Chile. Tourism in the economy. Tourism governance and funding

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1 Chile Tourism in the economy Tourism in Chile has experienced a sustained rise in recent years and has become one of the sectors delivering the fastest growth and employment generation. It has been estimated that tourism is directly responsible for 3.2% of Chile s GDP and 4.1% of employment. Inbound tourism has increased by more than 100% in the last 10 years, moving from 1.8 million in 2004 to more than 3.6 million in In 2015, figures are even better, with an average increase in inbound tourism of 20.2%. Main markets are Argentina, Brazil, Bolivia, Peru and the United States. Domestic tourism flows have also increased in recent years, and with a 10% rise in the last four years have reached nearly 23 million trips. Domestic receipts account for an estimated of USD 4.8 million, while inbound tourism accounts for USD 3.1 million (including visitors and international transport). Tourism governance and funding Tourism in Chile is under the responsibility of the Under Secretary for Tourism within the Ministry of Economy, Development and Tourism. The Under Secretary, together with the Inter-Ministerial Committee on Tourism and the Consultative Council for Tourism Development, is in charge of defining and implementing the national tourism policy and strategies. Their responsibility is to encourage the development of the sector, encourage investment, create jobs, reduce tourism seasonality and further promote decentralisation. The National Tourism Service (SERNATUR) has the responsibility of executing tourism policy and strategies. Regional government together with the Regional Offices of the Tourism Service can promote and develop tourism-related activities in their respective regions. Tourism initiatives have to compete for the regional budget with other sectors. The budget of the National Tourism Service was USD 37.6 million in 2015, up from USD 34.5 million in In 2015 the Under Secretary for Tourism was for the first time provided with a budget for supporting short, medium and long term actions to implement the National Plan for Sustainable Tourism Development This budget amounts to USD 100 million. This new budget allocation stems from the Agenda for Productivity, Innovation and Growth which sets a path for the transformation of the economy. The regular budget 144

2 Chile: Organisational chart of tourism bodies Ministry of Economy, Development and Tourism Inter-Ministerial Committee on Tourism Undersecretary of Tourism Consultative Council for Tourism Development National Tourism Service (SERNATUR) Source: OECD, adapted from the Ministry of Economy, Development and Tourism, (for operation purposes) more than doubled from 2014 to 2015, moving from 0.75 million in 2014 to almost 1.5 million in Tourism Policies and programmes Chile has a great natural heritage and valuable cultural resources. Its legal and regulatory environment is conducive to the development of tourism, with an open economy, bilateral air service agreements and visa requirements with few restrictions. It also has an adequate level of security and improved tourism infrastructure. The challenge is to gain more benefit from this potential. Main priorities for Chile are to promote sustainable development of the sector through actions in prioritised destinations, to increase recognition of tourism as an important economic sector and to improve the competitive position of Chile. Specific goals to achieve are to: develop new and innovative tourism experiences, considering cultural and identity elements, encourage more Chileans to travel, know and enjoy Chile, capture more value from tourism, through actions to improve the offer and promotion in prioritised international markets, strengthen the sustainable development of destinations, from an integrated territorial approach that promotes the engagement of local and regional actors. Tourism has been recognised in the overall Government Programme as not only an economic activity whose importance has grown over time, but also has features that make its promotion a target of great public interest as it contributes to build national and regional identity, generates local development even in the more remote areas, creates related economic activity, contributes to the protection of natural resources and promotes cultural exchange. The National Plan for Sustainable Tourism Development has been partly based on a process of territorial assessment, which identified and classified 84 tourism destinations according to their state of development. This was complemented by the identification of gaps that affect tourism competitiveness in each destination, leading to the prioritisation of different lines of action. 145

3 Chile s National Plan for Sustainable Tourism Development The National Plan for Sustainable Tourism Development embraces a number of transversal principles including sustainability, territorial focus, inclusion and equity, and encouraging joint action. These principles are reflected in actions that address the following objectives: National and International Promotion. Increasing and spreading international and domestic tourism in Chile, including foreign exchange earnings and contribution to economic activity. The implementation of promotional activities in international and domestic markets. Strengthening existing tourism intelligence to enable better marketing decisions. Development of Destinations. Articulation and implementation of action plans for the development of public and private infrastructure. Bringing together stakeholders to strengthen public-private management and enhancement of destinations. Implementing actions that cover competitiveness gaps in tourist destinations. Promoting sustainable development in Areas of Tourist Interest. Diversification of Experiences. Promotion of sustainable tourism in protected areas, through enhancement of natural and cultural heritage and delivery of high quality products and services. Design and implementation of basic infrastructure. Development of different themes and facilitation of access by different market segments. Increasing demand in the low season. Simplification of regulations. Strengthening quality and human capital. Promotion of certification of services and people. Improving skills and employment conditions. Improving the relevance and quality of training. Provision of guidelines and tools. Promotion and assessment of quality certification and sustainability protocols. Encourage domestic tourism with an inclusive approach. Promoting access to tourism to Chilean vulnerable families, with emphasis on women heads of household, through a co-funded Family Tourism programme at different times of the year. To help reduce the seasonality of the occupation of accommodation establishments through two programmes Study Tour and Senior Holidays. 146

4 Statistical profile Table 1. Chile: Domestic, inbound and outbound tourism TOURISM FLOWS, THOUSAND Domestic tourism Total domestic trips Overnight visitors (tourists) e e Same-day visitors (excursionists) Nights in all types of accommodation e e Hotels and similar establishments Specialised establishments Other collective establishments Private accommodation Inbound tourism Total international arrivals Overnight visitors (tourists) Same-day visitors (excursionists) Top markets Argentina Brazil Bolivia Peru United States Nights in all types of accommodation Hotels and similar establishments Specialised establishments Other collective establishments Private accommodation Outbound tourism Total international departures Overnight visitors (tourists) Same-day visitors (excursionists) Top destinations Argentina Peru United States Brazil Spain TOURISM RECEIPTS AND EXPENDITURE, MILLION USD Inbound tourism Total international receipts International travel receipts International passenger transport receipts Outbound tourism Total international expenditure International travel expenditure International passenger transport expenditure Not available; e Estimated value Disclaimer: Source: OECD Tourism Statistics (Database)

5 .. Not available; p Provisional data Disclaimer: 1. Data refer to number of enterprises. 2. Data refer to number of employees. Table 2. Chile: Enterprises and employment in tourism Number of establishments 1 Number of persons employed Total Tourism industries p Accommodation services for visitors Hotels and similar establishments Food and beverage serving industry Passenger transport Air passenger transport Railways passenger transport Road passenger transport Water passenger transport Passenger transport supporting services Transport equipment rental Travel agencies and other reservation services industry Cultural industry Sports and recreation industry Retail trade of country-specific tourism characteristic goods Other country-specific tourism industries Other industries Source: OECD Tourism Statistics (Database)

6 From: OECD Tourism Trends and Policies 2016 Access the complete publication at: Please cite this chapter as: OECD (2016), Chile, in OECD Tourism Trends and Policies 2016, OECD Publishing, Paris. DOI: This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at or the Centre français d exploitation du droit de copie (CFC) at

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