The 2025 Summit of the Americas indicated optimistic travel forecasts for North and Latin America, with growth in passenger numbers and evolving travel retail needs. Demographic shifts, including influences from Gen Z and older adults, were discussed as pivotal in shaping future trends, highlighting both opportunities and challenges within the tourism sector.
The opening session of the 2025 Summit of the Americas in Miami focused on evolving travel and financial trends in the Americas. IAADFS Chairman Rene Reidi emphasized the optimistic forecast for the region, predicting a 7.5% increase in passenger numbers in North America to 422 million and a 6.2% rise in Latin America to 258 million by 2025. Although these figures slightly fall short of the global average of 8.3%, they indicate positive regional momentum.
Reidi also noted the travel retail sector’s evolving priorities, stating, “Today’s travellers increasingly prioritise seamless omnichannel experiences…over traditional cost concerns.” He remarked that the requirements of travelers have shifted beyond mere price considerations, calling for a more integrated travel experience.
John Price, Managing Director of Americas Market Intelligence, addressed the transformations occurring within Latin American tourism. He highlighted emerging trends such as adventure tourism, digital nomadism, eco-friendly and wellness travel, and experiential journeys. Price stated, “The industry has changed dramatically,” reflecting on the increased range of choices available to travelers, which fosters individual expression.
The Covid pandemic significantly impacted tourism numbers, with destinations like Cuba and Barbados experiencing declines of 49% and 27%, respectively, while those with liberal approaches such as Yucatan (+113%) and the Bahamas (+57%) thrived. Price noted that Mexico’s strategy, which involved localized restrictions instead of a national lockdown, proved beneficial. Nonetheless, he warned that this rise in travel is unearthing infrastructural inadequacies and fiscal challenges within the region.
Regarding the financial landscape of Latin America, Price described a stark contrast, stating that it is a “region of 60 million people” characterized by vast wealth disparities: “[It is a] sea of poverty with islands of extreme wealth.” He also pointed out Argentina’s potential, forecasting GDP growth of $245 billion, positing this as a crucial opportunity for the travel market, previously neglected for a decade.
Price predicted Brazil to lead the outbound tourism market in 2025/26, estimating its worth at $20.99 billion, followed by Argentina at $12.7 billion and Mexico at $11.06 billion. He also discussed the demographic influence on travel, noting that Gen Z constitutes 20% of Latin America and is expected to rise to 27% by 2035. This generation is financially savvy and socially aware, disrupting traditional brand loyalty, as they are unconcerned with the brands favored by previous generations.
Furthermore, with Latin America having the fastest aging population globally, Price explained how this demographic shift presents a significant opportunity for the travel industry, as older adults now are financially empowered due to reforms in pension laws, translating to increased travel spending among individuals aged 50 and above.
In summary, the 2025 Summit of the Americas highlighted significant trends and opportunities shaping travel in the region. The rise in passenger numbers, evolving traveler priorities, and changing tourism dynamics indicate a shift towards more personalized travel experiences. The demographic trends, particularly among Gen Z and older populations, present both challenges and opportunities for the travel industry in Latin America.
Original Source: www.dfnionline.com
