Chile and the U.S. lead inbound travel to Latin America’s fifth-largest economy.

Peru’s corporate travel market was worth approximately US$3.6 billion (12 billion Peruvian sols) in 2018. Domestic business trips made up more than half of travel spending, and Peruvians’ international business trips abroad accounted for 27%. Inbound travel made up the rest. Between 2013 and 2018, overall business travel spending grew 6.3% a year, on average; spending on international trips grew almost 13% annually. Overall spending is expected to grow about 6% a year through 2023. Gross domestic product (GDP) grew 4% in 2018. Oxford Economics forecasts the same growth for 2019.

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• Peru is Latin America’s fifth-largest economy and 50^th in the world, ranking close to Portugal and Greece.
• Minerals mining makes up about a quarter of economic output, with copper and silver in the lead.
• Services account for 60% of output and employment. Telecommunications and financial services comprise two-thirds of the sector.
• Private investment, manufacturing and exports are expanding, laying the foundation for solid economic growth. But the economy is vulnerable to swings in commodity prices.
• The government’s anti-corruption efforts are broadly supported by the public. Interest-rate and tax policies have fostered growth, although their effects will fade.
• As the 2021 presidential election approaches, rising uncertainty could dampen growth. Economists are predicting 3.8% expansion in 2020.

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• Between 2013 and 2018, international travel to and from Peru expanded by 7% per year. Through 2023, annual growth is expected to shrink to 2.8% as arrivals slow.
• More than a quarter of overnight visitors to Peru arrive from Chile. The U.S. is the second-largest inbound market, and its share of the inbound market is forecast to rise to 18%. Many visitors also come from Ecuador, Colombia and Spain.
• Peruvians’ Top 3 destinations are Chile (20% of outbound trips and growing), the U.S. and Ecuador. Ecuador is expected to replace the U.S. as the second-largest outbound market by 2023.
• LATAM dominants the air market, accounting for more than half of departures from Lima, Cusco and Arequipa.
• Air competition waned in recent years after the collapse of LC Peru and Avianca’s reduction in operations. But Chilean Sky Airline has entered the low-cost carrier market to compete with Viva Air Peru on domestic routes.
• Peruvian Airlines and Star Peru plan to merge. Together, they held 20% of the market in 2018.

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• Demand for hotel accommodation in Peru increased 23% between 2013 and 2018, averaging growth of 4.2% per year.
• Annual growth is forecast to slip to 3.4% through 2023, due largely to a slowdown in international demand.
• Peruvian company Casa Andina Hotels is the largest chain. It operates 29 hotels across 17 cities and towns. Its Premium brand hotels target corporate travelers in Peru’s major cities: Arequipa, Cusco, Lima, Piura, Puno, Trujillo and Urubamba.
• Wyndham is the largest global chain with an upscale offering of 13 hotels across the Dazzler, Esplendor and Wyndham brands, as well as two midscale Ramada properties.
• Supply is improving, with global chains Hilton, IHG, Radisson Hotel Group and Accor all planning new hotels, mostly in Lima.