Towards a living and regenerative tourism in Latin America and the Caribbean

Tourism is one of the most important sectors of Latin American economies. In 2019 it accounted for 42% of total exports in the Caribbean and 10% in Latin America. The tourism economy, which includes all sectors that orbit around the reception of travellers, represented 26% of total GDP in the Caribbean and 10% in Latin America. It also accounted for 35% of employment in the Caribbean and 10% in Latin America.

The magnitude of these figures explains the depth of the impact of the pandemic, which triggered the worst crisis in the history of international tourism. In 2020, the sector contracted by 73%, causing a loss in revenue of more than USD 900 billion. Countries such as Honduras, Dominican Republic, Colombia and El Salvador recovered and, between January and September 2022, recorded tourist arrivals above pre-pandemic levels; but other regions, such as the Caribbean, Central and South America, are still below 2019 levels.

In any case, the pandemic brought more awareness about the impact of human activity on nature and the connection between health and biodiversity, and the importance of a healthy environment as a natural barrier against future pandemics and infectious tropical diseases (malaria, dengue, yellow fever), a change in social perception that has the potential to benefit tourism destinations in the region.

In this scenario, Latin America and the Caribbean faces the challenge of promoting sustainable and regenerative tourism that, beyond avoiding negative impacts on the environment, leads to the restoration and enhancement of natural and cultural heritage, thereby improving the well-being of citizens. According to the Global Sustainable Tourism 2022, travellers are increasingly looking for local and authentic experiences and are willing to pay more for sustainable destinations (from adventure and nature tourism, ecotourism and agrotourism to gastronomic and cultural tourism).

CAF has created a new office, based in the Dominican Republic, to promote the development of living and regenerative tourism in Latin America and the Caribbean, which, beyond avoiding negative impact on the environment, contributes to restoring and improving natural and cultural heritage, effectively and equitably increasing its contribution to people's wellbeing. 

These are the lines of action of CAF's new tourism proposal:  

• Identity, Social Equity and Cultural Heritage. Support and guarantee the economic, social and cultural well-being of local host communities (rural, indigenous peoples and afro-descendants) and thus contribute to reinforcing respect for their rights and heritage, raising their importance and incorporating their vision and knowledge to achieve environmental, development and conservation goals. 
• Biodiversity and Ecosystem Services. Support the protection, conservation and regeneration of marine, terrestrial and island ecosystems, and enhance biodiversity through sustainable use of natural resources for economic benefits with minimum environmental impact.  
• Vulnerability to natural disasters resulting from climate change. Strengthening monitoring systems and adaptation measures to extreme events, especially in small island states.  
• Local and National Governance. Support local governments in their planning process, seeking to develop tourism plans at appropriate scales in coordination with national bodies, respecting the carrying capacity of the territory and linking all social agents and sub-sectors of the tourism sector. 
• Sustainability and Circular Economy. Accelerate the decarbonisation of the sector seeking neutrality by 2050, promoting new business models through innovative solutions based on the use and reuse of resources, ecological regeneration, energy efficiency, water resource management, the integration of circularity throughout the tourism value chain under the parameters of the framework for action of the Glasgow Declaration on Climate Action in Tourism and the Global Initiative on Tourism and Plastics.  
• Urban Regeneration and Creative Economies. Support the revitalisation and preservation of tangible cultural heritage and the generation of Enabling Infrastructure for Creative and Cultural Economies (e.g. cultural centres, museums, galleries, theatres, creative districts) for the consumption of products or services derived from sectors where creativity, art or culture is experienced, participated in, as well as the training of local talent.  

For her part, Alicia Montalvo, CAF's Manager of Climate Action and Positive Biodiversity, commented that the organisation is implementing an "agenda to become the green bank of Latin America and the Caribbean, dedicating 40% of its financing to projects linked to climate change and biodiversity. In this sense, we will also contribute to the development of sustainable and regenerative tourism that leads to the restoration and improvement of the region's rich natural heritage, and that places value on ecosystem services". 

CAF is participating in FITUR 2023, from 18 to 21 January, as an official sponsor of the FITURNEXT Observatory, the FITUR platform dedicated to promoting best practices in tourism. In addition, these are the activities that CAF will carry out at FITUR: 

• CAF's endorsement of the Glasgow Declaration on Tourism. 
• Meetings with Latin American delegations to explore new ways of supporting the tourism development agendas of our member countries. 
• Participation in FiturNext: 

1. Round Table "Private enterprise and Tourism Sustainability".  
2. Event "Regenerative Tourism: beyond the sustainability of destinations". 
3. CAF Event "CAF-OMT Tourism Investment Forum". 

• Participation in Fitur Know How: 

1. Round table "Multilateral financing of tourism post COVID" 
2. o CAF event "Urban regeneration, creative economies and tourism"  

• Participation in the Ibero-American Conference of Tourism Ministers and Entrepreneurs (CIMET).