04 de April 2012

Bogotá is the most competitive city in Colombia when it comes to foreign investment in hospitality


Bogotá plays a leading role in the foreign tourist boom visiting Colombia; being the business center and political capital of the country, Bogotá has become the city that receives the most international visitors. After receiving 500,000 visitors in 2002, the country received close to a million and a half in 2011, from which 54% chose Bogotá as their destination.

As Adriana Suárez, Invest in Bogota Executive Director, the agency that promotes investment explains: “The robust economic growth of the country and its aggressive internationalization strategy has captivated the interest of the whole world, and as a consequence, more and more foreign visitors are coming to the country.

This visitor boom has stimulated the arrival to Bogotá of companies from the tourism infrastructure sector, including hotel chains such as Marriott, Hilton, Hyatt, Sonesta Collection, Ibis Hotels, Estelar Hotels, Radisson and JW Marriott, among others that have increased the interest of other companies related to different segments of the industry in exploring this market in Bogotá”.

Starting in 2006, the number of rooms has maintained an increasing tendency, rising from 11,000 to 16,800 in six years; also, the room supply has changed between 2010 and 2012, maintaining an average hotel occupancy rate of 65% for the last five years. Factors that facilitate the strengthening of the tourism industry in Bogotá are:

  • Its work force – there are 5,200 graduates in tourism related careers, between 2001 and 2009-;
  • Homicide rate decrease, reflected in an improvement of the security indicators;
  • Incentives such as: 30 years income tax exemption for hotel related services delivered in new, renovated or enlarged hotels for projects before December 31, 2017; 10% VAT differential tax for accommodation services; VAT exemption for package tours; discounts in income tax and other payroll contributions for the creation of jobs, among others;
  • The support of the national government, which is planning on investing more than US$ 120 million between 2011 and 2014 and the support of the district which is planning on investing more than US$60 million between 2011 and 2015.

Know more about other sector for investments in Bogota.