South America Tourism Market (2024 - 2034)

South America Tourism Industry Outlook 2024 to 2034

The South America tourism market is estimated to reach ~USD 347.6 billion in the year 2024. It is forecast to reach a valuation of ~USD 549.9 billion by the year 2034 with a CAGR of 4.7% from the years 2024 to 2034. The target industry revenue in 2023 is USD 333.2 billion. The industry is expected to record an annual growth of (Y-o-Y) of 4.3% in 2024. Total sales in the South America tourism market represent ~2%-3% of the global tourism market.

South America is one of the most underrated tourist destinations. It is the land of mesmerizing nights and festivals. It is specifically known for its beautiful mountains, exotic landscape, lively beaches, glorious wildlife, waterfalls, and plenty of other things.

South America is composed of 12 independent nations and other dependent nations. Spanish is the most widely spoken language in South America, which is followed by Portuguese. English is the third most spoken language.

Attribute	Details
South America Tourism Market Size (2023A)	USD 333.2 billion
South America Tourism Market Estimated Size (2024E)	USD 347.6 billion
South America Tourism Market Forecasted Size (2034F)	USD 549.9 billion
Value-based CAGR (2024 to 2034)	4.7%

Key Points Covered in South America Tourism Industry Survey

• Market estimates and forecast 2024 to 2034
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• COVID-19 Impact on South America Tourism Market and How to Navigate
• Recommendation on Key Winning Strategies

2019 to 2023 South America Tourism Market Outlook Compared to Demand Forecast from 2024 to 2034

The South America tourism market faced significant challenges and recovery phases during 2019 to 2023. The early years recorded slow but steady growth which was boosted by sites such as the Amazon in Brazil, Machu Picchu in Peru.

However, the COVID-19 pandemic negatively impacted the company in the year 2020 and 2021 due to closed borders and safety concerns.

Recovery started in 2022, as countries go for domestic tourism promotion and the introduction of incentives for international tourists. The market was on the path to recovery by 2023 and was close to pre-pandemic performance, some markets and countries were more resilient and quicker to recover than others in Southeast Asia.

The tourism market in South America is expected to have a strong growth rate between 2024 and 2034 due to enhanced infrastructure, digital services and sustainable tourism. Ecotourism and special markets like adventure, wellness and food tourism will grow and countries like Chile, Colombia and Ecuador will come to the forefront.

Increased flight connections and better cross-border transport will help this growth, coupled with a growing income in key origination markets such as North America and Europe. Many sustainable-focused strategies, in line with international trends, will continue to cement South America as the go-to tourism destination over the decade.

Growing International Tourist Arrivals in the Region Boosting the Tourism Industry in South America

International tourist arrivals in South America in the year 2023 was around 32.6 million, much higher than the impact of pandemic as per the World Tourism Organisation (UNWTO). Brazil, Argentina and Colombia are the most popular destinations, which account for 60% of all visitors because of landmarks like the Amazon, Iguazu Falls and colorful carnivals. The region remains a favorite long-haul destination due to its closeness to North America and Europe.

Eco-Tourism and Adventure Tourism Boom

The region is home to the Amazon Basin, Andes Mountains, and the Galápagos Islands making South America a world’s leading destination for eco-tourism. More than half of foreign visitors in the region participate in nature or adventure tourism including trekking, bird watching or visiting national parks.

Those nations such as Costa Rica and Ecuador have particularly benefited from the commercialization of eco-tourism where currently contributes over 10% of their GDP, as a sign or its economic significance.

Emergence of Secondary Destinations

Rio de Janeiro, Buenos Aires and Bogotá are still big, but there’s a move towards secondary destinations like Bariloche in Argentina, Salvador in Brazil and Cusco in Peru.

These places are cultural experiences and less crowded tourist spots. In one example, Cusco's record of a 25% increase in international arrivals in 2023 largely due to proximity to Machu Picchu and a focus on sustainable tourism.

Transportation & Infrastructure Development

South America is witnessing robust investments in transportation to boost accessibility. Projects like the Panama-to-Patagonia Highway and expanded air routes by carriers like LATAM Airlines have significantly reduced travel times.

Domestic low-cost carriers have also surged, with Viva Air and Sky Airline offering budget-friendly options for regional exploration, contributing to a 15% rise in intra-regional tourism in 2023.

Rich Cultural Calendar Is a Massive Draw for Global Audiences

Events like Brazil’s Carnival, Argentina’s Mendoza Wine Festival, and Colombia’s Barranquilla Carnival attract millions of visitors annually. Brazil’s Carnival alone contributes over USD 1 billion to its economy, with tourists spending heavily on accommodations, food, and entertainment.

Country-wise Insights

Brazil Is the Largest Country in South America and is a Top Destination for Travelers

Brazil dominates the South American tourism market, welcoming over 6 million international tourists annually. Renowned for its vibrant culture, diverse ecosystems, and world-famous attractions like Rio de Janeiro’s Christ the Redeemer and the Amazon Rainforest, Brazil is a magnet for global travelers. The iconic Carnival in Rio de Janeiro alone attracts 2 million tourists each year, contributing over ~USD 1 billion to the economy.

Brazil's extensive coastline, featuring over 7,000 kilometers of beaches, makes it a prime destination for sun-seekers and adventure enthusiasts alike. Investment in tourism infrastructure, such as enhanced air connectivity through LATAM Airlines and low-cost carriers, has further cemented its position as a top destination.

Argentina Attracts Millions Annually with Its Breathtaking Landscapes

Argentina attracts tourists due to its stunning natural attractions and cultural heritage. The country's diverse landscapes, from the glaciers of Patagonia to the vineyards of Mendoza, provide a unique experience for nature and adventure travelers.

Iguazu Falls, one of the world's largest waterfalls, draws over 1.5 million visitors each year, while Buenos Aires, the vibrant capital, captivates tourists with its tango culture and historic architecture.

Tourism in Argentina contributes approximately 9.1% to GDP, with a significant focus on eco-tourism and wine tourism, making it a multi-faceted destination for global travelers.

Chile Stands Out with Its Diverse Landscapes, From The Atacama Desert to Patagonia

Chile has carved out a niche in the South American tourism market with its exceptional geographical diversity. From the Atacama Desert, the driest place on Earth, to the breathtaking glaciers of Patagonia, Chile offers unparalleled natural beauty.

The country received over 3.7 million international tourists in 2023, with its capital, Santiago, and UNESCO-listed Valparaiso as major urban attractions.

The growing astro-tourism industry in the Atacama Desert, home to some of the world’s most advanced observatories, has gained popularity among science enthusiasts. Tourism accounts for 3.2% of Chile’s GDP, supported by the government’s focus on sustainability and adventure tourism.

Category-wise Insights

Which Tourism Type is the More Popular Among Tourist?

Tourists are More Inclined Towards Cultural Tourism

Tourism Type	Value Share (2024)
Cultural Tourism	31.6%

Cultural tourism dominates the South American tourism market, capturing a 31.6% value share, as tourists are drawn to the region’s rich cultural heritage, including vibrant festivals like Brazil’s Carnival, Peru’s Inti Raymi, and Colombia’s Barranquilla Carnival.

Iconic historical sites such as Machu Picchu in Peru, colonial cities like Cartagena in Colombia, and the indigenous traditions of Bolivia further enhance the appeal.

Travelers often seek immersive experiences, including local cuisine, traditional music, and artisanal crafts, making cultural tourism the cornerstone of the region's allure and a significant driver of economic growth.

Which Booking Channel Is the Most Preferred by The Tourist?

Online Booking is More Preferred by Tourists

Booking Channel	Value Share (2024)
Online Booking	46.3%

Online booking channels have emerged as the most preferred method for tourists in the South American market, accounting for an impressive 46.3% value share.

This preference is driven by the convenience, flexibility, and variety offered by platforms like Booking.com, Expedia, and Airbnb, which allow travelers to compare prices, read reviews, and secure accommodations or tours effortlessly.

The widespread adoption of smartphones and increasing internet penetration in the region have further accelerated this trend, making online booking a dominant force in shaping the tourism landscape across South America.

Which Tourist Type is more likely to Travel?

The Popularity of South America Tourism Among International Travelers Will Remain High

Tourist Type	Value Share (2024)
International	53.8%

International travelers are the dominant force driving South America’s tourism market, accounting for a projected 53.8% value share. This trend highlights the region's global appeal, fueled by its unique cultural offerings, iconic landmarks like Machu Picchu and Iguazu Falls, and a rich diversity of ecosystems.

South America’s reputation as a hub for eco-tourism and adventure activities continues to attract long-haul visitors, especially from North America, Europe, and Asia.

The growing accessibility through enhanced air connectivity and digital platforms further reinforces its position as a favored destination, ensuring its popularity among international tourists remains high.

Competitive Landscape

The key players in the South American tourism market are Pentravel, CVC Travel, Thompsons, Suretravel, VIAJANET, Hostelworld Group, Harveyworld, IGO Travel, Computravel, LuxuryAfrica, and Despegar.

The focus for the South America tourism market remains to increase the footfall of tourists and to revive the tourism sector to its glory, as the past two years have been relatively dry for the region.

For instance:

• In 2023, CVC Corp signed a Memorandum of Understanding (MoU) with Cape Verdean tourism stakeholders to re-establish direct flights between Brazil and Cape Verde starting 2024. This initiative aims to enhance connectivity and promote tourism between the two regions after the disruption caused by the pandemic.
• IGO Travel is enhancing its portfolio by introducing new travel packages that emphasize eco-friendly tourism options. The company aims to attract environmentally conscious travelers looking for unique experiences within South America.
• Harveyworld continues to operate as a travel agency with a focus on personalized service. Recent developments may include adapting their packages to cater specifically to emerging trends in adventure and experiential travel.

Scope of Report

Attribute	Details
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	USD Million for Value
Key Country Covered	South America
Key Segments Covered	Tourism Type, Booking Channel, Tourist Type, Tour Type, Customer Orientation , Age Group.
Key Companies Profiled	Pentravel; CVC Travel; Thompsons; Suretravel; VIAJANET; Hostelworld Group; Harveyworld; IGO Travel; Computravel; LuxuryAfrica; Despegar
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

South America Tourism Market by Category

By Tourism Type:

• Religious Tourism
• Cultural Tourism
• Medical Tourism
• Others

By Booking Channel:

• Phone Booking
• Online Booking
• In Person Booking

By Tourist Type:

• Domestic
• International

By Tour Type:

• Independent Traveler
• Package Traveler
• Tour Group

By Consumer Orientation:

• Men
• Women
• Children

By Age Group:

• 15-25 Years
• 26-35 Years
• 36-45 Years
• 46-55 Years
• 56-65 Years
• 66-75 Years