Ana M. López
Research expert covering travel, tourism and hospitality
International tourism in Central America - statistics & facts
The Central American isthmus is composed of seven countries covering an area of roughly 520 thousand square kilometers. It borders Mexico in the north, Colombia in the south, and the Pacific and the Atlantic Oceans in the west and the east, respectively. The region’s mild temperatures, natural diversity, and pre-Columbian heritage attract millions of international tourists. In the four years before the COVID-19 pandemic, the combined inbound tourism volume in these countries was at around 11 million arrivals annually – a threefold growth versus the figures registered in the mid-1990s. However, the repercussions of the global health crisis were also harshly felt in that corner of the world.
International tourism also constitutes a major contributor to Central American exports. In the case of Belize, the most tourism-dependent exporting market in the region, the expenditure of foreign visitors represented around three-quarters of its service exports throughout the past decade. In Panama, this share was at around 50 percent, while the region’s least dependent country on international tourism in the same period was Honduras, with visitor exports accounting for 19 to 30 percent of the country’s exported services.
International tourism: a key sector for the region’s economy
When looking at the global tourism picture, the most important drivers of the tourism sector are domestic travelers. But in Central American countries, international tourism plays the leading role. In 2019, for instance, approximately 60 percent of the total tourism spending in the region was made by international visitors. In 2020, this share went down to only 44 percent due to the impact of the health crisis.International tourism also constitutes a major contributor to Central American exports. In the case of Belize, the most tourism-dependent exporting market in the region, the expenditure of foreign visitors represented around three-quarters of its service exports throughout the past decade. In Panama, this share was at around 50 percent, while the region’s least dependent country on international tourism in the same period was Honduras, with visitor exports accounting for 19 to 30 percent of the country’s exported services.
Strengths and weaknesses of tourism in Central American countries
According to the last 2021 Travel and Tourism Development Index (TTCI), Costa Rica was the best-rated country in Central America, with 4.2 out of seven possible points. Based on the results provided by the study, the digitalization process of tourism-related services, the safety and security of the country, and the tourist service infrastructure pushed up the Costa Rican score. For the other five countries analyzed, price competitiveness was the top or one of the top advantages for tourism, as in the case of Guatemala with 5.7 points. On the other hand, the travel infrastructure was still a point of improvement for the Central American countries, as shown by the low scores obtained. In this realm, a key step was taken by El Salvador with the inauguration of the expansion of Monseñor Óscar Arnulfo Romero y Galdámez International Airport in early 2022. This airport is an important Central American travel hub and the second home base of Avianca, one of the largest airlines operating in the entire Latin American region.
