Tourism is a catalyst for Bolivia’s service economy

Tourism, a sector intrinsically linked to the services sector, has become a fundamental engine of the Bolivian economy.

According to the World Tourism Organization (UNWTO), this activity has widespread and diverse impacts on destinations’ economies, natural environments, urban areas and local populations. These impacts necessitate an integrated approach to tourism development, management and monitoring, with effective policies at national and local levels.

In Bolivia, the industry can not only “export” hotel stays, flights and tourism experiences, but also drive the adoption of technology and connect territories and peoples.

Furthermore, it has positioned itself as the country’s third-largest source of foreign exchange and fifth-largest formal employer, standing out in an economy dominated by the informal sector.

Andrés Aramayo, manager of the Bolivian Observatory for Sustainable Tourism (Órbita), stressed the importance of tourism in the country’s orange economy, a sector that is growing at 10% per year despite social and economic challenges.

“Bolivia has been living off tourism for a long time,” Aramayo said, stressing that the growth was remarkable given the conflict and difficulties the country has faced.

The economic impact of tourism is undeniable. Economist Hugo Siles Espada said during TeCNia 2024 that the tourism industry could contribute 2.5% to the national GDP in 2023, a considerable figure considering that Bolivia is still in the process of economic recovery.

Juan Carlos Núñez, professor at the Hotel and Tourism Management Program at Unifranz Tamayo University, stressed that tourism not only creates quality jobs but also provides equal opportunities for men and women.

The key to boosting tourism in Bolivia

Aramayo identified seven key strategies to boost tourism in the country:

1 Legal Security: Creating a legally secure environment is essential to attract domestic and international investments and promote sustainable and environmentally friendly tourism.

2 Niche Economy: Bolivia must focus on specific markets that value unique and sustainable experiences, promoting a tourism industry that respects and protects its territory.

3 Air connectivity: Improving air connectivity is essential to facilitate access to Bolivia. Respecting the new air freedoms and opening up airlines to foreign investment will improve the quality and reduce the cost of air services.

4 Destination Digitalization: In the digital age, Bolivia’s online positioning is essential. The digitalization of tourist destinations will allow travelers to interact and conduct transactions, thus diversifying the economy.

5. Understanding seasonality: Defining and leveraging tourism seasons will help optimize the tourism product, allowing Bolivia to adjust its strategy to maximize its appeal year-round.

6 Internationalization of the destination: In addition to promoting its tourist attractions, Bolivia must also promote its high-quality local products such as coffee, honey, cocoa and wine internationally, thereby strengthening its image abroad.

7 National pride: Promoting domestic tourism is essential for Bolivians to understand and value their country and to promote sustainable tourism from within.

Improve tourism services

At the national level, improvements in the tourism industry are being promoted through training and professionalization. However, Juan Carlos Núñez warned that some businessmen still choose to hire unskilled labor, resulting in inefficiency and poor quality of services.

“We must emphasize providing comprehensive and quality services in all direct and indirect aspects, changing the mentality so that tourists feel protected from the moment they arrive in the country until they leave,” Nuñez said.

Javier Rivera, director of the Hospitality and Tourism Management programme at Unifranz, stressed that tourism has a significant impact on the economic development of a country or region, especially if the destination is well managed.

“We must look for mechanisms and actions that minimize the impact of tourism on the environment and make tourism a sustainable economic activity that Bolivia can bet on,” the academic concluded.

Tourism is not only a source of income and employment, but also has the potential to transform the Bolivian economy into a more diversified and resilient model. Committing to sustainable and technologically advanced tourism may be the key to meeting future challenges and reducing reliance on extractive industries.