The Growth of International Tourism to Colombia is Above the Global Average
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1 Liberta y Orden INVESTMENT IN HOTEL AND TOURISM INFRASTRUCTURE ATTRACTIVE INCENTIVES FOR INVESTMENT IN THE HOTEL INDUSTRY Exempt from income tax for 30 years: Income tax exemption valid from the start of operations for hotel services offered in new hotels or hotels that are renovated or extended in the period from 2003 to December Exempt from income tax for 20 years: Ecotourism services are exempt from income tax for 20 years from the 2003 tax year. Total or partial suspension of the tariffs and deferral of VAT on capital goods used for tourism exports.
2 The Growth of International Tourism to Colombia is Above the Global Average Arrivals of international travelers in Colombia increased from 600,000 in 2000 to over 1.6 million in 2012, showing average annual growth of 10%. That is almost four times the global average, and one of the highest in the region. The number of visitors to the country on international cruise ships has increased six-fold over the last five years. Colombia is establishing itself as an important destination on the cruise ship circuit in the Caribbean with its three ports in Cartagena de Indias, Santa Marta, and San Andres. Between 2006 and 2012, Colombia climbed 21 places (from 50th place to 29th) in the ranking of international events by the ICCA (International Congress and Convention Association). Arrival of International Travelers to Colombia Source: Migration Colombia, ,692,
3 Growing Demand and Supply in Hotel Sector Between 2004 and 2012, approximately 17 thousand new rooms were built. It is estimated that another 4 thousand new rooms will be available by It is estimated that only 32% of the total number of hotel rooms available in Colombia are equivalent or similar to four and five star hotels. Recent investment has been focused on this segment. Colombia s population is over 45 million people, and the country is considered a medium-high income country by the World Bank. Colombia has over 4,500 weekly domestic air frequencies that connect different cities around the country. Average growth of passenger traffic in domestic flights in the last five years was 11.3%. Investment opportunities in specific sectors: Rooms Hotels , , , , , , , , Source: MICT * estimated. New Hotels and rooms in Colombia * , Wellness NATURE Sun and beach City Hotels Entertainment 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. (Business plan, wellness tourism, PTP). 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, ecogamblig, ecolodge, and complementary eco-friendly infrastructure (trails, paths, birdwatching hubs, corridors). (Business plan, nature tourism,ptp). 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. Opportunities: luxury hotels, luxury includes concept and golf resorts. Colombia has 9 urban sprawls that have a population over 500 thousand 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. Opportunities for investors: 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 for investors: Amusement park construction, entertainment venues and auditoriums enabled for concert events.
4 Colombia, a Country with Multiple Development Poles BOGOTA-CUNDINAMARCA Hotel occupancy rate: 58.6% (2012) ADR: US$142 (2012) CARTAGENA Hotel occupancy rate: 58.9% (2012) ADR: US$ (2012) BARRANQUILLA Hotel occupancy rate: 60.1% (2012) ADR: US$92.20 (2012) SANTA MARTA Hotel occupancy rate: 61.3% (2012) ADR: US$ (2012) MEDELLIN Hotel occupancy rate: 58.5% (2012) ADR: US$88.00 (2012) CALI Hotel occupancy rate: 44.6% (2012) ADR: US$68.40 (2012) COFFEE CULTURAL LANDSCAPE Hotel occupancy rate: 46.4% (2012) ADR: US$82.30 (2012) SANTANDER Hotel occupancy rate: 42.8% (2012) ADR: US$92.20 (2012) SAN ANDRES Hotel occupancy rate: 63.4% (2012) ADR: US$ (2012) Colombia s economy is stable enough and will continue to grow, and that is attractive for investment. The arrival of major international brands is a sign of confidence in Colombia. Alvaro Diago, IHG President for Latin America and the Caribbean. Source: Cotelco, 2013.
5 HILTON: The first hotel in the financial district in Bogota, Colombia, with approximately 240 hotel rooms. Also, one Hampton in Cartagena de Indias and other in Barranquilla. MAJOR FOREIGN COMPANIES HAVE CHOSEN COLOMBIA AS THEIR INVESTMENT DESTINATION Source: National Press releases. ACCOR: The Ibis Bogota Museo is located in the International Center, one of the most important business districts in the city. In addition, its 216 room capacity hotel located in Medellin. MARRIOTt: This American chain opened its first hotel in Bogota, a 10-floor 239-room building. Also, the JW Marriot hotel is located in the financial district of Bogota with 264 rooms. Also, one Hotel Marriot in Cali (180 rooms) and other in Cartagena de Indias (278). IHG: With the arrival of the Holiday Inn hotel brand to Bogota and Cartagena, they have a combined offer of 331 rooms. The Holiday Inn Express in Bogota has 76 rooms and the InterContinental hotel in Cartagena de Indias is currently under construction. Also, one Holiday Inn in Cucuta (98 rooms) and other in Bucaramanga (170).
6 Colombian Tourist Destinations Have Received World-wide recognition British tourism operators chose the country as the 2012 Long Haul Up and Coming Destination of the Year. This prestigious distinction was awarded by the magazine Selling Long Haul. Moreover, Santa Marta s Tayrona National Natural Park and the Lost City were destinations selected among the 2012 Best Trips by National Geographic s Traveler magazine. Cali, the Salsa Capital of the World, was ranked 10th among the top 41 recommended places to travel in 2011 by The New York Times. San Andres Bogota Colombia currently has 13 designated World Cultural Heritage sites awarded by the UNESCO. The Coffee Cultural Landscape was added to this list in Coffee Cultural Landscape Tayrona National Natural Park
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