Nature as an Economic Engine: The Case for Increased Investment in Conservation to Drive Latin America's Tourism Sector

Abstract

Tourism plays a distinct role in Latin America’s development by linking global demand with local economies in ways few other sectors can, particularly when it is effectively managed and integrated into broader development strategies. It supports employment across a wide range of skill levels, catalyzes investment in infrastructure and services, and generates income for communities in urban centers, rural areas, and remote regions alike. Tourism also employs a disproportionately high share of women compared to many other sectors. Because tourism is inherently place-based, it can support local economic development and strengthen value chains when managed effectively. At the same time, the sector’s reliance on natural and cultural assets means that long-term tourism performance is inseparable from how these assets are protected, managed, and financed.

As global competition for visitors intensifies, sustaining and growing tourism demand has become an increasingly strategic economic priority for countries across the region. In this brief, we review recent evidence on the economic role of tourism in Latin America, the drivers of tourism demand, and the growing risks that ecosystem degradation poses to the sector. We examine how public tourism revenues can help finance conservation, and we assess how aligning tourism development with sustained investment in natural assets can support long-term sector growth and resilience.