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Peruvian Economy V: Tourism, a Hidden Gem That Won’t Shine

Tourism plays a vital role in Peru’s economy, contributing around 7% to the country’s GDP and employing approximately 11% of the workforce. In 2023, the tourism sector generated about $13.5 billion, with 26% from international tourism and 74% from domestic tourism. While Peru offers a diverse range of tourist attractions, from world-renowned historical sites to stunning natural landscapes, the sector has yet to reach its full potential compared to previous years or other countries. The question is: does Peru want to be where the others are?

Tourism Recovery in 2023 vs. 2019

The recovery of tourism in Peru has been uneven, with domestic tourism recovering more strongly than international tourism. Domestic tourism spending, which reached $9.5 billion in 2019, increased to $10 billion in 2023. In contrast, international tourist arrivals in 2023 were just half of those in 2019, with 2.5 million visitors compared to 4.4 million in 2019.

This is in contrast to the recovery of international tourism in top five international destinations. For example:

  • France: 90 million international visitors in 2023 vs. 89 million in 2019.
  • Spain: 83 million international visitors in 2023, matching its 2019 figure.
  • United States: 79 million international visitors in 2023, the same as in 2019.
  • Italy: 58 million international visitors in 2023, matching its 2019 figure.
  • China: 65 million international visitors in 2023 vs. 67 million in 2019 (near recovery).

For some of Peru’s regional neighbors, the recovery is more robust:

  • Colombia: 5.3 million international visitors in 2023 vs. 4.5 million in 2019.
  • Ecuador: 3.3 million international tourists in 2023 vs. 2.4 million in 2019.
  • Bolivia: 1.5 million international tourists in 2023 vs. 1.1 million in 2019.

How Many International Tourists Would Peru Need to Reach Other Countries' Levels?

To match the international tourism levels of leading countries, Peru would need significantly more international visitors. For instance:

  • 56 million more tourists to match Spain’s per capita levels.
  • 42 million more tourists to match France’s per capita levels.
  • 37 million more tourists to match Uruguay’s per capita levels.
  • 30 million more tourists to match Italy’s per capita levels.
  • 5 million more tourists to match the United States’ and Chile’s per capita levels.
  • 4 million more tourists to match Ecuador’s and Paraguay’s per capita levels.
  • 3 million more tourists to match Argentina’s per capita levels.
  • 2 million more tourists to match Bolivia’s per capita levels.
  • 1 million more tourists to match Colombia’s per capita levels.

At present, Peru’s international tourist arrivals per capita are higher than those of China (though not comparable due to China's population size) and Venezuela (which is politically and economically troubled) in regional terms.

Does Peru Want to Reach the Same Levels as Other Countries?

There is certainly economic and cultural value in increasing the number of tourists, particularly high-end visitors who tend to spend more and place less pressure on the environment. By focusing on value-added services, Peru could shift the emphasis from quantity to quality, thus reducing the need for large-scale infrastructure projects that could damage fragile ecosystems. This approach would also encourage the development of sustainable, high-quality infrastructure that is durable and requires less maintenance over time.

However, the question remains: does Peru truly want to compete with the world’s largest tourist destinations? Does it want massive numbers of visitors and extensive development, both of which could threaten the country’s pristine natural environments? Personally, I value the remoteness of the mountains and camps, the peacefulness of the landscapes, and the quality and hospitality that comes from well-built, well-maintained boutique-style hotels and lodges. The prospect of overdeveloping and overcivilizing these incredible places, which are still largely unspoiled, is something that many would prefer to avoid.

Things to Do in Machu Picchu... or Main Tourist Attractions in Peru

Peru’s main tourist attractions are concentrated in a few diverse locations:

  1. Machu Picchu: One of the most iconic archaeological sites in the world, Machu Picchu offers a glimpse into the ancient Inca civilization.
  2. Nazca Lines: Mysterious geoglyphs, etched into the desert, that continue to captivate visitors with their scale and precision.
  3. Colca Canyon: One of the deepest canyons in the world, Colca Canyon is a prime spot for hiking and birdwatching, particularly for spotting the majestic Andean condor.
  4. Amazon Rainforest: The Peruvian Amazon is a vast and biodiverse region, a prime destination for eco-tourism, and wildlife watching.
  5. Cusco: Once the capital of the Inca Empire, Cusco is a UNESCO World Heritage site. Visitors can enjoy its mix of Inca ruins and colonial architecture, along with proximity to significant archaeological sites like Sacsayhuamán.
  6. Sacred Valley: Home to Inca ruins like Ollantaytambo and Pisac, the Sacred Valley offers a glimpse into traditional Andean life and stunning scenery.
  7. Lake Titicaca: The world’s highest navigable lake, Lake Titicaca is known for its floating islands and the indigenous cultures that continue to thrive on its shores, including the Uros and Taquile islands.

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