ITB Reports Travel Boom in South America Compared to U.S.

ITB Reports Travel Boom in South America Compared to U.S.
By James Ruggia

The South American economic miracle is impacting travel. Described as a “tale of two Americas where travel trends are concerned,” the latest ITB World Travel Trends sees the 2011 South American market as buoyant, whereas international arrivals in North America rose only slightly and U.S. travel abroad was weak.

Boosted by the strong economic performance of countries such as Brazil and Argentina, South America’s domestic and international travel markets registered high double-digit growth. In America, economic uncertainty dampened many U.S. citizens’ desire for travel.

Trips to North America increased slightly over the last eight months, whereas international travel remained at last year’s levels. For next year, UNWTO forecasts a 4 to 5 percent increase in international tourists from the Americas, compared with 6.4 percent in 2010.

By contrast, many countries in South America continues to boom. Even if growth rates have now slowed when compared with previous years, during the past eight months trips abroad by South Americans increased by 15 percent.

Brazilians were particularly keen to travel. With the help of a robust domestic economy and strong currency they spent 45 percent more on trips abroad than in 2010. Relatively young, well educated and wealthy travelers are characteristic of South America’s three burgeoning markets, those of Brazil, Argentina and Mexico.

The arrival of more low-cost airlines in South America will further increase the number of long-haul trips. Many holidaymakers who travel abroad have also put South America at the top of their wish list. International arrivals increased by 13 percent, while trips to the Caribbean and Central America rose by a lowly 4 percent each.

The difficult economic times currently experienced by many Americans is also reflected in how they take holidays. The focus is increasingly on price awareness and travel bargains. “Staycationers” either remain at home altogether or go on holiday locally. Only 23 percent of U.S. citizens intend to take more trips abroad next year, 28 percent aim to take less, while 23 percent have no plans at all to travel abroad next year. The U.S. inbound market registered only slight growth. During the last eight months, the number of international arrivals rose by only 3 percent, compared with 7 percent in 2010.

The findings are based on the assessments of 50 tourism experts from 30 countries, on a special IPK International trend analysis undertaken in leading source markets, and on core data supplied by the World Travel Monitor, recognized as the largest ongoing survey of global travel trends in some 60 source countries. The findings reflect trends which emerged during the first eight months of 2011.