One of the biggest draws for investors in South America is the tourism sector, but there is plenty more to see
One of the pillars of economic growth in South American is the tourism sector. This is mostly thanks to the region’s beautiful landscapes and public sector investment (and sometimes private sector partnership) to develop local infrastructure and promote these destinations, and in doing so create employment—and much more—for local communities. In turn, this drives the local economy and other offshoots of tourism, like ecotourism.
This growing area, which aims to marry a thirst for exploring a region’s natural wonders with a heightened sense of environmental awareness, is a field of increasing interest for investors. Virtually any environmental reserve can seek to develop a local interest in ecotourism provided that awareness and safety measures are respected and applied.
Another interesting sector is technology—not necessarily tech products specifically, but the so-called fintechs, which are startup financial institutions seeking to reduce the bureaucracy and costs associated with online cash transfers and payments. They compete directly with established financial institutions and so provide an alternative to traditional banking services. Brazil, by way of example, registered a 34% growth of these companies from 2020 to 2021.
Related to this emerging trend, another interesting area of investment in the online world is digital security. Very few companies, even those that specialise in technology, offer solutions or even advanced protection in this segment, which makes the sector very attractive for investors.