Page 4 - ASUTIL 2023

INSIDER

ForwardKeys Trends Report sees cautious optimism for Latin American
international travel recovery

Latin America is lagging behind most
of the world in terms of international travel
recovery, reports ForwardKeys.
The travel and tourism sector has
suffered great losses in the past three years
due to Covid-19 and how governments
approached border closures, travel rules
and lack of flight connectivity, said the
flight tracking agency.
“Unlike many of its neighbors in
Central America and the Caribbean, there
was no open-door policy for international
visitors or easy-to-understand measures put
in place around the destination’s reopening
or vaccine requirements in many Latin
American countries. Consequently, even
in 2022 when the world started to see
waves of tourists returning, most of the
region didn’t see much progress in terms
of travel recovery,” said the ForwardKeys
Trends Report for Latin America and the Brazil’s capacity bottleneck higher fares, travel intent, measured
Caribbean issued in April. Brazil -- the largest country in in flight searches to Brazil, shows that
Nevertheless, ForwardKeys sees the Latin America and one of Americas’ demand for the destination is still high.
promise of more international arrivals and tourism superpowers -- has had a tough European markets are at the top of the most
is cautiously optimistic about the future. time attracting travelers back since the active markets searching for Brazil in the
The latest air ticket data by reopening of international travel, says first two months of the year.
ForwardKeys reveals that Latin America ForwardKeys.
and the Caribbean are just 5% behind 2019 One problem is that limited air Source markets, premium travel
levels in terms of international arrivals in capacity from the most active global source For international arrivals to Brazil
the first six months of 2023, helped by the markets is impeding travel recovery in in H1 2023, the top growing market
strong performance of Mexico, Central Brazil. is Portugal - with an increase of 90%
America, and the Caribbean. Planned seat capacity for international compared with 2019 levels. Argentina
Latin America, on the other hand, flights to Latin America during the first (the largest origin market) is still yet to
is down by 24% in international arrivals half of the year is 11% behind 2019 levels, recover, at -55% down vs 2019. Overall,
compared to the same period in 2019. while for Brazil it is down by 18%. In international departures from Argentina
Examining the broader picture, comparison, Colombia´s capacity for are down by 37%, with key destinations
international arrivals globally are an international flights is up by 28% on 2019 like the U.S., Brazil, and Mexico all below
average of 27% behind 2019 levels still, figures. Looking at destination cities in 2019 levels.
therefore Latin America is performing in the two countries, international capacity Interestingly, and despite the lack
line with the global average. And some to Bogotá is up by 22% on pre-pandemic of connectivity, arrivals to Brazil from
Latin American destinations are close to levels while Sao Paulo (-12%) and Rio de North America and Europe during this
reaching pre-pandemic international visitor Janeiro (-26%) in Brazil are both down. year´s Carnival increased by 6% and 13%
levels. compared with 2019´s edition.
As in other parts of the world, High air fares Another exciting opportunity for
recovery is also uneven in Latin America. The lack of connectivity to Brazil is the sector is the resilience of the affluent
Colombia may welcome more not only limiting the chances of the country segment, says ForwardKeys.
international arrivals during the first half of attracting more international visitors but Overall international arrivals to Latin
2023 than in the same period pre-pandemic. also driving airfares higher. Fares from America in premium cabin class in the first
With 1% more tickets confirmed for Europe to Colombia are increasing in six months of 2023 are 19% below pre-
international arrivals than in H1 2019, the line with inflation, with air supply above pandemic arrival levels, but tickets booked
country is set to be the first Latin American 2019 levels in the first half of the year, for international arrivals in premium cabin
destination to reach full recovery. for example, while fares from Europe in to Brazil are only down by 10%.
Ecuador (-14%), Argentina (-18%) January and February to Brazil’s major Canada is Brazil´s top growing origin
and Brazil (-24%) will all continue below destinations were 34% above the same market for these ‘high-end’ travelers, with
2019 levels for at least the first half of the period in 2019 due to, in part, the lack of the current ticketing situation doubling for
year, although they are showing a marked air supply. arrivals in H1 2023.
improvement into the year. Despite the limited capacity and

ASUTIL Special Issue June 2023 4