Weak Peso and Improved Safety to Boost Tourism Sector in Colombia: Ken Research

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Weak Peso and Improved Safety to Boost Tourism
Sector in Colombia Ken Research
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Ken Research announced its latest publication on,
Travel and Tourism in Colombia to 2020, offer
insights on the changing trends and key issues
within the Travel Tourism Sector in Colombia.
The publication includes an insightful analysis
of demand-side dynamics, tourist flows,
expenditure patterns, tourism related
intermediate industries along with emerging
growth opportunities and challenges inthe Travel
Tourism Sector in Colombia. The analysis of the
aforementioned trends has been done across key
categories within the sector domestic tourism,
inbound tourism, and outbound tourism. The report
also includes analysis of trips by purpose, mode
of transport and customer type-leisure and
business travellers.
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• Brief Overview of Travel Tourism Sector in
  Colombia
• Colombias Travel Tourism sector is crucial to
  its economy. The sector has consistently
  increased its contribution to the GDP. Presently
  the sector contributes around 2.2 to the GDP.
  The spectacular growth of the Tourism sector in
  Colombia has even outpaced the global tourism
  growth rates as well as the average tourism
  growth rate of all the South American countries.
  With rich and diverse geography as well as unique
  biodiversity, Colombia has a great potential for
  eco-tourism as well. Some of the popular places
  to visit in Colombia includeBogota, Cartagena,
  Medellin, Amazon and the Andean regions the
  Caribbean Pacific Coasts the desert of La
  Guajira etc.
• Looking at the present scenario, Colombias
  tourism sector is growing with strong growth
  rates. Two key events influencing the tourism
  sector in the country are Home currency
  depreciation improved safety on account of
  signing off ceasefire agreement between the govt.
  and the FARC rebels. Improved safety has
  positively affected the growth of the sector.
  While weakening of the peso has significantly
  changed the consumer preferences over domestic,
  inbound outbound trips. Due to weak peso
  Colombians are turning to domestic trips over
  outbound trips.

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Also, as a result of weak peso, inbound tourism
has witnessed remarkable growth over last few
years 8.2 in 2013, 7.4 in 2014, and 16.3 in
2015. International arrivals, largely from US and
Venezuela, totalled 2.3 million in 2015. Outbound
tourism has been suffering as a result of falling
value of peso. Outbound trips declined by -1.3
in 2015 while expenditure declined by
-0.6. Government also plays an important role
in the tourism sector. As for example,
introduction of the new tax policy which exempts
foreign tourist from paying sales tax on tourism
related services construction plan of new
airports while renovating and expanding the
existing ones are totally government efforts for
developing the tourism sector in Colombia.
However, high congestion at airports urging the
immediate construction and expansion of the
airport capacity will be a serious challenge to
the government as well as for the overall tourism
sector. Key Factors Driving Growth in Colombias
Travel Tourism Sector The strong performance
of the Travel Tourism sector in Colombia over
the last several years is due to various factors
influencing the demand-side dynamics offering
vast growth opportunities to the market players
and encouraging them to strategize their business
actions accordingly. This ultimately leads to
expansion and development of the overall tourism
sector.
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• Since, Tourism sector is a crucial part of a
  countrys economy, hence, government
  participation through increased investment in
  tourism related development plans has also played
  a crucial role in the growth of the sector.
• Key factors driving growth in Colombias Travel
  Tourism sector include
• Depreciation of home currency
• Weakening of Peso has significantly influenced
  consumer preferences over domestic, inbound
  outbound trips. Colombians have turned to
  domestic trips hence, declining international
  departures have led to negative outbound tourism
  growth. On the other hand, inbound tourism has
  witnessed impressive growth.
• Improved Safety
• Signing of the ceasefire agreement between
  Colombian Govt. the FARC rebels to end the 50
  years conflict is expected to have a significant
  impact on international arrivals.
• New Tax Policy
• Govt. aiming to enhance the tourism sector
  outlook has introduced a new tax policy which
  exempts foreign tourists from the 16 sales tax
  (VAT) on tourism-related services. This will
  further boost the rising inbound trips.

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• Airport Capacity Expansion Increasing flights to
  Colombia
• To reduce congestion at airports, govt. has come
  up with various plans of construction of new
  airports. Also, the number of domestic as well as
  international flights to Colombia has been
  increasing over years. These factors greatly
  support the tourism sector growth.
• Great Potential for Eco-tourism
• With very rich and diverse geography, including
  the Amazon and the Andean regions the Caribbean
  Pacific Coasts the desert of La Guajira etc.
  along with the presence of unique biodiversity,
  Colombia has great potential for eco-tourism.
• Future of Colombias Travel Tourism Sector
• Starting from a relatively low base, tourism
  sector has shown remarkable performance and is
  expected to continue with the spectacular growth
  over several coming years outpacing the tourism
  market in the South American region. Weakening of
  the peso and improved safety will play a crucial
  role in driving tourism sector growth over the
  coming years.

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Other factors will reinforce the growth momentum.
Weak peso will continue to support domestic and
inbound tourism growth while leading to decline
in outbound tourism growth. Over the forecast
period, domestic trip are projected to grow at an
average annual rate of 5.7, to reach 32.6
million domestic trips by 2020 inbound tourism
is forecasted to grow at a CAGR of 6.7 to reach
3.2 million international arrivals by 2020 and
declining outbound tourism is expected to reach
5.1 million by 2020. The construction of new
airports as well as expansion of the existing
ones will reduce congestion at airports and also
serve in accommodating the rising international
arrivals. The implementation of the sales tax
exemption policy for foreigners on tourist
related services will lead to further rise in
inbound trips. Thus, we can say that Colombia is
increasingly focusing on their tourism sector
growth so as to firmly establish the country as a
leading international tourist destination on the
global platform.
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• Companies Covered
• Avianca
• Lan Colombia
• VivaColombia
• Copa Airlines Colombia
• Satena
• GHL Hotels
• Hotels Estelar
• Hotels y Resorts Decameron
• InterContinental Hotels Group
• Hotels Royal
• Hotels Laureles Estadio
• Hilton Hotels and Resorts
• Operadores Hoteleros Santorini
• Solar Hotels and Hotels Dann

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rtainment/tourism/travel-tourism-colombia/39462-94
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ourism-malaysia-2020/31999-94.html Contact Ken
Research Ankur Gupta, Head Marketing
Communications query_at_kenresearch.com 91-124-42302
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