Latin America seen as having untapped luxury potential

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Central and South America have much untapped potential in the luxury travel niche, according to Timothy Scott, editor of Luxury Latin America, a Web site that launched this spring.

Scott has been a travel writer for 15 years and has written hotel and city reviews for media including Star Service Online and Weissmann Travel Reports, both owned by Northstar Travel Media, parent company of Travel Weekly.

He said that the new site, at Luxurylatinamerica.com, aims to "filter" information to provide details and reviews that will be of use to both consumers and industry insiders looking for upscale travel products in Latin America.

It has taken Central and South America some time to get to the point where it can truly be marketed as a luxury destination, according to Scott.

"In the last half of the 20th century, there was so much fighting and civil war going on in various places that it was hard for most of these destinations to draw anyone beyond backpackers and other intrepid explorers, especially in Central America," Scott said.

"As things calm down, an area is naturally more attractive to investors and tour operators. Because of this, the places that have been most stable, like Costa Rica, Belize and Mexico, are further along the time line on taking care of luxury travelers. Many others are just getting started. Luxury travelers aren't immune to the urge to go somewhere exotic and different though, so all of the markets we're covering are seeing an uptick at the top end of the scale."

These factors made it a good time to launch a Web site dedicated solely to luxury travel in Latin America, according to Scott.

"There are a lot of converging trends that made the time seem right," he said. "The main ones are that there is more interest in Latin American cuisine beyond Mexican, a dramatic increase in travel to the region by North Americans and more flight options coming on line every quarter.

"As more Americans and Canadians realize the advantages of traveling to this region, from a cost standpoint as well as a time zone standpoint, I believe the numbers will keep rising."

The ones to watch

So what destinations will grow fastest in the luxury segment?

"Mexico is the leader by far for a lot of reasons, but Argentina has been booming the past few years, and all the pieces are in place there already to please picky travelers who don't want to make any sacrifices," Scott said.

"Costa Rica continues to be hot for those who are looking for nature and adventure, and the country is way beyond others when it comes to ecotourism and green practices.

"Upscale, boutique hotels continue to pop up in Belize," Scott added, "and you see a lot of high-end diving and fishing trips."

Tour operators and other suppliers have increasingly taken note of the region's potential, according to Scott.

"What the good tour providers and hotels have done in Latin America is play to their strengths," he said. "[Hotels] use a lower labor cost to provide more interesting rooms in the construction phase and more personal service after opening."

Scott said making things "interesting" is an important selling point.

"The hotels try to work in a lot of local elements in terms of art and decoration, and most of the upscale tours really try to draw people into the culture of the area," he said. "I believe this all ties into the trend of tourists searching for a more authentic experience.

Photo by Mark Chesnut"Many lodges and tour companies in Central America were green before it was fashionable, so that area certainly ties into the consumer shift to being more conscious about waste and sustainability."

While upscale properties are popping up with increasing frequency, there is still plenty of growth potential, especially for international brands, according to Scott.

"I'm surprised, actually, that the big chains have been so slow on the uptake for Latin America," he said. "There must be 40 hip boutique hotels in Buenos Aires now, and nearly all of them are independent.

"Apart from Mexico, where you find some interesting Starwood Luxury Collection hotels, the international chains have mostly limited themselves to boring business hotels that look the same as they would in Cleveland or Miami.

"Of course, this goes to the inherent problem: Many luxury travelers don't want to travel to a historic, colonial city just to stay in a boxy glass tower with no character. The international chain hotels that succeed at the high end are usually the ones that have taken over a historic structure and kept a sense of place."

Challenges

There are still challenges as destinations evolve and attract more travelers, Scott said.

"Peru has been absorbing more and more visitors each year, but unfortunately the demand is outstripping supply when it comes to upscale lodging. Patagonia -- Argentina and Chile -- has been booming, which isn't necessarily a good thing. The same with the Galapagos. At some point, there's going to need to be a clampdown on the visitor numbers."

And then there are destinations like Panama, which Scott said hasn't yet lived up to its potential.

"The one that always perplexes travel writers is Panama," he said. "From a natural-resources standpoint, they're almost on par with Costa Rica, and most would argue that they have more to brag about when it comes to beaches and islands. Their tourism bureau is either woefully underfunded or in need of a good strategist. Because the visitor numbers are relatively low, there are only a few upscale hotels there."

Another region ripe for growth, according to Scott, is Guatemala.

"I just came back from Guatemala, which is fantastic, and was surprised that there were so few upscale hotels in place or even in the planning stages. If I were an investor looking five or 10 years out, that's where I would be putting my money."

Filtering content

The new Web site provides insight into a variety of Latin American destinations, using various sources.

"I rely mostly on local experts doing the reviews and my independent research," Scott said. "Many of our writers are guidebook authors or they live at least part of the year in the country they are covering, so they've got strong opinions about which places deserve praise and which don't.

"I always try to get a few other opinions from colleagues, as well, when forming the list, and I'm a voracious reader, both of magazines and travel Web sites. The superior places and companies tend to win over a lot of enthusiastic fans and get consistently good reviews from well-heeled guests and well-traveled writers."

According to Scott, Luxury Latin America tries to pay attention to details that other reviewers might miss.

"We especially look for how well [hotels] handle the little things," he said. "I couldn't care less about the thread count on a hotel's sheets or what kind of sparkling wine a tour leader serves at sundown. What distinguishes the great hotels and tour companies is the service: the abundance, training, and improvisational skill of the management and staffers. That's where a lot of large chain hotels really blow it."

Part of Scott's enthusiasm for Latin America comes from his own personal experience.

"For the past few years, I've been traveling mostly in Latin America," he said. "It's easy to get to, the flights aren't too ungodly long and you never seem to move more than a time zone or two away. The lack of jet lag is a big plus."

And there are value and safety, two factors that can attract luxury as well as budget-conscious travelers.

"The pummeling the U.S. dollar has taken isn't very applicable in this region," Scott said. "It's still a terrific bargain, even at the luxury end of the scale.

"And this next point would have seemed ironic 30 years ago, but Latin America now feels safer than most other parts of the world."

To contact reporter Mark Chesnut, send e-mail [email protected].

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