The 2025 Summit of the Americas discussed positive travel trends, predicting a 7.5% growth in North America and a 6.2% increase in Latin America by 2025. The evolution toward omnichannel experiences reflects changing consumer priorities. Additionally, demographic shifts reveal opportunities for the travel industry, particularly among the aging population and younger generations, reshaping market dynamics. Argentina’s economic growth is noteworthy, while Brazil is expected to dominate outbound tourism spending.
The opening session of the 2025 Summit of the Americas in Miami focused on evolving travel and financial trends across the Americas. IAADFS Chairman Rene Reidi emphasized that the outlook for regional travel is promising, predicting a 7.5% increase in North American passenger numbers, rising to 422 million by 2025, while Latin America is expected to see a 6.2% growth to 258 million. Although these figures are slightly below the global average of 8.3% growth, they indicate a positive trajectory for the region.
Mr. Reidi noted that the travel retail sector is undergoing significant changes, with contemporary travelers giving priority to seamless omnichannel experiences over traditional considerations of cost. This reflects a shift in consumer expectations, as travelers seek more than just reasonably priced products.
John Price, the Managing Director of Americas Market Intelligence, highlighted the transformation in tourism within Latin America. Emerging trends such as adventure tourism, digital nomadism, wellness travel, and personalized experiences are reshaping travelers’ preferences. Mr. Price remarked, “The industry has changed dramatically… allowing us to express our individualism.”
The Covid pandemic notably impacted tourism, causing a decline in numbers for locations like Cuba and Barbados, which saw reductions of 49% and 27%, respectively. In contrast, regions adopting liberal measures, such as the Yucatan and the Bahamas, experienced impressive growth rates of 113% and 57%. Mr. Price observed that Mexico’s city-based restrictions, in response to the pandemic, set it apart from national approaches taken elsewhere. Nevertheless, rising travel demands have unveiled significant infrastructure issues and fiscal deficits in the region.
Mr. Price also addressed the financial context of Latin America, referring to it as a “region of 60 million people” in the travel retail sector, highlighting the wide wealth disparities present. He remarked, “[It is a] sea of poverty with islands of extreme wealth.” He particularly noted Argentina, projecting a GDP growth of $245 billion, which presents a tremendous opportunity to re-engage with a market that has been largely overlooked for the past decade.
On the other hand, Brazil is forecasted to lead in outbound tourism from the region in 2025/26, with an estimated market value of $20.99 billion, followed by Argentina at $12.7 billion and Mexico at $11.06 billion. Moreover, the demographic shifts are influenced by Generations Z and Baby Boomers. Gen Z currently constitutes 20% of Latin America, projected to increase to 27% by 2035, exhibiting a saving behavior amidst uncertainties. They are financially literate and socially aware, representing a potential challenge to traditional brands, as Mr. Price stated, “They don’t care what brands their parents bought, and that scares the hell out of legacy brands.”
Conversely, Latin America is experiencing the fastest aging population globally. With improved pension laws implemented 30 years ago, this generation of retirees now possesses financial means, marking a notable rise in travel expenditure for individuals aged 50 and above. Mr. Price concluded that this demographic shift presents a significant opportunity for the travel industry.
The 2025 Summit of the Americas highlighted significant trends in travel and economics across North and Latin America. As the region anticipates considerable increases in passenger numbers, emerging preferences for seamless travel experiences are reshaping the market. Furthermore, evolving demographics, particularly the impact of Generations Z and Baby Boomers, signal opportunities for growth in the tourism and travel retail sectors. Argentina’s projected GDP growth offers encouragement for neglected markets, while Brazil leads in outbound tourism spending.
Original Source: www.dfnionline.com
