Wednesday, July 17, 2024
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The Peruvian Ministry of Trade and Tourism, in collaboration with the Latin American and Caribbean Development Bank (CAF) and with the support of the United Nations Tourism Office, celebrated the launch of the Peru’s Best Tourism Villages initiative, which will recognize seven outstanding towns in recognition of their contribution to tourism in 2022 and 2023. A special ceremony presented the towns with plaques and highlighted their important role in promoting Peru as a top tourist destination.
During the event, selected villages were presented with recognition plaques, highlighting their vital role in Peru’s tourism industry. The initiative underscores Peru’s commitment to promoting and developing sustainable tourism practices throughout the country.
Key insights gained from the discussions at the event, themed “Promoting Foreign Investment: Presentation of the Tourism Business Investment Guidelines for Investment in Peru and the General Guidelines for the Development of Public Investment in Tourism”, include important milestones in Peru’s tourism sector.
Peru has consistently ranked among the top four Latin American and Caribbean countries for new foreign direct investment (FDI) projects in tourism from 2018 to 2023, confirming how attractive the country is to foreign investors seeking opportunities in the vibrant tourism industry.
Since 2005, the public sector has allocated approximately US$621.4 million through the Public Investment Budget to various tourism activities and projects. Looking ahead, a further US$93.5 million is due to be invested through 2024, highlighting the government’s continued support for the growth and development of the sector.
The event highlighted Peru’s strategic focus on sustainable tourism development, aiming to enhance visitor experiences while protecting the country’s rich cultural and natural heritage. This comprehensive approach, supported by strong investments and strategic partnerships, underscores Peru’s commitment to becoming a leading destination for travelers from around the world.
UN Tourism Secretary-General Zurab Pololikashvili said: “Peru is making steady progress towards a post-pandemic tourism recovery, with an expected growth of 25.7% by 2023. Furthermore, Peru’s cultural and natural heritage makes it a highly attractive country for investment. The UN Tourism Guidelines ‘The Business of Tourism – Investing in Peru’ are a fundamental tool to highlight the numerous business opportunities offered by the tourism sector of this great country.”
CAF Secretary General Sergio Díaz Granados added: “CAF wants to contribute to the positioning of Peru for tourism investment and take advantage of the enormous potential this sector offers. Peru is a good example of leveraging its unique attractions, a tourist destination characterized by innovation and creativity. The distribution of the Tourism Investment Guide fulfills the alliance signed in January this year between CAF, the United Nations Tourism Office and the Peruvian Government (represented by the Ministry of Trade and Tourism) to support the development of this sector, key for job creation and increasing the country’s productivity”.
Peru’s Minister of Trade and Tourism, Elisabeth Galdo Marin, said: “Tourism is a key driver of the economic and social development of our country. With its rich cultural and natural diversity, Peru positions itself as an exceptional destination for sustainable tourism. The inclusion of a special chapter on green investments and another on gastronomy in this guide, in collaboration with the United Nations Tourism Office and CAF, underscores our commitment to responsible and sustainable tourism development.”
Peruvian cuisine is a vivid reflection of the country’s rich biodiversity and cultural heritage, blending influences from Andean, Amazonian, European, Asian and African culinary traditions. This diverse gastronomic landscape, showcasing locally produced ingredients and regional specialities, is a cornerstone of Peru’s cultural identity and a major attraction for tourists.
Peru is rich in archaeological heritage, historical sites and natural wonders as well as culinary attractions, making it a major destination for tourist investments. Peru’s diverse ecosystems support a wide range of tourism activities based on the principles of environmental sustainability and cultural preservation.
Peru offers attractive incentives to encourage foreign direct investment (FDI) in a variety of sectors, including tourism. Non-financial benefits, such as full foreign ownership, low minimum capital requirements, and the ability to operate accounts in multiple currencies, streamline the process for international companies looking to set up operations in Peru.
Specific incentives specific to the tourism sector include preferential Value Added Tax (VAT) rates for hospitality and accommodation small and medium-sized enterprises, reducing VAT from the general rate of 18% to 10%, and mechanisms such as the VAT Early Recovery Programme, which have injected more than US$700 million into the economy since 2007, supporting tourism-related investment.
The Amazon Law provides further incentives, such as reducing income tax rates from 5 percent to 10 percent, aimed at promoting tourism in Peru’s ecologically diverse Amazon region.
The Peru Tourism Business Guide provides a comprehensive overview of Peru’s investment environment and highlights the significant growth opportunities. Between 2018 and 2023, Peru is projected to attract 360 tourism greenfield FDI projects across Latin America and the Caribbean, reaching a total investment value of US$29.5 billion and creating 115,815 jobs.
Currently, the tourism sector directly or indirectly employs around 1.2 million Peruvians and is expected to rise to 1.3 million by 2024, reflecting strong growth of 13.5% from 2023. Tourism’s contribution to Peru’s Gross Domestic Product (GDP) is expected to increase from 2.5% in 2023 to 2.9% in 2024, highlighting the important role of tourism in the country’s economic landscape.
Public investment in tourism has been substantial, with US$621.4 million allocated between 2005 and 2024, with a budget of US$93.5 million planned for 2024 alone. The Ministry of Foreign Trade and Tourism, through its Guide, is actively promoting 10 major investment projects, with a total investment of US$650 million, demonstrating Peru’s ongoing commitment to expanding and diversifying its tourism offering.
These efforts underscore Peru’s strategic approach to fostering sustainable tourism growth while leveraging the country’s cultural and natural assets to attract visitors from around the world and drive economic prosperity.
UN Tourism Director Natalia Bayona added: “The outlook for tourism investment in Peru is very positive. Between 2018 and 2023, Peru was in the top four countries in Latin America and the Caribbean for announced greenfield FDI investments in tourism. This data shows that investment in tourism is important and that now may be the best time to do so.”
Tags: Caribbean , Latin America , Peruvian Ministry of Trade and Tourism , Natalia Bayona , Peru , Peruvian Tourism , sustainable tourism , tourism industry , tourism news , tourism destinations , UN Tourism
