Latin America (North & South America)

TDM 458Ara Pachmayer

Amazon River Basin Cruise

Andes Mountains

Introduction

Region has 21 countriesColonized by Spain & Portugal

(Iberian Countries)Large, diverse populations

490 million people75% of the people live in citiesSeveral megacities (10 million

people+)Indigenous, African, European and

Asian presence and small numbers of other groups as well

Geopolitical Framework Past and Present

Late 1400 - 1500’sIberian Conquest and Territorial

Division1494 Treaty of Tordesillas divided

newly discovered lands outside Europe between Spain and Portugal

Geopolitical Framework Past and Present

Indigenous PopulationsMultiple complex civilizations before

Europeans (Incas, Mayans, Aztecs, others) Population estimates

1500: 20 - 47 million; by 1650: 5 million

Causes: disease, warfare, forced labor, famine

Indigenous Survival TodayLargest populations of Indigenous people

today: Mexico, Guatemala, Ecuador, Peru, and Bolivia

Indians trying to secure recognized territory in their countries where they have political and resource control

Geopolitical Framework Past and Present

Revolution and IndependenceElites born in the Americas led revolutions,

resulting in the creation of new countriesTrend Toward Democracy

Long independence, but political stability is a problem

Democratic elections since the 1980’sMost countries are free-market economies

Economic and Social Development

Latin America in the Global EconomyDependency theory

Expansion of European capitalism created Latin American condition of underdevelopment

Creates prosperous cores and dependent, poor peripheries

Increased economic integration within Latin America and dominance of U.S. market

Neoliberalism Policies (market approach)Stress privatization, export production, and

few restrictions on importsNegative is that it can/has increased gap

between wealthy and poor

Latin America in the Global Economy Dollarization

Process in which a country adopts (in whole or in part) the U.S. dollar as its official currency

Full dollarization – U.S. dollar becomes only currency

Until 2000, Panama was the only fully dollarized Latin American country

Ecuador and El Salvador also became fully dollarized in the last decade

Limited dollarization more common strategyU.S. dollars circulate with country’s

national currency - MexicoTends to reduce inflation, eliminate fears of

currency devaluation, and reduce costs of trade

Economic and Social Development

Tourism in Latin America

Relatively recent entry into tourism (except Mexico); Lots of growth growth between 1995 (14.3 Million) and 2011 (30 million)

Key Source Markets: regional, North America and Europe (Dependence Theory – region is still dependent on colonizers for tourist arrivals)

Originally, mostly backpacker/adventure, low budget tourism (1960s-1980’s) following the Mayan Trail from Mexico to Honduras; or Inca Trail through Peru

Regional Organizations

Organizations to foster internal markets and reduce trade barriersLatin American Free Trade Association

(LAFTA)Central American Common Market (CACM)Andean GroupNAFTAMercosur

http://en.mercopress.com/2011/04/27/mercosur-supports-tourism-industry-with-improved-data-and-investment-promotion

Types of Tourism Eco- Natural Resource Tourism

Rainforests, wildlife viewing, eco-lodges, mountain tourism, Plantation tourism, wineries, ranches, diving

Cultural Tourism Indian cultures, village stays, Amazon cruises

Historical TourismMayan and Aztec ruins (Central America), Inca in

South AmericaSpanish Colonial Sights – major colonial cities

Language schools – Central America and Ecuador Beach and Resort tourism, surfing tourism Adventure Tourism: Trekking, skiing, rafting, ice

climbing, etc. Cruise Tourism

South America Tourism Growth

Relatively recent entry into tourism; 45% growth between 1995 and 2006Average of 4.4% per year 2000-2010

South America arrivals grew by 9% in 2011Brazil fast growing source market for

tourismAll hit pretty hard by Economic Crisis of

2008 … Recovering, some better than othersUruguay 22% growthPeru 13% growth

Central American Tourism Growth

Most significant growth in recent timesCentral America recorded 16.7%

growth (1995-2006)…slowed recently (2000-10 an average of 6.6% a year)

Central America arrivals grew by 5% in 2011 Panama 11%All other countries in the region

reported positive growth

Mexico

One of the world’s major holiday destinations, especially for Americans and Canadians

Problems of crime, drugs, violence, pollution and anti-American sentimentUS State Department Travel Warning

Leading resorts are Cancun, Puerto Vallarta and Acapulco

BrazilLarge size, 2,500 miles from north to

southLargest country in South America

Vast Amazon Tropical Rain forestExpanding international tourism from

charter flights (Role of National airline)Beach holidays are expanding at

Salvador de Bahia, Recife and NatalRio de Janeiro’s attractions include

Corcodova Mountain, Ipanema and Copacabana beaches

PeruExpanding adventure / eco-tourismDramatic mountain jungles, and Inca

communities, such as Machu PicchuCountry experienced largest increase in

tourist arrivals between 2000 and 2008 of 18%

Large growth in recent years as result of publicity of Machu Pichu 7NW

Surf Volunteertourism - http://www.wavesfordevelopment.org/surf-voluntourism/

High mountains and alpine sceneryWell preserved colonial citiesChilean wines (wine country is

big!)Key gateway to South America

through Santiago (major center of commerce)

Easter Island

Chile

Problems, Issues and Barriers to Tourism

Development

Economic IssuesLink to the dollar, dependence on US

market for many destinationsSo if the US economy falters, the region

becomes vulnerableHuge economic leakages (Dependency

Theory)Multi-nationals – companies owned by non-

locals so money goes outLesser developed economies

It is difficult for most countries in Latin America to amass the capital needed to improve their tourism infrastructure, so they need foreign investment

Safety and Security Issues

Insurgencies and Drug TraffickersGuerrilla groups have controlled large portions

Colombia through violence and intimidationFARC (Revolutionary Armed Forces of

Colombia);Colombia had highest murder rate in the

worldDrug cartels: powerful and wealthy organized

crime syndicatesCurrently having a negative affect on

tourism in Mexico Violent, street crime in some major cities Anti-American sentiments at some destinations,

especially Latin America Political influence of the US is seen as meddling by some

which has resulted in strong anti-American sentiments in some countries

Relatively large land area and low population density has minimized environmental degradation

Latin America has the opportunity to avoid mistakes that other regions have made as they are relatively new to the mass tourism market. They can learn from others!

Brazil and Costa Rica have conservation movements

However . . . Coral Reef Destruction in Central AmericaWaste dumping by cruise lines

Environmental Issues

Environmental Issues Destruction of Tropical Rainforests - #1 problem

Deforestation is the most common environmental problem in Latin America

Affected regions: Atlantic coastal forests of Brazil and Pacific forests of Central America

Causes: agriculture, settlement, and ranchingGrassification: conversion of tropical forest to

pasture for grazing and agricultural production Concerns: loss of biological diversity

Tropical rainforests: 6% of Earth’s landmass but 50% of species

The rainforest is also a tremendous tourism resources for the region

Other Issues

Looting of Mayan and Inca treasures

Conflicts between governments and Indigenous PopulationsGarifuna Hondurashttp://www.youtube.com/watch?v=tzAik-3tm

LI&feature=channel_page

Nicaragua volunteer tourism

http://www.youtube.com/watch?v=cgHFYY6bq6o