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:
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."
The guidelines offer a comprehensive overview of the investment landscape in Chile. Key takeaways include:
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.
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.
UNWTO has put tourism on the agenda of the World Investment Forum, the biggest investment gathering led by the United Nations.
In partnership with the Forum's organizers, the United Nations Conference on Trade and Development (UNCTAD), UNWTO held a special high-level dialogue that brought together both the investment and tourism communities.
At the "Accelerating Green Investment in Tourism for Sustainable Development" side event, UNWTO presented its new comprehensive tourism investment framework focused on innovation, education and sustainability for a more comprehensive economic development. Alongside this, UNWTO also announced that it will partner with UNCTAD to provide a set of Guiding Principles for Tourism Investment in Sustainable Tourism. These will help stakeholders from every part of the sector implement the framework and further boost investments in tourism, one of UNWTO's core priorities for the sector.
The high-level debate made clear the need for solutions to unlock finance, accelerate green investments in tourism and contribute to sustainable development, particularly relevant as the UAE prepares to host the COP28 climate conference next month.
The dialogues stressed the vital need for a sustainable transition, not just for the planet, but also for tourism itself, for boosting competitiveness and increasing resilience, while emphasised the need of a robust and supportive investment policy framework. Central to this will be delivering additional green investments (traditional and non-traditional), financing and enhancing innovation and technology is much needed in the tourism sector to support and accelerate this transformation. Additionally, the importance of investing in human workforce and specific skills development at every level of education was underlined within the context of green transition.
Moreover, the crucial role of non-traditional investments in enhancing innovation through the creation and diffusion of technologies and mobility startups with the power to decarbonize and unlock new business models and accelerate the green transition was outlined during the discussion.
The legacy of the World Tourism Day 2023 celebrations will live on in the shape of greater investments in the sector's sustainability and a shared commitment to spread the benefits the sector delivers even more widely.
Hosted in Riyadh, Saudi Arabia, the official celebrations welcomed more than 50 Ministers of Tourism alongside hundreds of high-level delegates from the public and private sectors. The day featured expert-led panels focused on key topics around this year's theme of Tourism and Green Investments, with plans backed up with concrete actions as UNWTO announced several important new initiatives.
This year has been the biggest World Tourism Day ever, and we want to make sure it leaves the biggest impact too
UNWTO Secretary-General Zurab Pololikashvili said: "This year has been the biggest World Tourism Day ever, and we want to make sure it leaves the biggest impact too. From Riyadh, we have joined our global sector around a pledge to promote new destinations, to diversify the economic and social benefits of tourism, and have announced a new school that will transform tourism education in the Middle East."
In Riyadh, Secretary-General Pololikashvili introduced "Tourism Opens Minds", a landmark initiative designed to showcase the powerful role that tourism plays in bridging cultures and fostering peace and understanding. With UNWTO's latest data indicating the sector is well on track to recover as much as 95% of pre-pandemic arrivals numbers by the end of 2023, Tourism Opens Minds is designed to ensure that this strong recovery is joined by a greater emphasis on tourists exploring less-visited destinations. The focus will be on:
To mark the launch, UNWTO unveiled a new symbol for the initiative, made up of the colours of the various flags of the world, and shared a pledge for the sector to unite around. A special pledge, to be supported by Governments, private sector leaders and tourists themselves, was shared with select delegates, calling on them to commit to promoting new and diverse travel destinations.
To ensure that the World Tourism Day 2023 celebrations leave a lasting impact in Riyadh and across the wider region, UNWTO Secretary-General Pololikashvili joined with Saudi Arabia's Minister of Tourism Ahmed Al-Khateeb to announce a joint project focused on creating new generations of skilled tourism workers:
UNWTO further strengthened its cooperation with the Development Bank of Latin America and the Caribbean as it brought together public and private sector leaders to advance investments in the tourism sector.
Against the backdrop of the meeting of its 68th Regional Commission for the Americas in Quito, Ecuador, UNWTO hosted the Seminar on Sustainable Investments to explore the main challenges and opportunities around this topic in the region.
Tourism Investments: A defining priority
The latest data from UNWTO shows that tourism in the Americas is steadily recovering, with international arrivals reaching 86% of 2019 levels by the end of the first quarter of this year. Moreover, foreign direct investment (FDI) in the tourism sector, which had experienced a decline, is now showing signs of revitalization:
To realize the Sustainable Development Goals (SDGs) in the Americas, attracting investments that actively support their achievement is of utmost importance. It is crucial to establish a robust multilateral regulatory framework that fosters sustainable investments, further propelling the region's progress towards the SDGs.
Quito Seminar Provides High-Level Platform
The Seminar on Sustainable Investments: A Strategy towards Competitiveness invited tourism ministers, traditional and non-traditional investors, multilateral funds, regional economic communities, tourism technology start-ups and the media to share good practices and knowledge. Highlighting the level of high-level political support for UNWTO’s work in this area, the Seminar counted on the presence of Ministers of Tourism of Ecuador, Paraguay, Peru and Puerto Rico and Vice Minister of the Dominican Republic. The focus was on:
Contributing to the discussions were high-level representatives the Development Bank of Latin American and the Caribbean (CAF), fDi Intelligence of the Financial Times, IDB - Inter-American Development Bank and, representing investors and the private sector, Hotel Jama Campay, WAYRA (Telefónica), IMPAQTO, UnTours, Maraey, Metropolitan Touring, GHL Hoteles and the Confederación Panamericana de Escuelas de Hotelería, Gastronomía y Turismo, amongst others, sharing sustainable investment models in innovative infrastructure.
UNWTO and CAF
In January 2023, UNWTO and the Development Bank of Latin America (CAF) announced a new partnership to promote and retain investment in tourism across the Latin American and Caribbean region. In Quito:
UNWTO has further advanced its focus on investments in a more resilient and sustainable tourism by strengthening its cooperation with both the international community and with the private sector.
In this context, UNWTO has joined the World Investment for Development Alliance (WIDA). As part of the Alliance, UNWTO will work to enhance both the level and effectiveness of investment in the sector with the aim of supporting and accelerating the implementation of the Agenda 2030 and its Sustainable Development Goals.
UNWTO Secretary-General Zurab Pololikashvili says: “Investment is all too often the missing ingredient for turning our shared plans for a more sustainable, inclusive and resilient tourism sector into reality. UNWTO is proud to join the World Investment for Development Alliance and we look forward to working together to re-think and transform investments into tourism.”
UNWTO is proud to join the World Investment for Development Alliance and we look forward to working together to re-think and transform investments into tourism
WIDA Chair James Zhan adds: “WIDA fully recognizes that UNWTO has been playing a leading role in promoting investment in tourism for sustainable development and inclusive growth. It believes that UNWTO shares the same values as WIDA and can make a significant contribution to our common causes.”
UNWTO data shows that, as a result of the pandemic, levels of investment into tourism dropped dramatically. The United Nations Specialized Agency will hold this year’s World Tourism Day (27 September) around the theme of ‘Green Investments’ and, according to Secretary-General Zurab Pololikashvili, enhanced cooperation with private sector stakeholders will be vital for both boosting investment levels and for directing funding to projects centred around sustainability.
“For this reason, I am happy UNWTO has confirmed our new agreement with the Annual Investment Meeting (AIM),” Mr Pololikashvili says. “We consider this collaboration as mutually beneficial, as we recognize the significant contributions that can be made by the private sector to our organization’s strategic objectives.”
In line with the two Organizations’ commitment to cooperate in the implementation of the Memorandum of Understanding, UNWTO will spearhead the “Tourism Investment Segment”, an official side event of the upcoming Annual Investment Meeting, to be held on 8-10 May in Abu Dhabi, United Arab Emirates.
AIM President Dawood Al Shezawi said: “It has been AIM’s mission to provide an interactive platform where investment opportunities can be formed, thereby not only strengthening economic relations among nations but also addressing issues that have profound effects on a global scale. We also want to provide a platform where the brightest minds, from all sectors, can converge to find solutions and scale up development ideas. We welcome this great chance to cooperate with the UNWTO and we are certain that this collaboration will be fruitful.”
About WIDA
The World Investment for Development Alliance (WIDA) is a global platform dedicated to promoting investment for sustainable development. Promote sustainable and inclusive investment through an open and structured network of multiple organizations drawn from the investment-for-development community. WIDA pursues this overarching objective by creating synergies and maximizing impact through joint advocacy, joint organization and joint actions among participating organizations.
About AIM
The Annual Investment Meeting (AIM) is an initiative of the AIM Foundation, an independent international organization fully committed to empower the world’s economy by boosting effective promotion strategies and facilitating opportunities for economic productivity and expansion. The Foundation also undertakes the operation and management of the AIM Global Investment Network and its 15 affiliated Business Groups, including the supervision of the Annual Investment Meeting Global and Regional Chapters.
Tourism leaders from every global region have met to advance plans to transform the sector against a backdrop of challenges old and new.
UNWTO convened its Executive Council in Marrakesh, Morocco, as the sector’s recovery continues to gather pace. According to UNWTO data released this week, international arrivals are on track to reach 65% of pre-pandemic levels by the end of the year. However, building on its year-long call for both public and private sector leaders to “rethink tourism”, UNWTO placed innovation, investments and education and youth empowerment at the centre of discussions, while also emphasizing heightened interest for transformation through Climate Action and the sector’s importance for rural development everywhere.
Welcoming 16 Ministers of Tourism and delegations from 36 countries, UNWTO Secretary-General Zurab Pololikashvili underscored that “the window of opportunity to transform our sector will not stay open for long”. He emphasized that “now is the time to fast-track building a more inclusive, resilient and sustainable sector”, and reminded this leading UNWTO governing body that tourism’s success cannot longer be measured based on numbers alone, “but rather on the impact our sector has on lives, on livelihoods and the wellbeing of both people and planet”.
Now is the time to fast-track building a more inclusive, resilient and sustainable sector
On the eve of the Marrakesh meeting, the United Nations General Assembly was presented with a draft resolution calling on all parts of the UN system to promote tourism in their work to achieve the Sustainable Development Goals (SDGs). The resolution, which so far has the support of 104 countries, is the culmination of UNWTO’s enhanced presence at the highest political level. It is also a reflection of the unprecedented recognition of tourism’s importance to economic and social wellbeing and integrates the key strategic work streams of UNWTO. In particular, it draws attention to tourism’s power to help build inclusive societies and protect ecosystems.
Alongside sharing this landmark moment for the sector, in his report to Members on its achievements since the previous Council meeting, Secretary-General Pololikashvili illustrated how UNWTO is leading the transformation of the tourism. Central to this is a stepping up of education and training programmes, promoting investments in tourism for growth and sustainability, and through providing technical assistance for Member States in every region. Executive Council Members also heard how UNWTO has delivered in advocating for tourism at the very highest level.
His Excellency Fatim-Zahra Ammor, Minister of Tourism, Handicraft, and Social and Solidarity Economy of the Kingdom of Morocco warmly welcomed the UNWTO leadership and his fellow Ministers to Marrakesh. He added: “This important session of the UNWTO Executive Council provides us with the opportunity to reaffirm priority orientations to promote the prosperity and development of our sector. I am looking forward to a more resilient tourism in the African continent thanks to an inclusive continental approach that will increase the awareness of Africa’s assets thus improving the attractiveness of Africa as a destination."
Within the framework of the 117th Session of the Executive Council, UNWTO also held a special Thematic Session focused on empowering small businesses to be agents of transformation, inspired by the G20 Guidelines for Tourism SMEs and Communities as agent for transformation. The Session brought together Ministers of Tourism alongside leading figures from the private sector to address the biggest challenges standing in the way of smaller enterprises fulfilling their potential to drive change. These include access to investment and financing, a lack of market intelligence and an inability to adapt to meet changing consumer trends.
Also underlining discussions in Marrakesh was a shared recognition of the importance of tourism for rural development and opportunity. In his report to the Executive Council, Secretary-General Pololikashvili provided an update on the new Programme for Tourism and Rural Development, hosted by the Regional Office for the Middle East in Riyadh, including of its flagship initiative, Best Tourism Villages by UNWTO.
The Executive Council is the top governing body of UNWTO and meets twice a year. Made up of 34 Members following the Russian Federation’s suspension from the Organization, it works with the Secretary-General to implement both its own decisions and the recommendations of the Assembly. The 118th Session of the Executive Council will be held in the Dominican Republic and the next hosts sent a message to all fellow Members looking forward to welcoming them in 2023.
