Despite these challenges, Schliesser, alongside other economists, believes in the region's long-term growth potential and its ongoing GDP expansion, even though short-term macroeconomic policies may not stimulate immediate economic growth.

Travel trends in Latin America have demonstrated resilience. Patricia Boo, senior area director of Latin America for STR, a CoStar hospitality analytics firm, reported a normalization in hotel occupancy levels in 2024 after a surge last year. The year 2023 saw remarkable occupancy growth, with levels nearing or exceeding those of 2019 across all regions. Occupancy rates in Central and South America increased by 8% and 2%, respectively, over 2022, ending the year at around 60% total occupancy. While rate growth begins to slow, the region's hotel development pipeline presents new opportunities, with 57,000 rooms, or 5% of the existing supply, currently in development, particularly within the luxury segment.

Brazil's robust hotel construction pipeline and rate increases across major cities underscore the strength of domestic travel, driven partly by visa challenges and exchange rate fluctuations. Boo also pointed out shifts in travel trends, including the rising demand from business travelers, which may balance the expected moderation in leisure travel growth. She urged industry professionals to stay informed about the impacts of election years and significant events, like Taylor Swift's Eras Tour, on hotel demand.

In essence, Latin America's travel industry is adapting to both global and regional challenges, finding growth opportunities amid economic and political uncertainties.