The LATAM experience: Harnessing tourism for social and environmental good

The Latin American region, known for its rich biodiversity and cultural diversity, is a major global destination for travellers. From the Amazon rainforest to the ruins of Machu Picchu, the region offers unparalleled natural and historical attractions. However, as the tourism sector continues to expand, it is imperative to evaluate the environmental and social impact of tourism in Latin America (LATAM).

Travel & Tourism in LATAM witnessed robust growth, significantly contributing to the regional economy. In 2023, the sector’s contribution to GDP was approximately $629 billion, accounting for 9.6% of the region’s total GDP. This sector also supports nearly 24.7 million jobs, which is about 9% of all employment in the region. While this economic boost is beneficial, it poses environmental challenges that must be addressed to prevent adverse effects.

Between 2010 and 2019, the sector achieved a relative decoupling of economic growth from greenhouse gas (GHG) emissions. During this period, the sector's GDP contribution grew by 3.8% annually, while its GHG emissions increased by only 0.6% annually. This decoupling indicates progress in reducing the carbon footprint per unit of economic output, further cementing the progress of sustainable tourism in Latin America. However, further efforts are needed to maintain and enhance these achievements. The social impact of travel in LATAM also needs to be considered, ensuring that the benefits of tourism are equitably distributed while minimising any negative social consequences.

Environmental initiatives and challenges

Several countries in the region are making strides toward sustainability. Costa Rica is a leading example, with 19.9% of its energy coming from sustainable sources​. Other countries like Nicaragua and El Salvador also get significant portions of their energy from low-carbon sources. However, oil-rich nations such as Guyana and Venezuela lag in this regard.

Despite these advances, the region faces ongoing environmental challenges. Deforestation, particularly in the Amazon rainforest, poses a significant threat to biodiversity and climate regulation. Moreover, the rapid expansion of tourism infrastructure can lead to habitat destruction and increased pollution if not managed responsibly.

Social impact and opportunities

The sector also has substantial social implications. It has the potential to foster cultural exchange and promote social inclusion. In Latin America, the sector outperforms the global average in female employment, with women making up 47.5% of the workforce in 2022. This highlights the role of tourism in empowering women and promoting gender equality.

Furthermore, tourism can contribute to community development by providing jobs and supporting local businesses. However, ensuring that these benefits are equitably distributed remains a challenge. Many communities in tourism-dependent areas continue to face issues such as low wages, job insecurity, and inadequate access to social services.

Balancing growth with sustainability

To ensure sustainable tourism in Latin America, a balanced approach is necessary. This involves integrating environmental and social considerations into tourism planning and management. The World Travel & Tourism Council (WTTC) emphasises the importance of evaluating the sector’s environmental and social footprint through Environmental & Social Research (ESR)​. Several strategies can help achieve this balance:

• Promoting sustainable practices: Encouraging eco-friendly tourism practices, such as waste reduction and energy conservation, can minimise the environmental impact.
• Investing in green infrastructure: Developing infrastructure that minimises environmental impact, such as renewable energy sources and efficient public transportation systems, is crucial for sustainable tourism in Latin America.
• Supporting local communities: Ensuring that tourism benefits reach local communities is essential for social sustainability. This can be achieved through community-based tourism initiatives that empower residents and preserve cultural heritage.
• Enhancing regional cooperation: Collaboration between countries in the region can enhance the effectiveness of sustainability efforts. This includes sharing best practices, developing regional standards, and coordinating conservation initiatives.

The sector in Latin America holds immense potential for economic growth and social development. However, it is crucial to address the environmental and social challenges associated with this growth to ensure the region’s long-term sustainability. By prioritising sustainable practices and inclusive development, the region can continue to attract travellers while preserving its unique natural and cultural heritage.

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