This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 11/7/2018
Peru offers a promising market for U.S. firms in the tourism industry. Peru’s economic growth and the emergence of a new middle class with strong purchasing power created a steady expenditure increase in the travel and tourism sector. Over the past decade, Peru has been the fastest-growing economy in Latin America with a 5% average annual growth rate, exhibiting the region’s second lowest inflation rate at 3.6%. Poverty levels have decreased from 42.4% in 2007 to 20.7% in 2017, and Peru maintains some of the highest consumer confidence levels in Latin America. With a population of 31 million, Peru stands as the third largest market in Latin America. Favorable external characteristics, prudent macroeconomic policies, and effective structural reforms have boosted Peru into middle-income country status. Industry sources report that 170,000 Peruvians traveled to the United States in Fiscal Year 2017. The U.S. Consular Section received 129,300 Non-Immigrant Visa Applications in FY-2017 and the number of annual applications is increasing. According to the National Institute of Statistics (INEI), the main destination for Peruvian tourists traveling abroad continues to be the United States, followed by Chile, Spain, Colombia, and Panama. The most popular U.S. tourist destinations for Peruvians were Orlando and Miami, FL; New York City, NY; Los Angeles, CA; and Patterson, NJ, all of which have nonstop flights from Lima.
2017 has been a dynamic year for the Peruvian commercial aviation industry. This year Viva Air entered the country, introducing a new low-price carrier to the market. Following Viva Air’s entrance to the market, LATAM launched a new price differentiation strategy reducing the average ticket price by 25%. The ultra-low-cost Jet Smart also announced its entry into the market, adding to the trend of low price carriers in Peru.
Market Challenges:
Since March of 2016, Peruvian citizens are no longer required to apply for a Schengen visa to enter the EU. They can enter the EU countries in the Schengen Area for tourism or business for up to 90 days without a visa. This visa waiver agreement increased the number of Peruvians traveling to Europe with airlines servicing Spain, France, Italy and Germany. Industry sources indicate that since the implementation of the waiver agreement, 21,982 Peruvian citizens traveled to Europe during the first 20 days.
Opportunities
Market opportunities for U.S. travel and tourism firms are: fly and drive deals, cruise and tour packages, conventions and trade shows packages, shopping, amusement parks, language courses, ski packages, and international student programs. The major airlines that service Peru from the United States are American Airlines, Delta Airlines, United Airlines, LATAM, Jetblue, Avianca, COPA Airlines, Aeromexico, Air Canada. In fact, there are 207 weekly flights from Peru to the United States. The city of Orlando, Florida, dominates as the top city destination for Peruvian tourists, attracting 45% of the Peruvian market. This city is preferred for the diversity of theme parks (i.e. Disney World, Universal Studios, and Sea World) as well as time-share condos. Younger people also include Busch Gardens in Tampa in their travel packages. A large number of U.S. residents from Peru live in these cities and are frequently visited by their Peruvian relatives. Other cities such as Chicago, Las Vegas, Washington D.C., Atlanta and Dallas attract the business community to large trade shows at their convention centers. High season for Peruvian travelers coincides with local Peruvian school vacation periods: January and February; the second week of May; the last week of July; and the first two weeks of August. The majority of visitors travelling to the United States come for the following reasons: shopping, skiing, cruise vacation and to visit relatives.
Distribution Channels:
Travel agents, wholesale operators, mobile applications, and social media bloggers are key players in Peru’s travel and tourism industry. Mobile applications and bloggers should be considered valuable trade marketing partners as internet penetration in Peru increases. These sources of information are increasingly influential in the consumer’s decision-making process. Traditionally, Peruvians tend to buy package tours advertised in catalogs and newspapers by wholesale operators. However, recently 47% of Peruvians used the internet to book their airfare and hotels. Nowadays, travelers can both find air tickets online and customize their own tourist packages, which include air ticket, hotel, and car rentals at very low prices. According to industry sources, Peru has shown the most improvement in the “increase of sales volume” category for online tourist packages, over Chile, Argentina, Ecuador and other South American countires. The most popular travel website in Peru, Despegar.com, claims that 95% of their tourist packages sold are customized by the traveler and 5% are traditional packages. Market niches that have potential for U.S. suppliers are: conventions and trade shows, shopping, language courses, ski packages, and international student programs.
Upcoming Trade Events:
Visit USA “Destinations & Products Fair Roadshow 2018”: Will be held in Lima, Arequipa and Trujillo in August 2018. We expect the participation of 450 travel agents from Lima and Provinces.Contact Information:
The U.S. Commercial Service in Lima, Peru can be contacted via e-mail at Milka Sambrailo Milka.Sambrailo@trade.gov; Phone: (511) 618-2645 or by visiting our website: www.export.gov/peru.
The Visit USA Committee Peru – Kimberlie Burns/President can be contacted by via email at: kim@mpreps.com.pe or by Phone: (511) 221-4444
 
Prepared by the International Trade Administration. With its network of more than 100 offices across the United States and in more than 75 markets, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


More Information

Peru Travel and Tourism Trade Development and Promotion