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The economies of Latin America and the Caribbean have continued to recover strongly in the aftermath of the pandemic, but the winds are shifting: global financial conditions are tightening and the upward trend in commodity prices is reversing, while inflationary pressures persist.
Nevertheless, the region faces significant challenges, including tightening global financial conditions, declining global growth, persistent inflation, and heightened social tensions amid growing food and energy insecurity. These factors influence the downgrade of growth to 2.0 percent in 2023, 0.5 percentage points lower than forecast in April.
Inflation, meanwhile, has accelerated across the region, amid a pickup in domestic demand, persistent supply chain problems and rising commodity prices. Central banks have appropriately tightened monetary policy to contain second-round effects and anchor longer-term inflation expectations. Still, inflation could prove persistent due to the combination of shocks and increasingly widespread price pressures.
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“Tourism recovery has accelerated in many parts of the world, weathering the challenges standing in its way,” said UNWTO Secretary-General Zurab Pololikashvili, who advises, at the same time, caution in the face of “economic headwinds and geopolitical challenges that could affect the sector in the remainder of 2022 and beyond.”
The same pattern is seen in other regions. Despite strong growth in the Middle East (+157%) and Africa (+156%), numbers are still 54% and 50% below 2019, respectively, and in the case of Asia Pacific, while nearly doubling arrivals (+94%), numbers are 90% below 2019, as some borders remain closed to non-essential travel. Here, the recent easing of restrictions can be seen in the improved performance in April and May.
UNWTO forward-looking scenarios published in May 2022 point to international arrivals reaching 55% to 70% of pre-pandemic levels by 2022. The results depend on changing circumstances, notably changes in travel restrictions, current inflation, including high energy prices, and general economic conditions, developments in the war in Ukraine, as well as the pandemic-related health situation. Other more recent problems, such as staff shortages, severe airport congestion, and flight delays and cancellations, could also affect international tourism figures.
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There are also a series of mandatory requirements for people entering the country from Africa. Among these are: to have a complete vaccination schedule 14 days prior to arrival and a PCR test with negative result performed in the place of origin within 72 hours prior to entering the country.
To complete the quarantine, travelers should have a PCR test performed 10 days after the sample was taken in the country of origin, with a negative result.
The Ministry of Health also recommended Paraguayan citizens to avoid traveling to these countries and any other country where the omicron variant has been detected until more information is available.
The Panamanian Minister of Health informed on Saturday that they will issue a resolution establishing the countries that already have community contagion and that if President Cortizo approves it, they would be classified as very high risk.
Lasso announced a series of measures to prevent the spread, including a ban on the entry of people coming from a list of African countries, either as their country of origin, or coming from a stopover or transit through those countries.
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Recent postsNewsLatin American tourism to grow in 2022 Feb. 25, 2022 GHL Hotels The World Travel & Tourism Council (WTTC) estimated that during 2022 Latin America’s GDP will grow 48.2%, compared to …
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