UNWTO Launches Tourism Investment Guidelines for Chile
Santiago, Chile, December 20, 2023 / TRAVELINDEX / The tourism sector in Chile experienced a 52.9% growth in income 2022, new UNWTO research into the country’s status as a top destination for investors reveals. The latest edition of the UNWTO “Tourism Doing Business: Investment Guidelines” also makes clear the opportunities available to foreign investors and the challenges caused by both national considerations and global economic conditions.
Launched during the 2nd Tourism Investment Forum of Chile (Santiago, 7 December), “Tourism Doing Business: Investing in Chile” highlights the main attributes of the country as a tourist destination and as an attractive place to invest in the sector. The guidelines note:
- Chile is characterized by its free market, diversified and resilient economy, its openness and understanding of global trends, as well as its support mechanisms for innovation readiness to adapt to new trends.
- Solid macroeconomic fundamentals have allowed Chile to stay resilient in the face of changing global conditions and gradually diversify its economy, with mining, particularly copper, as a key sector.
- In tourism, post-pandemic recovery shows 52.9% growth in the sector’s income in 2022 compared to 2021. Furthermore, tourism represents 6.6% of total employment in the Chilean economy.
The UNWTO Guidelines showcase the enormous opportunities the tourism sector offers for investors – and the way in which investment is key to building a more sustainable, inclusive and future-proof sector
UNWTO Secretary-General Zurab Pololikashvili says: “Our focus on Chile caps a productive year for UNWTO as we promote investment in tourism, especially in the Americas. The UNWTO Guidelines showcase the enormous opportunities the tourism sector offers for investors – and the way in which investment is key to building a more sustainable, inclusive and future-proof sector.”
Investments and tourism employment growing
The guidelines offer a comprehensive overview of the investment landscape in Chile. Key takeaways include:
- A 31% increase in the flow of foreign direct investment (FDI) in 2022 compared to 2021, guided mainly by the reinvestment of profits and the expansions of capital.
- Growing investments in tourism. Chile is ranked in the top 10 in Latin America and the Caribbean in greenfield FDI investment announcements in tourism.
- In addition, the Plan of the Ministry of Public Works to Support Sustainable Tourism to 2030 (Plan Especial de Infraestructura del Ministerio de Obras Públicas de Apoyo al Turismo Sustentable a 2030), advances projects worth USD 4.188 billion until 2026.
Chile also stands out for the development of its innovation and entrepreneurship ecosystem, with support institutions such as the Production Promotion Corporation (Corporación de Fomento de la Producción – CORFO) and the Technical Cooperation Service (Servicio de Cooperación Técnica – SERCOTEC). In the tourism field, the Chilean government promotes investments in digital transformation and innovation, including awards from the National Tourism Service for innovative tourism products.
Value and Green Investments
The guidelines set out factors in making Chile an attractive value proposition for investors. These include the quality of its infrastructure, its entrepreneurial ecosystem, its focus on sustainable industries, and its tourist attractions, such as nature tourism, adventure and astrotourism, which stands out due to its clear skies, ideal for astronomic observation. The third chapter also provides an overview of business taxes and specific incentives for tourism investments in the country.
Looking ahead, the guidelines provide insights into green or sustainable investments in Chile, highlighting the country’s strategies and commitments towards sustainability, including the transition towards carbon neutrality and the promotion of energy efficiency and resource conservation projects in the tourism industry.