Wednesday, July 17, 2024 The Ministry of Foreign Trade and Tourism of Peru, in collaboration with the Development Bank of Latin America and the Caribbean (CAF), and supported by UN Tourism , celebrated the launch of Peru’s Best Tourism Villages initiative. This initiative honored seven exceptional towns for their tourism contributions in 2022 and 2023. During a special ceremony, recognition plaques were awarded to these towns, underscoring their significant roles in promoting Peru as a premier tourist destination.
During the event, recognition plaques were bestowed upon the selected villages, highlighting their pivotal role in Peru’s tourism landscape. This initiative underscores Peru’s commitment to promoting and developing sustainable tourism practices across the country. Key insights from the event’s discussions, themed ‘Promoting Foreign Investment: Launch of the Tourism Doing Business Investment Guidelines-Investing in Peru and General Guidelines for the Development of Public Investment in Tourism,’ include significant milestones in Peru’s tourism sector: Peru has consistently ranked among the top four countries in Latin America and the Caribbean for greenfield foreign direct investment (FDI) projects in tourism from 2018 to 2023.
This underscores the country’s attractiveness to foreign investors seeking opportunities in the vibrant tourism industry. Since 2005, the public sector has allocated approximately USD 621.4 million towards various tourism activities and projects through the public investment budget.
Looking forward, an additional USD 93.5 million is projected to be invested by 2024, highlighting ongoing government support for the sector’s growth and development. The event emphasized Peru’s strategic focus on sustainable tourism development, aiming to enhance visitor experiences while preserving the country’s rich cultural and natural heritage.
This comprehensive approach underscores Peru’s commitment to becoming a leading destination for global travelers, supported by robust investment and strategic partnerships. UN Tourism Secretary-General Zurab Pololikashvili stated, “Peru is making steady progress in post-pandemic visitor recovery, with 25.7% growth by 2023.
In addition, its cultural and natural heritage position it as a highly attractive destination for investment. The UN Tourism guidelines “Tourism Doing Business – Investing in Peru” is a fundamental tool highlighting the numerous business opportunities offered by the tourism sector of this wonderful country.” Sergio Diaz-Granados, CAF’s Executive President, added, “CAF wants to contribute to the positioning of Peru for investment in tourism and to take advantage of the enormous potential offered by the sector.
The country is an example in taking advantage of its unique attractions and is a destination characterised by its innovation and creativity. With the delivery of the Tourism Investment Guide, the alliance signed in January of this year between CAF, UN Tourism and the Peruvian government, represented by the Ministry of Foreign Trade and Tourism, to support the development of this sector, which is key to generating employment and boosting the country’s productivity, is materialized.” Elizabeth Galdo Marín, Minister of Foreign Trade and Tourism of Peru, said, “Tourism is a key driver for the economic and social development of our country.
With a rich cultural and natural diversity, Peru is positioned as a privileged destination for sustainable tourism. The collaboration with UN Tourism and CAF to include a special chapter on green investments and another on gastronomy in this guide underlines our commitment to responsible and sustainable tourism development.” Peruvian cuisine is a vibrant 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 showcases locally sourced ingredients and regional specialties, making it a cornerstone of Peru’s cultural identity and a major draw for tourism. Beyond its culinary allure, Peru boasts a wealth of archaeological treasures, historical sites, and natural wonders that position it as a prime destination for tourism investment. The country’s diverse ecosystems support a wide range of tourism activities, all grounded in principles of environmental sustainability and cultural preservation.
Peru offers attractive incentives to encourage foreign direct investment (FDI) across various sectors, including tourism. Non-fiscal benefits such as full foreign ownership rights, low minimum capital requirements, and the ability to operate accounts in multiple currencies streamline the process for international businesses looking to establish operations in Peru. Specific incentives tailored to the tourism sector include preferential Value Added Tax (VAT) rates for MSMEs in hospitality and accommodation, reducing VAT to 10% from the general rate of 18%.
Additionally, mechanisms like the VAT Early Recovery program have injected over USD 700 million into the economy since 2007, supporting tourism-related investments. The Amazon Law offers further incentives, including reduced income tax rates ranging from 5% to 10%, aimed at promoting tourism activities in Peru’s ecologically diverse Amazon region. The ‘Tourism Doing Business Guide in Peru’ provides a comprehensive overview of the country’s investment climate, highlighting significant growth opportunities.
Between 2018 and 2023, Peru attracted 360 greenfield FDI projects in tourism across Latin America and the Caribbean, totaling USD 29.5 billion in investment and projected to create 115,815 jobs. Currently, the tourism sector employs approximately 1.
2 million Peruvians directly or indirectly, with expectations to increase to 1.3 million by 2024, reflecting a robust 13.5% growth from 2023.
Tourism’s contribution to Peru’s Gross Domestic Product (GDP) is set to rise from 2.5% in 2023 to 2.9% in 2024, underscoring its vital role in the country’s economic landscape.
Public investment in tourism has been substantial, with USD 621.4 million allocated from 2005 to 2024, including a planned budget of USD 93.5 million for 2024 alone.
The Ministry of Foreign Trade and Tourism is actively promoting ten major investment projects through the guide, representing a combined investment portfolio of USD 650 million, indicative of Peru’s ongoing commitment to expanding and diversifying its tourism offerings. These initiatives highlight Peru’s strategic approach to fostering sustainable tourism growth while leveraging its cultural and natural assets to attract global visitors and drive economic prosperity. Natalia Bayona, Executive Director of UN Tourism, added, “The outlook for tourism investment in Peru is very positive.
Between 2018 and 2023, the country was among the top four countries in Latin America and the Caribbean in announcements of greenfield FDI investment in tourism. This data shows us that it is important to invest in tourism and that this may be an unbeatable time to do so.”.
