Travel & Tourism Impact by WTTC

Rio de Janeiro.

Buenos Aires Travel & Tourism sector accounts for 5.1% of its overall economy and totals US$11.1bn. Rio generates over 10% of Brazil’s Travel & Tourism sector, but needs to work harder to attract international visitors.

Buenos Aires generates over a half of Argentina's Travel & Tourism GDP, revealed a new report by the World Travel & Tourism Council (WTTC), Latin America City Travel & Tourism Impact.

Latin America City Travel & Tourism Impact is one of a series of reports by WTTC which looks at the contribution of Travel & Tourism to city economies and job creation. The study covers 65 cities, six of which are in Latin America.

The city’s Travel & Tourism sector accounts for 5.1% of its overall economy and totals US$11.1bn. The sector employs 265,000 people in Buenos Aires, or 3.8% of the city's workforce. Over a half of Argentina’s tourism GDP (59.1%) is in Buenos Aires, and the city is responsible for 46.3% of jobs in the sector in Argentina.

Buenos Aires has a high reliance on domestic tourism, even though the weak Argentinian peso has made the destination more affordable for foreign visitors in recent years. Overall domestic visitors account for 61% of Buenos Aires’ Travel & Tourism. Over the past decade, the number of overnight visits has more than doubled although this has mainly been driven by the domestic market as improved affordability has not yet been sufficient to attract large volumes of additional international visitors.

Slow international growth can partly be explained by the fact that Brazil, which is Buenos Aires’s top international market, has been suffering a recession in recent years.

International spend is responsible for 14.6% of Buenos Aires’ Travel & Tourism sector. The Argentinian government’s introduction last January of a scheme to allow international visitors to receive a refund of VAT on accommodation, should help to increase international spend in the future.

The total contribution of Argentina/s Travel & Tourism to GDP was ARS775.3bn (US$52.5bn), 9.6% of GDP in 2016. The total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry was 8.8% (1.58 million jobs). Over the next ten years, 400,000 new jobs will be generated through Travel & Tourism in Argentina. Buenos Aires will host WTTC/s annual Global Summit 18-19 April 2018. The Summit brings together over 900 delegates to discuss the opportunities, challenges and issues facing the industry, while its Tourism for Tomorrow Awards recognise the industry's power to be a positive force in sustainability.

Rio generates over 10% of Brazil’s Travel & Tourism sector, but needs to work harder to attract international visitors
Travel & Tourism contributed US$6.5bn to GDP in Rio de Janeiro in 2016, 4.9% of the city’s economy, and representing 11.5% of Brazil’s Travel & Tourism sector. However, less than 6% of tourism spend in the city comes from the international market.

The data suggests that hosting the World Cup in 2014 and the Olympics in 2016 had limited direct impact on overall Travel & Tourism GDP and employment in the city. In 2014, there was a small increase in the volume of visits and overnight nights stays however this level has not been maintained; and in 2016, as often seen after mega-events, there was a significant displacement to other destinations, with other travel postponed or deferred. Improvements in international demand were also offset by lower domestic demand due to the recession.

Less than 4% of Brasilia's Travel & Tourism activity was generated by international demand, as Brazil's capital city relies on domestic spending. Business travel is important for the city, including large volumes of government related-travel. Growth has slowed more recently during the recession, but this follows some particularly strong growth in prior years as economic activity was booming, helped by increases in government spend.

Brasilia's tourism GDP is only 3.2% of the city/s economy, accounting for US$2.1bn. The sector generates 52,600 jobs in the city, or 3.9% of its employment.

The total contribution of Travel & Tourism to Brazil/s GDP was BRL530.5bn (US$152.2bn), 8.5% of GDP in 2016. The total contribution of the sector to employment, including jobs indirectly supported by the industry was 7.8% of total employment (7 million jobs). Over the next ten years, there will be 9 million jobs in Brazil through tourism activity.

Tatiana Rokou

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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