São Paulo – In the medium and long term, both South American and Arab countries should see a higher influx of tourists and tourism revenues. So says the United Nations World Tourism Organization (UNWTO). Last Wednesday (15th), the organization issued its 2014 worldwide tourism revenue figures, which reached US$ 1.245 trillion, up 3.7% from 2013. In South America, revenues were up 6% to US$ 25.9 billion. In the Middle East, revenues amounted to US$ 49.2 billion, up 5.7%. In North Africa, tourism revenues increased by 2.4% to US$ 10.5 billion.
UNWTO Tourism Market Trends Program director John Kester told ANBA the three regions should witness an increase in tourist and revenue inflows. The Middle East could post higher growth, although some of its countries have yet to achieve full political stability and ensure visitor security in full. One case in point is Lebanon. Other countries show promise.
“Saudi Arabia wants to expand their tourism industry, which remains largely tied to the pilgrimage to Mecca and is dependent on the visa issue. The country still welcomes large numbers of people during the hajj (pilgrimage to Mecca). As people prosper, pilgrims come in greater numbers, and Saudi Arabia has the potential to take in Muslims from countries that are not exclusively Arab, such as Indonesia, parts of India, Thailand and Pakistan,” he said.
The United Arab Emirates, Kester said, have seen tourist influx and revenues soar over the past few years because they were able to capitalize on their geographic position between Europe and Asia to become a hub for flights and passengers and because, due to this fact, they have created “important” airlines. This growth should be sustained in years to come. The Middle East also benefits from intraregional tourism, i.e. between countries in the region.
Challenges in South America
Intraregional tourism is also a reality in South America. However, the region must address challenges to increase tourist influx. One issue is the volatile, uneven exchange rate.
Kester said Brazil’s tourism industry is very promising, and the country partly fulfills said potential through domestic tourism. But drawing more foreign tourists in entails bigger challenges.
“Brazil must increase its airline routes, improve its airports and their management. New hotels are being built and older ones are being renovated, but the country still needs to prepare to welcome foreigners and address infrastructure bottlenecks. In this regard, last year’s FIFA World Cup and the 2016 Olympics are drivers of growth,” he said. He also said Brazil is a destination for European travellers, who don’t require a visa to enter the country. On the other hand, Americans, who do require visas, could otherwise travel to Brazil in greater numbers. “An American can choose to visit a country in Central America without a visa,” he says.
In addition to US$ 1.2 trillion in tourist revenues, turnover from passenger transportation reached US$ 221 billion globally last year, driving total tourism export revenues to US$ 1.46 trillion. International tourist arrivals were up 4.4% to 1.135 billion.
Some of the reasons for this growth, said Kester, were the dollar price hike and the recovery of wealthy economies, particularly those in Europe. The cheap oil does have an effect on travel and tourism revenues, but this was only the case towards the end of 2014. “This connection should grow clearer in 2015, with potential benefits to oil importing countries, which will spend less on energy and be allowed to reallocate their expenses, and a not-so-good environment for oil exporting countries, which should see their revenues shrink,” he said.
*Translated by Gabriel Pomerancblum
