Saturday, August 24, 2024 UN Tourism is recognizing the growing importance of tourism as a vital pillar for regional development, offering significant opportunities for economic growth and community empowerment. To harness this potential, UN Tourism has announced plans to expand its series of Investment Guides and Investment Forums, each tailored to highlight specific countries within the region. These guides will focus on identifying key competitiveness factors to create a compelling value proposition for investors, with a strong emphasis on green and sustainable investments, reinforcing a commitment to environmental stewardship.
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 Global Strategic Priority From 2019 to 2023, the tourism sector saw the announcement of 1,983 foreign direct investment (FDI) greenfield projects, amounting to a total capital investment of US$106.
7 billion. These investments have the potential to create nearly 260,000 jobs worldwide, highlighting the sector’s crucial role in driving economic growth and employment. In the same period, Latin America and the Caribbean announced 212 tourism investment projects, with a combined capital expenditure of US$20.
5 billion. These projects are expected to generate more than 73,000 potential jobs, demonstrating the region’s growing importance in the global tourism landscape. 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, a key component of the “Tourism Doing Business” series, serve as in-depth resources tailored to offer strategic insights and essential information for investors and policymakers in the tourism industry. These guides cover emerging innovation and sustainability topics, including debt-for-nature swaps, green and thematic bonds, national climate change adaptation strategies, sustainable financing models, investments in renewable energy for tourism, smart infrastructure development, regenerative tourism, and the promotion of community-based tourism.
These initiatives highlight a commitment to fostering a more sustainable and resilient tourism sector, in alignment with the Sustainable Development Goals (SDGs). These guides are crucial for several reasons: Beyond the publication of the guides, UN Tourism hosts official launch events for each guide during specialized forums focused on tourism investment. These events present investment opportunities directly to potential investors, serving as a platform to highlight prospects and foster meaningful connections between investors and project developers.
The forums also stimulate insightful discussions on the investment environment and emerging trends within the tourism industry. Additionally, these gatherings provide valuable learning experiences for host countries, helping to improve their capacity to attract and manage tourism investments more efficiently. Towards Sustainability: Embracing Green Investments The investment guides feature a dedicated chapter on green and sustainable investments, emphasizing various countries’ strategies and commitments to sustainability.
This section delves into national climate change adaptation plans and the climate adaptation and investment programs that have been implemented. It also explores green finance options, such as thematic bonds and other sustainable financial mechanisms tailored for the tourism sector. Innovative examples, like debt-for-nature swaps, are highlighted to demonstrate methods for financing conservation and sustainability initiatives.
For instance, Ecuador, with the support of the Inter-American Development Bank (IDB) and the U.S. International Development Finance Corporation (DFC), has established an innovative financing system through the world’s largest debt conversion initiative, focusing on marine conservation in the Galapagos Islands.
This initiative includes an IDB guarantee of USD 85 million and political risk insurance from the DFC amounting to USD 656 million, enabling the reallocation of more than USD 323 million to preserve biodiversity in the Galapagos marine reserves over the next 18 years. This effort not only advances environmental sustainability but also bolsters tourism and the local economy, showcasing how strategic debt management can foster investments in conservation and sustainable development. Ongoing Collaboration with CAF Over the past year, UN Tourism has introduced ten country-specific guides and is currently preparing or updating an additional 18 editions.
These initiatives are supported by the Cooperation Agreement with the Development Bank of Latin America and the Caribbean (CAF), signed in January 2024. The agreement, which focuses on promoting the green transition and sustainable investments, aims to develop tourism investment guides for Brazil, Honduras, Mexico, Jamaica, Argentina, and Peru, building on the initial guides for Ecuador, Uruguay, Barbados, Panama, and El Salvador. The guides launched in Latin America have showcased over 70 projects seeking investment, with the potential to attract an estimated US$5.
2 billion in capital expenditure. These projects cover a broad spectrum, including tourism master plans, resorts, hotels, visitor centers, wellness retreats, interpretation venues, and conservation centers. Furthermore, UN Tourism plans to broaden its scope beyond conventional tourism investments, advocating for projects that enhance various enablers, such as power distribution systems, ports, cable cars, and civil engineering infrastructure.
Emerging Investment Opportunities In Latin America, various incentives are in place to attract investment in the tourism sector, aimed at drawing in foreign capital. Many countries in the region feature dedicated investment promotion agencies, bilateral investment agreements, free zones with favorable tax conditions, and specific laws to encourage foreign investment. Additionally, numerous countries offer tax exemptions for tourism-related projects, tax incentives in designated areas, and VAT exemptions for tourism activities.
Special visas have also been introduced for investors, digital nomads, and retirees. These measures reflect the region’s commitment to fostering tourism development and attracting investments that stimulate economic growth. Investment Guides in Latin America: Launched in the Past Year: Currently Being Updated: Upcoming:.
