The last few years have been a difficult times for hoteliers in majority of the cities in South America. This is because of the falling prices in the basic commodities including gas and oil. There is also the problem of devaluations of currency added with inflation which has resulted to the economy continuing to decline even in countries that are rich with resources such as Argentina and Brazil. Several governments have also been faced with charges of corruption. These problems might be a lot but nature added its own with the earthquake that went through Ecuador and the recent crisis that happened because of the discovery and spread of Zika Virus.
There might be a lot of challenges on their way bit hoteliers in South America are still feeling positive because of one reason – the hotel visits are starting to increase because of the local economy which is on its way to stabilization. The recent Olympic Games held there also created positive impacts by encouraging big brands such as Marriott to take an investment gamble into the region which they have never done before.
According to the South America Hotels & Hospitality Group’s managing director, Ricardo Mader, there has been double digit increase in the number of tourists visiting the popular leisure destination cities in the continent including Santiago de Chile located in Chile, Colombia as well as Bogota. The good thing that comes out of currency devaluation is that the exchange rate is favorable for the residents of the United States and gives them a reason to visit South America because of the affordable holiday they can get. In that same note, South Americans are finding travel abroad to be quite expensive at the current state of the exchange rate thus they are touring the region rather than go overseas.
There is now a big difference in the hotel industry compared to a decade ago when establishments used to be family-owned. Now there are new players in the hospitality industry such as professional investors, experienced developers as well as global operators that are making the industry up to par with those found in other countries. This is one of the major reason why now is the best time to take a South America Tour in order to experience the maturing hotel market in the region.