23 Aug

Older Demographic Growing in South America; Will Tourism NZ Take Note?

Posted by Sandra Rhodda in Ageing and People with Disabilities, Baby Boomers, Current markets, Future markets, New Zealand, What NZ needs.

Iglesia de Santa Catalina Argentian Public Domain Image

It is a well-known fact that populations are ageing.  In the USA for example, the McKinsey Global Institute reports that  50+ plus consumers will control the economy for the first time in history in under 10 years.  By 2015, they will command almost 60% of net US wealth and 40% of spending.  Now New Zealand Trade and Enterprise report that manufacturers need to re-think how they market products to Latin America’s Baby Boomers.  The findings of a Neilson report show that while the trend of lower birth rates combined with longer life expectancies have been well-documented in Europe and the USA, the trend also exists to Latin America.  Analysis shows that people aged 50+ currently made up 19% of the population in Brazil, Chile, Colombia, Mexico and Puerto Rico.  Importantly, these percentages are expected to rise to 26% by 2025 and 38% by 2050, according to Nielsen.  “In the next 10 to 12 years, one of every four consumers will be over age 50, and as in other countries around the world, older Latin Americans are defying the traditional stereotypes. They are more affluent, spend more money and are open to new brands and products,” Mary Paz Roman from Nielsen in Latin America reports.

Per Capita Spending Power
Older households – while being 13% smaller than the average home – have higher levels of per capita spending than other age groups:

  • Chile: 17% higher
  • Brazil: 15%
  • Mexico: 15%
  • Colombia:13%
  • Puerto Rico: 12%

Tourism New Zealand (TNZ) – the international marketing agency for tourism in NZ – says that Chile, Argentina, and Brazil are firmly in their sights as it evaluated the potential in small but growing markets.  Together, the three countries deliver about 21,000 visitors each year to NZ.  In October 2009, TNZ visited South America and talked to people in the industry.  As a result, TNZ has increased its South American budget to NZ$100,000 and put together a trade development plan for this financial year.  This includes joint venture advertising.  Access Tourism NZ hopes that part of the TNZ strategy in South America will include marketing to the older demographic if we are not to miss out on this large and growing group of potential tourists.

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