The Americas
An untapped market
Nov 30th 2010, 21:05 by T.W. | MEXICO CITY
WE HAVE a story this week on Mexico’s surprisingly buoyant tourism industry, which seems to be shrugging off a drug war, swine flu and all other obstacles remarkably well. While researching the article, another thing struck me: how incredibly undeveloped the industry is in the rest of Latin America.
Take a look at the table on page 8 of the UN’s latest tourism digest. Considering the Americas in total, the United States and Canada capture just over half of all international arrivals. Their size and wealth means this perhaps isn’t surprising. But look at Latin America in isolation, and Mexico’s dominance of the industry is extraordinary. Of 23 countries, Mexico captures 31% of all international arrivals (the vast majority from the United States). Brazil, the next most successful country, gets about 7%. Last year Brazil, the world’s fifth-biggest country by both area and population, and home to any number of natural wonders and vibrant mega-cities, received 4.8m tourists—fewer than Bulgaria.
Why do so few people make it to South America? Its isolation from the big markets of the United States and especially Europe is probably the main reason. A round-trip to Buenos Aires from New York next weekend would take 11 hours each way and cost $1,400; from London it’s an even greater slog. Nonetheless, when countries such as China and Malaysia can make it into the world’s top 10, despite being on the opposite side of the world from the biggest spenders, there must be potential for some Latin American countries to up their intake. Wouldn’t you rather be B.A. than Bulgaria?
In this blog, our correspondents provide reporting, analysis and opinion on politics, economics, society and culture in Latin America, the Caribbean and Canada.
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Other reasons tourists avoid South America are the constant cacophony of car horns and the endless pestering of people wanting to sell things.
Argentina has huge potential to pull in boat/plane loads of tourists from everywhere, but their marketing and image is poor around the world.
A determined effort could surely fix this with not a huge amount of trouble, and net Argentina billions, but in order for that to be possible Argentina must A)Limit the political drama (that mostly comes to nothing most of the time). I really think that is about it.
One reason Brazil's tourist industry is smaller than it should be, is that Brazil requires visiting Americans to obtain Tourist Visa's. In doing so, Brazil chases away affluent impulse travelers, and makes less convenient for the 315 affluent neighbors to the north to come visit. Brazil's self inflicted wound on its own economy is an emotional retaliation for the United States requiring Visa's of visiting Brazilians. Nonetheless, this "tit for tat" is childish, and ignores the realities and necessities of third world to first world immigration, which the US must manage.
Brazil's blundering chasing away of tourism money is by no means unique. St. Petersburg has Paris like splendor, but Russia too also needlessly imposes visas on visiting Americans and other first world nationals; such as cold war relic makes the ordinary Russian a little poorer.
I wonder about the opinion of the new Bulgarian president of Brazil, Dilma Russeva... I mean Dilma Rousseff.
Distance, bad infrastructure, unrest, crime, and bad or nonexistent marketing all conspire in varying measures against Latin American tourism. In the case of Brazil a long flight after a very long flight, visa requirements, and an overvalued exchange rate conspire even further. It's a pity. There is so much to see.
Sorry, Cubaed, not every country is Ciudad Juarez.
The infrastructure of Argentina, Chile and Uruguay are all fairly good. I cannot speak to Brazil, since I have never been.
You are merely repeating some American stereotypes that want for any evidence whatsoever.
It is more correct that people THINK of these countries this way, than that they actually are that way.
I ask you, what is the murder rate in Chile? The answer is that it is lower than the US, comparable to France!
Kushluk, I think you need to read this article closely and understand what it says: Mexico is a developed tourist destination that receives 31% of all international arrivals in Latin America, overland crossings included, and that will certainly include Ciudad Juarez, despite all its current problems.
The fact is South American countries have just started to see tourism as a good source of income, and this industry is just begining to grow in that part of the world, whereas Mexico started to develop tourism in the 1970s with 'master plans' such as the creation of Cancun, by computer, in 1975, at time when most South American countries were living under dictatorships.
E Lemon - I frankly don't think most Americans can differentiate any country in Latin America from Mexico. So because it is all like Mexico, it gets the same stereotypes appended to it, whereas the fact is that there are countries that are far less chaotic than Mexico, and Mexico itself has a complex gradient from chaotic places to safer ones.
@Joe Mohen - Actually, Brazil has a reciprocal requirements policy; whatever your country requires from Brazilians, they require from you. So: When the US stops requiring expensive visas and fingerprinting from them, they'll stop requiring it from us.
Interesting point about it cutting down on tourism, though; you don't think that applies in the US?
@John Mohen - your speech of "third world and first world" is deeply biased and outdated. Brazil does not need an influx of "Americans Tourists who can't be bothered to apply for a visa" as a way to boost its economy. They have managed to take care of their economy (much better than their neighbours from the North, by the way) despite being less visited than Bulgaria. And you know why? Because Brazil made ties with China and other countries that are more economically stable than its North Neighbour, so here they are now: They got no international debt (by the way, they lent money to IMF,last year) and their economy is booming. With or without "American tourists who can't be bothered to apply for a visa". And another point is: finally, Brazil is stepping into international spotlight zone, even beating Los Angeles at hosting 2016 Olympic Games. Yes, Brazil needs doing commerce with the States, however, at the present time, I believe USA also needs investment coming from the BRIC, as it seems that nowadays, they are doing so much better than the Big Boss. "The third world" lending money to the '1st world".... That is not bad, eh? Whatever next! And I back 100% the need for a visa to Countries that play the same game! Reciprocity! Learn this word!
SWINE flu? That's oh so passé.
Brazil needs to get over their reciprocity clause and allow people from the USA to travel there without a tourist visa. I know the US requires it from them, but who cares... get rid of it a let the foreign $$ roll in. Getting a Brazilian visa is a pain and not cheap (I know the process is easier for US citizens wanting to visit Brazil than the opposite and it costs just as much, but sheesh... swallow your orgulho and make some money.
"...constant cacophony of car horns and the endless pestering of people wanting to sell things."
Quite a stinky stereotype, Sinamatela!
Having worked and travelled in Mexico and Central America, as well as worked and travelled very widely in Asia, I'm not terribly surprised with your finding that parts of Latin America seem to have relatively underdeveloped tourism. As an Australian, it was my observation that Latin American destinations were relatively expensive to get to and travel in in the early to mid 2000s. This situation has improved with revaluation of the Aussie dollar. But, there are a couple of other 'barriers' to travelling in the region from my perspective. First is language. I found that even 4-5 star hotel front desk staff didn't necessarily speak English as easily or fluently as their counterparts in hotels in Singapore, Malaysia, the Philippines, Indonesia, Thailand or almost any other popular Asian destination - I felt it was necessary to speak Spanish. Second was service level mentality - it's not as responsive. You spend a lot of time trying to get the best from people in Latin America. Third, it's definitely a drawback to have to fly via the US. It's security requirements at airports are so hostile and inconvenient, it's really preferable to get a direct flight to Latin America. It's a shame, becausemy travels in Latin America were marvellous - friendly, vivacious welcoming people, rich culture, arts and traditions. I loved travelling the region and often encourage friends to go, but I'm afraid to say some improvements need to be made to make the region as competitive for the tourist dollar compared to Asian destinations.
I have an English friend who loves to talk about the time he and his wife were assaulted in Rio and were robbed of everything - including the clothes they were wearing. They regard as a point of honour to dissuade anyone from going anywhere in SA.
Crime is a real problem and constant warnings from concerned locals to take care, hide cameras, don't make phone calls, don't go out after dark, don't wear jewelry start to make one paranoid.
Brazil has fantastic places for tourists to visit but I don't see much hope of growth in European tourism until they can sort out this problem. Then they need to do some intensive English teaching to waiters, receptionists, taxi drivers etc
I know Argentina less well but similar remarks apply. Chile is the one country where I feel relatively safe.
I blame global warming for that.
After reading the comments, please Latin America: DON'T CHANGE!!! Most people have no inkling about all the wonderful things these countries have, and believe the media hype (even The Economist falls prey, look at the cover page on Mexico...shameful). Why not look at OECD articles on Latin America (and, horror of horrors, how well our southern neighbor is doing)? Mortality rates? Education rates? Entrepeneurs? No...that's too boring. Bring on the crime stories. I have been to about 8 Latin American countries. Last year, went to Brazil and forgot I needed a visa. They were soooo nice, and within 20 mintues I was issued one(about 20 dollars). Also went to Colombia, Venezuela and Mexico. Have never seen Mexico better. The best children's museum I have been to in Guadalajara, so many middle=class professionals everwhere, with poor people, but not like in years past (and certainly not the level of homeless I find in DC). Venezuela, a little depressing because of Chavez, but Los Roques was amazing...and overbooked. Colombia, finally coming out of its shell. Perhaps they cater only to Spanish-speaking tourists...and maybe that's a good thing. Had to laugh at all the requirements so many "seasoned" travelers had: speak English! Be more service-oriented! Seriously, stay home. And if I believed all those hype stories about the US (swarming with pedophiles and religious extremists), I would never visit. But I know better because I form my own opinion.
Part of the problem is the bad rep that many Latin American countries get because of the drug trade. Many countries are portrayed as run by drug gangs.
This is not the truth in most Latin American countries
for in depth views on the Latin America and drug cartels visit my blog at
http://purespeed.blogspot.com/
... Dilma's father as a naturalised Brazilian of Bulgarian birth and her mother was a born Brazilian (last name da Silva)
That aside, Buenos Aires is a fantastic visit. From there you can get an overnight Coche Com Calma (bus with a First Class airline full bed) to Mendoza and enjoy some for the best wine, scenery and outdoors activities this side of New Zealand. Mendoza is nice city as well.
And it's cheap!