Government seeks to reactivate tourism with an injection of S/500 million

The tourism sector has been one of the hardest hit after more than two months of internal conflict, especially in the southern regions of the country. For this reason, the Ministry of Foreign Trade and Tourism (Mincetur) and the Ministry of Economy and Finance (MEF) presented this Monday a plan to reactivate this item, which at the end of 2022 registered US$2,855 million in foreign currency income, and It is projected that by the end of 2023 it will reach US$3,337 million, which will not yet exceed pre-pandemic figures (US$4,703 million).

With Punche Turismo, it focuses on three axes with reactivating measures: relief for tourism; improvement of infrastructure and tourist security; and strengthening and promotion of tourism. It will cost around S/500 million.

“Yes to this [monto] we add the credit boost that we plan to give to this sector, it is S/500 million more; there are S / 1,000 million. If we add the other advantages, on the tax side we could be talking about S/2,000 million. It is, in a few words, the most important package of support for tourism that has been given in Peru and that has the objective of recovering this sector of the economy”, emphasized the head of the MEF, Alex Contreras, during the presentation.

Regarding the first axis, he highlighted the delivery of a new economic subsidy to tourist guides, mountain guides, porters and cooks of the Inca Trail, as well as artisans, in order to counteract their economic impact. The support will be channeled through the Ministry of Development and Social Inclusion (Midis).

Regarding the second axis, the measures are aimed at investments in infrastructure for tourism in 12 projects in four regions of the country for S/62.2 million, solid waste collection in four key cities for S/83.5 million, maintenance of 25 protected areas (S/15.6 million) and improvement of tourist police stations (S/9 million).

The third axis focuses on the recovery of the country’s image and the promotion of tourism for S/90.8 million, and migratory attention will be expedited (S/54.3 million).

Minister Contreras specified to La República that the block of measures presented will be of rapid execution, since the majority do not need approval by the Congress of the Republic.

“Between this week and the other week, an important package is going to come out. Only in the case of subsidies, potentially, it could go through Congress. We are talking about that, of the S/500 million, the subsidies have an estimated cost of between S/100 and S/150 million. We are defining the scope, ”he said.

Minister Helguero recalled that work is being done on the return of the IGV to foreign tourists, which will boost the arrival of visitors and generate greater economic activity.

Tourism is key to the economy

The contribution of tourism to the economy is 2.2% of GDP, although in 2019 it reached 3.9%, according to the MEF.

This sector contributes to the generation of one million jobs and by 2022 it generated foreign currency for US$2,855 million.

However, sectors such as commerce, transport and storage, accommodation and restaurants register a slow recovery. After the COVID-19 crisis, the sector began to recover, but social protests cut short progress.

By 2022, the arrival of international tourists fell 54% compared to 2019.

The word

Luis Fernando Helguero, Minister of Foreign Trade and Tourism

“It will be a speedy recovery. National tourism is the one that responds the fastest; and on the international side there is a lot of expectation. The opening of Machu Picchu helps a lot to this end”.