UNWTO and Peru celebrate seven villages to promote tourism | kbnmart

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The Ministry of Foreign Trade and Tourism of Peru, in collaboration with the Development Bank of Latin America and the Caribbean, and with the support of the United Nations Tourism Organization, celebrated the launch of the Best Tourist Villages in Peru initiative. This initiative honored seven exceptional cities for their contributions to tourism in 2022 and 2023. During a special ceremony, plaques of appreciation were awarded to these cities, emphasizing their important role in promoting Peru as a leading tourist destination.

During the event, plaques of appreciation were distributed to 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 discussions, titled “Promoting Foreign Investment: Launching the Tourism Investment Guidelines – Invest in Peru and General Guidelines for the Development of Public Investment in Tourism,” include important milestones in Peru’s tourism sector:

Peru has consistently ranked among the top four countries in Latin America and the Caribbean for tourism FDI projects from 2018 to 2023. This underscores the country’s attractiveness to foreign investors looking for opportunities in its vibrant tourism industry.

Since 2005, the public sector has allocated approximately US$621.4 million to various tourism activities and projects through the public investment budget. An additional US$93.5 million is expected to be invested by 2024, highlighting the government’s continued support for the growth and development of the sector.

The event underscored 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 strong investments and strategic partnerships.

Secretary-General of the United Nations for Tourism Zurab Pololikashvili “Peru is making steady progress in recovering visitor numbers after the pandemic, with a growth of 25.7% by 2023,” said the World Tourism Organization. “In addition, its cultural and natural heritage makes it a highly attractive investment destination. The UN Tourism Guidelines “Doing Business – Investing in Peru” are an essential tool that highlights the many business opportunities offered by the tourism sector in this wonderful country.”

Sergio Diaz Granados, “CAF wants to contribute to Peru’s positioning to invest in tourism and to take advantage of the enormous potential that the sector offers. The country is an example in taking advantage of its unique tourist attractions and is a destination characterized by creativity and innovation. With the delivery of the Tourism Investment Guide, the alliance signed in January of this year between CAF, the United Nations Tourism Organization and the Peruvian government, represented by the Ministry of Foreign Trade and Tourism, to support the development of this sector, which is essential to generate jobs and boost the country’s productivity, is realized,” added the CAF CEO.

Elizabeth Galdo Marin, “Tourism is the main driver of our country’s economic and social development. Thanks to its rich cultural and natural diversity, Peru has a privileged position as a sustainable tourism destination. Collaborating with UN Tourism and the Caribbean Finance Corporation to include a special chapter on green investments and another on gastronomy in this guide confirms our commitment to responsible and sustainable tourism development,” said Peru’s Minister of Foreign Trade and Tourism.

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 scene showcases local ingredients and regional specialties, making it a cornerstone of Peru’s cultural identity and a major tourist attraction.

In addition to its culinary appeal, Peru has a wealth of archaeological treasures, historical sites and natural wonders that make it a prime destination for tourism investment. The country’s diverse ecosystems support a wide range of tourism activities, all based on principles of environmental sustainability and cultural preservation.

Peru offers attractive incentives to encourage foreign direct investment across various sectors, including tourism. Non-financial benefits such as full foreign ownership rights, low minimum capital requirements, and the ability to operate accounts in multiple currencies simplify the process for international companies looking to set up operations in Peru.

Specific incentives for the tourism sector include preferential VAT rates for small and medium-sized enterprises in the hospitality and accommodation sector, reducing the VAT rate to 10% from the general rate of 18%. In addition, mechanisms such as the VAT Early Recovery Programme have injected over US$700 million into the economy since 2007, supporting tourism-related investments.

The Amazon Law offers additional incentives, including reduced income tax rates of 5% to 10%, to boost tourism activities in Peru’s ecologically diverse Amazon region.

The “Doing Business in Tourism in Peru Guide” provides a comprehensive overview of the country’s investment climate, highlighting significant growth opportunities. Between 2018 and 2023, Peru attracted 360 foreign direct investment (FDI) projects in tourism across Latin America and the Caribbean, totaling US$29.5 billion in investment and expected to create 115,815 jobs.

Currently, the tourism sector employs approximately 1.2 million Peruvians directly or indirectly, and this number is expected to rise to 1.3 million by 2024, reflecting a strong growth of 13.5% over 2023. Tourism’s contribution to Peru’s GDP is set to rise from 2.5% in 2023 to 2.9% in 2024, confirming its vital role in the country’s economic landscape.

Public investment in tourism has been significant, with US$621.4 million allocated from 2005 to 2024, including a planned budget of US$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 US$650 million, demonstrating Peru’s continued 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 “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 terms of tourism FDI announcements. This data shows us that it is important to invest in tourism and that this could be an unparalleled time to do so,” added the UNWTO Executive Director.