In the month of June, Chile saw a 22 percent jump in wine exports. This could be due to a rebounding economy. It could also have to do with the fact that Chile is producing more wine than ever, and at a better quality than it ever has. Given the positive direction that Chile’s wine industry is heading, what implications does this have for the economy and other businesses in Chile?
Wine only comprises roughly two percent of Chile’s total exports, but the audience to which wine is marketed makes it a product that can impact other businesses as well. For one, the production of great and better wine in the midst of an economy in rebound means that Chilean wine producers will see many more investments headed their way, enough to actually influence Chile’s stock market index. Additionally, this stock market success and positive word-of-mouth could lead to investments for other Chilean businesses as well.
In addition to foreign investment, the wine industry can also help augment Chile’s burgeoning tourism industry. Recent tourism reports project a growth for Chile’s tourism industry, despite an initial decrease in contribution to their GDP. So where does wine fit in? Although Chile already has a reputation for producing quality wines, it never hurts to get the word out to more people. Chile has been quietly improving the dining and lodging in its “Wine Country,” and people are noticing. Eventually, Chile hopes that its wine industry can be a major draw for wealthy visitors, and help augment its retail and tourism industries, which comprise nearly ten percent of its GDP.