Tourism Sector

TOURISM SECTOR
•
Colombia is becoming one of the most important destinations for tourism in
Latin America. According to the World Travel & Tourism Council (WTTC), real
demand for trips and tourism in Colombia is expected to increase from US$ 9,800
million to US$ 14,300 million during 2006-2015, a real growth of 4.5% per year[1],
greater than the growth rate of 4.1% expected for Latin America[2].
•
The tourism sector currently accounts for 2.2% of total GDP in Colombia (US$
2,700 million)[1], contributes 11.2% of total capital investments worth US$ 1,800
million, and generates 380,000 direct jobs, equivalent to 2.2% of total employment
in the country.
•
By 2015, the Colombian gross production of tourism sector is expected to
reach US$ 6,600 million, reflecting a 9% growth. A US$ 5,500 million capital
investment is also expected for this year, with a generation of 540,000 direct jobs;
equivalent to an employment growth of 3.5% per year.
[1] Ministry of Commerce, Industry and Tourism, tourist information system. Bulletin January, 2006.
[1] This amount includes tourism spending both by local residents and international travellers, as well as business travel, public spending in the sector and
capital investment.
[2] WTTC: inflation-adjusted real annual growth 2006-2015.
INVEST IN COLOMBIA
1. Colombia. Great destination for business and
investment
2. World recognizesour work
3. Reasons to invest
INVEST IN COLOMBIA
1. Colombia. Great destination for business and
investment
2.World recognizes our work
3. Reasons to invest
Investment in Hotels
189 % growth y more than US $500 Million
Investment in Hotels and Restaurants
(2002 – 2009) Millones de USD
500
400
289%
170%
189%
125%
300
67%
20%
200
100
0
Inversión Hotelera
Fuente: Cotelco. Cifras Aproximadas
% Crecimiento
5
4
3
2
1
0
-1
-2
-3
-4
Growth rate of foreign visitors 2004-2008
With a growth rate of 11,5% since 2004, the international
tourism to Colombia grow more than worldwide rate 4.9%. And
exceed growth rate of the region.
14%
11,5%
12%
10%
8%
6,7%
6%
4%
4,7%
4,9%
5,3%
REP
DOMINICANA
MUNDO
ECUADOR
3,6%
2%
0%
MEXICO
Fuente: Cotelco. Cifras Aproximadas
SURAMERICA
COLOMBIA
In 2008 we received more than
doubled of foreign visitors in 2002
Arrival Foreign Visitors to Colombia (2002 – 2008) Thousand
Check Points and y Cruise ships (without cross – border
visitors)
661
668
2002
2003
840
2004
981
1.104
2005
2006
1.322
1.451
2007
2008
Fuente: Departamento Administrativo de Seguridad – DAS
*M: Meta. Fuente: Ministerio de Comercio, Industria y Turismo
80% growth in cruise passengers
arrival 2008
Cruise Ships arrival to Colombia
Cruise Ships
2002- 2008
Cruise passengers
2002 - 2008 (thousands)
161
200
150
100
50
99
84
55 59 45 53
126,8
150
100
50
0
228,2
250
200
94,4
42,6
49,3
48,2
50,5
0
2002 2003 2004 2005 2006 2007 2008
Fuente: SPRC, SPSM, Capitanía de Puerto San Andrés Isla
Incluye: Cartagena, Santa Marta y San Andrés
* Proyección hecha por el Ministerio de Comercio, Industria y Turismo
Hotel occupancy rate in 2008
PROMEDIO
50
Bogotá D.C.
54,5
64,3
55,6
San Andrés
61,4
Cartagena
60,7
59
58,1
Norte de Santander
Barranquilla
Atlántico Comercial
Santander
Antioquia
Influencia Bogotá
Valle del Cauca
38
43
43,3
Cafetera
2008
Fuentes: Cotelco
52,6
56,7
48,1
52,9
44,9
52,3
44,6
51,1
44
49,9
52,1
44,6
2009 Ene-Feb
72,5
UNWTO CONGRATULATES COLOMBIA FOR
THE TOURISM STRATEGY
COLOMBIA, EXAMPLE TO
FOLLOW
•“ Colombia, with the country
brand, show an excellent model
to other countries that have
been facing analog situations”
Germán Porras Olalla (Ex secretary of
Tourism of Spain) -UNWTO
10
1. Colombia. Great destination for business and
investment
2. World recognizes our work
3. Reasons to invest
The world identified these results
in the economy…
Media press registered
our development
Once again, the world recognized Colombia as
a great destination !!!
MAY 2009
Bad Reputation, Great Destination: Bogota: This walkable metropolis
of seven million is once again reclaiming its role as Latin America's
intellectual and cultural hub
THE HEADLINES
For well over a decade, few cities in the Americas inspired as much
bad press as Bogotá, Colombia. More than the capital of a country, it
was a capital of crime, murder, kidnapping, and bombs; a place where
the cartels dispatched their drugs, paramilitaries trafficked weapons,
and leftist rebels set their sights. The guerrillas welcomed current
president Álvaro Uribe with a series of homemade mortar attacks on
his inauguration in 2002, leaving 21 people dead in a slum near the
palace.
…”things are changing.
Colombia is located again in the
touroperator map as a great
destination for visitors”…
Destination of the World News.
Dubai Magazine.
September 2008
Some success stories …
Projects in the Caribbean: 2009-2011
CARTAGENA: 2433 rooms
Seaway 935 - Sonesta: 100
Ocean Tower: 280
Related Group: 200
Decameron Baru: 300
Hotel Las Americas: 250
Hyatt: 200
Estelar: 335
Otros proyectos : 768
BARRANQUILLA: 800 rooms
Hotel Sonesta: 113
Smart Suites (Royal):
Hotel Dann: 105
Hoteles Estelar: 170
•Santa Marta: 268 rooms
Investment of national hotel chains
(268)
Projects in the Andean Region. 2009-2011
BOGOTA: 2239 new rooms
JW Marriot: 269
Marriot: 249
NH: 150
Accor: 216
Sonesta: 127
Hyatt: 377
IHG-Holiday Inn: 76
Hilton: 245
Hoteles Estelar: 134
Otros proyectos: 400 habitaciones
MEDELLIN: 608 new rooms
Accor: 180
Hoteles Estelar: 128
Otros proyectos: 300
[1]
ibs
CALI: 365 rooms
Starwood - Sheraton by GHL: 93
Otros proyectos: 272
1. Colombia. Great destination for business and
investment
2. World recognizes our work
3. Reasons to invest
Foreign Direct Investment to Colombia
has grown significantly during six years
Foreign Direct Investment to Colombia, 2000-2008(pr)
(US$ Million)
Foreign Direct Investment to Colombia by sector, 2008(p)
(Share in total)
US$ Million
Construction
3%
Services
1%
Transport and
Communications
7%
+395% in 20022008
Primary sectors
Electric
0%
power, gas and
water
0%
Retail, hotels
and restaurants
10%
Financial
12%
Mining
54%
Manufacturing
13%
Source: Central Bank (Banco de la República), Balance of Payments
(pr) Preliminary
Source: Central Bank (Banco de la República), Balance of Payments
(p) Provisional
Second most “business friendly” country in
Latin America Doing Business 2007-2009
Two years in a row as the first
reformer in Latin America (2009)
Country
Colombia
improved
26
positions
in two
years!
Source: Top reformers report. World Bank
Ranking
2007
Ranking
2009
Chile
28
40
Colombia
79
53
México
43
56
Perú
65
62
El Salvador
71
72
Panamá
81
81
República
Dominicana
117
97
Argentina
101
113
Costa Rica
105
117
Brazil
121
125
Ecuador
123
136
Venezuela
164
174
Legal Incentives
Exempt income
Hotel services provided in new hotels built between 2003 and 2018, during
30 years.
Hotel services provided in hotels remodeled and/or expanded up to 2018,
during 30 years, prorated to the amount that the cost of remodeling and/or
expansion represents with regard to the total taxable cost of the remodeled
or expanded piece of real estate.
Ecotourism services, during 20 years beginning in 2003.
Income-deductible expenses of the 40% of the amount invested in
productive real assets acquired
Legal Incentives
Sales Tax
Differential VAT rate of 10% for lodging services.
VAT exemption for air tickets and tourist packages.
Free Trade Zone for services - Legal benefits
Single 15% income tax rate
No customs taxes (VAT or customs duties) accrue on imports to FTZs
Possibility of exporting from FTZs to other countries as well as to domestic
markets
Exports from FTZs benefit from international trade agreements
Special Free Trade Zone for Services
This is the special system whereby Free Trade Zone status is granted to an
individual company undertaking a new investment project. In order to qualify, the
company must meet one of the following investment and job creation ranges
Investment (Millions US)
Direct jobs to be created
US$ 2 –US $9.1
500
US $9.1 US$ 18.3
350
US $ 18.3 OR MORE
150
If the project covers various geographical areas, the company may
request that an exception be made to declare all such areas
Special Free Trade Zones.
COP 2500 (Colombian pesos)
Legal stability agreements
LSA are one of the tools that foreign investors have to consolidate
safe and stable investments in Colombia.
An investor interested in entering into a legal stability agreement
must submit an application before the Ministry of Trade, Industry
and Tourism, along with a study showing the origin of the
resources to be used to make the new investment or increase an
existing one, and a detailed and accurate description of the
activity, including feasibility studies, drawings and technical
studies required by the project, and an indication of the number of
jobs the project is expected to generate
Proexport support your investment process
In the last few years, Colombia has experienced a marked improvement in its
macroeconomic performance, internal security and stability for businesses. As a
result social indicators have improved dramatically.
Colombia has achieved a solid structural growth, based on an increase in the
investment rate and higher productivity levels.
The country has guaranteed its external funding for 2009 trough multilateral
institutions such as IADB, WB and CAF.
Colombia is aggressively negotiating trade and investment agreements expanding
its markets and becoming more attractive to investors.
The Colombian Government is committed to generating the most favorable
conditions for domestic and foreign investment instruments such as the free-trade
zones regime and legal stability contracts
www.proexport.com.co