Country Director for CALA, Lucas Cadavid, recently attended the 2023 SAHIC Latin America & The Caribbean Hotel & Tourism Investment Forum, alongside Associate Principal and Vice President, David Rychlowski, and Vice President, Miguel Campo.
The annual conference is the go-to event to stay ahead of the curve in the region. SB Architects has numerous projects underway in Latin America and the conference, as always, provided incredible insight into the future of the region’s hospitality industry. Here are Lucas’ key takeaways:
According to Patricia Boo, Area Director for LATAM at STR, the tourism sector in the CALA (Caribbean and Latin America) region is bouncing back with an impressive 60% average occupancy rate in 2023, which is 4% higher than in 2019. This positive trend reflects the industry’s resilience and recovery in the region. Notably, leisure destinations in CALA are exceeding expectations thanks to robust demand that drives real ADR growth. Although business travel is slower to recover, it’s expected to gain momentum in the future.
CALA is thriving, according to STR, Mexico leading the room count in 2023. Brazil takes the top spot for hospitality development in Central and South America, with almost 36,000 rooms in the pipeline, and Peru, Colombia, and Argentina are not far behind. Despite facing obstacles in financing and regulations, the region is making strides in expanding its tourism industry and promoting economic growth.
Colombia stood out as one of the few countries in the CALA regions to exceed the occupancy index of the 2019 benchmark, reported STR. Other countries that surpassed expectations in at least one of the four quarters in 2022 include Chile, Brazil, and Mexico. This promising performance illustrates the tourism sector’s resilience and potential for future growth in the region.
The CALA region has made significant strides in reversing the social indicators’ accumulated losses, despite slower growth rates that could hinder further progress. Nonetheless, many countries in the region remain committed to improving social development and enhancing their citizens’ well-being.
Back in Business
The Caribbean and Latin America continue to lead the summer outlook. According to sir ticket data from ForwardKeys, Costa Rica is one of the best-performing destinations based on international arrivals compared with 2019. Aruba follows in second, and Jamaica third.