The Colombian Hotel Industry Serves as an Economic Catalyst
Colombia’s progressive economy is mostly attributed to its natural possessions. On one side, this nation exports abundant amounts of coffee, oil, and coal. Meanwhile, other factors like scenic beauty and hospitable people make Colombian hotel industry the second largest generator of foreign currency in the country. Combining these innate resources with domestic markets and growing middle-class citizens results in an unshakable Latin American economy.
The Colombian hotel industry or hospitality sector opens more possibilities than ever. It creates a mark of national identity and diversity. In the future, this industry shall promote coordination from both private and public players to grow further. It appears preposterous at the moment, but several experts agree that this sector may potentially connect different industries most effectively.
To outline further, here are some relevant information you need to know about the Colombian hotel industry. You will also discover opportunities and incentives which would certainly encourage you to invest more in this nation.
Brief Overview of Colombian Hotel Industry
Let’s be realistic: Colombia has experienced an economic slowdown due to its significant drop in oil prices and tightened budget. Economists surmise that these actions are just temporary, a decisive move to reduce inflation. Fortunately, the situation has alleviated, thanks to public infrastructure projects and growth in private investment. Like a chain reaction, such events also improved the number of hotels being built in light of the growing tourism industry.
The Colombian hotel industry boom offers valuable prospects which many have been utilizing. Presently, many Colombians have been moving forward to the digital age. This entails that consumers regard purchases or hotel reservations via electronic means as a more efficient approach compared to a face-to-face transaction.
Technology improves marketing approaches by a hundredfold. The Colombian hotel industry sees long-term potential from such advancement since it multiplies prospects in a cost-efficient manner. Many hospitality establishments will soon focus more on digital transformation to interact with tourists online and increase sales further.
Tourism Boom in Colombia Means More Hotels
According to Colombia’s tourism giant Cotelco, the hotel industry continues to grow in 2018. The occupation rates in July 2018 soars high at 56.85%, compared to last year’s 54.05%. Cotelco’s national executive president Gustavo Adolfo Toro Velásquez states that this progress is caused by two factors. The first reason is the realization of significant events like the election, which boosts corporate interests. Another determinant comes from the promotion efforts of entities such as ProColombia and the Ministry of Commerce, Industry and Tourism.
These factors might have increased the number of non-resident foreigner arrivals, but they are naturally short-term and circumstantial. Here are some of the general reasons why the Colombian hotel industry confidently attracts more tourists than before:
- Certain areas such as Bogota, Cartagena, and Medellin have decreased its crime rate. This has been an effect of the peace negotiations by President Juan Manuel Santos in 2012.
- Devaluation of the Colombian Peso, which means more purchasing power for foreign tourists
- Geographically, Colombia is between large markets like Brazil and the US. Due to having 52 airport developments in 2016, Colombia makes itself more accessible for those who want to enjoy its beauty.
Colombia Hotel Investment Incentives
ProColombia indicates that Colombia has opened 22 new hotels in 2016. This number will further increase in the following years. Favorable tax reforms and legal incentives encourage this industry investment for those wanting to build hotels in the country. Some of these include:
- 30 years of tax exemption for all hotels constructed before 2018
- Tax duty exemptions and VAT deferrals for all capital goods in tourism exports
- Tax discounts for investors who hire employees that are under 28 years old, handicapped, displaced, or women over the age of 40
The Colombian hotel industry values tourism highly, which means it doesn’t only aim to attract tourists with high purchasing power. It also wants to earn customer loyalty by imparting quality experiences in every destination. However, Colombia is still on a learning curve, applying ideas from other countries with great tourist quality and sustainability values.
The Colombian Hospitality Sector Has Outstanding Potential
The Colombian hotel industry entices investors worldwide to visit flourishing cities like Bogota and Cartagena. These two lively cities are naturally prosperous, partly due to foreign buyers and business investors making the most of Colombia’s tourism boom.
We know you would want to learn more about the Colombian hotel industry, its engaging business opportunities, or its market trends. Contact Biz Hub Latin now and see for yourself how this nation can appeal to your business endeavors.