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2.1.1

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Background South America

South America has an area of some 17.84 square

kilometers (making it the fourth largest continent in
the world after Asia, Africa and North America) and
an estimated population of 382 million in 2008 (fifth
after Asia, Africa, Europe and North America).
Brazil is by far the largest country in South America,
both in terms of area, population and Gross
Domestic Product (GDP), followed by Argentina,
but the countries (excluding the Falkland Islands and
French Guiana) with the highest average per capita
income in terms of purchasing power parity (PPP)
are Chile and Argentina.

South America is the 4th

largest continent in the world

The gap between the rich and poor in most South

American nations is considered to be larger than
most other continents. In many South American
countries (particularly Bolivia, Paraguay and
Venezuela), the richest 20% may own over 60% of
the nations wealth, while the poorest 20% may own
less than 5%.
During the first decade of the present century, South
American governments have moved to the political
left, with social democratic leaders being elected in
Brazil, Chile and Uruguay, and left-wing populist
presidents in Argentina, Bolivia, Ecuador and
Venezuela. In the late 2000s, the nations of South
America banded together to constitute a
supranational union intended to integrate South
American economies and cultures, and potentially
militaries, laws, and political structures, named the
Union of South American Nations (UNASUL).
While home to some 382 million people and with a
combined GDP of some $3.7 trillion (PPP), the
South American outbound market remains, as yet,
quite small. Few people, other than members of the
middle and upper classes, have the means to travel
outside their countries on holiday or on business.
With high levels of poverty, only the wealthy few
can afford to travel outside their countries.
2.1.2

The South American

outbound market is relatively
small

Outbound Tourism from South America

Overall, the best and most comprehensive source is

the information on arrivals in reporting countries
compiled by the World Tourism Organisation
(UNWTO), but even here there can be discrepancies
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between the departures data furnished by statistical

offices in the countries of origin and the arrivals data
monitored in the destination countries.
In 2005 (latest year for which comprehensive
information is available), excluding persons
travelling abroad to seek work, the number of
outbound tourists from South America who stayed
overnight (or longer) in another country is very
broadly estimated at 17.5 million compared with
12.2 million in 2002, an increase of 43%. This made
South America one of fastest growing source
markets for outbound tourism over this period
(Source: UNWTO). It should be noted that this
excludes Falklands Islands, French Guiana, Guyana
and Suriname for which no data were available for
outbound tourism.

One of the fastest growing

regional source markets

In 2006 (latest year), the main source markets for

outbound tourism from South America were Brazil
(4.8 million), Argentina (4.0 million), Chile (2.65
million in 2005), Peru (1.9 million) and Colombia
(1.6 million in 2005). The available data is shown in
Table 2.1.

Brazil leads in outbound

tourism in South America

Table 2:1
Outbound Travel from South America, 2002-06
Country

2002

2003

2004

2005

2006

% Change
2002-06

Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
Paraguay
Peru
Uruguay
Venezuela
Total

3,008
217
2,338
1,938
1,277
627
141
1,232
530
881
12,189

3,008
305
3,225
2,100
1,177
613
153
1,392
495
832
13,300

3,904
331
3,701
2,343
1,405
603
170
1,635
569
816
15,477

3,894
312
4,667
2,651
1,553
664
188
1,841
658
1,067
17,495

4,009
n.a.
4,825
n.a.
n.a.
733
210
1,857
666
1,095
n.a.

33.3%
n.a.
106.4%
n.a.
n.a.
16.9%
48.9%
50.7%
25.7%
24.3%
n.a.

* data not available for Falklands Islands, French Guiana, Guyana and Suriname
Source: UNWTO and country data
The main destinations for outbound travellers from
South America have traditionally been Central/South
America, Europe and the United States. The majority
56

Intra-regional travel tops

South Americans outbound
tourism

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of outbound leisure tourists particularly for longhaul travel are primarily from the more affluent
classes.
2.1.3

Determinants of Outbound Travel

Among the future determinants of the frequency and

volume of outbound travel, the total population or
potential market size and the per capita GDP are
clearly important, as is the degree of internet usage
for the increasing number of independent travellers
who like to make (or research) their own travel
arrangements. Details for South American countries
in 2008 (or latest year) are given in Table 2:2.
In nearly all countries, population numbers, income
levels and internet usage are forecast to increase.
The net effect is projected to be a continuing sharp
rise in outbound travel from South American
countries, with the total number projected to reach
approximately 25 million by 2011, an increase of
43% over the estimated total of 17.5 million in 2005.

Continued growth in
outbound travel forecasted for
South America

Table 2:2
Population, Per Capita GDP, Internet Usage, 2008 (or latest year)
Country

Gross
Domestic Internet Users
Product **
Total
Per Capita Number
Population
($ billion) ($)
(000)
penetration
39.7%
16,000
13,300
523.7
40.677
Argentina
6.4%
580
4,000
39.4
9.248
Bolivia
22.4%
42,600
9,700
1,836.0
191.809
Brazil
43.2%
7,035
13,900
231.1
16.454
Chile
22.8%
10,097
6,700
319.5
45.014
Colombia
11.3%
1,549
7,200
98.8
13.928
Ecuador
69.4%
2
25,200
0.075
Falklands Islands* 0.003
20.5%
42
17,300
3.5
0.209
French Guiana
20.8%
160
3,800
2.9
0.771
Guyana
3.9%
260
4,500
27.1
6.348
Paraguay
25.5%
7,324
7,800
219.0
27.926
Peru
6.8%
32
7,800
4.1
0.438
Suriname
31.8%
1,100
11,600
37.2
3.478
Uruguay
20.4%
5,298
12,200
334.6
26.415
Venezuela
Total
382.326
3,677.7
n.a.
92,079
24.2%
* claimed by Argentina, including South Georgia and South Sandwich Islands
** in terms of purchasing power parity (PPP)
Sources: US Census Bureau, CIA World Factbook, Internet World Stats
Population
(million)

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2.2

Tourism Intelligence International

Overview

Brazil is the fifth largest and fifth most populous

country in the world, and by far the largest and most
populous country in South America.

5th largest country in the

world

Officially named the Federative Republic of Brazil

(Republica Federativa do Brasil), the Federation is
formed by the union of the Federal District (capital
Brasilia), 26 States and the 5,564 Municipalities.
After more than half a century of military
intervention in the governance of the country, the
military regime peacefully ceded power to civilian
rulers in 1985. Exploiting vast natural resources and
a large labour pool, Brazil is today South Americas
leading economic power and a regional leader even
though this claim is partially contested by Argentina
and Mexico. Social and economic problems prevent
Brazil from effectively exerting global power.
Highly unequal income distribution and crime
remain pressing problems.
According to the UN World Travel Organisation
(UNWTO), Brazil is also the largest and fastest
growing outbound tourism market in South America,
with some 4.8 million departures in 2006.

Brazil is the largest and

fastest growing source market
in South America

Brazil Outbound Travel Data

Official Name: Federative Republic of Brazil
Population (UN 2007 est.): 191.8 million
Outbound Market Size (2006): 4.8 million
Outbound Market Size (2011): 6.5 million
Main Destinations:
Actual: Argentina; United States; Spain; Uruguay; Italy; Portugal; Chile;
Germany; United Kingdom; Paraguay
Aspirational*: Italy; France; Spain; Greece; Portugal; Switzerland; Canada;
Australia; Germany; Sweden
Purpose of Visit: Holiday/Leisure: 63%; Business: 33%; VFR 4%
Internet Access: 42.6 million users at December 31, 2007 (22.4% population penetration)
* where Brazilians would like to visit (if money were no object)

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2.3

Background

2.3.1

Population

www.tourism-intelligence.com

In 2007 (mid-year), Brazil had an estimated

population of 191.8 million (Source: United
Nations) compared with 169.8 million reported in
the August 2000 Census (which may have been
under-numerated). The population is forecast to
increase to 207 million by 2017 (Source: US Census
Bureau) and continue to grow albeit at a slower
rate - to close to 260 million inhabitants by 2050,
according to the Brazilian Census Bureau (IBGE).
Excess mortality due to AIDS results in lower life
expectancy, higher infant mortality, higher death
rates, and lower population growth rates than would
otherwise be expected.
Around 80% of Brazilians reside in urban centres.
The south-east region is the richest and most densely
populated and has the country's two largest cities,
So Paulo and Rio de Janeiro, while the south is the
wealthiest in terms of GDP per capita.
Main Cities
Currently, the Brazilian Institute of Geography and
Statistics (IBGE) officially recognises 15 major
metropolitan regions (RMs) where approximately
one third of the population live. These RMs are
responsible for approximately half of the Brazilian
GDP.
In population terms (2006), the largest RMs are So
Paulo (19.95 million inhabitants); Rio de Janeiro
(11.35 million); Belo Horizonte (5.4 million). Porto
Alegre (4.1 million); and Recife (3.65 million),
while the largest cities (based on the population of
the municipality where the city is located rather than
its metropolitan region)) are So Paulo (10.9
million); Rio (6.1 million); Salvador (2.9 million);
Brasilia (2.5 million); Fortaleza (2.4 million); and
Belo Horizonte (2.4 million).

So Paulo is the largest city in

Brazil

Ethnic Composition
According to the 2000 Census, the ethnic
composition was made up of white: 53.7%; mulatto
(mixed white and black): 38.5%; and black: 6.2%.
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