Adventure tourism has become one of the fastest growing tourism segments in recent decades. The majority of research on adventure tourism has focused on the adventure travellers’ preferences as well as the specific benefits derived by travellers as a result of tourism experiences. From a supply-side perspective, an adventure destination can be seen as a bundle of tourism facilities and services composed of a number of multi-dimensional attributes. This paper attempts to use the supply-side analysis to examine the challenges facing Patagonia, Chile as an international adventure destination. It was based on findings from in-depth interviews with various tourism planning officials, tour operators and industry workers from both Chile and North America. Challenges stem from the region’s peripheral location, blurred image, limited tourism infrastructure, and a lack of political support from the government. The results suggest that though the limited accessibility and tourism infrastructure are not currently viewed as negatives, the degree of expansion needs a comprehensive evaluation. The restructuring of a tourism board that combines a hybrid of the public and private sectors may help overcome the lack of support from government. Tourism education should be given priority and government should be encouraged to provide on-site training for people working in the field of adventure tourism.