Investment in Hotel and Tourism Infraestructure

1. INVESTMENT IN
HOTEL AND TOURISM
INFRASTRUCTURE
ATTRACTIVE INCENTIVES FOR INVESTMENT IN THE HOTEL INDUSTRY
• Exempt from income tax for 30 years: Income tax exemption valid from the start of operations for hotel
services offered in new hotels or hotels that are renovated or extended in the period from 2003 to December 2017.
• Exempt from income tax for 20 years: Ecotourism services are exempt from income tax for 20 years from the
2003 tax year.
• Total or partial suspension of the tariffs and deferral of VAT on capital goods used for tourism exports.
L ib erta
y O rd e n

2. The Growth of International Tourism to
Colombia is Above the Global Average
• Arrivals of international travelers in
Colombia increased from 600,000
in 2000 to over 1.6 million in 2012,
showing average annual growth
of 10%. That is almost four times
the global average, and one of the
highest in the region.
• The number of visitors to the country
on international cruise ships has
increased six-fold over the last five
years. Colombia is establishing itself
as an important destination on the
cruise ship circuit in the Caribbean
with its three ports in Cartagena de
Indias, Santa Marta, and San Andres.
• Between 2006 and 2012, Colombia
climbed 21 places (from 50th
place to 29th) in the ranking
of international events by the
ICCA (International Congress and
Convention Association).
Arrival of International Travelers to Colombia
2004 – 2012
1,692,822
Source: Migration Colombia, 2013.
2004
2005
2006
2007
2008
2009
2010
2011
2012

3. Growing Demand and Supply in Hotel Sector
•
•
Between 2004 and 2012,
approximately 17 thousand new
rooms were built.
•
It is estimated that another 4
thousand new rooms will be
available by 2014.
New Hotels and rooms in Colombia 2004 – 2014*
It is estimated that only 32% of the total number of hotel rooms available in
Colombia are equivalent or similar to four and five star hotels. Recent investment
has been focused on this segment.
•
Colombia has over 4,500 weekly domestic air frequencies that connect different
cities around the country. Average growth of passenger traffic in domestic flights in
the last five years was 11.3%.
3,010
2,272 2,236 2,131
Colombia’s population is over 45 million people, and the country is considered a
medium-high income country by the World Bank.
•
Rooms
Hotels
Investment opportunities in specific sectors:
986
2,655
2,677
2,523
1,764
1,600
355
56
8
2004
2005 2006
22
63
2007
2008 2009
2010
2011
2012
20
2013
2014
Source: MICT * estimated.
Wellness
NATURE
Sun and beach
City Hotels
Entertainment
Beaches that span across
two oceans abounding with
rainforests, lush landscapes,
and a variety of climatic thermal
floors (glacial, Andean moor,
cool, temperate, and warm).
Its biodiversity is conducive for
therapies, tranquile atmospheres,
and the development of unique
products and experiences related
to wellness and nature.
Opportunities: Hotels with
thalassotherapy centers,
thermals infrastructure and
hotels with spa–wellness
centers.
Colombia has 53 million hectares
of natural forest, 22 million
hectares of savanna, desert,
snow-capped mountains, and
wetlands. It is the fourth richest
country in the world in water
resources. Its natural parks make
up 14% of the national territory,
and it is the country with the
highest biodiversity per square
meter in the world.
Opportunities: “eco-luxury”
hotels, ecogamblig, ecolodge,
and complementary eco-friendly
infrastructure (trails, paths, birdwatching hubs, corridors).
Colombian beaches are
bordered by the stunning
Pacific Ocean and Caribbean
Sea. There are world-class
attractions including coral
reefs, ecological parks,
aquariums, marine museums,
and historic city walls.
Opportunities: luxury hotels,
‘luxury includes concept’ and
golf resorts.
Colombia has 9 urban sprawls
that have a population over
500 thousand inhabitants. This
creates a large opportunity
to offer hotel alternatives
due to the cities’ intense
trade and business dynamics.
Also, Colombia has become
widely known as a destination
for hosting congresses and
conventions in Latin America,
which opens the demand for
hotels with convention centers.
Opportunities for investors:
Full, limited, and select
service hotels and hotels with
convention centers.
Colombia offers a limited
inventory of large crowd event
infrastructure and entertainment
venues. In 2011, a law was passed
to stimulate investment in the
entertainment industry. Show
and entertainment infrastructure
investments will be 100%
deductible from income tax,
among other incentives for US
entrepreneurs.
Opportunities for investors:
Amusement park construction,
entertainment venues and
auditoriums enabled for concert
events.
(Business plan, wellness tourism, PTP).
(Business plan, nature tourism,PTP).

4. Colombia, a Country with
Multiple Development Poles
BOGOTA-CUNDINAMARCA
CALI
• Hotel occupancy rate: 58.6% (2012)
• ADR: US$142 (2012)
• Hotel occupancy rate: 44.6% (2012)
• ADR: US$68.40 (2012)
CARTAGENA
COFFEE CULTURAL LANDSCAPE
• Hotel occupancy rate: 58.9% (2012)
• ADR: US$164.50 (2012)
BARRANQUILLA
• Hotel occupancy rate: 60.1% (2012)
• ADR: US$92.20 (2012)
SANTA MARTA
• Hotel occupancy rate: 61.3% (2012)
• ADR: US$134.20 (2012)
• Hotel occupancy rate: 46.4% (2012)
• ADR: US$82.30 (2012)
SANTANDER
• Hotel occupancy rate: 42.8% (2012)
• ADR: US$92.20 (2012)
SAN ANDRES
• Hotel occupancy rate: 63.4% (2012)
• ADR: US$137.40 (2012)
MEDELLIN
• Hotel occupancy rate: 58.5% (2012)
• ADR: US$88.00 (2012)
“Colombia’s economy is stable enough and will continue to grow, and
that is attractive for investment. The arrival of major international
brands is a sign of confidence in Colombia.”
Alvaro Diago, IHG President for Latin America and the Caribbean.
Source: Cotelco, 2013.

5. HILTON:
•
MAJOR FOREIGN
COMPANIES HAVE
CHOSEN COLOMBIA AS
THEIR INVESTMENT
DESTINATION
ACCOR:
•
The Ibis Bogota Museo is located in the
International Center, one of the most important
business districts in the city. In addition, its 216
room capacity hotel located in Medellin.
MARRIOTt:
•
This American chain opened its first hotel in
Bogota, a 10-floor 239-room building. Also,
the JW Marriot hotel is located in the financial
district of Bogota with 264 rooms. Also, one
Hotel Marriot in Cali (180 rooms) and other in
Cartagena de Indias (278).
IHG:
•
Source: National Press releases.
The first hotel in the financial district in Bogota,
Colombia, with approximately 240 hotel rooms.
Also, one Hampton in Cartagena de Indias and
other in Barranquilla.
With the arrival of the Holiday Inn hotel brand
to Bogota and Cartagena, they have a combined
offer of 331 rooms. The Holiday Inn Express in
Bogota has 76 rooms and the InterContinental
hotel in Cartagena de Indias is currently under
construction. Also, one Holiday Inn in Cucuta
(98 rooms) and other in Bucaramanga (170).

6. Colombian Tourist Destinations Have Received
World-wide recognition
• British tourism operators chose the country as the
2012 Long Haul Up and Coming Destination of the
Year. This prestigious distinction was awarded by
the magazine Selling Long Haul. Moreover, Santa
Marta’s Tayrona National Natural Park and the
Lost City were destinations selected among the
2012 “Best Trips” by National Geographic’s Traveler
magazine. Cali, the “Salsa Capital of the World”, was
ranked 10th among the top 41 recommended places
to travel in 2011 by The New York Times.
San Andres
Bogota
Coffee Cultural Landscape
Tayrona National Natural Park
• Colombia currently has 13 designated World Cultural
Heritage sites awarded by the UNESCO. The “Coffee
Cultural Landscape” was added to this list in 2011.