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South America Rising

September 10, 2007 By: Jennifer Merritt Travel Agent

Tour operators take note of increased interest in the region

Everyone in the industry knows how dramatically overseas
travel stalled after the tragic events of September 11, 2001. However, in the
months that followed, travel to South America
picked up, with many tour operators reasoning that travelers deemed the destination
neutral. It somehow only seems fitting then, that as the sixth anniversary of
the attacks approaches, South America is
getting a second go-round as a top vacation destination—but this time, more due
to its exciting exoticism.

Statistics back up this proclamation. In 2006, a
record-breaking 30.1 million U.S.
travelers visited overseas markets, resulting in a 5 percent increase over
2005, according to the most recent data available from the government's Office
of Travel and Tourism Industries (OTTI). Travelers to South
certainly contributed to that rise, as the continent set a
regional record for visits by Americans between 1985 and 2006, OTTI says.

Machu Picchu visitors on an Adventures by Disney tour visits in Peru

Queries about the region are noticeably higher—a survey
released in March by the Adventure Travel Trade Association reveals that U.S.
travelers' interest in South America increased roughly 40 percent from 2005 to
2006—and as a result, a number of tour companies are founding or increasing
product offerings there, focusing on such destinations as Machu Picchu, Costa
Rica and the Galapagos. The draws of South America, these operators say,
include fascination with products from the region such as Chilean wines,
interest in a culture well known for its warm and welcoming nature, an
increasing reputation as a family-friendly destination and favorable exchange

Disney's New Peru Itinerary

Helping to cement that burgeoning cachet is Adventures by Disney, which will
launch its first tour in South America next
year. "Sacred Valleys and Incan Cities," which focuses on Peru,
escorts guests on a private guided tour of Machu Picchu, a visit to the Moray
ruins followed by a dance performance by Urubamba students, a one-of-a-kind
weaving demonstration at the Center for Traditional Textiles of Cusco and a
visit to the Sacsayhuaman ruins. The
Bottom Line

The trip is likely a great choice for first-timers, as
Disney will guide guests in and out of Lima's
airport, which can sometimes be overwhelming, says Heather Killingbeck,
director of trip and program development for Adventures by Disney. It also
should be noted that the trip, like most to South America,
is relatively active. "We try to have experiences that are somewhat
physical, but not too rigorous," she says.

A major appeal of South America
is that it's easy to get to, and for U.S.-based travelers, it comes with
minimal, if any, jet lag. "The convenience of traveling there is certainly
something people take into consideration," says Kim Vincent, project
manager for Globus, which has been
offering escorted tours to the region since 1994. "People have gone to Europe and now they want to do the exotics. In South America, you've got the combination of cosmopolitan
cities mixed with wildlife, national parks and gorgeous, pristine, untouched

Travcoa visits Iguazu Falls, on the border of Brazil and Argentina

In 2008, expect to see a big push behind Globus' South
America product, as interest in tours there continues to grow—so much so that
in 2007, sales of Globus' South America itineraries
grew by 50 percent. In 2008, Globus is looking to establish a culinary tour

The tour operator is increasing departures on its existing
tours, as well as launching several new ones. New for 2008 is "Patagonian
Adventure: Journey to the End of the World," a 15-day trip that spans
Santiago, Chile; many other cities, including Buenos Aires, Argentina; Puerto
Natales, a city that claims to be the world's most southern; and Torres del
Paine National Park, a UNESCO World Heritage Site, for an overnight. Departures
begin January 3, 2008, at a price of $5,299.

"Wildlife is abundant on this trip," Vincent says,
"with foxes, swans and condors everywhere. It's a very nature-based trip,
but guests will be taken care of in the hotels."

What's more, the tour operator believes that South America's current reputation as a relatively
untouched destination could be a good way for agents to attract younger
clientele. To help out, Globus has expanded its FIT Monograms product in the
country and, like China this year, in 2008 Globus will focus on heavily
promoting South America, using a three-tiered mailing and launching a new
micro-site, "Colorful South America," on its web site.

In addition to the potential for attracting younger
customers, South America also is a magnet for
female travelers, according to Jerre Fuqua, president of First Choice
Expeditions, the parent company of the luxury operator Travcoa. According to the recent survey by
the Adventure Travel Trade Association, women make up the majority of adventure
travelers worldwide, and the most popular destination among them is South America.

"I personally love South America," Fuqua says,
"and my reason for that is that if you think about all the places on your
life list, you'll find a lot of them are in South America: the Galapagos, Machu Picchu, Brazil's
Iguazu Falls
and Easter Island in Chile."
In fact, Fuqua says that Travcoa was one of the first companies to take
travelers to Easter Island in the 1960s. Since
that time, a variant of that trip has continued every year and continues to be
one of Travcoa's most popular products. "We'd be in trouble if we didn't
go; the trip is that strong," he says.

In 2008, the company will offer a 12-day "Chile's
Patagonia & Easter Island" itinerary priced from $7,295. Guests start
their stay in Santiago
and cross the Patagonian pampas to Coyhaique. After stops in Laguna San Rafael
and San Cristobal Hill, the last four days are spent on Easter
, where Travcoa privately guides guests through the area
using local experts. "We are not a volume tour operator, so we go to
exotic places that can't handle hordes," Fuqua says.

Still Room to Grow

Meanwhile, Tauck World
has been escorting travelers to South America for close to 10
years, though it's certainly a region where the portfolio has the potential to
expand, says Brian Stacey, Tauck's regional planning manager for the exotics
region, which includes Africa, Asia, the South Pacific and South
. "The infrastructure there is improving month by
month with new hotels and better air lift," he says.

"In recent years, we've been focused on Europe and China, but
right now that focus is turning," Stacey continues. "South America is an area where we have room to grow. The
demand is there."

Stacey says that in areas like Chile's
Atacama Desert and Brazil's
Pantanal—places that used to be considered backpackers' destinations—luxury
hotels are starting to pop up. Yet before Tauck ventures there, the company
wants to make sure that the areas have the infrastructure to support the level
of quality Tauck customers have come to know and expect. "That's the key
to our success," Stacey says. "We may not be the first people there,
but we will do it right."

Tauck is offering two new trips to the region in 2008:
"Essence of South America" and "The Panama Canal & Costa
Rica" cruise. "Essence of South America" is a 13-day trip that
explores Chile, Brazil, Santiago,
Buenos Aires and Rio de Janeiro, with prices starting from
$4,940. On "The Panama Canal & Costa Rica" tour, the trip is
split between five days on land and a six-night cruise aboard Le Levant
through the Panama Canal. Prices start at

Central America

is also seeing increased interest in Central America, so much so
that the tour operator recently established an office in Costa Rica.

Monolithic human figures in Easter Island's Rapa Nui National Park

Because of its growing popularity, it's getting more
difficult to put together an authentic experience, says Richard Edwards, chief
marketing officer for Austin-Lehman, who in June relocated to Costa Rica.
"If we're down there, it makes all the difference," he says.

"Our Costa
trips are in the top 10 of web page
views of our site," he professes. "They're as popular as our
traditional Montana and Yellowstone

Edwards is responsible for product development, the
oversight of operations and working with local operators and hotels to create
new itineraries.

"Why people are going there and why it's a good time to
open an office there are related," Edwards tells Travel Agent.

"People are going there for authentic experiences. You
talk about travel as seeing new places, like Machu Picchu and the rainforest, but when
people come back, what they talk about is the people they met."

With the idea of meeting locals in mind, Austin-Lehman
Adventures is revamping its product in Costa Rica. "We're going to
offer more romantic trips from a luxury point of view, but with a local
twist," Edwards says, adding that the company will focus on family travel
in the same way. "We're not getting rid of our active component, but we
are really trying to answer what people are looking for in experiential
travel—interacting with people in an authentic way." Trips should be
listed online later this year.

Clearly, the industry's excitement over South
is palpable. If it continues at this pace, the region
could be on its way to becoming the next Europe,
with its rich culture, taste of the past and exciting future.

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