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Peru’s Tourism Industry Recorded Considerable Decline

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The pandemic severely affected Peru’s tourism industry, which has not yet recovered. The lack of effective initiatives to promote the country and the ongoing social unrest have further hindered the sector’s slow reactivation compared to other nations that have performed better. Although there are hopes for a better performance this year, significant challenges still need to be addressed.

In 2019, Prom-Peru allocated S/215 million (about $58 million) to promote tourism in the country. However, the pandemic reduced these resources by more than half between 2020 and 2022. On average, only S/90 million (about $24 million) was spent each year. As a result, the number of international fairs organized by Prom-Peru decreased drastically, from 191 in 2019 to only 48 in 2022.

Last Year’s Results

Peru’s tourism industry has struggled to recover due to low international promotion and ongoing social protests. In 2023, the country’s main tourist attractions received 5.6 million visits, 26% less than the number of visits received in 2019. Domestic tourism has almost fully recovered, with 97% of visitors. Still, only half of the visits from foreign tourists have been received, resulting in only 2.5 million international tourists visiting Peru in 2023, a significant drop from the 4.4 million in 2019. This decrease can be attributed to fewer tourists arriving from Chile (-602,000), America (-167,000), and Argentina (-116,000).

As a result of the decline in tourism from these three countries and the average expenditure per tourist, it is estimated that Peru lost over US$700 million in travel expenses last year. This amount represents 42% of Cusco’s wage bill for the same year. As a result, foreign exchange income from tourism in Peru fell from 2% of GDP in 2019 to 1.3% in 2023, a decline of 25%. In contrast, Colombia managed to increase its foreign exchange income by 19%, reaching an all-time high of 2.5% of its GDP, thanks to its spending on tourism promotion growing every year between 2019 and 2023.

The decline in the tourism industry has significantly impacted Peru’s economy. The sector’s contribution to the country’s GDP decreased from 3.9% in 2019 to 2.5% in 2023, amounting to a decrease of more than US$1,000 million. This decline has resulted in over 300,000 jobs remaining unrecovered.

The Hope of 2024

In the second half of 2023, Peru increased its spending on promoting tourism to S/221 million, only 3% more than the amount spent in 2019. However, there are still other significant challenges that need to be addressed. One of the main issues is the increase in insecurity, especially in Cusco, the country’s primary tourist destination. The city recorded the second-highest percentage of crime victims in the nation (29%, compared to the national average of 23%). Additionally, the low quality of airport infrastructure and tourist services, combined with the delay in implementing new initiatives, remains a concern. According to Mincetur, as of February 2023, only 3% of prioritized tourism resources provided adequate services, highlighting the urgent need for investments in the sector.

The IPE estimates that by 2024, international tourists’ arrivals could increase to 3.2 million, generating around US$4.4 billion in foreign exchange. However, if the number of visitors in 2019 (4.3 million) is reached, foreign exchange could increase by almost US$1.6 billion above the baseline scenario.

Considering the potential of Peru’s tourism industry, the authorities must double their efforts. Firstly, they must reposition Peru in the global tourism market and manage security and conflict issues. Secondly, popular attractions like Machu Picchu are not equipped to handle twice as many tourists, and there is no development plan in place for the new Chinchero airport. These are just some of the issues that need to be addressed. With the Easter season quickly approaching and the start of the second quarter, there is no time to waste in taking action to boost tourism for the rest of the year for the benefit of the citizens.



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Certares-led consortium enters into an investment agreement with the FTI Group

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FTI GROUP partners with Certares-led Consortium to secure €125 million for growth and digital transformation, positioning itself for enhanced profitability in the European tourism sector.

The FTI GROUP, the third largest tour operator in Europe, announces that an agreement has been reached which concludes the process to strengthen the capital and restructure the shareholder base of the Company originally launched in September 2023.

A consortium led by Certares, an investment firm specialized in the travel and tourism sector, with capital provided by co-investors (the “Consortium”), has signed an agreement on the proposed acquisition and funding and will assume control.

Under the terms of the Agreement, FTI will receive new capital of € 125 million to support its next phase of growth and fund digital transformation. The current shareholder has accepted to provide financial support and further investment. The transaction is subject to customary regulatory approvals and other condition precedents as are typical for transactions of this type.

Karl Markgraf

Karl Markgraf, CEO of the FTI Group

Karl Markgraf, CEO of the FTI GROUP, stated: “We are delighted to announce our partnership with the Certares-led Consortium. Certares is a leading investor in the global travel and tourism sector. With support from Certares and its extensive experience in the sector and capital provided by the Consortium, FTI is uniquely positioned for future growth and profitability which benefits all the stakeholders, including our customers, commercial partners and employees. We are committed to start our next chapter of success and to further consolidate our position as a leading player in the German and European tourism sector.”

Who is who

Established in 2012, Certares is a global investment firm focused exclusively on the travel and hospitality industries, leveraging deep sector experience, proprietary transactions and hands-on partnership with management teams to drive growth. With approximately $ 10.1 billion of assets under management, including co-investments, as of 31 December 2023, Certares brings together a team with decades of both operational and investment experience in private equity, travel, tourism, hospitality and travel-related business and consumer services.

Delta, Certares and Knighthead in a strategic partnership

With its numerous brands and subsidiaries, the FTI GROUP is the third largest tour operator in Europe. It includes FTI Touristik as well as the short-term tour operator 5vorFlug, the car rental broker Drive FTI, the destination management company Meeting Point International, which is active in over 40 locations worldwide, and the tour operator for promotional goods BigXtra.

Under the umbrella of the hospitality company MP Hotels, the company bundles its hotel brands Labranda Hotels & Resorts and Design Plus Hotels, Kairaba Hotels & Resorts, Lemon & Soul Hotels, Club Sei and Managed by MP Hotels. TVG Touristik Vertriebsgesellschaft mbH combines the franchise systems with the brands sonnenklar.TV Reisebüro, 5vorFlug and Flugbörse. Around 10,000 partner agencies sell FTI products throughout Germany.

The TV travel shopping channel sonnenklar.TV, an FTI GROUP partner, and the online B2B provider for accommodation Youtravel are also important sales channels. The consolidator FTI Ticketshop is responsible for the sale of scheduled flight tickets. In Austria, FTI Touristik is represented by a branch in Linz.

FTI expects highly successful winter 2023/24

The subsidiary FTI Touristik AG, based in Basel, represents the tour operator in Switzerland. The French tour operator FTI Voyages has been part of the FTI GROUP since 2012. With FTI Reizen, the group has also been active in the Netherlands since 2016. The seven service centres handle numerous bookings for the FTI GROUP and external customers. Headquartered in Munich, the Group employs over 11,000 people worldwide and generated consolidated sales of around € 4.1 billion in the 2022/23 financial year.


Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.






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Air New Zealand Buys 9M Liters of SAF from Neste

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Air New Zealand has agreed to purchase 9 million liters of
neat sustainable aviation fuel from producer Neste, the carrier announced
Monday. Neither company disclosed the value of the deal. 

The fuel will be produced at Neste’s Singapore refinery and
will be blended with conventional jet fuel and supplied to Los Angeles
International Airport between April 1 and Nov. 30, 2024, according to the
carrier. Air New Zealand expected its total fuel uptake during that period to
be about 850 million liters across its network.

The carrier said the deal is the “largest purchase of
SAF from Neste by any airline outside of North America and Europe for delivery
before the end of 2024.”



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AmaWaterways reports best UK sales month in history

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March traded 74% up year on year, sales director says



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