Understanding Venezuela’s tourism rebound

An aerial view of Morrocoy National Park, in Falcon state. It is a popular beach destination for both domestic and international tourists.

Venezuela already starts with an advantage with its natural endowments. It has the longest Caribbean coastline with hundreds of islands, white-sand beaches, keys, and natural swimming pools. A varied range of natural reserves cover rainforests, mountains, savannahs, and even a desert—and of course, the famous Angel Falls in Canaima. The country can also draw on its culture, like its rich musical tradition, as attractions.

The industry was nonetheless neglected for decades, as oil overwhelmed most of the productive economy. The state had enough with rents, and so did the private sector with preferential dollars and other subsidies. Tourism campaigns in the last 50 years have been negligible; only offering a select few high-profile destinations such as Los Roques Archipelago. Attracting visitors was for other countries not lucky enough to have 300 billion barrels of oil.

A new push for tourists

Since the pandemic, Venezuela’s government has been promoting the country as a tourist destination more aggressively than ever before. It serves the purpose of both encouraging economic diversification and improving the international image of the country; it has almost become a point of pride.

In an interview, Tourism Minister Ali Padron said that his administration is trying to turn the industry into a fundamental pillar of the economy, incorporating national, regional, and local branches of government into this effort.

On one front, Venezuela has been recovering international connectivity, after becoming nearly isolated in 2020 by a prolonged multifaceted crisis, the pandemic, and a US-led regime change campaign coming together. 

Security has also improved significantly. Violent crime characterised the country for decades, a problem that paradoxically was aggravated during the last oil price boom. Venezuela is no longer among the most dangerous countries in the Latin America and Caribbean region—while it is still riskier than most other parts of the world, needless to say.

The country’s image is consequently changing, as more visitors voice their experiences, including through word-of-mouth, social media, and vlogs. The Ministry of Tourism has been avid in sharing the testimonies of influencers who visit the country.

Additionally, as part of its efforts to attract new investment, the government has set up two special economic zones (SEZs) related to tourism: for the state of Nueva Esparta, which consists of Margarita and other nearby islands, and the smaller La Tortuga Island, a federal dependency.

International arrivals

International arrivals have picked up quickly since the pandemic, overtaking previous high points before Venezuela’s devastating crisis.

International arrivals peaked at 1.26 million in 2023, according to statistics from the Ministry of Tourism. Furthermore, in the first four months of 2024, we are seeing over three times the amount of visitors than in the same period in the previous year.

That is also more than the 1.08 million peak in 2013. The pre-pandemic trough, in 2019, saw just 292,000 international tourists. The ministry is also projecting 1.57 million visitors, which is not unrealistic given recent fast growth, and would mean a much slower increase than in 2022 and 2023.

Airports are overwhelmingly used by Venezuelans themselves, especially considering the large diaspora. So where are tourists coming from?

The largest group of international tourists comes from Colombia, travelling by land over to the border states. In the first four months of 2024, Colombian tourism over the border amounted to 52% of all visits, largely to attend festivities that happen in January in San Cristobal, Tachira. According to official statistics, 205,000 people crossed the border for this purpose. 

Arrivals in the early months of 2024 are consistently higher than in the same period of 2023. The “San Sebastian” festivities in San Cristobal, Tachira largely explain the much higher numbers in January.

Since the pandemic, the Ministry of Tourism has been striking deals for charter operations. Starting with just Russia in 2021, the list now includes 11 additional countries from Latin America and the European Union. While 60,300 tourists visited through charter operations between 2021 and 2023, the ministry expects 87,900 to arrive just this year. The largest groups would be coming from Colombia, Russia, and Poland, in that order.

Needless to say, charter operations represent a small number of the total number of visitors, even of their origin countries. However, they reflect a government-led push to reach bilateral agreements with a wide range of states to grow the industry.

Minister Padron also argues that there are different tourist profiles that they are catering to. This is then reflected in the advertising and the type of flights they offer. “Eastern European tourists largely prefer beach stays, like to Margarita Island. Polish tourists in particular seem to prefer nature escapades. Cubans make up another significant group, that like to load up on goods in tax-free areas to take back to their home country.”

Domestic tourism

Domestic tourism has built and sustained much of the industry despite the lack of foreign visitors with the economic crisis and the pandemic. It has nonetheless set a foundation that can already start offering services to international tourists and grow to receive many more.

At the moment, the industry is overwhelmingly supported by domestic tourism, which has also been steadily growing since the pandemic. Even from 2023 to 2024, the number of people who moved in the Easter period increased by 13% to 10.6 million.

Domestic tourism still has a smaller economic impact per capita than international tourism. For example, in the Easter period, La Guaira state was the most popular destination, taking in 13% of holidaymakers. Virtually all of them would go from nearby Caracas for day trips. 83% of the national aggregate travelled by car. Therefore, we can infer that large numbers did not pay for lodgings or use transport businesses.

This phenomenon largely reflects the low purchasing power of the country’s majority. However, simultaneously, domestic tourism is larger than it would otherwise be given that locals face higher barriers to travel abroad than a decade ago, whether it is entry requirements or that they cannot afford flights overseas.

In Los Juanes, also in Morrocoy National Park, coral reefs form a natural pool that has become a hotspot for domestic tourists—and for some curious visitors.

Opportunities

One problem can turn into opportunity. The tourist industry—and the services sector more broadly—suffers acutely from a lack of demand, which outweigh constraints on supply. Domestic tourism, for instance, follows a tight schedule of peak holidays—rather than longer seasons. Because of this, the industry has ample room to accommodate a growing influx of visitors, and would be revitalised with new revenues, as opposed to regions in other countries that are saturated by holidaymakers. 

Flight connections are expanding, in part to cater to the large diaspora, and also for a growing number of leisure and business visits. As the political situation develops, Venezuela and the US could once more be connected by direct flights. This month, President Nicolas Maduro unveiled a new agreement that allows for a straight connection with China.

Despite the current constraints, various companies in the sector have seen the opportunity and are preparing. Hesperia, a Spanish hotel chain, aims to open three new venues by the end of 2025.

Samir Al Attrach, the head of the Special Economic Zone in Nueva Esparta (Margarita Island) has said there are various plans to develop new hotels using capital from countries like Turkey, the UAE, and China. Projects would include luxury hotels and even a 6-star venue.

Challenges

Venezuela’s tourist businesses face unique challenges as well as many shared across sectors. Similarly to others, they complain about a heavy fiscal burden, low demand, and the lack of qualified personnel.

In a Ministry of Tourism survey from this Easter, domestic holiday makers indicated that the main problem they saw is the unreliable electrical grid, with frequent blackouts across the country—29% of respondents gave this answer.

The lack of connectivity with international financial infrastructure is especially a problem here, as many tourists face difficulties to withdraw cash or pay with foreign cards. Consumer prices faced by visitors in Venezuela can often be higher than in comparable destinations, such as neighbouring countries in Latin America and the Caribbean.

Voices from the industry have also complained about excessive checkpoints on the border. This problem is even more notable given that Colombian visitors make up the largest group.