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How Tourism in Latin America Reduces Poverty

Tourism in Latin America ReducesLatin America is a vast region with diverse weather, geography, culture and foods. Each year, millions of tourists flock to Latin America to enjoy its natural beauty. A vacation haven, tourism in Latin America is a driving force for economic development in the region. Furthermore, tourism in Latin America reduces poverty.

Tourism in Latin America

From the beaches of Cuba to the Andes mountains in Peru, any traveler can find a destination of their preference. The most visited countries in Latin America are Mexico, Brazil and Argentina. According to the World Bank, more than 113 million tourists traveled to Latin America in 2018, bringing $103 billion worth of revenue. Tourism in Latin America has created more than 15 million jobs, which accounts for 7.6% of all employment. Furthermore, international tourism contributes roughly $348 billion to the GDP of the countries in the region.

Ecotourism in Costa Rica

According to the World Tourism Organization (UNWTO), Central America saw a 7.3% growth in its tourism sector, the biggest subregional growth in Latin America. Moreover, the country of Costa Rica has attracted millions of international visitors thanks to its ecotourism. Costa Rica is a leader in preserving its environment while attracting millions to come and enjoy its natural beauty. Beaches, rainforests, volcanoes and wildlife attract tourists which contributes to the economic development of the nation. A study conducted by the National Academy of Sciences correlates ecotourism with improving the lives of Costa Ricans. The study found those living near protected areas and parks saw a 16% reduction in poverty. Furthermore, tourism in the country accounts for 5% of the GDP.

Poverty Reduction in the Dominican Republic

Punta Cana is the dream destination for many, with captivating views of the ocean and exciting nightlife, the beach town welcomes 60% of all Dominican Republic’s tourists. Moreover, the country has benefited more from international tourism than any other Latin American nation. The tourism industry contributes to 9.5% of the island nation’s GDP. Even though poverty is still an issue for the country, extreme poverty decreased to 1.6% of the population in 2018. Furthermore, malnourishment has also decreased and life expectancy has increased. Tourism has steadily contributed to the well-being of Dominicans.

COVID-19 and Mexico

Mexico’s tourism is very important for its economy. Mexico is dependent on its tourism sector since it accounts for 16.1% of its GDP and employs nearly nine million people. Destinations such as Cancun, Puerto Vallarta and Cabo are very popular for tourists to visit. Furthermore, Mexico’s tourism was thriving until the COVID-19 pandemic brought challenges to the country. The pandemic brought a halt to tourism and hurt the economy of Mexico. Nonetheless, Mexico still manages to keep the industry alive. Mexico began to limit hotel and restaurant capacity to curtail the virus. Mexico is also working with the CDC to ensure U.S. travelers going back to the United States are returning uninfected. Even though tourism has decreased because of the pandemic, flights to the state of Quintana Roo, where Cancun and Tulum are located, were averaging 460 air arrivals compared to an average of 500 pre-pandemic.

Tourism and the Future

Tourism in Latin America has positively impacted many lives across the region. The U.N. acknowledges that tourism is a way for a developing country to economically sustain itself. Moreover, tourism in Latin America reduces poverty. Challenges such as the COVID-19 pandemic put a setback to the growing tourism sector. Regardless, Latin America has an abundance of beauty and adventure, thus ensuring tourism will be kept alive once the pandemic is over.

– Andy Calderon Lanza
Photo: Flickr

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Gorillas in Rwanda Help Development

gorillas-in-rwanda
Volcanoes National Park in Rwanda is home to over 500 gorillas that are changing the face of Rwanda’s communities. A tourism revenue-sharing scheme allows five percent of the annual income in the national park to be distributed among local areas.

Mountain gorillas in Rwanda are an endangered species that can only be found along the borders between Rwanda, Uganda and the Democratic Republic of the Congo. They attracted more than 1 million tourists between the years of 2006 and 2013 and generated $75 million in revenue for the national park system.

With this large amount of money coming in, the Rwandan government created a system where five percent of the national park’s income would be divided among surrounding communities.

According to the Rwanda Development Board, more than 39,000 people have benefited from this program.

Since the program’s conception in 2005, $1.83 million has been distributed to fund 360 community projects across the country. These projects have included things like roadwork, building bridges, bee keeping, water and sanitation projects, handiworks and small and medium enterprises.

Many of these initiatives have had a focus on sustainability. Conservation of nature is a priority for Rwanda, as it has such a positive impact on the country as a whole.

In addition to community projects, the money has been used for various public works. The Rwandan government built 57 primary schools throughout 13 districts, reaching about 13,700 students in the past 10 years. Twelve health centers have been built in areas where health care was previously difficult to acquire.

There is a lengthy process to determine which projects will receive funding from the tourism revenue program.

The Rwanda Development Board analyzes each community to ensure funds are allocated to the appropriate initiatives.

“We sit down with community leaders and decide how to distribute the money according to the priorities in the area, to address the issues that prevail in the area,” said Telesphore Ngoga, the conservation division manager at The Rwanda Development Board.

The tourism revenue-sharing scheme has allowed communities to thrive in a way that would not be possible otherwise.

“Local residents are the primary beneficiaries as it has helped set up community businesses and income generating projects that has improved lives and the communities’ economy,” said Rwanda’s Prime Minister, Dr. Pierre Damien Habumuremyi.

– Hannah Cleveland

Sources: The Guardian, Rwanda Eye
Photo: The Guardian

The Future for South Sudan

The Future for South Sudan
A year ago, Sudan and South Sudan were on the brink of war, but this month a deal between the two countries was finally implemented, allowing production in South Sudan’s main oil field to resume. This region, the Palouge oil field, accounts for 80% of the country’s oil production and has not been operational for 16 months due to disputes regarding the export of the oil.

This resumption of operations marks a significant moment in South Sudan’s brief history. Since its independence two years ago, the nation has suffered dramatic setbacks to its economy. The fledgling nation’s GDP contracted by 52% last year alone, while government revenues from oil-backed loans were cut by 98%. Now, however, with a pipeline deal in place with the north, South Sudan will be able to ramp up production to pre-independence levels.

After the drastic cuts in expenditure necessitated by the cessation of oil production during the last two years, this influx of revenue should significantly boost the country’s economy. South Sudan will have to diversify away from oil as the primary revenue generator over the next few years as reserves disappear, however, for now, the hope remains that oil profits will allow this nascent economy to establish itself. A stable economic platform marks the first steps in allowing the country and its people to grow.

– David Wilson

Sources: The Economist
Photo: Royal African Society