Tourexpi
Tourism
is increasingly emerging as a fundamental pillar for development in the region,
offering ample opportunities for economic growth and community empowerment. To
harness this potential, UN Tourism has confirmed its plans to expand its series
of Investment Guides and Investment Forums, each focused on a specific country
in the region. The guides identify key competitiveness factors to build an
attractive value proposition for investors, including information on green and
sustainable investments, underlining a commitment to environmental
responsibility.
According
to UN Tourism Executive Director Natalia Bayona: "Investments in the
tourism sector are critical to driving economic growth and job creation.
Through these investments, destinations can develop sustainable infrastructure
and improve the quality of life of local communities, promoting inclusive and
resilient development".
Investments
in tourism: a strategic priority at the global level
Between
2019 and 2023, the tourism sector attracted 1,983 announced foreign direct
investment (FDI) greenfield projects, with a total of US$106.7
billion in capital investments. This flow of capital has created
nearly 260,000 potential jobs worldwide, underscoring the sector's
significant role in economic development and job creation.
Between
2019 and 2023, 212 tourism investment projects were announced in Latin
America and the Caribbean, with a total of US$20.5 billion in capital
expenditure, expected to create more than 73,000 potential jobs.
UN
Tourism Executive Director Natalia Bayona says: "Foreign direct investment
is crucial for the development of tourism in our member countries. These
investments not only provide the necessary capital for infrastructure and
services, but also bring innovation, technology and best practices that
strengthen the competitiveness of the sector at a global level".
UN
Tourism Investment Guides
The
UN Tourism Investment Guides, part of the "Tourism Doing Business"
series, are comprehensive documents designed to provide strategic support and
information for potential investors and policymakers in the tourism sector.
The
guides address new innovation and sustainability topics, such as
debt-for-nature swaps, green and thematic bonds, national climate change
adaptation plans, sustainable financing mechanisms, investments in renewable
energy applied to tourism, smart infrastructure development, regenerative
tourism, and the promotion of community-based tourism. These approaches
underscore the commitment to more sustainable and resilient tourism, aligned
with the Sustainable Development Goals (SDGs).
These
guides are essential for several reasons:
·
Informed decision-making: The guides
provide detailed information on regulatory frameworks and potential
opportunities in each country.
·
Economic development: Highlighting
strategic areas for investment, these guides are intended to help drive
economic growth and job creation.
·
Sustainability: The guides promote
sustainable investment practices, aligning with global objectives of
environmental conservation and social responsibility.
·
Innovation and entrepreneurship: The
guides encourage the adoption of innovative business models and the development
of entrepreneurship.
·
Best governance practices: They
support the implementation of best governance practices to improve the business
climate and facilitate the identification and promotion of investment
opportunities, contributing to the economic recovery of the tourism sector and
its value chain.
·
Competitiveness: The guides identify
key competitiveness factors to build an attractive value proposition for
investors, including information on green and sustainable investments,
underlining a commitment to environmental responsibility.
·
Capacity building for investment
promotion agencies: They aim to strengthen the capacities of agencies
responsible for investment promotion, providing them with the tools and
knowledge necessary to identify and attract sustainable tourism investments.
·
Strategic improvement: The guides
identify critical points in the current strategy and develop an improvement
plan to overcome challenges and maximize investment opportunities.
In
addition to the guides, UN Tourism organizes an official launch for each guide
within a forum dedicated to tourism investment. During these events, investment
opportunities are presented directly to potential investors, serving as a
platform to showcase prospects and facilitate valuable connections between
investors and project proponents. The forums also encourage informative
discussions about the investment landscape and the latest trends in the tourism
industry. In addition, these events offer meaningful learning opportunities for
host countries, enhancing their ability to attract and manage tourism
investment more effectively.
Towards
sustainability: green investments
The
investment guides include a chapter dedicated to green and sustainable
investments, highlighting countries' strategies and commitments to
sustainability. This chapter covers national climate change adaptation plans,
along with the climate adaptation and investment programs implemented. In
addition, green finance, such as thematic bonds and other sustainable financial
mechanisms applied to tourism, are explored. Examples of innovative operations,
such as the debt-for-nature swaps, are presented, demonstrating how to finance
conservation and sustainability initiatives.
Ecuador,
for example, with the support of the Inter-American Development Bank (IDB) and
the U.S. International Development Finance Corporation (DFC), has implemented
an innovative financing system through the largest debt conversion in the
world, aimed at marine conservation in the Galapagos Islands. This operation,
which includes an IDB guarantee of USD 85 million and a political risk
insurance from the DFC of USD 656 million, will allow the reallocation of more
than USD 323 million to finance the preservation of biodiversity in the
Galapagos marine reserves over the next 18 years. This effort not only
contributes to environmental sustainability, but also strengthens tourism and
the local economy, demonstrating how debt management can drive investments in
conservation and sustainable development.
Continuing
collaboration with CAF
In
the last year, UN Tourism has presented ten specific guides for different
countries around the world and is working on the preparation or updating of
another 18 editions. These efforts are supported, among others, by the
Cooperation Agreement with the Development Bank of Latin America and the
Caribbean (CAF), signed in January 2024. This agreement, focused on
promoting the green transition and sustainable investments, aims to prepare
tourism investment guides for Brazil, Honduras, Mexico, Jamaica, Argentina and
Peru, adding to the initial five for Ecuador, Uruguay, Barbados, Panama and El
Salvador.
The
guides launched in Latin America have highlighted more than 70 projects seeking
investment, with the potential to attract an estimated investment of
US$5.2 billion in capex. These projects include a wide range of
initiatives, such as tourism master plans, resorts, hotels, visitor centres,
wellness retreats, interpretation venues, and conservation centres. In
addition, UN Tourism intends to expand its focus beyond traditional tourism
investments, promoting projects that improve all types of enablers, such as
power distribution projects, ports, cable cars or civil engineering
infrastructure.
New
investment opportunities
In
Latin America, incentives for investment in the tourism sector include a
variety of measures designed to attract foreign capital. Most countries in the
region have specialized investment promotion agencies, bilateral investment
agreements, free zones with special tax conditions, and specific foreign
investment promotion laws.
In
addition, many countries offer tax exemptions on tourism projects, tax benefits
in specific areas, and VAT exemptions for tourism activities. Special visas
have also been implemented for investors, digital nomads, and pensioners. These
incentives demonstrate the region's commitment to promoting tourism development
and attracting investments that drive economic growth.
Investment
Guides in Latin America:
Launched
in the last year:
·
Chile (December
2023, Santiago, Chile)
·
Ecuador (January
2024, Madrid, Spain)
·
Uruguay (February
2024, Montevideo, Uruguay)
·
Peru (July
2024, Lima, Peru)
In
the process of being updated:
·
Colombia
·
Paraguay
Upcoming:
·
Argentina
·
Barbados
·
Brazil
·
El Salvador
·
Guatemala
·
Honduras
·
Jamaica
·
Mexico
·
Panama
Image
Credit: © UN Tourism
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