Latin America information specialist John Price, keynote speaker at the International Association of Airport and Duty Free Stores (IAADFS) 2025 Summit of the Americas in March, delivered an engaging, informative session that delved into the political, economic, and social trends in Latin America that drive the travel sector.
A veteran of Latin America market consulting and one of the leading public speakers and thought leaders in the region, Price’s in-depth presentation discussed the evolving travel trends and economic landscape in Latin America, including the rise of niche travel, with a focus on adventure, eco-tourism, and wellness; the opportunity provided by digital nomads and retirees, particularly from the U.S., and Argentina’s GDP growth, which is expected to surge post-currency control removal.
The region’s aging population and increased disposable income are also fueling travel and luxury spending. On the down side, said Price, Brazil is struggling for stability and Mexico is facing economic uncertainties. Capacity issues are also a challenge, particularly in the Caribbean.
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Travel trends in Latin America
Noting that Latin America is blessed with beautiful natural assets in so many parts of the region, but is nevertheless one of the most under-explored regions of the world, Price says that the world is just beginning to get a taste for the region.
Two concepts have been bringing in new tourism: digital nomads and wellness. The concept of digital nomads, a phenomena accelerated under COVID, has attracted Americans, Europeans and Canadians, says Price. Wellness travel is also very popular in Latin America today.
Price is also very excited about the prospects of gastro tourism in Latin America, especially in Peru, which has become a global destination:
“The Italians and French have perfected gastro-tourism but now we’re seeing it emulated in places like Peru, Colombia, Brazil, Argentina and Mexico,” he said.
Capacity investment
COVID was very disruptive to travel patterns in the Caribbean and parts of Latin America, with some tourism destinations being closed or under restrictions for as long as three years. Other destinations, primarily Mexico, remained mostly open, and tourism surged. And the same went for the Dominican Republic, one of the first destinations to open.
“Capitalizing on the momentum they had, regional air travel grew by 12.4%; cruise visits increased 17%, and hotel capacity was up 5%,” said Price.
But some of the more popular places are facing infrastructure shortfalls now that numbers are back up.
“In many of the Caribbean island nations there’s a shortage of labor, and capacity issues all over the region, but particularly in those high traffic destinations, and there’s a desperate need for investment,” he said. “Airbnb listings alone grew by 20% to 1.7 million across the region in 2024.”
Capacity will become more critical as the U.S.-based Hispanic and Latino populations continue to age, he said: “[This demographic] will be an important source of visitors to the region, and many will consider retirement there, and that’s an important source of future developments.”
Price notes that places such as the Mexican Yucatan and the Dominican Republic are benefitting from high investor confidence. In the Yucatan, the Tren Maya project, the train that began operating last year, was highly controversial because of its cost and the need to clear parts of the rain forest in order to build it. But with the previous road systems totally overburdened, a train like this was necessary.
“In the end I think it will really serve the region,” he said.
“This [Mexico] is the most important destination in Latin America in terms of tourism, and there is no lack of capital. So you’re seeing massive build out of new hotels, including foreign direct investment in the region, like the expansion of Mérida International Airport, and other developments that are growing destinations for foreign retirees.”
The Dominican Republic is also seeing robust investment activity. The Samana Group is planning a retirement city based on the success of Punta Cana. Being built on what Price says is “some of the most beautiful underdeveloped parts of the island,” the eco-friendly communities are benefitting from their proximity to the United States, their safety, good connectivity and a population that is very experienced at serving tourist needs.
In Argentina, the current government is very pro investment and has put together an extremely attractive tax policy around large investments over $200 million and tourism is within the list of sectors that comply, said Price.
“As a result, there are 70 new hotels being built over the next few years, in an effort to draw tourists away from Buenos Aires, which has always been popular for Brazilians and Europeans, towards the Andes, where there’s tremendous tourism potential. There is the wine industry, and further south in Patagonia, places like Bariloche have incredible scenery akin to what you might see in the Alps.”
Chile, which is very popular among South Americans (about a quarter of the business in the luxury shops in Santiago comes from Brazilian tourists, said Price), has incredible natural assets in the southern parts of the country. But since international visitors often consider this too far to travel, the government is trying to link together 70 different parks to make this an attractive destination.
Despite this investment in new capacity in Latin America, Price says that it is not enough.
Economic outlook for Latin America
But he is very bullish on the opportunities ahead for Argentina, although he sees problems ahead for Mexico, in large part due to the political instability left behind by former Mexican president Andrés Manuel López Obrador, (AMLO). Argentina’s robust GDP growth is due to the removal of currency controls, which Price says Argentina’s president, Javier Gerardo Milei, has approached properly, with sufficient backstops by the IMF and others. This has allowed the country to build a fiscal surplus, and demonstrates to the Argentine people that their currency can be stable, which will stop the exodus of dollars out of the country.
“But most importantly, it opens Argentina as an investment destination to institutional investors, hedge funds and pension funds around the world, which were prohibited from investing in Argentina precisely because of its currency controls,” said Price. “There are billions of dollars waiting to buy Argentine debt and Argentine equities that they were not allowed to buy before. According to The Economist, that transition to an unregulated, uncontrolled currency will usher in more money into Argentina than allow money to leave,” said Price.
“Everybody has been reticent to invest in Argentina, but if projections prove correct, this is an enormous opportunity to re-enter a market that has essentially been abandoned for a decade,” he said.
