The tourism and travel sector across Central and South America is set for a strong performance in 2026, outperforming other key markets, and beating the global average.
According to a forecast from the World Travel & Tourism Council, many countries in the region are set to see their international arrivals rise, while also enjoying robust domestic demand. The organisation’s Economic Impact Research, sponsored by Chase Travel, suggests travel and tourism GDP across the region will grow by 4.1% in 2026, beating the worldwide average of 3.2%. International visitor spending is set to rise by 7.8%.
Standout Country Market Growth
Ecuador is currently the most exciting country market, with growth in travel and tourism GDP expected to grow by 11.6% in 2026, ahead of Bolivia at 10.3% – with a 25.8% increase in inbound tourist spending predicted. In Argentina, growth is pencilled in at 4.9%, while Colombia should enjoy a rise of 5.7%.
In Ecuador, there are few new hotel developments under way, with the country’s hotel market still to be exploited by international brands. IHG has the InterContinental Guayaquil under construction, a 101 room luxury hotel due for completion in autumn 2027. Marriott is progressing the Courtyard by Marriott Playas, a 150 room project also due to open in 2027.
Argentina is a promising market, with many major hotel players active. Melia is developing the 150 room Melia El Calafate, and the INNSIDE by Melia Costa del Este, scheduled to open in late 2027. It will follow with the opening of the 200 room Gran Melia Ushuaia in early 2028.
Wyndham is actively growing its Howard Johnson brand, with projects in Colon, Cinco Saltos and Tandil. Hilton is also on the ground with projects across its Hampton by Hilton, Tru and Hilton Garden Inn brands. In early 2027, it will open Hilton Ushuaia.
Brazil, the largest travel and tourism market in South America, should see modest growth during 2026, with sector GDP up 2.1% year on year. Thanks to its scale, there is also plenty of hotel development activity, with groups including Accor and Hilton introducing and growing their chain brands across the country.
Opportunities Seized in Brazil
Other, global brands with a more selective growth path are also coming to Brazil. In the development hotspot of Gramado, a new Club Med is being built, along with a Hard Rock Hotel. The Club Med will have 150 rooms, launching by mid 2027 in the beautiful Rio Grande do Sul, an area with strong seasons including a snowy winter. The Hard Rock project will open in late 2028, with a hotel and residence club offering a total of 858 rooms in a new luxury lifestyle resort.
One brand making headway across the region, is City Express. Originally a Mexican brand, it was acquired by Marriott and since then has grown internationally. There are no less than seven City Express hotels planned across Brazil, plus additional developments coming in Peru, Bolivia and Argentina.
