The 2025 Summit of the Americas highlighted positive growth forecasts for travel in North and Latin America, with a focus on changing consumer preferences, demographic influences, and economic opportunities. Key findings included growth rates, demographic shifts among Gen Z and older populations, identifying new travel trends, and addressing infrastructure challenges. Argentina’s economic revival and Brazil’s tourism leadership were also emphasized.
The opening session of the 2025 Summit of the Americas in Miami centered on evolving travel and financial trends within the region. IAADFS Chairman Rene Reidi emphasized a promising outlook, forecasting a 7.5% increase in North American passenger numbers, reaching 422 million by 2025, alongside a 6.2% rise to 258 million for Latin America. Although these figures fall slightly below the global growth average of 8.3%, they signify positive momentum for the travel sector.
Reidi discussed the travel retail sector’s transformation, noting that contemporary travelers favor seamless omnichannel experiences over traditional cost-focused considerations. The shift indicates that it is no longer sufficient for products to be merely reasonably priced. John Price, Managing Director of Americas Market Intelligence, highlighted that tourism in Latin America is now shaped by niche trends, including adventure travel, eco-friendly experiences, digital nomadism, and personalized journeys.
The Covid-19 pandemic significantly altered the tourism landscape, causing notable declines in regions such as Cuba and Barbados (49% and 27% drops in tourism, respectively) while more open areas like the Yucatan (+113%) and the Bahamas (+57%) prospered. Price pointed out that Mexico’s selective lockdown approach allowed for more robust recovery relative to others with broader restrictions. However, he cautioned that travel growth is revealing “infrastructure shortfalls” and “serious fiscal deficits” in Latin America.
On the financial aspects, Price described Latin America as a “region of 60 million people” regarding travel retail, characterized by stark wealth disparities. He remarked on Argentina’s potential, anticipating GDP growth of $245 billion and positioning it as a unique opportunity for re-engagement in the market after a decade of neglect. Despite Argentina’s prospects, Brazil is expected to lead the outbound tourism market, valued at $20.99 billion, followed by Argentina at $12.7 billion and Mexico at $11.06 billion.
The demographic landscape is also influenced by generational shifts, with Gen Z representing 20% of Latin America’s population, projected to reach 27% by 2035. This generation is characterized by its keen saving tendencies and social conscientiousness. Price emphasized that these financially-savvy and brand-disruptive consumers diverge sharply from their predecessors, creating challenges for legacy brands. Conversely, the region’s aging population is gaining economic power, with older adults now spending more on travel, signaling a significant opportunity for the industry.
In conclusion, the 2025 Summit of the Americas underscored the promising growth trends in travel across North and Latin America, despite some challenges. The evolving travel retail landscape shifts towards consumer preferences for innovative experiences, alongside the emergence of distinct generational characteristics that influence market dynamics. Acknowledging the significant demographic changes and Argentina’s economic potential further illustrates the complex nature of the Latin American tourism sector, paving the way for new strategies and opportunities.
Original Source: www.dfnionline.com
