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In Brief: Central and South America’s travel and tourism sector is projected to grow faster than the global average in 2026, with robust domestic demand, increased international visitor spending, and less exposure to geopolitical disruptions contributing to this outlook, according to recent research from the World Travel & Tourism Council (WTTC).
Regional Growth Projections
The World Travel & Tourism Council’s (WTTC) latest Economic Impact Research (EIR) indicates that Central and South America’s travel and tourism sector is set to outperform global trends in 2026. The research, supported by Chase Travel, forecasts that the region’s travel and tourism GDP will grow by 4.1% in 2026, compared to the projected global average of 3.2%. International visitor spending in Central and South America is expected to increase by 7.8%, more than double the global growth rate of 3.7%.
Globally, travel and tourism are anticipated to contribute $12 trillion to the world economy in 2026, accounting for 9.9% of global GDP and supporting 376 million jobs. Over the next decade, the sector’s GDP is forecast to grow at an annual rate of 3.6%, which is 1.5 times faster than the wider global economy’s projected growth rate of 2.4%.
Factors Behind Regional Momentum
The WTTC attributes the region’s positive outlook to strong domestic travel demand and relatively limited exposure to geopolitical disruptions, such as ongoing conflicts in the Middle East. These disruptions have affected transit routes and source markets in other regions to a greater extent than in Central and South America.
Several countries in the region are forecast to see particularly strong growth in their travel and tourism sectors. Ecuador is expected to lead with a projected GDP growth of 11.6% in 2026, followed by Bolivia at 10.3%, supported by a 25.8% increase in international visitor spending. Argentina and Colombia are also expected to see growth rates of 4.9% and 5.7%, respectively.
Country-Specific Forecasts
Brazil, the largest travel and tourism market in the region, is projected to grow by 2.1% in 2026, with international visitor spending rising by 3%. Venezuela is forecast to experience significant growth, with travel and tourism GDP expected to increase by 33.2% and international visitor spending by 34.8%.
Central America is also set to perform well. Guatemala’s travel and tourism GDP is projected to grow by 6.1%, with international visitor spending rising by 9.3%. Panama is forecast to see sector growth of 8.4% and an 8.9% increase in international visitor spending.
Key Drivers and Risks
WTTC data highlights the importance of ongoing investment in connectivity, destination infrastructure, traveler confidence, and workforce development to sustain growth and maintain competitiveness. The organization also notes that affordability and stable travel environments are important for resilience. However, inflation and weaker consumer sentiment are identified as potential risks in some markets.
Employment Impact
According to the WTTC, travel and tourism are expected to support 18.5 million jobs across Central and South America in 2026, representing 8.3% of all jobs in the region.
Methodology and Outlook
The WTTC’s Economic Impact Research is conducted in partnership with Oxford Economics and is based on current economic and geopolitical conditions, including assumptions about inflation, energy prices, consumer demand, and regional developments. Projections may change as global conditions evolve.
