Tourism Investments in Latin America: A Lever for Sustainable Growth

Latin America is increasingly positioning itself as a key player in global tourism, thanks to strategic initiatives supported by the United Nations Tourism Organisation (UN Tourism). This institution’s commitment to sustainable development and economic growth in the region is reflected in targeted investment projects that stimulate not only the local economy, but also the attractiveness of tourist destinations.

Tourism as a pillar of development

Credit: ONU Tourisme

Tourism in Latin America has enjoyed exceptional momentum in recent years, attracting foreign direct investment (FDI) that has helped to modernise infrastructure and create thousands of jobs. Between 2019 and 2023, more than $20.5 billion has been invested in 212 tourism projects across the region, generating more than 73,000 potential jobs. These figures clearly show that the tourism sector is not only an economic driver, but also a vehicle for social transformation, improving the quality of life of local communities and strengthening local economies.

Investment Guides: A Strategic Tool

To direct capital towards the most promising projects, UN Tourism has developed specialised investment guides. These documents, designed to identify investment opportunities in the tourism sector, highlight sustainable and innovative practices aligned with the Sustainable Development Goals (SDGs). Topics covered include green bonds, sustainable financing mechanisms, and renewable energy investments applied to tourism.

These guides play a crucial role in structuring investments in Latin America, providing precise information on regulatory frameworks, tax incentives and opportunities specific to each country. They help to channel investment towards projects that not only stimulate economic growth, but also contribute to environmental protection and the sustainability of local resources.

Natalia Bayona, Executive Director of UN Tourism, said: ‘Investment in the tourism sector is essential for stimulating economic growth and creating jobs. They enable destinations to build sustainable infrastructure and improve the quality of life of local communities, thereby promoting inclusive and resilient development.’

A Model of Success: Ecuador and Galapagos Conservation

Ecuador is a perfect example of the positive impact of green investment in tourism. Thanks to an initiative supported by UN Tourism, the country has managed to convert part of its national debt into funding dedicated to the preservation of the Galapagos Islands, a world-renowned site. The project, supported by the Inter-American Development Bank (IDB) and the US Development Finance Corporation (DFC), will reallocate more than 323 million dollars to biodiversity conservation in the region over the next 18 years. This type of initiative shows how strategic investments can both protect the environment and enhance a destination’s attractiveness as a tourist destination.

More opportunities in Latin America

UN Tourism’s commitment to Latin America is not limited to promoting individual projects. In January 2024, a cooperation agreement was signed with the Development Bank of Latin America and the Caribbean (CAF), aimed at promoting the green transition in several countries in the region, including Brazil, Mexico and Peru. The agreement provides for the creation of new investment guides and the identification of more than 70 projects likely to attract up to $5.2 billion in capital.

These initiatives highlight Latin America’s immense potential as a leading tourist destination, capable of offering unique experiences while making a firm commitment to sustainable development. By investing in these projects, investors are contributing not only to the growth of the sector, but also to the enhancement and protection of the region’s natural and cultural assets.

A vision for the future

Supported by strategic investments and an innovative approach to tourism development, Latin America is becoming a global benchmark for sustainable tourism. Through its concerted action with governments and investors, UN Tourism is helping to shape a future in which tourism plays a central role in economic growth, while respecting the environment and supporting local communities. These collective efforts not only ensure the region’s prosperity, but also enhance its appeal as a must-see destination for travellers from around the world.