GROWTH, CONFIDENCE AND OPPORTUNITIES TO INVEST
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1 GROWTH, CONFIDENCE AND OPPORTUNITIES TO INVEST HOTEL & TOURISM INFRASTRUCTURE ATTRACTIVE INCENTIVES FOR INVESTMENT IN THE HOTEL INDUSTRY Exemption from income taxes for a period of 30 years: the exemption will enter into force after the initiation of operations for hotel services provided in new, remodeled and/ or expanded hotels from the year 2003 to December Exemption from income taxes for a period of 20 years; income from ecotourism services is exempt for a period of 20 years, following the 2003 tax year. Tax and customs benefits for capital assets used for tourismrelated exports (Vallejo Plan). Colombia vows to exempt tourists from sales tax. the decree exempts from VAT those who visit us from the outside and those who buy tour packages associated with health tourism, tourism events, or related to cultural activities Li b ertad r y O d en
2 GROWTH IN INTERNATIONAL TOURISM TO COLOMBIA IS ABOVE THE WORLD AVERAGE Arrivals of non-resident foreigners to Colombia increased from 1,591,120 in 2012 to 2,288,342 in It has showed an average increase of 16.3% in 2015 compared to (Migration Colombia, 2015) In 2015, Colombia hosted 351 events, reaching 270,000 assistants. ARRIVAL OF FOREIGN TRAVELERS TO COLOMBIA DYNAMIC SECTOR IN CONSTANT GROWTH Construction of more than 27,000 homes over the last 11 years. (Portafolio, 2014) 1,591, ,726,300 1,967,814 2,288, Colombia has great potential for investment in various tourist niches (wellness, nature, sun and beach, entertainment and urban hotels). mainly around the cities of Bogota and Cartagena de Indias, and 7 new hotels are expected to arrive in the country. Colombia has more than 45 million people and is considered a country with middle to high incomes, according to the World Bank. Colombia has more than 1,000 weekly flights international airlines. The average growth in passenger traffic on domestic flights in the last five years was 11.3%. (OAG Aviation, 2015) Source: Colombian Immigration Department, 2014 From 2010 to 2015, around 160 hotels (16,839 rooms) were opened in the country.
3 OPENING HOTELS IN COLOMBIA * Habitaciones 2,655 3,010 2,519 2,817 2,754 3,084 4,623 Estimado apertura de hoteles * INVESTMENT OPPORTUNITIES FOR HOTEL AND TOURISM INFRASTRUCTURE IN THE FOLLOWING SECTORS: WELLNESS TOURISM: Beaches that span across two oceans abounding with rainforests, lush landscapes and a variety of climatic thermal floors (glacial, Andean moor, cool, temperate and warm). Its biodiversity is conducive for therapies, tranquile atmospheres and the development of unique products and experiences related to wellness and nature. Opportunities: hotels with thalassotherapy centers, thermals infrastructure and hotels with spa wellness centers. NATURE: Colombia has 53 million hectares of natural forest, 22 million hectares of savanna, desert, snow-capped mountains and wetlands. It is the fourth richest country in the world in water resources. Its natural parks make up 14% of the national territory, and it is the country with the highest biodiversity per square meter in the world. Opportunities: eco-luxury hotels, eco-glamping, ecolodge and complementary eco-friendly infrastructure (trails, paths, bird watching hubs, corridors). SUN AND BEACH: Colombian beaches are bordered by the stunning Pacific Ocean and Caribbean Sea. There are world-class attractions including coral reefs, ecological parks, aquariums, marine museums, and historic city walls. URBAN HOTELS: Colombia has 9 urban sprawls that have a population over 500,000 inhabitants. This creates a large opportunity to offer hotel alternatives due to the cities intense trade and business dynamics. Also, Colombia has become widely known as a destination for hosting congresses and conventions in Latin America, which opens the demand for hotels with convention centers. ENTERTAINMENT: Source: MICT (Ministry of Trade, Industry and Tourism) Opportunities: luxury hotels, luxury include concept, and golf resorts. Opportunities: full, limited and select service hotels, and hotels with convention centers. Colombia offers a limited inventory of large crowd event infrastructure and entertainment venues. In 2011, a law was passed to stimulate investment in the entertainment industry. Show and entertainment infrastructure investments will be 100% deductible from income tax, among other incentives for US entrepreneurs. Opportunities: amusement park construction, entertainment venues, and auditoriums enabled for concert events.
4 COLOMBIA, A COUNTRY WITH MULTIPLE DEVELOPMENT HUBS BOGOTA - CUNDINAMARCA Hotel occupancy rate: 56.83% General average rate: USD 92. CARTAGENA DE INDIAS Hotel occupancy rate: 57,35%. General average rate: USD 131,7 ATLANTICO Hotel occupancy rate: 56.25%. General average rate: USD 62.1 MAGDALENA Hotel occupancy rate: 56.3%. General average rate: USD 80.7 SAN ANDRES Hotel occupancy: 79.48%. ANTIOQUIA Hotel occupancy rate: 65.74%. General average rate: USD VALLE DEL CAUCA Hotel occupancy rate: 50.78% General average rate: USD 58.5 COFFEE CULTURAL LANDSCAPE Hotel occupancy rate: 45%. General average rate: USD 57.1 SANTANDER Hotel occupancy rate: 45.05%. General average rate: USD 55.4 General average rate: USD 72.6 Colombia has an economy that is sufficiently stable and will keep growing, and this is attractive ALVARO DIAGO, PRESIDENT OF THE IHG FOR LATIN AMERICA AND THE CARIBBEAN. Source: Cotelco Average representative exchange rate 2015 $2,741.78
5 LARGE FOREIGN COMPANIES HAVE CHOSEN COLOMBIA AS A PLACE TO INVEST HILTON HOTELS: inaugurated its first hotel in the Colombian capital, with around 240 rooms in the financial district of Bogota (Calle 73). Hilton also has a presence under its Hampton brand on the Colombian Caribbean, in Cartagena de Indias and Barranquilla. ACCOR: International Center (one of the most important commercial areas in the city). It also has a hotel in Medellin with 216 rooms. MARRIOTT: room hotel near the city airport. It also has the hotel JW Marriott in the financial district of Bogota, with 264 rooms. It expects to open a Marriott hotel with 180 rooms in Cali. INTERCONTINENTAL: Medellín. and in Cartagena de Indias stands out; between the two hotels there are 331 rooms. Additionally, there is a Holiday Inn Express with 76 rooms in Bogota, one with 98 in Cucuta and one with 170 in Bucaramanga. An Intercontinental is currently being built in Cartagena de Indias.
6 TOURIST DESTINATIONS IN COLOMBIA ARE BEING RECOGNIZED WORLDWIDE In 2014, a global study of 234 cities with more than 2,000 people in 32 countries determined that Medellin is the best city in Latin America to live in. Colombia currently has 13 Cultural Heritage of Humanity awards by UNESCO. In 2011 the Coffee Cultural Landscape was added to this list. British tour operators chose the country as the Long-Distance Revelation Destination in 2013, a prestigious award granted by the magazine Selling Long Haul. Similarly, Tayrona National Park and Lost City in Santa Marta were destinations selected within the best trips category for 2012 by National Geographic s Travel Magazine. Cali, the World Salsa Capital, was ranked tenth among the 41 travel destinations recommended in 2011 by the New York Times. SAN ANDRES BOGOTA COFFEE CULTURAL LANDSCAPE TAYRONA NATIONAL NATURAL PARK
The Growth of International Tourism to Colombia is Above the Global Average
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