WTM Latin America Trends Report
2015
The latest trends from the Latin American travel
industry
WTM Latin America Trends Report
Key Findings
Latin America Overview
Brazil: Religious Tourism
South America: Travel with family
Caribbean: Luxury Hotels
WTM Latin America 2015
The inaugural WTM Latin America Trends Report 2015, in association with Euromonitor
International, highlights the emerging travel trends in the Latin American market.
The comprehensive report follows in the footsteps of the WTM Global Trends Report which is
presented annually at World Travel Market in London.
The WTM Portfolio and Euromonitor International have been working together, predicting the major
travel trends in the industry since 2006.
This WTM Latin America Trends Report 2015 will be no different, but focusing on key Latin
American markets – Brazil, South America and the Caribbean.
I would like to thank Euromonitor International for compiling the WTM Latin America Trends Report
2015.
I hope you find the report useful and interesting and wish you a thought-provoking and productive
WTM Latin America 2015.
Lawrence Reinisch, Exhibition Director, WTM Latin America
Euromonitor International
Euromonitor International delivers an unrivalled level of research and
analysis for all travel categories in 210 countries worldwide. We have
more than 40 years of experience publishing international market
reports, business reference books and online databases on consumer
markets.
Euromonitor International are delighted with the partnership beyond
World Travel Market in London with WTM Latin America.
It is a key indicator of the growth and development of this industry in
Latin America and Brazil.
Our market insights are valuable content capable of making a
difference for tourism companies, and experts that want to take
advantage of the opportunities in the region.
Marcel Motta, Country Manager, Euromonitor
International, Sao Paulo
Travel and Tourism
Tourism Flows and
Spending
Lodging
Travel Modes
Activities
Booking
LATIN AMERICA
OVERVIEW
Inbound Tourism in Latin America Turns a Corner
8
7.1
7
6.2
6
5.1
4.9
5
4.4
4
2.8
2.7
3
4.0
3.2
3.8
3.7 3.8
2.6
2.0
1.9
2
2.4
1
0
Middle East Asia Pacific Australasia
and Africa
% CAGR Arrivals 2008-2013
•
Latin
America
World
% CAGR Arrivals 2013-2018
Eastern
Europe
North
America
Western
Europe
Source: Euromonitor International
After underperforming the global average over the review period, Latin America inbound arrivals
will post a 4.4% CAGR (Compound Annual Growth Rate) between 2013-2018, slightly above the
global CAGR of 4%.
Latin America Inbound Tourism Overview
Mexico
Performance
Brazil
2013 : 84 million arrivals
2008-2013 CAGR: 2.8%
Argentina
2013-2018 CAGR: 4.4%
Dominican
Republic
Chile
Peru
•
In 2013, Latin America registered a total of 84 million
arrivals, representing 3% growth over 2012.
•
Mexico accounted for 30% of total arrivals in the region.
This can be mainly attributed to the country’s proximity
to the biggest source market for Latin America: the US.
•
Brazil follows with an 8% share of total arrivals. Visa
requirements, crowded flights, bad infrastructure and
language are strong barriers to growth for international
tourism in the country.
Uruguay
Others
Source: Euromonitor International
Key Destinations
1. Mexico
30%
2. Brazil
8%
3. Argentina
7%
4. Dominican Republic
6%
5. Chile
4%
Top Five (Total)
55%
Global Economy Helps Latin America Tourism
Real GDP % Y-o-Y Growth 2009-2018
4
3
2
1
0
-1
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
-2
-3
-4
-5
North America
Eurozone
France
Source: Euromonitor International
•
Economic recession in main source markets (North America and Eurozone) negatively
impacted arrivals in Latin America between 2008-2013. The stabilisation of the economy in
those regions is expected to increase arrivals in Latin America over the following five years.
Rising Income Boosts Intra-Regional Tourism
Distribution of the Latin America Population by Gross Income Range (%) 2008/2013/2018
2018
2013
2008
0
10
20
Population with Income of US$40,001+
30
40
50
Population with Income of US$10,001-40,000
60
70
80
Population with Income of US$0-10,000
Source: Euromonitor International
•
Between 2008 and 2013, 44 million people joined the region’s population group with income
of R$31,000 – 125,000 (US$10,001-40,000). This is more than the population of Argentina in
2014 (41 million).
•
Like many consumers worldwide, Latin Americans love to travel, and take steps to ensure that
they have the financial resources to escape to the beach, the countryside or a lively urban
centre. In fact, Latin Americans prioritise travel above all else when it comes to discretionary
spending.
Fastest Growing Markets
•
Between 2013 and 2018, Mexico’s arrivals will post a 5% CAGR to reach 31 million. This growth
will be mainly driven by US economic recovery.
•
Brazilian inbound tourism will benefit from increased awareness underpinned by the 2014 FIFA
World Cup and 2016 Rio Olympics. However, Peru will be the country to register the strongest
growth in arrivals over the forecast period. Government policy efforts to promote inbound tourism
will play an important role in this growth.
35
12%
30
10%
25
8%
20
6%
15
4%
10
2%
5
0
0%
Mexico
Brazil
Argentina
Source: Euromonitor International
2013
Dominican
Republic
2018
Chile
CAGR 2013-2018
Peru
Ecuador
CAGR 2013-2018
Million arrivals
Inbound arrivals in Latin America by Fastest Growing Markets, 2013-2018
BRAZIL: RELIGIOUS
TOURISM
Brazil Religious Tourism Overview
•
•
Religious heritage sites are important tourism
destinations, attracting between 300-330 million
tourists every year worldwide, according to
UNWTO estimates. Religious tourism
contributes to the building of tolerance, respect
and mutual understanding through interactions
between visitors and host communities.
In Brazil, the Tourism Ministry estimates that 7.7
million domestic trips were motivated by faith in
2014. This is the equivalent of Uruguay’s total
domestic trips in 2012. Religious tourism has an
important role in the economy for many cities in
the country, such as Juazeiro do Norte in the
state of Ceará and Cachoeira Paulista in the
state of São Paulo.
In 2014, the
Sanctuary of Our
Lady of Aparecida
received 12 million
tourists according
the Sanctuary’s
estimates. This is
almost twice the
number of visitors
to the Eiffel Tower
in 2013.
Juazeiro do Norte
Tourism Secretary
estimates over 2.5
million pilgrims
visited the city in
2011 to participate
in masses and
religious
celebrations. This
is more than
Paraguay’s total
domestic trips in
2014.
Catholicism Remains Predominant
•
According to Vatican figures,
Brazil's Population Distribution by Religion, 2010
Brazil has the most Catholics in
the world, with over 12% of the
global Catholic population. This
2.7% 8.3%
corresponds to 137 million
people, almost the population of
0.4%
Russia.
2.5%
Catholics
•
The proportion of people who are
Evangelical Christians has been
increasing in Brazil. According to
the National Statistics Office
(IBGE), the religion accounted for
21% of the country’s population in
2010, or 42 million people (same
size as Argentina’s population in
2014).
Evangelicals
Spiritualists
20.8%
Umbanda and Candomblé
65.3%
Others
No Religion
Source: Brazilian Institute of Geography and
Statistics - IBGE
Increased Awareness of Catholicism in Brazil
•
The election of a Latin American
pontiff, Pope Francis, in 2013 has
revitalised tourists’ interest in the
ruins of Jesuit missions in the
southern state of Rio Grande do Sul,
among them the UNESCO World
Heritage site São Miguel das
Missões.
•
In 2013, Brazil hosted World Youth
Day. The Catholic mega-event
gathered 671,000 tourists, of which
212,000 were international,
according to Brazil’s Tourism
Ministry.
Local Industry Starts to Invest in Catholic Tourism
•
Since 2012, the largest tour operator in Brazil, CVC, has been
expanding its portfolio of religious tourism packages. Offers
however are still restricted to key international religious heritage
sites, mainly in Europe, Israel and Jordan.
•
On the other hand, specialised tour agencies offer package tours
for domestic sanctuaries, such as Our Lady of Aparecida
(Aparecida, São Paulo), Santa Paulina (Curitiba, Parana) and Pai
Eterno (Trindade, Goiás ). These packages often also include
activities other than religious, such as shopping and entertainment
(eg amusement parks).
•
Pai Eterno (Trindade, GO)
The popularity of Brazilian priest singers in the country has led to
the development of religious cruises in Brazil. However, these are
sporadic and it is still not clear if there is a strong demand for this
kind of service.
Santa Paulina (Curitiba, PR)
Other Religions Remain Unexplored
•
According to a study published by IBGE,
Brazil is on the way to becoming the only
country in the world to change its
traditionally dominant religion. Academics
estimate* that Evangelicals will outnumber
Catholics in Brazil by 2040.
Although they have far smaller numbers,
African-Brazilian religions such as
Umbanda and Candomblé are increasing
awareness among the middle class in
Brazil. According to IBGE data, 13% of all
followers of African-Brazilian religions
have higher education, above the
country’s average of 11%.
Population by Religion in Brazil, 1980-2010
140
120
100
Million People
•
80
60
40
20
0
1980
1990
2000
Catholics
Evangelicals
Other Religions
No Religion
Source: Brazilian Institute of Geography and Statistics - IBGE
* ALVES et al. A dinâmica das filiações religiosas no Brasil entre 2000 e 2010. Congresso ABEP, 2012.
2010
SOUTH
AMERICA:
TRAVEL
WITH
FAMILY
Latin Americans Travel More With Family
•
•
•
Between 2006 and 2014, family trips rose in popularity and have now
become the most common way for Argentinians to travel abroad.
Since 2010, family trips are the most common form of travel among Brazilian
outbound tourists.
In Peru and Colombia, family trips accounted for almost half of all leisure
outbound trips in 2014.
Share of Family Travellers in Total Leisure Outbound Trips 2006/2014
Country
2006
2014
Argentina
15%
30%
Brazil
24%
35%
Peru
38%
43%
Colombia
41%
45%
Source: Euromonitor International
Family Trips to Enhance Parent-Children Relationship
Latin America Annual Disposable Income Per Capita and Fertility Rates
1990-2030
16,000
3.50
14,000
3.00
12,000
2.50
10,000
2.00
8,000
1.50
6,000
1.00
4,000
0.50
2,000
0
-
Annual Disposable Income Per Capita (US$ Current Prices)
Fertility Rates
Source: Euromonitor International
•
•
Over recent decades, Latin America has witnessed a decline in fertility rates and an increase in
annual disposable income per capita. On the other hand, time-pressed parents now have less time
to spend with their children.
As a result, parents are spending more money and less time with their children. Family trips gain
importance as a way to enhance parent-children relationships through sharing experiences.
Have What I Did Not
•
Newer generations of parents in Latin America grew up in times of unfavourable economic and
social conditions, but entered adulthood in times of economic prosperity. Now, with increased
disposable income and more opportunities, they want to give to their children what they did not
have when they were young, such as international travel and experiences.
•
Not surprisingly, leisure outbound trips
in Latin America posted a 7% CAGR
over 2003-2013, while leisure domestic
trips registered a 4% CAGR.
•
Million trips
In addition, vanishing dividing lines
between children and parents – the
disappearing generation gap –
is contributing to parents becoming
“peerents”, working through issues
with their children and sharing
experiences in a form of “collaborative
parenting”.
600
7%
500
6%
5%
400
4%
300
3%
200
2%
100
1%
0
0%
Leisure Outbound
Trips
2003
2013
Source: Euromonitor International
Domestic Trips
CAGR 2003-2018
CAGR 2013-2018
•
Latin America Leisure Outbound Trips vs
Domestic Trips
Is it Worth Focusing on Family Travel?
Family respondents say yes. According to a global survey conducted by
Euromonitor in 2013, they are quite willing to pay, and pay extra, for children's
activities. Family travellers are also more willing to pay for children's activities than
for almost every other type of trip add-on.
Source: Euromonitor International
CARIBBEAN
LUXURY HOTELS
Inbound Prospects Increase Allure of Caribbean Region
Inbound Arrivals in the Caribbean Region 2008/2013/2018
25,000
20%
18%
20,000
16%
‘000s arrivals
14%
15,000
12%
10%
10,000
8%
6%
5,000
4%
2%
0
0%
2008
2013
Arrivals ('000s)
•
2018
Arrivals Growth (%)
Between 2013 and 2018, inbound arrivals in the Caribbean region are expected to post an 18%
CAGR, compared to a 12% CAGR between 2008-2013.
Luxury Drives Inbound Demand in Caribbean
Hotels Occupancy Rates in Antigua by Price Range 2007-2014
80%
70%
60%
50%
40%
30%
20%
10%
0%
2007
2008
2009
2010
Budget
2011
Mid Range
2012
2013
2014
Luxury
Source: Antigua Hotel and Tourist Association
•
Historically, luxury hotels have registered higher occupancy rates among Caribbean countries. In
Antigua, between 2007-2014, with the exception of 2009, when the segment was negatively
impacted by the global economic recession.
Luxury Hotel Chains Increase Investments in Caribbean
Gansevoort Playa Imbert in Dominican Republic
Azul Sensatori Jamaica All
Inclusive - 2014
Opened in December 2014, the luxury resort is located in the northern
coastal city of Cabarete. It features 48 suites including apartments with
private plunge pools and a collection of 4-bedroom penthouses.
Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall in Jamaica
Jamaica’s Prime Minister, Portia Simpson-Miller, declared the official opening
of the country’s first Hyatt-branded all-inclusive resorts in March 2015. The
guestroom resorts are the culmination of an investment of more than US$85
million.
Chic The Boutique Hotel Trinidad and Tobago, 2014
CHIC All-Exclusive Resorts
- Dominican Republic, 2014
Kimpton Hotels resort in Cayman
In 2013, Kimpton Hotels & Restaurants announced plans to open the
brand’s first Caribbean resort in Cayman in 2016. The 263-room boutiquestyle hotel will be located on Seven Mile Beach in Grand Cayman, and is set
to be the first new development on this location in a decade.
Marriott Hotel – Haiti, 2015
Luxury Revisited: Green and Guilt-Free
Return of classic luxury
Multi-generational
Guilt-free travel expands
 In emerging markets, luxury
travel remains a status
symbol for the rich exclusivity and high-end
comfort are key goals for
many.
 Holidays for multiple
generations are an evergrowing segment in luxury
travel. Cruises, safaris and
activity holidays are the latest
luxury attractions for family
groups.
 As luxury travel continues to
grow in popularity, the notion
of guilt-free travel is
expanding.
 Mature luxury markets have
shifted towards authentic
experiences. There are
growing numbers of Brazilian
luxury consumers keen to
experience this type of luxury.
 These trips tend to be highly
organised, often with
specialised activities suitable
for each generation, ranging
from grandparents to young
children.
 Luxury travellers are digitally
well-connected, with social
media an important tool.
 Sustainable options remain
key to many luxury holidays,
such as zero-impact luxury
hotels, using locally-grown
produce and offering guests
eco-based experiences.
Sustainable Luxury Hotels: An Opportunity?
•
Eco lodges are a strong trend in
Costa Rica. These are mainly
independent hotels integrated with
the natural, built and social
environments.
•
Eco resorts offer authentic
experiences for environmentally
responsible tourists. Customers have
the opportunity to reconnect with
nature, but with the comfort of a
luxury hotel.
•
An example is the Lapa Rios Ecolodge, which is set in a 400-hectare private nature reserve on
the Osa Peninsula, Costa Rica. The luxury hotel has the maximum five stars in the government’s
Certificate of Sustainable Tourism. With a mainly locally-sourced work force, the eco lodge keeps
visitors safe from the jungle, but also makes them feel integrated with it.
For more information
Alexis Frick
Research Analyst
Euromonitor International, São
Paulo, Brazil
Tel: +55 11 2970 2150
info-brazil@euromonitor.com
www.euromonitor.com
@Euromonitor
Nicole Collett
Press and PR Executive
World Travel Market Latin America
Tel: +44 20 8910 7836
Nicole.collett@reedexpo.co.uk
www.wtmlatinamerica.com
@WTMLAT