The Americas is the macro-region with the second most improved TTCI performance at the aggregate level, just behind Asia-Pacific. International tourist arrivals have boomed, growing from 170 million in 2013 to over 201 million in 2015. Of these, North and Central America welcome about 80% of these visitors and Latin America the remaining 20%.
The majority of the countries in the region rely on rich natural resources and good hospitality (tourist service infrastructure) to appeal to tourists, and they tend to be internationally open. It is clear that most of the governments in the region understand the strategic role tourism plays for development and job creation and consequently support the sector proactively.
Yet some shared difficulties remain. The ground infrastructure is, with few exceptions, underdeveloped, and cultural resources are not as valued as they could be. These are differentiating factors between North American nations and their Southern American counterparts. While ground infrastructure is relatively well developed in North and Central America, including the United States, Canada, Panama, Barbados and Jamaica, ground transportation continues to lag across South America. Even Chile, the top performer in South America on this indicator, has a performance lower than the North and Central America average.
While North and Central American nations outperform South American ones on infrastructure, the opposite is true for cultural resources. Numerous South American nations are taking advantage of their rich heritage to create a strong tourism value proposition consisting of natural resorts, entertainment and culture. On the other hand, Central American and Caribbean countries continue to rely too excessively on their natural resources and have not made much progress in developing other tourism segments or complementing their beach offer with other activities.
These trends are confirmed by shifts in performances across the region. Both North and South American nations are improving their natural resources, cultural resources and ICT readiness, leaving the gaps virtually unaltered. The quality and efficiency of ground transportation has also declined across most of the American continent, suggesting that there is little catch-up in progress. Similarly, progress on environmental policy has been mixed. Most countries are still lagging behind in terms of reducing natural degradation. Given the size and the importance of the natural environment for the T&T sector and for development at large, all countries should find a better balance between developing their T&T sectors and environmental protection.
The United States has the most T&T competitive economy in the Americas, ranking 6th globally, two places lower than in the previous edition. The country offers a very business-friendly environment (16th), with strong ICT readiness (19th) and qualified human resources (13th). The country’s wide global connectivity though air transport (2nd) and exceptional tourist service infrastructure (3rd) enable tourists to access its vast natural (10th) and cultural (13th) resources, and enhance business travel. However, the nation’s ranking has declined as a result of less appeal for American natural resources (down 7 places) and somewhat lower prioritization of the T&T sector (20th, down 3 places). Environmental sustainability performance remains poor (115th, down 1 place), with the country losing some ground on forestry and water management. At the same time, security concerns (84th) relating to terrorism threats, lack of improvement and maintenance of ground infrastructure (26th), and insufficient environmental sustainability need to be addressed. Investing in more modern ground infrastructure and improving environmental protection are, therefore, key to maximizing the development outcomes of the T&T sector in the United States.
Mexico delivers a strong performance this year. It is one of the most-improved countries in the index, rising 8 positions to reach 22nd place in the global ranking as it continues to close the gap with the US and Canada. The government’s prioritization of the T&T sector (30th) and the effective use of both natural (2nd) and cultural (10th) resources have paid off. To continue enhancing its competitiveness, however, Mexico should continue focusing on making the country safer (113th). While the country has significantly improved security in tourist areas, there are large discrepancies around the country, which may lead tourists not to select Mexico as a destination due to security concerns related to crime and violence. Environmental sustainability (116th) also requires more attention, as commitment to international treaties has not kept up with progress internationally (having signed only 22 of 32 of them), and a significant share of the local fauna species continues to be threatened (133rd). The new challenge for Mexico will be to develop further, while preserving the environment in some of its most famous and already mature destinations. At the same time Mexico will need to increase its value proposition as its price competitiveness is reducing as wages and prices (especially those related to accommodation) increase.
Brazil comes in 27th globally. The country is blessed with the largest and most diverse natural resources on the planet (1st). It also has very strong cultural resources (8th), from sports and entertainment to several heritage cultural sites and significant business travel. It has developed relatively good tourist service infrastructure (39th) and air connectivity (40th). In addition, price competitiveness has improved (41st), owing to lower fuel and hotels prices, providing incentives to travel more. However, over the past two years, the security and business context have worsened further (106th, down 2 places), counterbalancing the positive effects of increased price competitiveness. The business environment also continues to worsen (129th) due to inefficiency of the legal system, red tape and high taxes. Human resources also hinder the T&T businesses, as qualification of the labour force and customer care have declined. Overall, the T&T sector has not received much governmental support, with little investment (79th), and marketing activity (121st). Environmental policy should also be doing more to protect Brazil’s biodiversity (66th). While some efforts have been made to reduce PM emissions (24th), and to curb deforestation, progress made in 2014 has been neutralized by resumption in logging activity in 2015. At the same time the stringency of environmental standards has declined recently, suggesting that more has to be done to protect the assets that primarily drive tourists into the country.
Argentina took the 50th position globally, rising 7 places in the rankings. Already endowed with exceptional natural (25th) and cultural (14th) resources, Argentina has greatly benefitted from progress to its enabling environment. In particular, human resources and labour market (69th) have improved substantially, thanks to an increase in education enrolment, more flexibility in hiring and firing workers, and greater ease in finding employees with the right skillset. Its ICT-supporting capacity has also improved significantly: usage of broadband mobile services has doubled and the cellular signal now covers 98% of the country. The business environment, although still problematic (132nd), has also improved in some aspects, including the cost of starting a business and dealing with construction permits. Yet Argentina could better seize the momentum by investing more in the T&T sector. Today, less than 2.5% of the federal budget is allocated to travel and tourism, while taxes and charges levied on tickets and airport services are among the highest globally (130th). Changing these policies may have a swift and direct effect on boosting the industry. Other aspects that should be addressed include declining safety and security (97th) driven by higher homicide rates and higher terrorism fears; lack of progress on ground transportation infrastructure (100th) and environmental sustainability (125th). Greater institutional coordination to prioritize policy intervention related to these factors may result in not only a more conducive environment for attracting tourists, but also one that generates growth.
Colombia ranks 62nd globally, up six places in 2017. Colombia continues to gain appeal as a tourism destination, attracting almost 3 million international visitors in 2015. Its T&T performance has improved thanks mainly to further progress on its main competitive advantages. Its cultural resources (20th), natural resources (22nd) and international openness (4th) scores have all increased significantly. In particular, cultural resources are now better leveraged, for example by increasing the number of oral and intangible cultural expressions that are featured in UNESCO lists (16th), and by growing online interest for cultural and entertainment activities (43rd). Combining the lively atmosphere with its rich natural environment makes Colombia a destination capable of attracting different types of tourists. The enormous T&T potential of Colombia is supported by a relatively efficient air transport infrastructure (60th), which connects all domestic cities and the main overseas markets effectively. However, in terms of ground transportation, recent investments have not yet turned into efficiency gains (116th) and may require more long time and additional efforts to modernize the nation’s infrastructure. Further, little progress has been achieved in improving the business environment (111th), which is held back by high costs to obtain construction permits, an inefficient legal framework, and security (136th). As indicated by the improvement in the terrorism perception data, Colombia is safer than it used to be, attaining adequate levels of security especially in the main tourist areas. However, it will take longer before the peace process will drive down crime and terrorism fears in all areas of the country.
