Investment Property in Chile

Tourism

Growing industry

The strength of Chile’s property market is bolstered by the growing tourist industry in the country. Tourist numbers are increasing and in particular international tourist numbers, including long-haul travellers. The growth of Chile’s tourist industry is attributable to its varied appeal to visitors, the Chilean government’s ongoing drive to promote the country as a tourist destination, and the perception that most tourists have of the country as a safe and secure destination.

Domestic demand

Chile’s tourist industry has also benefited from its growing economy, which has boosted domestic demand. Employment levels and the average wage in Chile are increasing, which gives the Chilean people increased purchasing power. Residents now have more money for non-essentials, including leisure and tourism.

Long-haul visitors

At one time Chile relied on a large proportion of its visitors coming from Argentina. However, in recent years the number of tourists from Argentina has halved, and yet Chile’s tourist numbers have increased, which demonstrates a significant increase in the numbers of tourists from other countries. Chile’s tourist industry has greeted the news with enthusiasm, as long-haul visitors will usually stay for longer in the country, and will spend more while there.

Year-round popularity

As Chile now receives a higher proportion of long-haul travellers, the government must rethink the promotion of the country. International visitors are less likely than domestic Chilean tourists, or those from neighbouring countries, to travel a long distance to the country for a beach holiday, particularly since the cold Humboldt Current means that swimming off the beaches of, for example, Mexico or Brazil would be a preferable option to Chile.

Natural diversity

However, as the country stretches for 4,300km down through the South American continent, it has a rare diversity of natural landscapes, so a visit to Chile can be to see the mountains of the Andes, the plains of the Atacama Desert, the forests and volcanoes of the Lake District or the glaciers and fjords of Patagonia.

Recent growth

In 2006, Chile saw a 12.7% growth in the number of visitors received. According to the National Tourism Board, 2,284,232 foreigners visited Chile in 2006, compared to 2,027,082 in 2005. In turn, the 2005 figures show an increase of 14% on 2004, and 2005 was the first year in which visitor numbers exceeded the 2 million mark.

Predicted growth

A combination of rising domestic and international tourism means that Chile now has Latin America’s fifth largest travel and tourism economy, according to the World Travel and Tourism Council (WTTC). The WTTC has forecast a travel and tourism growth of 12.3% in 2007, and that the industry will grow rapidly at an average 6.3% per year for the next ten years.