Panama Follows Belize and More as Tourism GDP Growth Outpaces the Global Average in 2026

Costa Rica teams up with Panama and more destinations as tourism GDP growth outpaces the global average in 2026, with Central and South America’s Travel & Tourism economy forecast to expand by 4.1% compared with global sector growth of 3.2%. The World Travel & Tourism Council expects the region to benefit from stronger international visitor spending, resilient domestic travel and continued demand for holidays within the Americas, placing tourism among the important economic growth engines for destinations across the region.

International visitor spending is forecast to rise even faster. WTTC expects expenditure by overseas travellers across Central and South America to increase 7.8% in 2026.

The figures provide a strong outlook for the region, but they specifically measure the Travel & Tourism sector. They should not be interpreted as forecasts for total economic GDP growth across Central or South America.

Tourism Economy Expected to Grow 4.1%

WTTC’s 2026 Economic Impact Research points towards another year of expansion for tourism across Central and South America.

The sector’s contribution to regional GDP is forecast to increase by 4.1% in 2026.

That compares with projected growth of 3.2% for global Travel & Tourism GDP.

The difference means the Central and South American tourism economy is expected to expand at a faster rate than the worldwide tourism sector during the year.

The projections highlight the scale of tourism’s role in the regional economy.

Tourism Could Contribute US$391 Billion

WTTC expects Travel & Tourism to contribute approximately US$391 billion to Central and South America’s economy in 2026.

That would represent about 8.5% of the region’s economy.

Employment is another major part of the outlook.

Travel & Tourism is forecast to support 18.9 million jobs across Central and South America during 2026.

This demonstrates why tourism growth matters far beyond hotels and airlines.

Visitor activity supports employment across accommodation, restaurants, transportation, attractions, retail, tour operations and many other services.

International Visitor Spending Set for Strong Growth

One of the most significant projections is the expected increase in spending by international visitors.

WTTC forecasts international visitor spending across Central and South America will increase 7.8% in 2026.

Total international visitor expenditure is expected to reach approximately US$90.5 billion.

This is considerably faster than the forecast increase in domestic visitor spending.

Domestic tourism expenditure is expected to rise by 2.1%, reaching approximately US$206.8 billion.

The difference demonstrates two important characteristics of the regional tourism economy.

International tourism is growing quickly, but domestic tourism remains much larger in absolute spending terms.

Domestic Travellers Remain Crucial

International arrivals often receive the most attention because they bring money into national economies.

However, WTTC’s projections show how important domestic travel remains.

With domestic visitor spending forecast at more than US$206 billion, residents travelling within their own countries continue to form a major part of tourism demand.

Domestic travellers can also help destinations during periods when international demand becomes weaker.

They travel for:

• Weekend breaks
• Family visits
• Cultural events
• Beach holidays
• Nature tourism
• Festivals
• Business trips
• Food and city experiences

For tourism businesses, a combination of international and domestic demand can create a more resilient market.

Costa Rica Remains an Important Regional Tourism Market

Costa Rica provides one example of the region’s established tourism strength.

The country has developed a global reputation around nature, biodiversity, beaches and outdoor experiences.

Its tourism model attracts international visitors interested in national parks, wildlife, surfing and ecotourism.

Costa Rica’s position demonstrates the value of having a clearly defined tourism identity.

Nature-based tourism can also connect visitor spending with rural areas rather than concentrating every tourist in a single large city.

That model has influenced the way Central America is promoted internationally.

Panama Combines Aviation With Urban and Nature Tourism

Panama brings a different advantage.

Panama City is one of the region’s major aviation hubs, giving the country extensive connections across North, Central and South America.

The country’s tourism offering combines city experiences with beaches, islands, rainforest and cultural attractions.

Strong aviation connectivity can help not only Panama but also the wider regional tourism market.

Air hubs make it easier for travellers to combine destinations and connect between countries.

That becomes particularly valuable as travellers increasingly build multi-stop journeys through Latin America.

Regional Travel Can Strengthen Tourism Growth

Travel between neighbouring countries is another important opportunity.

A visitor already travelling in Central or South America may find it easier to add another destination than somebody travelling from another continent.

Shorter distances and regional aviation connections can encourage multi-country holidays.

For example, travellers can combine:

• Costa Rica with Panama
• Guatemala with El Salvador
• Argentina with Chile
• Colombia with neighbouring South American destinations
• Multi-country Central American itineraries

This type of tourism can spread visitor expenditure across borders.

It can also reduce dependence on a small number of long-haul markets.

Aviation Capacity Supports Regional Expansion

Tourism growth depends heavily on access.

Airlines across Latin America have continued developing regional and international connections, allowing travellers to reach destinations that once required lengthy or inconvenient journeys.

Greater capacity can support tourism in several ways.

New routes introduce destinations to additional source markets.

More competition can provide travellers with additional choices.

Regional connectivity can also make shorter trips more practical.

For Central America in particular, aviation hubs can help connect relatively small countries with major markets in North and South America.

Nature and Adventure Travel Give the Region an Advantage

Central and South America have another competitive strength: their natural diversity.

The region includes rainforests, volcanoes, Pacific and Caribbean beaches, mountain ranges, deserts and some of the world’s richest biodiversity.

This gives destinations opportunities in:

• Ecotourism
• Adventure travel
• Surf tourism
• Wildlife tourism
• Hiking
• Wellness travel
• Community tourism
• Cultural travel

These experiences can appeal to travellers seeking alternatives to traditional resort holidays.

They can also help distribute tourism into rural and less-developed regions.

Strong Growth Also Creates Challenges

Rapid tourism growth brings economic opportunities, but it can create pressure.

Popular destinations may face congestion, rising accommodation demand, pressure on water resources and environmental degradation.

Tourism authorities therefore need to consider infrastructure and sustainability alongside visitor growth.

Investment in airports and hotels alone may not be sufficient.

Destinations also need transport, waste management, water systems, workforce development and environmental safeguards.

The long-term value of tourism depends partly on whether destinations can protect the resources and communities that attract visitors in the first place.

Tourism Growth Is Not the Same as Overall GDP Growth

The distinction in the WTTC forecast is especially important.

The projected 4.1% growth does not mean the combined economies of Central and South America will grow by 4.1% in 2026.

WTTC is measuring the change in Travel & Tourism’s contribution to GDP.

Likewise, the 3.2% global comparison refers to worldwide Travel & Tourism GDP growth.

Using the figures correctly provides a clearer picture of the sector’s performance without overstating broader economic growth.

Conclusion

Costa Rica teams up with Panama and more destinations as tourism GDP growth outpaces the global average in 2026 because Central and South America’s Travel & Tourism sector is benefiting from rising international spending, resilient domestic demand and strong regional tourism opportunities.

WTTC forecasts the sector’s contribution to regional GDP will grow 4.1% in 2026, ahead of the 3.2% growth expected for Travel & Tourism globally.

The sector could contribute US391billiontotheregionaleconomyandsupport18.9millionjobs.Internationalvisitorspendingisforecasttoclimbevenfaster,increasing7.8%toapproximatelyUS90.5 billion.

Domestic tourism remains equally important in scale, with residents expected to spend around US$206.8 billion travelling within their own countries.

Together, these projections show why Central and South America are entering 2026 with considerable tourism momentum. Costa Rica, Panama and other destinations have different strengths, but nature, aviation connectivity, regional travel and international demand are combining to support a Travel & Tourism economy expected to grow faster than the global sector this year.