The strength of tourism

No economic sector was hit as hard by the pandemic as tourism: closed hotels, parked planes, and all activities that relied on visitors, both domestic and international, without any income to cover their fixed costs. But now, two years later, we see almost all businesses standing, rising from a tragedy and preparing for a new tourism boom.

That's why, on this September 27th, which commemorates the creation of the World Tourism Organization (WTO/OMT) and has been established as World Tourism Day, we should honor the resilience of the sector: none have shown such strength and solidity, nor greater resistance and adaptability.

Globally, we are already at 80% of 2019 levels in terms of employment, visits, and income, despite the economic and geopolitical situation, inflation, rising fuel prices, and therefore airfares, and the effects of the Russia-Ukraine conflict. In the Americas, we are at 87% (El Salvador, Colombia, Honduras, and the Dominican Republic with positive numbers), and with all expectations that our region will be fully recovered by the end of the year.

Tourism, a driver of development like no other sector, contributes 11% to our region's GDP, and for our Caribbean partners, it can reach up to 50%. Most importantly, it generates 11% of employment, generally unskilled and inclusive jobs that favor young people (first job) and women, who make up 54% of the workforce. These jobs are not easily replaceable by machines and have the capacity to mobilize other economic sectors, especially in the most vulnerable areas, and their product, when it comes to responsible and sustainable tourism, is inexhaustible.

Having overcome the crisis, we face new challenges that the industry is committed to: achieving the Sustainable Development Goals (SDGs), which will make tourism by 2030 a driving force for sustainable, environmental, social, cultural, and inclusive economic growth, as proposed by the WTO.

Given the sector's demonstrated strength, adaptability, and commitment to change, CAF -development bank of Latin America and the Caribbean has decided to become the green bank and the bank of sustainable and inclusive growth. Through the new Tourism Directorate, supported by the work of the Creative Economies and Urban Development, Infrastructure, and Climate Change Management teams, as well as the Private Sector Vice Presidency and Local Representations, CAF has decided to make resources available for investment projects and technical cooperation that help leverage the growth of tourism.

Additionally, the trends marked by digital nomadism, a collateral effect of the pandemic, help bridge the gap between low and high seasons. Changes in tourist behavior now favor natural and authentic experiences, which are ideal for the region. In fact, a recent survey cited by the WTO among millennials and centennials found that 80% preferred spending on a trip rather than acquiring a good, and their priority destinations were nature-based and allowed for interaction with communities.

This is a unique opportunity for Latin America and the Caribbean, and CAF is here to support it.