A stable Venezuela could offer visitors more than just oil

A beach in Venezuela. Foreign tourist spending makes up about 0.5% of the country’s GDP at present, compared with 7% in nearby Panama © APA stable Venezuela could offer visitors more than just oil on x (opens in a new window)A stable Venezuela could offer visitors more than just oil on facebook (opens in a new window)A stable Venezuela could offer visitors more than just oil on linkedin (opens in a new window)A stable Venezuela could offer visitors more than just oil on whatsapp (opens in a new window) Save A stable Venezuela could offer visitors more than just oil on x (opens in a new window)A stable Venezuela could offer visitors more than just oil on facebook (opens in a new window)A stable Venezuela could offer visitors more than just oil on linkedin (opens in a new window)A stable Venezuela could offer visitors more than just oil on whatsapp (opens in a new window) Save PublishedJanuary 10 2026Jump to comments sectionPrint this pageUnlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.For obvious reasons, financial discussions around Venezuela’s future mostly revolve around its enormous oil reserves.

But Donald Trump’s talk of turning Gaza into a “Riviera of the Middle East” last year suggests it is worth considering another kind of trade that — one day — could help bring prosperity to the tottering Latin American country: tourism.Holidaymakers are economically significant for many of Venezuela’s near neighbours. Foreign tourist spending makes up about 6 per cent of Costa Rica’s GDP, and about 7 per cent of Panama’s. In Venezuela, the equivalent sum is about 0.5 per cent, based on estimates from the World Travel & Tourism Council.That’s not a surprise: much of the economy is informal, while infrastructure and rule of law are weak, even by regional standards. Costa Rica ranks 54th in the Global Peace Index, a proxy for general safety and stability; Venezuela is 139th.Seen from space, it should be otherwise. Coral beaches, Andean peaks and the world’s tallest uninterrupted waterfall are precious assets. A steady stream of well-heeled consumers would undoubtedly help a country that Deutsche Bank flags as the world’s poorest on a per capita basis, by some measures.Costa Rica, a tiny country that has pointedly targeted US travellers, welcomed about 2.9mn tourists in 2024, and they spent a total of $5.5bn, according to UN Tourism. A stable Venezuela, which is roughly the same flight time from the US and with twice the coastline, ought to be able to beat that with ease. For Trump, a serial resort builder who has repeatedly failed to crack Latin America, this potential is unlikely to go unnoticed.Today, potential is all it is. Even absent political unrest, tourist essentials such as airports would need to be built or restored; roads upgraded; rampant crime kept under control. For giant companies such as Marriott, which retains four franchised properties in Venezuela where rivals mostly left, it would take powerful incentives to add risk that investors won’t reward anyway.Nonetheless, whoever runs Venezuela once the current turmoil has resolved has good reason to try. Imagine the country was able to attract 7mn tourists a year, on a par with Colombia, and that each spent $1,500, somewhat less than Costa Rica. That’s almost $11bn of direct spending. Then think that each $1 a tourist spends can create up to $3.50 of value, according to World Economic Forum estimates. For a country with perhaps $98bn of GDP this year, on Citigroup estimates, that’s a big windfall.Some US investors will flinch at the memory of past bad bets on Venezuelan tourism. Blackstone fell foul of strongman politics in 2009 when Hugo Chávez breezily expropriated one of its beachfront Hilton hotels in a fit of pique over the way the resort was run. Then again, if the troubled country can find stability — at this stage still an “if” — even sceptical financiers may again start to take notice.john.foley@ft.comReuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article Lex Add to myFT Americas economy Add to myFT Travel & leisure industry Add to myFT Venezuela Add to myFT CommentsFor obvious reasons, financial discussions around Venezuela’s future mostly revolve around its enormous oil reserves.

But Donald Trump’s talk of turning Gaza into a “Riviera of the Middle East” last year suggests it is worth considering another kind of trade that — one day — could help bring prosperity to the tottering Latin American country: tourism.Holidaymakers are economically significant for many of Venezuela’s near neighbours. Foreign tourist spending makes up about 6 per cent of Costa Rica’s GDP, and about 7 per cent of Panama’s. In Venezuela, the equivalent sum is about 0.5 per cent, based on estimates from the World Travel & Tourism Council.That’s not a surprise: much of the economy is informal, while infrastructure and rule of law are weak, even by regional standards. Costa Rica ranks 54th in the Global Peace Index, a proxy for general safety and stability; Venezuela is 139th.Seen from space, it should be otherwise. Coral beaches, Andean peaks and the world’s tallest uninterrupted waterfall are precious assets. A steady stream of well-heeled consumers would undoubtedly help a country that Deutsche Bank flags as the world’s poorest on a per capita basis, by some measures.Costa Rica, a tiny country that has pointedly targeted US travellers, welcomed about 2.9mn tourists in 2024, and they spent a total of $5.5bn, according to UN Tourism. A stable Venezuela, which is roughly the same flight time from the US and with twice the coastline, ought to be able to beat that with ease. For Trump, a serial resort builder who has repeatedly failed to crack Latin America, this potential is unlikely to go unnoticed.Today, potential is all it is. Even absent political unrest, tourist essentials such as airports would need to be built or restored; roads upgraded; rampant crime kept under control. For giant companies such as Marriott, which retains four franchised properties in Venezuela where rivals mostly left, it would take powerful incentives to add risk that investors won’t reward anyway.Nonetheless, whoever runs Venezuela once the current turmoil has resolved has good reason to try. Imagine the country was able to attract 7mn tourists a year, on a par with Colombia, and that each spent $1,500, somewhat less than Costa Rica. That’s almost $11bn of direct spending. Then think that each $1 a tourist spends can create up to $3.50 of value, according to World Economic Forum estimates. For a country with perhaps $98bn of GDP this year, on Citigroup estimates, that’s a big windfall.Some US investors will flinch at the memory of past bad bets on Venezuelan tourism. Blackstone fell foul of strongman politics in 2009 when Hugo Chávez breezily expropriated one of its beachfront Hilton hotels in a fit of pique over the way the resort was run. Then again, if the troubled country can find stability — at this stage still an “if” — even sceptical financiers may again start to take notice.john.foley@ft.com