Tourism, an economic alternative for indigenous people

CAF and UN Tourism launched the "Indigenous Tourism Challenge for Latin America and the Caribbean" to encourage indigenous communities to organize and turn this activity into a driving force for transforming their reality.

June 28, 2025

August 9th is World Indigenous Peoples' Day. As a tribute to the nearly 860 Indigenous communities in Latin America and the Caribbean (LAC), on that day, CAF—development bank of Latin America and the Caribbean—and UN Tourism will announce the winners of the "Indigenous Tourism Challenge," launched at the First International Economic Forum on Latin America and the Caribbean, held in Panama last January.

A significant number of entrepreneurs in the tourism industry, primarily from the region's Indigenous communities, accepted this challenge, which focuses on social innovation and the application of new technologies to tourism products that would be offered as alternatives in this field. Experts describe this challenge as a great opportunity to accelerate the region's growth.

“The greatest value of the tourism industry is knowledge and experience. Taking a photo with a coffee farmer, with the coffee plantation landscape in the background, is not the same as experiencing the planting, harvesting, and processing of coffee, and drinking a cup prepared by yourself. There is a big difference, and that's what we want to focus on,” said Óscar Rueda, CAF's Director of Tourism, reflecting on what this industry represents for the region and how strengthening it would position it as the quintessential social tourism industry.

“When we travel to Europe, for example, what they offer us are ruins; here we have living cultures, and by sharing the knowledge, traditions, gastronomy, and arts of our indigenous communities, we are providing a memorable experience for tourists. This can represent a great opportunity for economic development,” added the CAF director.

Last year, global tourism continued its recovery path after the pandemic, and in LAC, it surpassed the growth rate of 2019, the year before the global emergency, by 2%.

With a booming sector, there is a great opportunity to develop social and community tourism (which includes indigenous or ancestral tourism), for which investments of $2 billion are projected between 2025 and 2032, according to Natalia Bayona, Executive Director of UN Tourism. The growth rate in this segment is 14%.

 

Transformation engine

 

Today, 43% of indigenous communities live in poverty. Therefore, organized tourism is considered a major driver of transformation for their reality without endangering their cultures and environments.

The initiative participating in the challenge is expected to break down borders with unified opportunities that stretch from Mexico to Patagonia. This is based on a very clear motto: "Unite amidst the great cultural diversity we possess," as expressed by Gustavo Santos, UN Tourism representative in the region.

Added to this is the indissoluble marriage between indigenous peoples and the natural resources of their territories. Such an alliance lends itself to creating highly attractive tourist packages for outsiders.

The Guna Yala region of Panama is an example of indigenous tourism done right. “We have created codes of conduct for tourists and have joined the Indigenous Tourism Network of the Americas (ITCA). We are an open book, and we can share this learning with our peers in the rest of Latin America and the Caribbean,” said Sobi Guili, leader of the community and the Indigenous Tourism Network of Panama.

Sixty-one percent of the jobs generated by Indigenous tourism in her country are held by women. “This is one of the great values ​​of the tourism industry: it primarily employs women,” emphasized Natalia Bayona.

Another value is the protection of nature. “In Colombia, 34% of protected areas (for their biodiversity) are cared for by Indigenous communities,” emphasized Guna Chaparro, leader of the Arhuaco community of the Sierra Nevada de Santa Marta.

The challenge launch statement summarized what could be called the “virtuous circle” of indigenous tourism: “It allows communities to enhance and revitalize their culture through authentic tourism experiences; it enables travelers to get to know indigenous peoples, experiencing their traditions, customs, and ancestral knowledge firsthand. Through this modality, indigenous communities promote their autonomy, sustainable development, and responsible tourism.”

 

What the Challenge Offers

 

The winners of the Latin America and the Caribbean (LAC) Indigenous Tourism Challenge will receive prizes that will allow them to catapult their ventures far beyond their countries' borders and thus achieve accelerated growth:

  • $10,000 in seed capital from CAF to invest in the project.
  • Recognition by UN Tourism.
  • Permission to use the “region brand” logo alongside the “country brand” logo.
  • Mentoring and advice from experts.
  • Access to the UN Tourism Innovation Network.
  • Scholarship opportunities for the UN Tourism Online Academy.

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