EMIS Insights - Colombia Tourism and Leisure Sector Report 2018 - 2019 PDF

COLOMBIA
TOURISM & LEISURE

SECTOR 2018/2019
An EMIS Insights Industry Report
Any redistribution of this information is strictly prohibited.

Copyright © 2018 EMIS, all rights reserved.
CONTACT US www.emis.com FOLLOW US

ABBREVIATIONS
ANATO Colombian Association of Travel Agencies
ARS Argentine Peso
CONFECAMARAS Commerce Chambers Confederation
COP Colombian Peso
COTELCO Colombian Tourism and Hotels Chamber
DANE National Administrative Department of Statistics
FONTUR National Tourism Fund
GIHS Great Integrated Household Survey
MINCIT Ministry of Commerce, Industry and Tourism
RNT National Tourism Registry
SIC Colombian Superintendence of Industry and Commerce
UNWTO United Nations World Tourism Organisation
WEF World Economic Forum
WTTC World Travel and Tourism Council

p.5
CONTENTS 01 EXECUTIVE SUMMARY

Sector in Numbers
Sector Overview
Sector Snapshot
Sector Outlook
Driving Forces
Restraining Forces
02 SECTOR IN FOCUS p.14

Main Economic Indicators
Main Sector Indicators
Inbound Tourism
Focus Point - Inbound Tourists
Outbound Tourism
Domestic Tourism
Colombia in Regional Tourism Market
Global and Regional Competitiveness
Tourism Balance
Foreign Direct Investment
Employment and Wages
Focus Point - Estimated Number of
Employees in Hotels and Travel Agencies
Focus Point - Estimated Average Monthly Wage of
Employees in Hotels and Travel Agencies
03 COMPETITIVE LANDSCAPE p.28

Timeline Colombia Tourism & Leisure Sector
Highlights
Market Shares
Hotels and Accommodation Competition
Travel Agencies and Tour Operators Competition
Top M&A Deals
M&A Activity
p.36
CONTENTS 04 COMPANIES IN FOCUS

Hoteles Decameron Colombia SAS
Hoteles Estelar SA
Agencia de Viajes y Turismo Aviatur SA
Tour Vacation Hoteles Azul SAS
Sociedad Hotelera Tequendama SAS
05 REGULATORY ENVIRONMENT p.47

Government Policy
06 HOTEL INDUSTRY p.51

Highlights
Main Events
Hotel Supply
Hotel Operating Performance
Focus Point - Average Hotel Occupancy Rate
Focus Point – Average Hotel Tariff
07 TOURIST SERVICES p.59

Highlights
Main Events
Travel Agencies Infrastructure
Travel Agencies Operating Performance
Travel Agencies Sales
Cruise Lines
COLOMBIA TOURISM & LEISURE SECTOR 2018/2019
An EMIS Insights Industry Report CONTENTS
01
EXECUTIVE
SUMMARY

Copyright © 2018 EMIS, all rights reserved. 5
01 EXECUTIVE SUMMARY CONTENTS
Sector in Numbers
USD 7.2%
5.8% 4,483mn CAGR
Total Contribution of Domestic
Tourism to GDP Spending on Tourism Spending
International 2012-2017
Tourism
USD 14.6%
4,900mn 3.3mn CAGR
International
International International
Tourist Arrivals
Tourist Receipts Tourist Arrivals
2012-2017
COP USD
33.5tn 211,239
417.5mn Number of Hotels
Hotels and and Travel Agencies
Restaurants GVA, Tourist Services
Surplus Employees
current prices
Note: Data for 2017.

Source: DANE, ANATO, COTELCO, WTTC
COLOMBIA TOURISM & LEISURE SECTOR 2018/2019 6

Sector Overview
The tourism sector of Colombia has significant growth potential due to the natural and cultural
resources of the country. The recent demobilisation of the insurgent group FARC also favours the
development of the sector with the improved security environment. In 2017, tourism and leisure
accounted for 5.8% of the country’s GDP, including direct and indirect contribution. Over the period
2012-2017, the tourism balance experienced a significant shift, from a deficit of USD 166mn in 2012 to a
surplus of USD 417mn in 2017, as the outbound tourism slowed down noticeably, affected by the weak
Colombian peso from 2014 onwards, while the inbound tourism surged following the progress in the
peace talks with the FARC and the rapid increase in hotel and accommodation supply.
Entry Modes
The strong government promotion of the sector, macroeconomic stability, openness to trade and
development of online sales attracted a large number of new entrants between 2012 and 2017, both
foreign and domestic. Brownfield investment has been a preferred method of entry in the hotel sector,
with international players acquiring large domestic chains with a consolidated position on the
domestic market. The key deals include the acquisition of the domestic hotel operator Hoteles
Decameron Colombia SA by the US real estate investment management company Equity International
and its local partner Grupo Santo Domingo in May 2014. About a year later, in February 2015, the
Spanish hotel operator NH Hotel Group SA acquired its Colombian peer Hoteles Royal SA.
Segment Opportunities
As a result of the peace agreement between the FARC and the government signed in November 2016,
the nature and ecotourism segment faces enormous opportunities for expansion, as large areas of the
country were demilitarised and can be transformed into tourist destinations. Among the key examples
are the Cano Cristales river in Meta department, the Gorgona Island in Cauca department and the End
of The World Cascades in Putumayo department. On the other hand, war tourism, centred around key
geographical locations of the 50+ year conflict between the government and the FARC, also has
significant potential. A prominent example of the latter is Casa Verde Hotel, a project being developed
in La Guajira village in Meta department by former FARC combatants.
Government Policy
So far, the government policy has been favourable for sector growth, providing direct promotion
through instruments such as the income tax exemption for hotels constructed between 2003 and 2017.
However, the most recent tax policies resulting from the fiscal reform, that introduced an increase in
both the income tax and VAT rates effective February 2017, have been a negative factor in sector
performance and challenge the outlook for future growth.
Source: FONTUR, ANATO, Reportur, DANE, COTELCO, WEF

Sector Snapshot
Colombia Tourism
& Leisure Sector
ECONOMIC IMPORTANCE
COP 19.6tn COP 33.8tn
Direct Contribution Indirect Contribution
to GDP to GDP
Total Contribution to
GDP: COP 53.4tn
INBOUND TOURISM DOMESTIC TOURISM

SPENDING SPENDING
COP 17.9tn COP 24.3tn
International Tourist Arrivals: Passengers on Domestic
3.34mn Air Flights: 23.34mn
INTERNAL TOURISM
CONSUMPTION: COP 42.3tn
Leisure Tourism Spending: COP 34.9tn
Business Tourism Spenidng: COP 7.4tn
HOTEL INDUSTRY TRAVEL AGENCIES

Number of Hotels*: 15,322 Segment Employees: 44,483
Number of Rooms*: 265,570 Turnover: COP 1,691bn
Hotel Occupancy Rate: 56.3%
KEY PLAYERS REVENUES

1. Hoteles Decameron: COP 275.7bn
2. Hoteles Estelar: COP 257.8bn
3. Aviatur: COP 211bn
4. Tour Vacation: COP 200.2bn
5. Servincluidos: COP 138bn
* As of September 2017
Note: Data for 2017.
Source: WTTC, ANATO, CONFECAMARAS, COTELCO, Company Data

Sector Snapshot
Colombia Tourism & Leisure
According to the World Travel and Tourism Council (WTTC), the direct contribution of the tourism
sector to Colombia’s economy reached COP 19,662bn in 2017, 0.43% down y/y in real terms, mainly due
to the increased competition in the sector. It is both formal, coming from the increased number of
foreign investors, and informal, from the expanding unregistered private rentals, and has a negative
effect on the operating margins. During the year, the total contribution of the sector, including
investment projects and supply chain purchases, stood at COP 53,431bn, 0.25% up y/y in real terms.
The key driver of Colombia's tourism sector in 2017 was the peace agreement between the insurgent
group FARC and the government signed in November 2016, which contributed greatly to the promotion
of domestic tourist destinations abroad throughout 2017. The improved security as a result of the
peace agreement was the main reason for the 23.9% y/y expansion of the foreign tourist arrivals that
reached 3.34mn in 2017. The growth of the number of foreign visitors to Colombia in 2017 resulted in a
7.5% y/y increase of the international tourism receipts to USD 4.9bn, according to the central bank.
Argentina was among the countries that contributed most to the surge with 194,745 inbound tourists
in 2017, up 35% y/y, due to the favorable exchange rate for the Argentinean tourists during the year.
The inflow of foreign tourists boosted the average hotel occupancy rate to 56.3% in 2017, its highest
level since 2004. The strongest performance came from large hotels with more than 150 rooms.
In contrast to the positive performance of inbound tourism, the domestic tourism had a relatively
mediocre year, affected by the slow economic growth in Colombia. The VAT reform of February 2017,
which increased the general VAT rate from 16 to 19%, led to a decrease in the disposable income of
households and caused the consumer confidence to plummet. Hence, the number of passengers on
domestic flights fell by 2.6% to 23.3mn in 2017, while the spending of Colombians on travel and
tourism within their own country only increased by 1.3% y/y in real terms to COP 24,330bn.
Overall, the internal tourism consumption in Colombia was COP 42,281bn in 2017, 0.68% down y/y in
real terms. Of the total, COP 34,853bn was leisure travel spending, 1.1% down y/y, with the remaining
COP 7,428bn corresponding to spending on business travel, 2.7% up y/y. In 2017, the international
tourism spending rebounded by 5.4% y/y, in line with the 5.9% y/y surge in the number of tourists
travelling abroad. After the significant COP depreciation in 2015 and 2016 caused by the contracting
international prices of mineral commodities in H2 2014, the outbound tourism in Colombia reacted
positively to the more stable exchange rate in 2017. Some of the best performing destinations for
outbound tourism in 2017 included Spain, with a 14% y/y increase of Colombian visitors, and Mexico,
up by 8% y/y, which helped to compensate for the 4% y/y decrease in the number of Colombians
travelling to the United States, the largest outbound market for the year.
Source: WTTC, Reportur, ANATO

CONTENTS
Sector Outlook
Comments
According to the WTTC, the direct contribution of the tourism sector to GDP is expected to expand at a
3.9% CAGR over 2018-2022. The inbound tourism spending is likely to experience a more dynamic
evolution, surging at a CAGR of 4.3% in real terms over the period, whereas both the outbound and
domestic tourism are expected to lag behind, rising at CAGRs of 3.6% and 3.5%,respectively. The
relatively stronger forecast for inbound tourism compared to other subsectors, is linked to the
progressive development of new destinations following the peace agreement.
On the other hand, BMI Research presents a more cautious forecast of the inbound tourism, with a
4.4% y/y expansion in the number of tourist arrivals in 2018, and an average growth rate of 4.01% for
the 2018-2022 period. The consultancy outlines that these figures are somewhat conservative due to
the persistent violence in the country, albeit sporadic, with other insurgent groups such as the ELN
who have only agreed to a ceasefire in recent times, but have not yet signed a peace accord.
Moreover, BMI Research noted that the large dependence of Colombia on inbound tourists coming
from countries in the region, such as Brazil and Argentina, whose macroeconomic perspectives for the
forecast period are somewhat uncertain, poses additional risk for the sector growth.
Travel and Tourism Contribution to GDP
5.9%
5.9%
5.9%
5.9%
38,777 40,149
36,318 37,619
34,853
5.8%
20,284 21,160 21,982 22,837 23,644
2018f 2019f 2020f 2021f 2022f
Direct Contribution to GDP, COP bn, real 2017 prices Indirect Contribution to GDP, COP bn, real 2017 prices
Total Contribution to GDP
Source: WTTC, BMI Research

Sector Outlook (cont’d)
Internal Travel and Tourism Consumption Inbound vs Outbound Tourism Spending,

by Type, COP bn, real 2017 prices COP bn, real 2017 prices
21,971
21,303
20,463
19,620
18,600
16,525
16,095
15,642
8,598
15,079
8,282
7,744 7,984 14,336
7,569
39,139 40,664 42,054

35,997 37,641
2018f 2019f 2020f 2021f 2022f 2018f 2019f 2020f 2021f 2022f
Leisure Tourism Spending Business Tourism Spending Outbound Tourism Spending Inbound Tourism Spending
Capital Investment in Travel and Tourism Government Individual Spending on

Travel and Tourism
Sector
9,333 531.6
5.3% 5.3%
9,043 512.8
8,954
494.8
8,675
3.2% 3.2% 477.3
8,241 460.5
2.1% 2.1% 2.1% 2.1%

2.1%
1.0%
2018f 2019f 2020f 2021f 2022f 2018f 2019f 2020f 2021f 2022f
Capital Investment in Travel and Tourism Sector, COP bn, real 2017 Government Individual Spending, COP bn, real 2017 prices
prices
y/y change Share of Total Tourism Expenditure
Source: WTTC

CONTENTS
Driving Forces
Diversified and comprehensive touristic offers that feature natural landscapes, beaches, cultural
events and a welcoming population, have allowed Colombia to develop both its inbound and domestic
tourism subsectors. The hotel segment has been the main driving force over the 2012-2017 period, due
to the supportive government policy. As a result, the real sales and employment for the segment
expanded at CAGR of 4.2% and 2.6% respectively, while the hotel occupancy rate reached an average
of 56.3% in 2017, the highest figure since 2004.
External
Several external factors contributed to the growth of the sector in the period 2012-2017. For example,
the outbound tourism subsector grew at a solid pace partly as a result of the creation of the Pacific
Alliance trade bloc of which Colombia is a member. In that regard, in November 2012, Mexico, a fellow
member of the trade bloc, decided to eliminate all visa requirements for Colombians travelling to
Mexico for a period of up to 180 days. This, in turn, allowed Mexico to become the third most
important destination for Colombian tourists in 2017. At the same time, the inbound tourism benefited
from two factors. First, the stabilisation of the exchange rates of other regional currencies (i.e.
Argentina’s) in the 2015-2017 period gave an impulse to the number of tourist arrivals. Second, the
peace agreement between the insurgent group FARC and the Colombian government further
encouraged foreign visitors to travel to Colombia. Finally, the hotel segment in particular experienced
solid investment between 2012 and 2017 as a result of the looming end of a key tax benefit, that,
initially was supposed to exempt from income tax for 30 years hotels constructed or refurbished
between 2003 and 2017.
Internal
The main internal driver for sector growth in recent years has been the great natural variety of
Colombia, which allows for a comprehensive and diverse touristic offer. According to a June 2016
survey by the Colombian Association of Travel Agencies (ANATO), the tourist packages in Colombia are
organised in five different lines (beach tourism, adventure tourism, nature tourism, cultural tourism
and corporate travels), all of which have ample room for growth. The sole exception is the beach
tourism, which is relatively saturated, its key destinations being Cartagena, Santa Marta and San
Andres. On the other hand, over 2012-2016, the number of international cruise line passengers
expanded at a 4.5% CAGR, reaching 303,582 people. This was mostly attributed to a significant growth
in the average capacity of cruise ships arriving to Colombian ports, as the total number of ship
arrivals remained steady over the period. The outbound cruise tourism also expanded, as international
cruise line operators are increasing the offering of trips which are more convenient for domestic
tourists. Such special routes begin and end in Colombian ports, i.e. Cartagena, and dock only in
countries, which do not require visas from Colombians.
Source: DANE, ANATO, Reportur

Restraining Forces
Although the recent peace agreement put an end to an over 50-year-long armed conflict between the
Colombian government and the insurgent group FARC, liberating several regions with high potential
for tourism, the majority of sector players are not yet prepared to take full advantage of the new
context. In fact, the large dependence of the tourism sector on the domestic travellers has resulted in
an overall mediocre aggregate performance in recent years due to the slow economic growth after
2014. Thus, the gross value added generated by hotels and restaurants rose by just 1.6% y/y in 2017, in
spite of the large influx of foreign tourists during the year.
External
The abrupt decline of the international prices of Colombia’s main export products, crude oil and coal,
in 2014 and the resulting significant weakening of the peso in 2015 had a negative effect on the
outbound tourism. Although this had a marginally positive influence on the inbound tourism, the net
result was clearly negative for the sector, with both outbound tourism and domestic tourism suffering
the consequences of the accelerated inflation and lower disposable income. The general VAT increase
introduced in February 2017 gave another blow to the disposable income, and to the domestic tourism
as a consequence, contributing largely to the 2.6% y/y contraction in the number of passengers
transported on domestic flights in 2017. An additional restraining factor for the sector was the low
level of financial integration of the Colombian households, with a significant share of the population
without access to bank accounts, which limits their ability to use loans for purchasing tourist
packages. Finally, the cruise line segment was negatively affected by the tax policy that charges VAT
on all cruises originating from Colombian ports.
Internal
Recently, the operations of the companies in the sector were affected by the increased competition
from informal players. The hotel segment for instance is experiencing the rising rival pressure from
the proliferation of online accommodation platforms, both domestic and foreign, that offer private
rentals at lower prices compared to hotel rates. Notably, the number of available private rentals
recorded a tenfold increase in the number of units and a threefold increase in the number of available
rooms during the period November 2012 – September 2017, according to the Q3 2017 report by the
Colombian Tourism and Hotels Chamber (COTELCO). As a result, several institutions that represent the
tourism sector, including ANATO and COTELCO, urged the government to take a firm stance against
the informal sector. So far, the response from the regulatory authorities has been weak. At the same
time, the segment of travel agencies is impaired by the lack of qualified personnel in the interior
regions of the country, especially in the zones that were recently liberated from the control of
insurgent groups, with few people being fluent in foreign languages and having tourism-related
education.
Source: ANATO, COTELCO, Semana

02
SECTOR
IN FOCUS

02 SECTOR IN FOCUS CONTENTS
Main Economic Indicators
2012 2013 2014 2015 2016 2017
Total Population, mn, year-end 46.6 47.1 47.7 48.2 48.7 49.3
GDP, current prices, COP bn 664,240 710,497 757,065 799,312 855,432 912,525
GDP, constant prices, y/y change, % 4 4.9 4.4 3.1 2 1.8
GDP per Capita, current prices, USD 7,931 8,069 7,957 6,090 5,755 6,272
Consumer Price Index, y/y change, %, year-end 2.4 1.9 3.7 6.8 5.7 4.1
Consumer Price Index, Leisure Services, y/y change,

6 4.6 6.4 5.3 6.3 12
%, year-end
Unemployment Rate, %, year-end 9.6 8.4 8.7 8.6 8.7 8.6
Monetary Policy Rate, %, year-end 4.3 3.3 4.5 5.8 7.5 4.8
USD/COP Exchange Rate, year-end 1,793.9 1,934.1 2,344.2 3,244.5 3,009.5 2,991.4
Trade Balance in Tourism, USD mn -165.6 -330.1 -857.8 -75.6 305.6 417.5
International Tourism Receipts, USD mn 3,460.3 3,610.7 3,824.9 4,245.3 4,559.2 4,900.1
Spending on International Tourism, USD mn 3,625.9 3,940.8 4,682.7 4,320.9 4,253.6 4,482.6
Total FDI Inflow, USD mn 15,039 16,210 16,165 11,632 13,743 14,050
FDI Inflow in Wholesale, Retail Trade, Hotels and

Restaurants, 1,338.8 1,360.9 804.5 1,667.7 1,044.1 1,139.2
USD mn
FDI Inflow in Wholesale, Retail Trade, Hotels and
Restaurants, 8.9 8.4 5 14.3 7.6 8.1
% of total
Source: Central Bank of Colombia, DANE, OANDA, ANATO

Main Sector Indicators
2012 2013 2014 2015 2016 2017
Hotels and Restaurants GVA, current prices, COP bn 21,245 23,532 25,771 27,811 30,996 33,562
Hotels and Restaurants GVA, constant prices, y/y

3.8 5.6 5 6.2 3.8 1.6
change, %
Hotels and Restaurants GVA, current prices, % of

3.2 3.3 3.4 3.5 3.6 3.7
GDP
Domestic Tourism Spending, current prices, COP bn 17,163.6 18,230.6 19,222 21,346.7 22,897.8 24,329.5
Domestic Tourism Spending, constant prices, y/y

3.9 4.1 3.3 8.4 1.3 1.2
change, %
Inbound Tourism Spending, current prices, COP bn 7,841 8,892.3 9,689.6 14,217.1 17,647.9 17,951.5
Inbound Tourism Spending, constant prices, y/y

8.4 11.2 6.8 43.2 17.3 -3.1
change, %
Outbound Tourism Spending, current prices, COP bn 7,003.9 7,517.3 9,347.5 11,781.4 12,755.7 13,624.6
Outbound Tourism Spending, constant prices, y/y

16.4 5.2 21.8 23 2.3 1.7
change, %
Hotels and Travel Agencies Employees, thou, annual

196.8 198.7 207.3 211.3 211.2 211.2
average
Hotels Employees, thou, annual average 146.9 148.3 155.3 161.2 165.2 166.8
Travel Agencies Employees, thou, annual average 50 50.4 52.0 50 46 44.5
Employment in Hotels and Travel Agencies, % of

0.9 0.9 0.9 0.9 0.9 0.9
total employment, annual average
Hotel Sales, current prices,* COP bn 3,545.7 3,697.2 3,975.2 4,482.7 4,901.2 5,100
Travel Agencies Sales,* current prices, COP bn 1,443 1,500 1,649.8 1,700.7 1,742 1,691
* EMIS Insights estimates

Source: DANE, WTTC

Inbound Tourism
Comments Number of International Tourist Arrivals

In 2017, 3.3mn tourists visited Colombia, 23.9% up
y/y. However, the increase was mainly explained
3,344
by the 110% y/y surge of Venezuelans, mainly
23.9%
people fleeing from the economic crisis in their 2,698
country. Other market with solid performance in 2,385
2017 was Argentina, up 35% y/y, as a result of the 2,052
16.2%
1,832
very favourable exchange rate of the COP to ARS 1,693
13.1%
during the year. The inflow of tourists from 12.0%
Argentina is likely to preserve the rising trend 8.2%

7.0%
also in 2018, benefitting from the increase in the
number of direct flights between Bogota and
Buenos Aires from 4 to 21 weekly, as a result of
the agreement signed in February 2018 by both 2012 2013 2014 2015 2016 2017
countries’ governments. Number of International Tourist Arrivals, thou
y/y change
International Tourist Arrivals by Mode of Top 10 Markets by Number of Inbound

Transport, thou Tourists in Colombia, thou, 2017
2,560
Venezuela 796
2,340
United States 531
Brazil 215
Argentina 195
Mexico 176
739
Ecuador 173
310
Peru 146
33 38
Chile 140
2016 2017 2016 2017 2016 2017 Spain 130
Air Land Sea France 74
Source: ANATO, Perfil, El Pais

CONTENTS
FOCUS POINT
Number of Inbound Tourists by Department, 2017
Archipelago 116,031
de San Andres Atlantico
y Providencia 3.5%
208,751
6.2%
438,513
Bolivar
13.1%
387,791
Antioquia
11.6%
1,525,608
Cundinamarca
Valle del 208,751 45,6%
Cauca
6.2%
212,223
Narino
6.3% 340,159
10.2%
Rest of
Colombia
Source: ANATO

Outbound Tourism
Comments
Between 2012 and 2017, the number of Colombians travelling abroad increased at a CAGR of 4.9%.
However, there were two periods characterised with diverse performance. From 2012 to 2014, the
number of international tourist departures rose rapidly, but in 2015-2017, the outbound tourism
remained relatively stagnant. The main factor for the sluggish growth observed in the latter period
was the significant 38.4% y/y depreciation of the COP against the USD recorded in 2015, as a result of
the decline of the oil and coal prices in late 2014. By the end of 2017, the COP recovered only slightly,
by 7.8% compared to 2015, which continued to weigh on the Colombian tourists seeking to travel
abroad. In 2017, the US was the preferred foreign destination for Colombian tourists, with a 30.9%
share of the total outbound tourist departures, followed by Panama with a 10.6% share, Mexico with
9.9%, Spain with 9% and Ecuador with a share of 7.5%. Between 2012 and 2017, Mexico and Spain were
the leading outbound markets in terms of growth, and the number of Colombian tourists travelling to
those destinations expanded at CAGRs of 24.1% and 14%, respectively. In that regard, in November
2012, the Mexican secretary of foreign relations decided to eliminate all visa requirements for
Colombians travelling to Mexico for a period of up to 180 days, for any purpose, including medical
care, except for labour. The measure was adopted by Mexico as a gesture towards its fellow Pacific
Alliance trade bloc member, following the constitution of the organisation in June 2012.
Number of International Tourist Outbound Tourism Spending

Departures
4,016 16.4% 13,624.6

3,911 3,859 3,794 12,755.7
26.3% 3,605 11,781.4
3,165
9,347.5
7,003.9 7,517.3
13.9%
8.5%
5.9% 5.2%
-1.3% 2.2% 2.3% 2.3% 1.7%

-1.7%
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
Number of International Tourist Departures, thou Outbound Tourism Spending, current prices, COP bn
y/y change Outbound Tourism Spending, constant prices, y/y change
Source: ANATO, WTTC, El Tiempo, El Espectador

Domestic Tourism
Comments Domestic Travel and Tourism Spending

In 2012-2017, the spending of Colombians on
business and leisure trips within the country 24,330
expanded at a moderate 3.6% in real terms, 22,898
21,347
according to WTTC data. Meanwhile, the number 18,231
19,222
17,164
of passenger departures on domestic flights 8.4%
surged at a strong 6.6% CAGR over 2012-2017. The
domestic tourism played a key role in the
expansion of the air traffic, the airports of San 3.9% 4.1%
3.3%
Andres Island and Santa Marta being the two
1.3% 1.2%
best performing airports in terms of domestic air
traffic over 2012-2017. According to El Tiempo 2012 2013 2014 2015 2016 2017
newspaper, a major boost for flights to San
Domestic Tourism Spending, current prices, COP bn
Andres was given by families with young kids
Domestic Tourism Spending, constant prices, y/y change
travelling during mid-year school holidays.
Number of Passengers on Domestic Domestic Air Passenger Departures by

Flights Region, 2017
23,968 Cartagena
15.8% 16.6% 23,116 23,344 8.2%
21,000 Cali 8.4%
19,754
16,943
10.1% Others
Rio Negro - 35.5%
6.3% Antioquia
12.3%
3.7%
-2.6%
2012 2013 2014 2015 2016 2017
Number of Passengers on Domestic Flights, thou

Bogota
y/y change 35.6%
Source: ANATO, WTTC, El Tiempo

Colombia in Regional Tourism Market
Comments Top 10 Destinations in South America by

Receipts per International Tourist, USD
According to statistics of the United Nations
World Tourism Organisation (UNWTO), Colombia 1,177
Colombia
1,441
was the sixth largest tourist market in South
1,008
America in terms of international arrivals in 2016, Ecuador
1,022
with a total of 4.08mn tourist arrivals, accounting Brazil
992
1,005
for a 10% share of the total tourist arrivals in the 945
Peru
region during that year. In addition, Colombia 912
918
ranked second in terms of international tourism Bolivia
835
receipts, with a total of USD 5.83bn in 2016, an Venezuela
741
802
18.9% share of the total international tourism 693
Argentina
receipts in the region. Moreover, in terms of 714
572
international receipts per tourist, Colombia Uruguay
594
ranked comfortably first in 2016, with an average Chile
622 2015
551
of USD 1,441.5 per international tourist. 85
Paraguay 2016
82
Top 10 Destinations in South America by Top 10 Destinations in South America by

International Tourist Receipts, USD bn International Tourist Arrivals, mn
Argentina 7.9
Brazil 6.3 7.3
6.6
Chile 5.5
Colombia 5.2 6.7
5.8
Brazil 6.3
Argentina 5.4 6.6
5.2
4.1 Peru 4.4
Peru 4.3 4.7
3.4 Paraguay 4.1
Chile 3.7 4.3
1.9 Colombia 4.4
Uruguay 2.2 4.0
1.6 Uruguay 3.3
Ecuador 1.4 3.6
0.8 Ecuador 1.5
Bolivia 0.8 1.4
0.7 Bolivia 0.9
Venezuela 2015 1.0 2015
0.5
0.3 Venezuela 0.9
Paraguay 0.4 2016 0.7 2016
Source: UNWTO

Global and Regional Competitiveness
Comments Travel and Tourism Competitiveness

Index, 2017
In the 2017 Travel and Tourism Competitiveness
Change from 2015
Report of the World Economic Forum (WEF), Ranking Country
Ranking
Colombia ranked 62nd out of 136 countries in 1 Spain =
terms of travel and tourism competitiveness, 2 France =
climbing six positions up from the 2015 ranking. 3 Germany =
The key reason for this upgrade was the higher 4 Japan +5
level of international openness, in particular the
5 United Kingdom =
signature of free trade agreements, the improved
6 United States -2
air transport infrastructure, and an increase in
7 Australia =
the number of natural areas protected by the
8 Italy =
government. On the other hand, Colombia posted
9 Canada +1
lower scores for security issues, especially in
10 Switzerland -4
terms of homicide rate and reliability of the
…
police services.
62 Colombia +6
Top 10 Most Competitive Tourist Travel and Tourism Competitiveness

Destinations in Latin America, 2017 Index of Colombia by Pillar, 2017
Change from 2015 Pillar Ranking, out of 136
Ranking Country Pillar
Ranking countries
1 Mexico +8 International Openness 4

Cultural Resources and Business Travel 20
2 Brazil +1 Natural Resources 22
3 Panama -1 Air Transport Infrastructure 60

Environmental Sustainability 62
4 Costa Rica +4
Human Resources and Labour Market 66
5 Chile +3 ICT Readiness 69
Tourist Service Infrastructure 82
6 Argentina +7
Health and Hygiene 86
7 Peru +7 Prioritisation of Travel and Tourism 97
8 Ecuador = Price Competitiveness 103
Business Environment 111
9 Barbados -12
Ground and Port Infrastructure 116
10 Colombia +6 Safety and Security 136
Source: WEF

Trade Balance in Tourism
Trade Balance in Tourism, USD mn
4,900
4,683
4,559
4,483
4,321
4,254
4,245
3,941
3,825
3,626
3,611
3,460
3,032
3,010
306 417
-22 -166 -76
-330
-858
2011 2012 2013 2014 2015 2016 2017
International Tourism Receipts International Tourism Spending Trade Balance in Tourism
Comments
According to statistics by the central bank, over the period 2012-2017, the international tourist receipts
expanded at a healthy 7.2% CAGR, whereas the international tourism spending increased at a
relatively moderate 4.3% CAGR. As a result of this, the balance of payments in Colombia’s tourism
swung from a USD 166mn deficit in 2012 to a USD 417mn surplus in 2017. The main factor for the
reversal was the significant weakening of the Colombian peso that occurred in 2015, which still
lingered at the end of 2017. As a result, Colombians suffered a decline in disposable income due to the
high inflation and were more inclined to travel to domestic destinations. In 2017, the international
tourism spending rebounded by 5.4% y/y, in line with the surge in the number of tourists travelling
abroad that year which grew by 5.9%. Still, the international tourism spending in 2017 was 4.2% below
the peak registered in 2014. Thus, unless the Colombian peso recovers to pre-2015 levels, the tourism
service surplus is likely to also persist in 2018 and beyond.
Source: Central Bank of Colombia, ANATO, El Tiempo

Foreign Direct Investment
Comments
Between 2012 and 2017, the foreign direct investment (FDI) in the wholesale and retail trade, hotels
and restaurants was solid, USD 1,226mn, accounting for an 8.5% share of the total FDI in Colombia.
According to EMIS DealWatch database, in the 2012-2017 period, foreign companies were active in
acquiring domestic players, both large and small, across different segments of the tourism and
leisure sector. A key example is the hotel segment, where two relatively large deals and one small
were reported. First, in May 2014, the US real estate investment management company Equity
International acquired, jointly with the Colombian holding firm Grupo Santo Domingo, the Colombian
hotel operator Hoteles Decameron Colombia SA, one of the largest segment players, in a USD 500mn
deal. The second large deal occurred in February 2015, when the Spain-based hotel operator NH Hotel
Group SA acquired its Colombian peer Hoteles Royal SA for USD 74mn. Finally, a smaller deal was
contracted in May 2014, when the Chilean hotel operator Atton Hoteles SA bought a hotel in the
capital city of Bogota for about USD 8.6mn. Another segment with significant FDI activity was the
outdoor entertainment. The key deal there was announced in December 2014 when the Peruvian editor
and publisher Vigenta Inversiones SA acquired 70% stakes in each of the two Colombian amusement
centre operators Divertronica Medellin SA and Diver Happy SAS for a total of USD 9.9mn.
FDI in Wholesale, Retail Trade, Hotels FDI in Wholesale, Retail Trade, Hotels and
and Restaurants, USD mn Restaurants, % of total
1,667.7
14.3%
1,338.8 1,360.9
1,139.2
1,044.1
8.9%
804.5 8.4% 8.1%
7.6%
5.0%
2012 2013 2104 2015 2016 2017 2012 2013 2014 2015 2016 2017
Source: Central Bank of Colombia, EMIS DealWatch

Employment and Wages
Comments Number of Employees, year-end

According to EMIS Insights estimates based on 211.2
211.3
DANE data, the number of employees in hotels 211.2
and travel agencies was 211,239 at the end of 2017, 207.3

virtually unchanged from the previous year. The
0.93% 0.91% 0.93% 0.93% 0.92% 0.92%
evolution of the number of formal jobs in the
198.7
hotels and travel agencies segments was 196.8
heterogeneous with the number of employees in
hotels surging at a 2.6% CAGR over 2012-2017,
whereas the number of employees in travel
agencies actually shrunk by 2.3% on average over
the same period. The performance of travel 2012 2013 2014 2015 2016 2017
agencies was mainly affected by the weakening
Number of Employees in Hotels and Travel Agencies, thou
of the peso in 2015, as their revenues depend
Share of Total Employment
heavily on the outbound tourism performance.
Employees by Segment, 2017 Average Monthly Wage by Segment,

COP, 2017
Hotels and Apart Hotels 1,449,833
Travel Agencies 1,119,491

Travel
Hotels 78.9% Agencies
21.1%
Motels 1,095,388
Other Accommodation 628,333
Source: DANE, GIHS, EMIS Insights estimates

FOCUS POINT
Estimated Number of Employees in Hotels and Travel Agencies
by Department, thou, 2017
19.6
Atlantico
7
Cordoba 9.3%
3.3%
40.6
Bolivar
19.2%
14 9.8 Norte de
Antioquia Santander
6.6% 4.6%
18.2 14
Risaralda Santander
8.6% 6.6%
Valle del
15.4 12.6
Meta
Cauca
7.3% 6%
11.2
14 Bogota
Narino 5.3%
6.6%
9.8
Tolima
4.6% 25.2
Caldas
11.9%
Source: DANE

FOCUS POINT
Estimated Average Monthly Wage of Employees in Hotels and Travel Agencies
by Department, COP, 2017
1,412,700
895,087 Atlantico
Cordoba
991,435
Bolivar
1,054,683 740,953
Antioquia Norte de
Santander
718,704 1,100,965
Risaralda
Santander
986,080
986,644 Meta
Narino 923,179
Bogota
829,348
Tolima
901,269
Caldas
Source: DANE

03
COMPETITIVE
LANDSCAPE

03 COMPETITIVE LANDSCAPE CONTENTS
Timeline 1948 Market Players
Colombia's Military Forces Pension Fund
Colombia establishes the hotel operator Sociedad Hotelera

Tequendame as a state-run company.
Tourism & Leisure

1967 Market Players
The French born entrepreneur Jean Claude

Bessudo takes over as a CEO of the domestic
travel agency Aviatu; start of a rapid expansion
1971 Market Players
of the company.
The domestic hotel operator Hoteles Estelar
inaugurates its first hotel in Cali city, under
the brand Intercontinental Cali.
1987 Market Players
Hoteles Decameron, a domestic hotel chain

specialised in the all-inclusive segment, is founded
by the Panamanian entrepreneur Lucio Garcia
2002 Development Milestones
Mansilla.
Law 788 establishes that all hotels constructed

between 2003 and 2017 will be completely
exempt from paying income tax for a period
of 30 years after their inauguration.
2012 Development Milestones
Law 1,607 creates the Income Tax for Equality (CREE)

and introduces a 9% tax on hotel incomes.
2014 Market Players Law 1,558 establishes the National Tourism Fund
(FONTUR), an autonomous government instrument
Terranum, a subsidiary of the domestic Santo for the promotion of the domestic tourism sector.
Domingo group, and the US-based real estate
investment management company Equity
International, takes control over Hoteles
Decameron.
2016 Development Milestones Market Players
Law 1,819 abolishes the Income A peace agreement between Hoteles Estelar inaugurates the Estelar
Tax for Equality, but introduces Colombian insurgent group FARC and Cartagena de Indias Hotel & Centro de
a 9% regular income tax rate on the government is signed, ending an Convenciones in Cartagena city, which was
hotels previously benefited by armed conflict that lasted over 50 the highest building in the city at the time
Law 788. years. of the inauguration, 202 metres.
Source: Company Data, FONTUR, MINCIT, ANATO

Highlights
Overview
Colombia’s tourism and leisure sector features a high level of competition. Regarding the sector as a
whole, in 2017, the top ten companies accounted for about 20% of the total revenues, according to
EMIS Insights estimates. The evolution of competition is largely similar across the different segments,
the level of concentration being still low but progressively increasing over time. In the case of hotels
and accommodation, the three largest companies accounted for a combined 14.4% share of all sales
in 2017, up from 9.5% in 2012. Meanwhile in the segment of travel agencies and tour operators, the
three most significant players had a combined 16.1% share in 2016, up from 13.6% in 2012.
Market Structure
The sector is dominated by domestic companies, with only one foreign competitor among the top ten
players in terms of revenues. Nova Mar Development SA, a subsidiary of the Salvadorian conglomerate
Grupo Roble, was the tenth largest sector player, generating 0.9% of the total revenues, and 1.3% of
the revenues in the hotel and accommodation segment. Overall, among the leading players in the
tourism and leisure sector by net revenues for 2017, eight out of ten companies were active in the
hotel and accommodation segment.
Main Players
The two largest sector players are companies controlled by domestic capitals. Hoteles Decameron
Colombia SAS, that is controlled by the business group Terranum, was the leader with a 4% share of
the sector’s revenues in 2017, as per EMIS Insights estimates. Hoteles Estelar SA, a subsidiary of the
business conglomerate Grupo Aval, ranked second with a 3.5% share of sector revenues. On the other
hand, the largest player in the travel agencies segment was the domestic company Agencia de Viajes
y Turismo Aviatur SA, owned by the Bessudo family, which ranked third in the entire sector, with a
3.1% share of the total revenues.
Market Entries
The development of online platforms and the increased internet connectivity in Colombia have
allowed several foreign players to enter the domestic market. In April 2016, the US-based Kayak, an
online airfare search engine, subsidiary of Booking Holdings, started operations in Colombia in
partnership with the Spanish travel agency Atrapalo and the domestic travel operator Aviatur. The
competition in this particular sub-segment further intensified in March 2018, when the US technology
firm Google inaugurated its online flight booking search service Google Flights for the Colombian
market.
Source: DANE, EMIS Company Database

Market Shares
Top Tourism and Leisure Companies in Colombia* by Net Revenues, 2017
Net Revenues, Net Revenues, 2017,

Ranking Company Country of Origin Segment of Operation
COP bn y/y change
Hoteles Decameron
1 Colombia Hotel 275.7 4.9%
Colombia SAS
2 Hoteles Estelar SA Colombia Hotel 257.8 10.9%
Agencia de Viajes y Turismo

3 Colombia Travel Agency 211 3.7%
Aviatur SA
Tour Vacation Hoteles Azul

4 Colombia Hotel 200.2 -5.2%
SAS
5 Servincluidos Ltda Colombia Tourist Services 138 -3.8%
Global Operadora Hotelera

6 Colombia Hotel 84.7 5.5%
SAS
Promotora Turistica del Caribe

7 Colombia Hotel 82.6 0%
SA
Sociedad Hotelera
9 Colombia Hotel 80.9 -14.0%
Tequendama SA
8 Inversiones Campo Isleno SA Colombia Hotel 64.8 9%
10 Nova Mar Development SA El Salvador Hotel 62.1 1.2%
* Based on a sample of 1,000 companies of the EMIS Company Database classified under CIIU codes I55 and N79
Source: EMIS Company Database

Hotels and Accommodation

Competition
Top Companies by Sales, COP bn Comments

Over the 2012-2017 period, the combined sales
revenues of the three largest hotel and
accommodation companies in Colombia expanded
at a CAGR of 16.8% in nominal terms, well above
the overall average annual growth rate of the sub-
segment sales, which rose at a CAGR of 6.7% in
200
the same period.
211
In 2017, the three main players had a combined
14.4% share of the market, up from 9.5% in 2012,
188 indicating a relatively low degree of
concentration.
145
The segment leader in terms of revenues in 2017,
258 Hoteles Decameron Colombia SAS, a subsidiary of
232
the domestic business group Terranum, operates
a hotel chain under the brand Decameron.
122 229
102 Hoteles Estelar SA, that is a subsidiary of the
209
domestic conglomerate Grupo Aval, was the
second largest player in 2017 by revenue. The
101 101 company operates a hotel chain under the brand
Estelar, which is present in Colombia, Peru and
276
263 Panama.
190
135 137
167 Tour Vacation Hoteles Azul SAS, another domestic
private business, controlled by the Colombian
entrepreneur Carlos Londono, ranked third by net
2012 2013 2014 2015 2016 2017 earnings. The company operates the On Vacation
hotel chain and focuses on domestic low- and
Tour Vacation Hoteles Azul SAS middle-income tourists.
Hoteles Estelar SA
Hoteles Decameron Colombia SAS
Source: EMIS Company Database, Dinero.com, Reportur

Travel Agencies and Tour Operators

Competition
Evolution of Sales by Company, COP bn Comments

Over the 2012-2017 period, the combined sales
revenues of the three largest travel agencies and
tour operators in Colombia expanded at a CAGR of
30 7.3% in nominal terms, well above the overall
30
average annual growth rate of the sub-segment
sales, which rose at a CAGR of 3.8% in the same
37
period.
28 48
In 2017, the three main players had a combined
24 16.1% share of the market, up from 13.6% in 2012,
31
indicating a relatively low degree of
24 27
36
concentration.
7
19 In 2017, Agencia de Viajes y Turismo Aviatur SA,
controlled by the Colombian based Bessudo
family, ranked as the market leader accounting
for 11.7% of the revenues of the sub-segment.
211 Price Res SAS ranked second in terms of net

203
earnings. It is a subsidiary of the Mexican travel
180
164 158
agency PriceTravel and in addition to Mexico and
151
Colombia, PriceTravel is also present in Argentina
and in the United States.
Circulo de Viajes Universal SA, ranking third by net

earnings in 2017, offers travel savings plans.
Outside Colombia, the company also operates in
Peru.
2012 2013 2014 2015 2016 2017
Circulo de Viajes Universal SA
Price Res SAS
Agencia de Viajes y Turismo Aviatur SA
Source: EMIS Company Database

Top M&A Deals

Top M&A Deals in Colombia’s Tourism & Leisure Sector,* 2016-2017
Deal Value, Stake,

Date Target Company Deal Type Buyer Country of Buyer
USD mn %
Archie's Colombia
Feb 2016 Acquisition Alsea SAB de CV Mexico 15.2 (Official) 100
SAS
Feb 2016 Oasis Collections LLC Minority stake AccorHotels SA France 12.3 (Market est.) 30
Azul & Blanco -

Mar 2017 Minority stake Blas de Leso Inversiones SL Spain 7.7 (Official) 37.6
Millonarios FC SA
Work Show Producoes e

Brazil,
Dec 2017 WMM Company Merger Entretenimento Artisticos Ltda; n/a 100
US
Move Concerts
Inmaculada Guadalupe Y Amigos

En Cia SA; Mas Equity Partners Colombia,
Apr 2017 Grupo IGA Merger n/a 100
SAS; Grupo Conboca SAS; Portland Barbados
Private Equity
Hotelaria Accor Brasil SA; Brazil,

Apr 2017 Hotel Santa Clara SA Minority stake n/a 37.8
AccorHotels SA France
Inversiones en Recreacion Deporte

Dec 2016 Nordic Fitness SAS Acquisition Colombia n/a n/a
y Salud SA (Bodytech)
Mar 2016 LATAMEL SLU Minority stake GameStop Corp US n/a n/a
Inversiones en
Mar 2016 Recreacion Deporte y Minority stake L Catterton US n/a n/a
Salud SA (Bodytech)
* NAICS codes: 71, 72
Source: EMIS DealWatch

M&A Activity, 2016-2017
Number and Value of Deals in Colombia’s Deals by Deal Value, USD

Tourism & Leisure Sector*
3
0-50mn; 33.3%
2
1 1 1
27
0 0 0
Undisclosed;
8 66.7%
0 0 0 0 0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2016 2017
Value of Deals, USD mn Number of Deals
* NAICS codes: 71, 72
Deals by Deal Type Deals by Region of Investor

Acquisition
22.2%
EMEA 22.2%
North
America
33.3%
Merger Colombia
22.2% 11.1%
Minority
Stake
Purchase International
55.6% 33.3%
Source: EMIS DealWatch

04
COMPANIES
IN FOCUS

04 COMPANIES IN FOCUS CONTENTS
Hoteles Decameron
Colombia SAS
Highlights Income Statement, Individual, COP bn

Hoteles Decameron Colombia SAS was founded in
1987 by the Panamanian entrepreneur Lucio 57.9%
Garcia Mansilla. The same year, the company 49.8%
opened its first hotel in Cartagena city. Initially
182
Hoteles Decameron targeted the foreign tourists,
131
but with the worsening of the security in the
110
276
263
country due to the escalation of the conflict 9.1%
190
between the drug cartels and the Colombian
25
government, the company shifted its strategy
10
rapidly. Therefore, since the 1990’s Decameron
has expanded at first in Colombia and then in
-78
other countries, and started offering all inclusive

packages. The company has also entered in the
2015 2016 2017
urban corporate hotel segment, with the
Net Revenues EBITDA
inauguration of the Decapolis hotel in Panama Net Profit EBITDA Margin
city in July 2004.
In April 2014, Hoteles Decameron Colombia SAS Balance Sheet, Individual, COP bn
was acquired by the domestic company Terranum,
a subsidiary of the Colombian Santo Domingo
12.88
business group, jointly with the US-based real
estate investment management company Equity
International in a USD 500mn deal. As of April
2018, Decameron remains a private subsidiary of 6.14
2,384
Terranum and Equity International, and it is not

675
1,688
1,540
listed on any stock exchange.

322
189
126
30
As of April 2018, Decameron had a total of 21

hotels with 2,651 rooms across seven
-38
departments of Colombia. Outside the country,

2015 2016 2017
Decameron is also present in Peru, where it has
Total Assets Shareholders' Equity
four hotels, Mexico with three hotels, and Net Debt Net Debt/EBITDA
operates three more in Jamaica, two in Ecuador,
and one hotel in each Haiti, el Salvador and Costa
Rica.
Source: Portafolio, Reportur, Company Data

Hoteles Decameron
Colombia SAS (cont’d)
Highlights Number of Hotels in Colombia per

Department, Apr 2018
The investment plan of Decameron for the period
2017-2018 provides for COP 60mn for the
refurbishment of currently operating hotels Quindio 2
administered by the chain. Some key examples Bogota 2
Bolivar 3
include the expansion of Decameron Panaca
Hotel in Quindio department, whose capacity was Boyaca 2
increased from 125 to 185 rooms in March 2018,
and the upgrade of Decameron los Cabos in
Mexico and Decameron Baru in Bolivar
department, to enable the offering of a higher
Amazonas 1
quality of all inclusive service.
In February 2018, Jurgen Sturtz, commercial vice

Magdalena 1
president of Decameron, noted in an interview for San Andres and
Providencia 10
the online portal Reportur that the company is
exploring the possibility of expanding both
domestically and abroad. In Colombia Decameron
are considering the possibility to develop new Number of Hotel Rooms in Colombia per
hotel projects in Cartagena, Bolivar department, Department, Apr 2018
and in the coffee belt that includes the Caldas,
Risaralda, Quindio departments and partially Bogota 306
Valle del Cauca and Tolima. Outside Colombia,
Bolivar 688
their main interest is in the Dominican Republic Quindio 278
and in Cancun, Mexico. In March 2018, Decameron
acquired the Decameron Golf, Beach Resort &
Villas Costa Blanca hotel located in Panama. This
hotel was originally developed by Decameron, but Magdalena
in the period 2011-2018 was owned by the 244
Caribbean Property Group, a US-based investment
fund. Fabio Villegas, CEO of Decameron, San Andres and Boyaca 52
Providencia 1,055
commented in March 2018 for La Republica Amazonas
28
newspaper that the re-acquisition of the hotel in
Panama is part of the company’s strategy to
expand in the Caribbean.
Source: Company Data, Reportur, La Republica,

Hoteles Estelar SA

Hoteles Estelar SA was founded in 1968. The
company inaugurated its first hotel, the 14.7%
Intercontinental Cali in Valle del Cauca 12.7%
10.1%
department, in 1971. In the 1980’s the firm
expanded by acquiring two large hotels in Bogota
- Estelar Paipa Hotel & Centro de Convenciones,
and Estelar La Fontana de Bogota.
258
232
229
As of April 2018, Hoteles Estalar SA is controlled

by Corficolombiana, a domestic private equity
34
29
26
20
and financial solutions provider, which has an
19
4
85% share in the company. Corficolombiana itself

is a subsidiary of the domestic business 2015 2016 2017
conglomerate Grupo Aval headed by the Net Revenues EBITDA

Net Profit EBITDA Margin
Colombian entrepreneur Luis Carlos Sarmiento.
Hoteles Estelar operates in the corporate

segment of the hotel sector of Colombia. As of Balance Sheet, Individual, COP bn
April 2018, the company owns 25 hotels across 12
departments in the country, with a total of 2,837
rooms.
4.96
Moreover, the company has a sizable presence in 4.03 3.85

Peru with a total of four hotels in two
departments, Arequipa and Lima, with 364 rooms
613
550
543
overall. Finally, it also controls one hotel in the

131
129
neighbouring country of Panama, the Doubletree

117
324
307
293
By Hilton Panama City, which has a capacity of

213 rooms.
2015 2016 2017
Total Assets Shareholders' Equity
Net Debt Net Debt/EBITDA
Source: Company Data, Revista Credencial, Reportur

Hoteles Estelar SA
(cont’d)
Highlights Number of Hotels in Colombia by

In November 2016, Hoteles Estelar inaugurated its
largest hotel in Colombia, Estelar Cartagena de
Atlantico 2 Caldas 2
Indias Hotel & Centro de Convenciones, located in
the Bocagrande neighbourhood of Cartagena city,
Bolivar 3
Bolivar department. The hotel, with its height of
202 metres, was the highest building in Cartagena
city at the time of its inauguration. With 338
rooms and a large array of amenities, including
Other 7
pools, spa zone, a large convention centre with Antioquia 3
two saloons with capacity for 1,140 and 1,073
persons respectively, the hotel is mostly focused
on the corporate tourism segment. Estelar
Cartagena is intended to serve as the flagship of
the company in Colombia. Bogota 8
Miguel Diaz Trujillo, CEO of Hoteles Estelar,

commented in a December 2016 interview for El
Number of Hotel Rooms in Colombia by
Tiempo newspaper that the construction of the Department, Apr 2018
Estelar Cartagena hotel demanded an investment
of COP 200bn, of which 17% came from individual Valle del
Colombian investors who bought shares in the Cauca 292
Atlantico 202
project. Diaz Trujillo also noted that this hotel Other 780
introduced a number of novelties in the corporate
oriented hotel market in Colombia, such as a
Bolivar 574
convention centre area completely separated
from the individual tourist rooms. However, he
remarked that the company is unlikely to pursue
other projects of this size in Colombia, and will 566
instead focus on smaller projects in interior cities Antioquia

364
such as Lima, Bucaramanga and Medellin, as
there are no many opportunities remaining for
the development of large projects.
Bogota 839
Source: El Tiempo, Caracol, Portafolio.

Agencia de Viajes y
Turismo Aviatur SA

Agencias de Viajes y Turismo Aviatur travel
agency was founded in Bogota city in 1957 from 6.9%
the partnership between three Colombian 3.9%
entrepreneurs - Victor Bessudo, Jorge Moncada 1.9%
and Jorge Madero. In 1967, Jean Claude Bessudo, a

French entrepreneur, nephew of Victor Bessudo,
was named CEO of the company following the
211
203
180
death of his uncle. This marked the beginning of

the expansion of Aviatur from a middle-size travel
agency to the largest company in the travel
agencies segment in Colombia in terms of 14
7
6
5
5
4
revenue in 2016.
2015 2016 2017
As of April 2018, Aviatur is a subsidiary of Grupo Net Revenues EBITDA

Net Profit EBITDA Margin
Aviatur, a large domestic group comprising 18
companies, whose controlling shareholder is Jean
Claude Bessudo. Grupo Aviatur is active in several
Balance Sheet, Individual, COP bn
economic segments, including travel agencies,
hotels, logistics and transportation, marketing
consultancy and insurance. Neither the parent
company Grupo Aviatur nor its subsidiaries are
listed.
132
Agencias de Viajes y Turismo Aviatur is

112
exclusively active in the travel agencies segment.

96
As of April 2018, the company comprises 69 travel

16
16
13
agencies of different size, located across 11

departments of Colombia, with particularly strong
-3
presence in Bogota, Antioquia and Valle del

-6
-8
2015 2016 2017

Cauca.
Total Assets Shareholders' Equity Net Debt
Source: Company Data, Semana

Agencia de Viajes y
Turismo Aviatur SA (cont’d)
Highlights Aviatur Group Subsidiaries by Segment,

In an interview for El Tiempo newspaper in March
Apr 2018
2018, the CEO of Agencia de Viajes Aviatur, Company Segment
Sammy Bessudo, informed of the forthcoming
opening of a new hotel of Aviatur named Hotel Aviatur Travel & Tourism Agencies
Las Islas, on the Baru peninsula nearby the city of
Cartagena, scheduled for June 2018. This new Avia Caribbean Operator Agency
hotel is the third owned by the company, the
other two being one facility located in the Campus Travel & Tourism Agencies
Tayrona National Natural Park, 34 km away from
Santa Marta city, and the Casa Navegante Cielos Abiertos Wholesale Agencies
Choclon located in the Cholon’s Swamp, near
Baru. Hotel las Islas complex will offer a total of Octopus Travel Wholesale Agencies
54 separate bungalows, 23 of them located on the
ocean shore, and 21 inside the rainforest near the Union de Representaciones Wholesale Agencies
beach. The complex will also feature a heliport,
three restaurants, four bars, coffee shop,
freshwater pool, nautical sports centre, gym, spa,
and a handicraft store. Number of Agencies by Department, Apr
2018
In a January 2018 interview for the online portal
Reportur, Jean Claude Bessudo – the controlling
owner of Grupo Aviatur – noted that the company Valle del
Antioquia 13
is looking to expand on the corporate market. Cauca 13
Thus, the new strategy of Agencia de Viajes
Aviatur under the management of the CEO
Sammy Bessudo who took over in 2014, is to Others 6
target young corporate travellers through the
development of online and mobile retail Risaralda 3
channels. In that regard, Aviatur sponsored a
three-day programming contest held at the Choco 2
beginning of September 2017 in the campus of
Jorge Tadeo Lozano university based in Bogota, Bogota 32
with the specific target of developing apps for
the travel agencies segment.
Source: El Tiempo, Reportur

Tour Vacation
Hoteles Azul SAS

Tour Vacation Hoteles Azul SAS was founded by
the Colombian entrepreneur Carlos Londono in
10.0%
2005, as a chain of low cost all inclusive hotels 7.5%
under the name Travel & Vacation Group SA.
211
Previously, in 1999, Carlos Londono had
200
188
established a travel agency named Tour School,
21
which reported sales volume of around 30 school
15
3
1
trips per year in 2004.
In 2005, Londono decided to enter the hotel

-26
-44
business by specialising in a niche of low cost

but exotic destinations located both inside 2015 2016 2017
Colombia and in other countries in the region. For
Net Revenues EBITDA
that purpose, he founded Travel & Vacation Group Net Profit EBITDA Margin
SA, which was later renamed to Tour Vacation
Hoteles Azul SAS. As of April 2018, the company is
commercially known as the On Vacation Group, Balance Sheet, Individual, COP bn
since the majority of the company’s hotels use
the On Vacation brand, and the company is still 1.63
under the sole control of Londono.
In Colombia, as of April 2018, Tour Vacation

Hoteles Azul SAS operates a total of 15 hotels 0.57
303
which are located across 6 departments: San

Andres and Providencia, Meta, La Guajira,
226
212
81
Amazonas, Quindio, and Cundinamarca. Tour

35
34
Vacation Hoteles Azul SAS also has a sizeable

24
18
12
presence in other parts of Latin America and the

Caribbean, with seven hotels in Venezuela, three 2015 2016 2017
in Panama, two in Curacao (an oversees territory Total Assets Shareholders' Equity
of the Netherlands) and one in Mexico. Net Debt Net Debt/EBITDA
Source: Company Data, Portafolio

Tour Vacation
Hoteles Azul SAS (cont’d)

In an interview for the online portal Portafolio in
February 2018, Laura Munoz, vice president of Quindio 2
Tour Vacation Hoteles Azul, shared the plans of
the company to diversify its operations and grow Meta 1
both in the inbound and outbound tourism
subsectors. Traditionally, its focus is on low Amazonas 1
budget domestic tourism, with a strong presence
in the San Andres and Providencia department.
According to Munoz, the major workhorse of the Cundinamarca
1
company for the inbound tourism is the On
Vacation Amazon Hotel based in Leticia city,
Amazonas region, close to the borders with Brazil
and Peru. In the case of outbound tourism, their San Andres and La Guajira 1
main goal is to develop several hotels in the Providencia 9
Curacao island, an overseas territory of the
Netherlands, 65 km north of the Venezuelan
coast. As of April 2018, On Vacation already Number of Hotels Outside Colombia by
operates two hotels in Curacao, and plans to Country, Apr 2018
open a third one. Regarding the domestic tourism Panama 3
markets, which is the core business of the
company, Munoz commented that in 2018 the
company is planning to open new hotels in Curacao
Guajira in La Guajira department, Cartagena in (Netherlands)
2
Bolivar department, and Santa Marta in
Magdalena department. In April 2018, Oscar
Mexico 1
Londono, CEO of Tour Vacation Hoteles Azul,
commented that together with the development
of La Guajira region as a tourist destination for
Colombians, the company hopes to grow the
outbound tourism towards Venezuela, despite the
Venezuela 7
crisis in that country, as Tour Vacation Hoteles
Azul operates 7 hotels in the Margarita Island
that maintain solid occupancy rates.
Source: America Retail, Reportur, Portafolio

Sociedad Hotelera
Tequendama SA

Sociedad Hotelera Tequendama SA (SHT) was
founded in 1948 as a state-owned company under 19.2%
the name Sociedad Hotel San Diego SA, with the
purpose of constructing a hotel in Bogota city on 12.8%
an area owned by the Colombian Military Forces

4.9%
Pension Fund, a state-run organisation in charge
94
of paying pensions to retired military staff. The
81
78
construction of the first hotel of the company, on

a site formerly used by the Military School of
15
12
Cadets, lasted from July 1950 until May 1953. In
10
6
the years between 1953 and 1973 the hotel was
4
managed by the British hotel firm
2015 2016 2017
InterContinental Hotels Group (IHG). In 1974, the
Net Revenues EBITDA
army took over the direct managerial duties, Net Profit EBITDA Margin
headed by General of Brigade Miguel Pena, and
IHG acted as an official counsellor of the state
administration. From February 2016 onwards, the Balance Sheet, Individual, COP bn
contract between SHT and IHG was completely
terminated and currently Rear Admiral Jorge Ivan
Gomez is the CEO of SHT.
As of April 2018, SHT operates a total of five

hotels, two in Bogota (Tequendama Hotel Bogota
and Hotel Tequendama Suites Bogota), one in
186
179
178
Valle del Cauca department (Tequendama Inn

128
126
121
Estacion Buenaventura by Sercotel Hotels), one in

Magdalena department (Tequendama Inn Santa
Marta by Sercotel Hotels), and one in Bolivar
department (Tequendama Inn Cartagena by
-3
-3
-5
Sercotel Hotels). The three company hotels

located outside Bogota are operated through a 2015 2016 2017
franchise model under the brand By Sercotel, Total Assets Shareholders' Equity Net Debt
which belongs to the Spanish company Sercotel
Hotels.
Source: Company Data, El Tiempo

Sociedad Hotelera
Tequendama SA
(cont’d)
In October 2017, the minister of defence Luis
Carlos Villegas appointed Rear Admiral Jorge Ivan
Valle del Cauca 1
Gomez as the new CEO of Sociedad Hotelera Magdalena 1
Tequendama, after the retirement of Major
General Orlando Salazar Gil, who was in charge of
the operations of the company during the period
2002-2017.
Bolivar 1
Until January 2016, the two hotels owned by the
company in Bogota city were operated as
franchises of the UK-based InterContinental
Hotels Group (IHG), using its Crowne Plaza brand.
The Crowne Plaza brand was chosen in 2007 as a
replacement of the InterContinental (the original
Bogota 2
brand of these two hotels), as Crowne Plaza is
focused more on the convention centre market,
the main target of SHT. However, following the
Capacity of Convention Centres by
poor performance in terms of revenues under the Number of Persons, Apr 2018
Crowne Plaza brand, the then CEO of SHT, Oscar
Salazar Gil, decided to terminate the contract
with IHG and abandon both the InterContinental
and Crowne Plaza brands.
According to a May 2017 note by the online portal

Reportur, Tequendama was seeking for a new
international partner to operate the company
directly, as well as lease its brand to the two Valle del
hotels based in Bogota. However, the Cauca 515
appointment of Jorge Ivan Gomez as the new CEO

means that any international partner that may Magdalena
Bogota 4,330 80
reach an agreement with Tequendama, will only
lease their brand to the hotels but not operate
the company. Bolivar 30
Source: Reportur, Company Data

05
REGULATORY
ENVIRONMENT

05 REGULATORY ENVIROMENT CONTENTS
Government Policy
FARC Peace Process

In November 2016, the Colombian government signed a peace agreement with the Revolutionary
Armed Forces of Colombia (FARC), the main Colombian insurgent group active in the country at that
moment. As part of the agreement, the majority of FARC members were immediately demobilised and
granted financial compensation in return at the amount of USD 215 per month for a period of two
years, in order to facilitate their transition from armed combatants to civilian workers.
This historic agreement had a significant impact on the Colombian tourism sector. The immediate
effect was the increase in the number of inbound tourists by 23.9% y/y in 2017, as the international
travel agencies started promoting Colombian destinations, now perceived safe to travel to. On the
other hand, several regions in the country previously under the control of the FARC can already
develop their tourist potential. The key examples include the Cano Cristales river running to La
Macarena hill in Meta department, famous for its multicolour algae, the Gorgona Island located 35 km
west of the Pacific coast of Cauca department, and the End of the World Cascades located in the
southern Putumayo department.
Besides ecotourism, another niche with interesting potential in the liberated regions is the cultural
tourism in the form of war tourism. In that regard, former FARC combatants began to organise tourist
accommodations and activities related to the former conflict. A key example is the Casa Verde Hotel
project being developed in La Guajira village in Meta department, that offers a realistic experience
similar to the day-to-day living of former guerrillas in the region, less the arms and battles. Moreover,
the Colombian Tourism Industry Confederation (CONFETUR), an organisation formed in 2012 by small
and midsize domestic companies of the sector, began in September 2017 a national tour across
regions formerly occupied by the FARC, with the goal of promoting initiatives in both the ecotourism
and war tourism segments. Their first destination was Mesetas city in Meta department, a former
FARC stronghold where on June 13, 2017 the insurgent group symbolically laid down 30% of their
weapons, then placed under the United Nations custody.
However, in January 2017, during the Fitur tourism fair held in Madrid, Spain, several representatives
of Colombia’s tourism sector warned that the benefits from the peace process will take some time to
materialise. In that regard, Guillermo Villoria, manager of the domestic travel agency Colombian
Journeys, outlined as a key problem the lack of trained workforce in the liberated regions, where few
people speak foreign languages or have proper tourism related education. Jose Carlos de Santiago,
CEO of the Spanish tour operator Excelencias, warned about potential security issues with dissident
insurgents who may potentially continue their activities outside the FARC, and possible increase of
common crime associated with unemployed former combatants.
Source: El Espectador, El Pais, El Universal, El Nuevo Herald, El Tiempo, Semana, La Tercera

Government Policy
Fiscal Reform - Income Tax Amendment for the Hotel Sector

On December 2016, the Colombian congress sanctioned Law 1,819, which essentially modified several
aspects of the income tax regulations for both companies and natural persons. The impact of the
reform on the hotel sector was significant, as it retroactively amended provisions of past legislation
ensuring fiscal promotion of the sector. Notably, Law 788 of December 2002 mandated that all hotels
newly constructed or significantly refurbished in the period between 2003 and 2017 were completely
exempt from the payment of income tax for a 30-year period following the completion of the
construction or refurbishment works. This government measure gave a significant boost for
investment in the sector.
However, in December 2012, through Law 1,607, the government introduced the Income Tax for Equality
(CREE), which introduced an additional income tax rate for certain sectors, to compensate for the
reduction of the wage tax introduced at the same time. In the case of the hotel segment, the CREE
rate was established at 9% of the taxable income per year. In December 2016, Law 1,819 eliminated the
CREE from 2017 onwards, but also modified the exemption from the traditional income tax that
previously benefitted the hotel segment, mandating that every hotel constructed or refurbished
between 2003 and 2017 would have to pay a 9% rate for the remainder of the original 30-year exempt
period. This latter provision caused very negative backlash among sector players, as they considered
this an unfair change of the investment conditions, and accused the government of failing to keep its
previous commitment.
In March 2017, in an interview with the online portal Dinero, Gustavo Adolfo Toro, president of
COTELCO, commented that investors’ confidence was broken by the unexpected change of rules, and
that several players, including the Salvadorian holding Grupo Poma, manager of the Marriot brand in
Colombia, have stalled investment plans following the change.
There was also a debate regarding the income tax scheme established by Law 1,819 for hotels
constructed from 2018 onwards. According to the new provisions, all hotels constructed from 2018
onwards in cities with more than 200,000 inhabitants will have to pay the full general income tax rate
of 34% for their whole operational life, while the ones constructed in cities with less than 200,000
inhabitants will have to pay a 9% rate for a period of 20 years after the inauguration. This generated a
mixed response among the sector players. In March 2017, Andres Sanchez, director of development of
the domestic hotel operator GHL, noted in an interview with the Dinero online portal that the
development of hotels in small cities is not very attractive due to severe problems of connectivity and
inadequate or missing infrastructure, and even with the differential income tax rate for such projects,
new investment would be slow to come.
Source: Colconecata, Reportur, Dinero, El Tiempo, Hotmark

Fiscal Contribution
Contribution to FONTUR by Segment, Comments

COP bn
In July 2012, Law 1,558 sanctioned by the
Colombian congress, enacted the creation of the
65.2
National Tourism Fund (FONTUR), an autonomous
government instrument for the promotion of the
domestic tourism sector. FONTUR manages
several state-owned tourism assets, including
8.9 hotels, provides financing for marketing and
promotional events, such as fairs, festivals and
48.2 3.0 business meetings, and engages in the
3.2
construction of tourism oriented infrastructure,
e.g. eco-trails or train stations.
4.7
10.5 FONTUR is financed under a tax scheme that only
37.5 37.3 2.7 charges companies operating in the domestic
2.5 tourism and leisure sector, including hotels, travel
3.5 agencies, nautical sports clubs, convention centre
29.8 7.7 9.3
2.4 and fair operators, car rental agencies, tourism
2.6 oriented bars and restaurants, tourism oriented
2.6 2.2
2.2 2.0 transport companies, etc.
2.0 8.1
7.4 Although the specific contributions vary according
7.0 39.6 to the segment, most of the companies contribute
to the fund 0.25% of their annual operating
29.0
revenues, with the exception of bars and
20.7 restaurants which are charged 0.15% of their
18.3
16.0 operating revenues, the air carriers that pay a
fixed tax of USD 1 per air ticket, and the tourist
guides who pay 20% of the minimum annual
2012 2013 2014 2015 2016 wage.
Over the period 2012-2016, the contributions to

Air and Road Transport Hotels FONTUR expanded more than twofold, mainly as a
Travel Agencies Restaurants result of the increase in the number of domestic
Others Total
air transport passengers during the period.
Source: ANATO, MINCIT, FONTUR

06
HOTEL
INDUSTRY

06 HOTEL INDUSTRY CONTENTS
Highlights
Overview
As of September 2017, according to COTELCO statistics, the hotel industry in Colombia comprised
15,332 hotel units, of which the standard hotels were the most numerous with a share of 56.3%,
followed by private rental premises with 14.4%, and rural accommodation with a 10.5% share. In terms
of number of rooms, also as of September 2017, the total figure stood at 265,570, with the main sub-
segments being standard hotels accounting for 79.8%, apart hotels with a 6.6% share, and rural
accommodation comprising 5.4%. In 2017, the hotel segment turnover reached COP 5,100bn, virtually
unchanged year-on-year in real terms, as the sales growth for the year was attributed to inflation. The
average occupancy rate in 2017 was 56.3%, the highest figure since 2004, but it varied significantly
depending on the hotel size. In particular, the hotels with more than 150 rooms had an average
occupancy of 62%, compared to just 44.4% for hotels with less than 50 rooms.
Drivers and Constraints

Government promotion used to be the main growth driver in the hotel segment due to Law 788 of
December 2002, which established that all hotels newly built or significantly refurbished between
2003 and 2017 would be completely exempt from income tax payment for a period of 30 years after
completion of the construction or refurbishment works. This drove investments up, particularly over
the 2012-2017 period when the benefit came close to an end. At the same time, a drawback for
traditional hotels was the rapid emergence of the private rental options as a competitor, triggered by
the surge of online hotel and accommodation platforms. Additional pressure on the economy in
general and on the hotel segment in particular is stemming from the fact that a large share of those
private rentals that entered the market recently are informal, without registration with the National
Tourism Registry (RNT) and hence are not paying the taxes due by the companies in the tourism and
leisure sector.
Outlook
According to BMI Research, the occupancy rate in the Colombian hotel segment is expected to
increase from 58.7% in 2018 to 65.1% in 2022, in spite of the continuing expansion of hotel
infrastructure. The bulk of investment in the sector will be concentrated in the luxury hotel sub-
segment, with several new 5-star hotels and resorts under development. This, in turn, will support the
growth of the hotels and restaurants industry value that is forecast to surge at a CAGR of 4.64%
between 2018 and 2022. However, the prospects for other hotel sub-segments are not so good,
according to an interview with several sector players organised by the Reportur online portal in
February 2018. Among the key issues outlined were the current regulatory uncertainty stemming from
the latest amendments of the income tax regulation that are set to deter investment in the segment,
and the rising competition from the informal private rentals.
Source: BMI Research, Reportur, ANATO

Main Events
§ In April 2018, the French hotel operator AccorHotels announced plans to construct a hotel of the
Ibis brand in Bogota, which will be operated under a franchise model by the domestic hotel
operator OxoHotel. This new Ibis hotel shall be the 10th to be opened by the chain in Colombia,
will have a total of 103 rooms, and is expected to become operational in H1 2020. In an interview
with the online portal Reportur in January 2018, Joanna Ayala, development manager of
AccorHotels for Colombia and Peru, informed that the company sees great potential for low
budget corporate oriented hotels in Bogota, and also in other large cities such as Cali, Medellin,
Itagui and Chia. In her opinion, the segment where Ibis operates has significant growth potential
due to the limited competition and low investment costs required.
§ In March 2018, a new Ibis brand hotel was inaugurated in Cali, the fifth operational of the Ibis
brand as of that date. On the inauguration, Delfim Pinheiro, regional manager for the Ibis brand,
shared his expectations that the Ibis Cali Hotel shall rapidly gain a foothold in the corporate
market in the city by offering higher quality of service compared to the competition. The Ibis Cali
Hotel required an investment of COP 23bn, and has a total of 162 rooms. As of April 2018,
AccorHotels operates a total of 21 hotels in 11 Colombian cities under the brands Ibis, Sofitel,
Mercure and Swissotel.
§ In March 2018, the US-based chain Hilton inaugurated its third hotel in Colombia under the brand
Hilton Garden Inn, in Santa Marta city, Magdalena department. In an interview with Reportur
online portal in January 2018, Juan Carlos Cascante, manager of this particular hotel, outlined that
the facility is focused on serving both corporate and non-corporate clients, as Santa Marta has a
large market for both segments. The fourth quarter of 2017 was a very active period for Hilton in
Colombia as the company inaugurated three new hotels, two of them located in Cartagena city -
one under the Conrad brand and the other under the Hampton - and another one under the
DoubleTree brand next to Bogota airport.
§ In March 2017 Hilton signed an agreement with the domestic company Colpatria, which will
construct a Hilton brand hotel in Medellin city in Antioquia department. The project is expected to
be completed by mid-2019. It will have a total of 25 floors and 206 rooms, but as a mixed
development, it will also have commercial spaces for retailers, offices and residential units, plus a
parking lot for 450 cars. In addition, in July 2018 Hilton is expected to inaugurate a new hotel with
a total of 420 rooms under the name Hilton Bogota Corferia, which will be located next to the
International Business and Fairs Centre, and also to the Agora Bogota Conventions centre, both
situated in central Bogota. Thus, the Hilton Bogota Corferias Hotel will primarily target
international corporate clients travelling to Bogota for events organised in either of these centres.
Source: Reportur, Portafolio

Hotel Supply
Comments
According to the latest available data by the Commerce Chambers Confederation (CONFECAMARAS),
the number of hotels in Colombia expanded at a very strong 17.8% CAGR between November 2012 and
September 2017. In September 2017, the total number of hotels reached 15,322 units, of which 56.3%
were standard hotels, 14.4% private rentals, 10.5% were rural accommodation, and the remaining 18.7%
- other forms of accommodation, such as inns, apart hotels, camping zones, refuges. The number of
hotel rooms in Colombia also increased at a solid CAGR of 14.8% over the same period. The
importance of the standard hotel sub-segment is even larger in terms of room availability, as in
September 2017, the total number of hotel rooms reached 265,570 units, of which 79.8% in standard
hotels, 6.6% in apart hotels, 5.4% in rural accommodation facilities, and the remaining 8.2% were
other forms of accommodation. One of the best performing in terms of infrastructure growth in the
November 2012 – September 2017 period was the sub-segment of private rentals, with an impressive
tenfold expansion in the number of units and a threefold increase in the number of available rooms.
According to COTELCO, the massive surge of private rentals is explained by the growing popularity of
online accommodation platforms such as the US-based Airbnb, which is the main sales channel for
the sub-segment.
Number of Hotels by Type Number of Hotel Rooms by Type, thou
5,114 116.0
Standard Hotel Standard Hotel
8,633 211.8
225 5.2
Tourist Household Apart Hotel
2,208 17.4
754 5.8
Rural Accomodation Rural Accomodation
1,609 14.5
261 2.8
Inn Inn
1,271 11.7
275 1.7
Apart Hotel Tourist Household
1,249 5.4
56 0.9
Vacational Centre Vacational Centre
182 2.7
58 0.7
Hostel Hostel
112 1.3
8 0.1 Nov-12
Camping Nov-12 Camping
43 0.5
2 0.0
Refuge Refuge
15 Sep-17 0.2 Sep-17
Source: COTELCO, CONFECAMARAS

Comments
Over the 2012-2017 period, the real hotel revenues expanded at a solid 4.2% CAGR, reaching COP 5.1bn,
according to EMIS Insights estimates based on DANE data. However, the recent performance of the
sector has been disappointing as domestic tourist spending drastically slowed down in 2016 and 2017,
affected negatively by the deterioration of the macroeconomic conditions in Colombia and also by the
February 2017 VAT increase. At the same time, the growth of inbound tourism over the same period
was not strong enough to compensate. In March 2018, the head of COTELCO Gustavo Toro Velazquez,
in the context of the annual meeting of the confederation, outlined that the rapid expansion of the
number of available private rental units, the high degree of informality of this particular sub-segment,
and the insufficient transport infrastructure, are the main factors that have a negative effect on the
hotel performance. In spite of these woes, the hotel occupancy rates went up in 2017, reaching an
average of 56.3% during the year, the highest level since 2004, that was particularly strong for large
hotels with more than 150 rooms. According to March 2018 estimates by Maria Lorena Gutierrez,
Colombia’s minister of commerce, industry and tourism, the high occupancy rates in 2017 were driven
by the 23.9% y/y increase of the international tourist arrivals, favoured by the improvement of the
security in the country after the signing of the peace agreement with the FARC.
Hotel Revenues Hotel Segment Employment

112 114
4,901
5,100 110
4,483
3,975 106
3,546 3,697
101
100
9.2%
6.6% 6.1%
5.1% 4.8%
3.8%
2.7% 2.5%
0.9% 0.9% 0.9%
0.0%
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
Hotel Revenues,* COP bn Hotel Employment Index, 2012=100, points, annual average
Real Hotel Revenues Index, 2012=100, y/y change, annual average Hotel Employment Index, 2012=100, y/y change, annual average
* EMIS Insights estimates based on DANE data

Source: DANE, Reportur, Diario del Huila, America Retail, El Tiempo, EMIS Insights


(cont’d)
Occupancy Rate Evolution Occupancy Rate by Hotel Size, 2017

63%
61%
>150 rooms 62.0%
59%
57%
55%
101-150 rooms 55.0%
53%
51%
51-100 rooms 49.8%
49%
47%
45%
0-50 rooms 44.4%
Jan-15
Mar-15
May-15
Jul-15
Sep-15
Nov-15
Jan-16
Mar-16
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Mar-17
May-17
Jul-17
Sep-17
Nov-17
Average Daily Tariff Evolution Hotel Guests by Type, 2017
112 113
Business
41.4%
5.1%
Convention
106
6.3%
104
102
100
2.5%
2.1% 2.0%
1.6% 1.5%
Others 4.1%
2012 2013 2014 2015 2016 2017
Hotel Tariff Index, 2012=100, points, annual average Leisure

47.3%
Hotel Tariff Index, 2012=100, y/y change, annual average Health 0.9%
Source: DANE

CONTENTS
FOCUS POINT
Average Hotel Occupancy Rate by Department, 2017
Archipelago 38.7%
de San Andres
y Providencia Norte de
Santander
80.2%
48%
63.4%
Santander
Antioquia
50.2%
36.9%
Valle del
Cauca Boyaca
49.4%
Tolima
56.3%
Average for
Colombia
Source: COTELCO

CONTENTS
FOCUS POINT
Average Daily Hotel Tariff by Department, COP, 2017
Archipelago 138,664
de San Andres
y Providencia Norte de
Santander
216,466
212,254 157,831
Antioquia Santander
165,412 230,269
Valle del
Boyaca
Cauca
127,469
Tolima
Source: COTELCO

07
TOURIST
SERVICES

07 TOURIST SERVICES CONTENTS
Highlights
Overview
According to statistics compiled by ANATO, as of December 2017, there were a total of 6,703 travel
agencies in Colombia, of which 56.6% retail travel and tourism agencies, 38.2% operator agencies, and
5.1% wholesale agencies. Travel agencies in Colombia are predominantly concentrated within the
largest urban centres Bogota, Medellin and Cali, which explains why the departments of
Cundinamarca, where the capital Bogota is, Antioquia and Valle del Cauca hosted a combined 51.18%
share of the total number of travel agencies as of December 2017. The turnover of the travel agencies
segment was COP 1.7tn in 2017, a 6.7% y/y decrease in real terms, as fierce competition in the caused
the operational margins to plummet during the year. According to the results of the 2016 Travel
Agencies Survey conducted by ANATO, between March 2016 and June 2016, cash was the prevalent
payment method for 63.8% of the travel agencies, which highlights the low degree of financial
integration in the segment.
Drivers and Constraints

The cruise lines sub-segment was the bright star of the tourist services segment in the 2012-2016
period, as larger capacity ships allowed for a significant increase in the number of tourists visiting
Colombian ports. In addition, new routes developed by tour operators specifically tailored to travel to
places with no visa requirements for Colombian citizens, also prompted more domestic tourists to
embark on cruisers. Yet, the existence of a VAT tax regime for cruise trips that originate from
Colombian ports is a significant constraint for the competitiveness of the sub-segment given that in
other countries in the region cruise ships are exempt from VAT payment. In the case of travel
agencies, the increase of inbound tourism as a result of the peace agreement with the FARC boosted
the competition in the sub-segment, which resulted in a significant erosion of the operating margins
in spite of the increase in sales volume during the period 2012-2017.
Outlook
In March 2018, the president of ANATO Paula Cortes Calle noted in an interview for the online portal
Portafolio that the performance of the travel agencies segment depends largely on the ability of the
government to eliminate the existence of informal agencies, whose activities undermine the average
quality of service and decrease of sales margins. She also estimated that if a proper regulation is
implemented in the segment with inscribing all players in the National Tourism Registry (RNT), the
growth in the number of active travel agencies will slow down considerably, that will benefit the
employment in the segment as well as the quality of service and the companies’ revenues.
Source: Portafolio, ANATO

Main Events
§ In March 2018, the US-based Kayak, a travel fare online research portal, subsidiary of Booking
Holdings, announced that it entered in a partnership for the Colombian market with the travel
agencies Viajes Falabella (a subsidiary of the Chilean retailer Falabella) and Viajes Exito (a
subsidiary of the French Groupe Casino). According to Claudia Tellez, country manager of Kayak
for Colombia, the goal of the partnership is to increase the amount of travel offers from domestic
companies. Kayak, which entered the Colombian market in April 2016, initially partnered with the
Spanish travel agency Atrapalo and the local peer Aviatur, but was seeking to increase the
amount of offers available to tourists. The competition in the segment has increased even further
since Mach 2018, when the US technology giant Google launched its online flight booking search
service Google Flights for the Colombian market.
§ In February 2018, the domestic wholesale agency Iberoluna Travel, which had until then focused
exclusively on international journeys, started to also offer Colombian destinations, including
along the coffee belt and the Atlantic cost. According to the CEO of Iberoluna Travel Jorge Martin,
the shift in strategy is oriented towards taking advantage of the recent changes in demand
experienced by the sector, with the solid growth of inbound versus the relatively weak
performance of the outbound tourism.
§ In February 2018, in an interview for the online portal Reportur, Maria Eugenia Oriani, country
manager of the travel agency Almundo Colombia, a subsidiary of the Spanish business group
Iberostar, informed that the company is opening its second technological centre in Colombia, in
Medellin city, which will improve the IT support of the company’s operations in the country.
Almundo has recently introduced the option for cash based payment via one of the platforms
popular in Colombia, Baloto, Efecty and PSE. This, according to Oriani, was absolutely necessary as
many Colombian costumers do not have bank accounts and thus cannot use traditional payment
methods. On the other hand, the travel agency, which only has a physical office in Bogota, is
planning to extend to the interior of the country through a franchise scheme, partnering with
local travel agencies. Furthermore, the agency plans to train a group of freelance domestic travel
agents to achieve high expertise in local touristic activities in the main destinations offered by
Almundo, to be able to supply personalised and flexible tourist packages depending on the
particular interests of the customers.
§ In March 2017, Price Travel, a Mexican travel agency which ranked as the fourth largest player in
Colombia’s travel agencies segment for 2016 in terms of revenues, according to EMIS Insights
estimates, announced the introduction of two new brands on the Colombian market - BTC and
RVM Travel. BTC is specialised in domestic corporate travel for business meetings, while RVM
Travel has a focus on inbound non-corporate tourism.
Source: Reportur, Portafolio

Travel Agencies Infrastructure
Comments
At the end of 2017, there were a total of 6,703 travel agencies in Colombia, compared to 5,898 as of
November 2013, which stands for a 3.2% CAGR of expansion over the period. The traditional travel and
tourism agencies offering to the retail clients services and activities organised by others, such as air
tickets, hotel accommodation, regular tours, etc., were the most numerous - 3,797 in total. The
operator agencies, which organise activities and tours jointly with service providers, ranked second
with a share of 43.5% of the total number of companies in the segment. The wholesale agencies that
book accommodations, air tickets and regular tours with service providers, and then re-sell it to
traditional retail travel agencies, were the least numerous.
According to the results of the Travel Agencies Survey conducted by ANATO, that were released in
June 2016, the educational level of the employees in the segment is highly heterogeneous depending
on the company size, type of agency and region. In that regard, agencies based in Bogota and
Cartagena rank particularly well in terms of educational level of the workforce, with more than 40% of
their employees holding university degrees, compared to 30% or less in Bucaramanga or Cucuta.
Moreover, the share of employees fluent in at least one foreign language is significantly higher in
smaller companies, where they are between 18% and 22%, compared to just 8% in medium sized
entities.
Number of Travel Agencies by Type, Travel Agencies by Region, Dec 2017

Dec 2017
Magdalena Bolivar
4.63% 4.39% Quindio
Operator Santander 3.56%
Agencies 6.11%
2,563
Valle del
Cauca 8.77%
Antioquia
14.91%
Others
30.13%
Wholesale
Travel & Agencies
Tourism 343
Agencies 3,797 Cundinamarca
27.50%
Source: ANATO, CONFECAMARAS

Travel Agencies Operating

Performance
Comments
Over the 2012-2017 period, the real sales of the travel agencies remained stagnant, growing by just a
cumulative 0.23% to reach COP 1.7tn, according to EMIS Insights estimates based on DANE data. Over
the same period, the employment in the segment contracted by an average annual of 2.3%. The
aggregate performance of the segment over 2012-2017 is particularly correlated with the evolution of
outbound tourism that posted solid growth between 2012 and 2014, and a reversal of this growth in
2015-2017. However, 2017 was not a bad year for all travel agencies, as some niches recorded positive
results. In that regard, in a March 2018 interview with the online portal Dinero.com, Sammy Bessudo,
CEO of the domestic travel agency Aviatur, commented that the performance of travel agencies
focused on inbound tourism, such as Aviatur itself, was good in 2017. They benefitted from the high
inflow of foreign tourists during the year as a result of the improved security following the peace
agreement signed with the FARC in November 2016. Furthermore, the president of ANATO Paula Cortes
Calle, noted in early April 2018 in an interview with the online portal Reportur that the travel agencies
are trying to rapidly adapt to the foreign tourists demand by offering closed packages in different
niches, including beach, cultural tourism, nature tourism, etc. Cortes Calle noted that the increased
competition in the segment coming from the new domestic and foreign players entering the market,
has weighed greatly on the sector margins, contributing to the stagnation of the real sales value in
spite of the positive trend in the sales volume.
Travel Agencies Sales Evolution Travel Agencies Employment Evolution

1,742 104
1,701
1,650 1,691
101 100
1,500 100
1,443
92
3.1% 89
8.6% 1.8% 0.9%
2.9% -3.2%
0.6% -0.1% -3.8%
-1.5%
-6.7% -8.1%
2012 2013 2014 2015 2016 2017

2012 2013 2014 2015 2016 2017
Travel Agencies Employment Index, 2012=100, points, annual
Travel Agencies Revenues,* COP bn average
Real Travel Agencies Revenues Index, 2012=100, y/y change, Travel Agencies Employment Index, 2012=100, y/y change, annual
annual average average
* EMIS Insights estimates

Source: DANE, Enter.Co, Reportur, Dinero.com

Travel Agencies Sales
Comments Prevalent Payment Method, Mar-Jun 2016

According to the results of the 2016 Travel
Agencies Survey conducted by ANATO, 63.8% of
the surveyed agencies reported cash as the
Debit
leading payment method in their sales in the Card/Credit
period March-June 2016. However, in the case of Card 27.6%
ANATO members, which are mostly midsize

companies and accounted for only 6.5% of the
entities included in the survey, the situation is
the opposite, as debit and credit card settlements
dominated with a 51.9% share, followed by
electronic transfers with 31.1% and cash Electronic
payments with 17%. There is a significant Transfer
8.6%
difference in the development of the online retail
channel between ANATO and non-ANATO Cash 63.8%
members, as 42% of the agencies associated with

ANATO engage in online sales compared to only
34% of the non-associated.
Share of Travel Agencies with Active Share of Travel Agencies’ Net Revenue
Online Retail Channel by Segment, Mar- from Online Retail, Mar-Jun 2016
Jun 2016
Travel & Tourism Agencies 38%
Wholesale Agencies 37%

Online Retail
Channel 10%
Tourism Representation 32%
Other
Channels
90%
Operator Agencies 32%
Source: ANATO

Travel Agencies Sales (cont’d)
Comments
According to the results of the 2016 Travel Agencies Survey conducted by ANATO, between March and
June 2016, 71% of the travel agencies sales were generated on the domestic market, which highlights
the still relatively limited participation of inbound and outbound tourism in the sector revenues. Yet,
the results differ significantly depending on the type of agency. According to the survey, the
wholesale agencies specialise in outbound tourism, which accounted for 48% of their sales in March-
June 2016. The case is exactly the opposite with the operator agencies, where the sales of outbound
tourism packages account for only 10% of the revenues. Regarding the sales performance of the
different sales segments, there is great variability as beach tourism is highly saturated, while the
rest, including nature, adventure and cultural tourism, are characterised with lower demand. Not
surprisingly, the cities that offer mainly beach tourism, such as Cartagena, San Andres and Santa
Marta, sold out all services offered, including hotel accommodation, tours and supplementary
services. The peace agreement is expected to have a major positive impact on the nature tourism sub-
segment, as vast zones of the country that were formerly under the control of the FARC can now
develop their great potential for this kind of tourism. These zones include Cano Cristales in Meta
department, Ciudad Perdida in Magdalena, Fin del Mundo in Putumayo, Gorgona Island in Cauca,
Ciudad de Piedra in Guaviare, Tatacoa Desert in Huila and Cocora Valley in Quindio, among others.
Travel Agencies Sales by Market, Mar-Jun Travel Agencies Sales Performance by

2016 Segment, Mar-Jun 2016
13% 15% 20%

Outbound 26% 31%
20% 15%
43%
50%
52% 47%
72%
42%
Inbound 9% 30%
22% 22%
Beach Nature Adventure Cultural Corporate

Domestic Tourism Tourism Tourism Tourism Travels
71%
Fully Sold Partially Sold Not Sold
Source: ANATO, El Diaro de Juarez

Travel Agencies Sales (cont’d)
Travel Agencies Sales Performance by Travel Agencies Sales Performance by

Domestic Destination, Mar-Jun 2016 International Destination, Mar-Jun 2016
7%
15% 16% 16% 16% 16%
21% 22%
25%
29%
27%
45%
31%
24% 34%
37%
40%
41%
37%
47%
58%
55% 53%
50% 48% 47%
44%
37%
34%
28%
Cartagena San Andres Santa Marta Medellin Bogota United States Caribbean Mexico Panama Spain
Islands
Source: ANATO

Cruise Lines
Number of Cruise Line Passengers, thou
314.2 303.6
306.7
272.2
254.4
22.9%
20.6%
213.9
11.5%
2.4%
-13.4%
-18.8%
2012 2013 2014 2015 2016 Jan-Sep 2017
Cruise Line Passengers, thou y/y change
Comments
Over 2012-2016, the number of international cruise line passengers expanded at a CAGR of 4.5%,
reaching 303,582 people at the end of the period. Of them, 95.31% disembarked at Cartagena port in
Bolivar department, 4.67% in Santa Marta port in Magdalena department, and 0.03% in San Andres
port in San Andres and Providencia department. In terms of ship arrivals, 2016 closed with a total of
207 ships, of which 190 anchored at Cartagena, 16 at Santa Marta and one at San Andres. In early
August 2017, Maria Claudia Lacouture, then minister of trade, industry and tourism, claimed that the
increase in the number of tourist arrivals was due to the increased capacity of the vessels that visited
the Colombian ports, as the number of ship arrivals remained relatively stable over the preceding
seven years. She also remarked that the solid performance of the segment between January and
September 2017, with a 22.9% y/y increase in the number of tourist arrivals, was mainly driven by the
peace agreement between the government and the FARC. In addition, she noted that in recent years
cruise operators have started to develop specific routes to countries with no visa requirements for
Colombians, that depart and arrive at Colombian ports, which are gaining popularity among domestic
tourists. However, the lingering problem for the sector is that trips originating from Colombian ports
are subject to VAT payment, which is usually not the case in other countries in the region and makes
the Colombian ports less attractive for cruise operators.
Source: ANATO, MINCIT, El Tiempo, Reportur, Portafolio, Dinero

RELATED
EMIS E-STORE PUBLICATIONS
Pay-as-you-go access to emerging market
company profiles and industry reports
Now covering 5-Year Forecast
Read more
Read more
Visit the Store
Read more
About EMIS
EMIS operates in and reports on
countries where high reward goes
hand-in-hand with high risk. We
bring you time-sensitive, hard-to-
get, relevant news, research and
analytical data, peer comparisons
and more for over 120 emerging
markets. We license content from
the cream of the world's
macroeconomic experts, the most
renowned industry research firms
and the most authoritative news
providers. Formed over 20 years
ago, we employ nearly 300 people
in 13 countries around the world,
providing intelligence to nearly
2,000 clients.
EMIS Insights
Disclaimer:
The material is based on sources
which we believe are reliable, but
no warranty, either expressed or
implied, is provided in relation to EMIS Insights is a unit of EMIS that
the accuracy or completeness of
the information. The views
produces proprietary strategic research
expressed are our best judgment and analysis. The service features
as of the date of issue and are market overviews, industry trend
subject to change without notice.
EMIS takes no responsibility for analysis, legislation and profiles of the
decisions made on the basis of leading sector companies provided by
these opinions. locally-based analysts.
Any redistribution of this
information is strictly prohibited.
Copyright © 2018 EMIS, all rights
reserved.
BRAZIL GLOBAL HEADQUARTERS
Rua Bandeira Paulista, 702 CityPoint
cj.121 – 12º andar 1 Ropemaker Street London
Cep: 04532-002 EC2Y 9HT
São Paulo UK
Voice: +55 11 4410 4250 Voice: +44 (0) 207 153 1210
BULGARIA CHINA COLOMBIA

38-40 Osogovo Str. Unit 801-806, Level 8 Street 93 N 15-27
8th floor, app. 8.1 Shanghai BEA Finance Tower 7th Floor
1303 Sofia 66 Huayuan, Shiqiao Road Bogota, Cundinamarca 11001
Pudong, Shanghai, P.R.C.
Voice: +44 20 7779 8100 Voice: +86 21 61799660 Voice: +57 1 328 9138
HONG KONG INDIA MALAYSIA

Level 60, One Island East 124, Mittal Court, C Wing, Suite 5-3 & 5-3A
18 Westlands Road, Quarry Bay Nariman Point, 5th Floor, Wisma UOA II
Hong Kong Mumbai - 400 021 No. 21 Jalan Pinang
50450 Kuala Lumpur
Voice: +852 2591 3379 Voice: +91 22 22881123/29 Voice: +603 21669921
PHILIPPINES POLAND USA

Unit 2704 One Corporate Centre, Al. Jerozolimskie 123a 12 E 49th St
Julia Vargas Ave. corner Meralco Ave. 02-017 Warsaw New York, New York
Ortigas Center, Pasig City 10017
1605 Manila US
Voice: +63 2 328-3023 Voice: +48 22 255 6570 Voice: +1 212 610 2900

CONTACT US www.emis.com FOLLOW US

EMIS Insights - Colombia Tourism and Leisure Sector Report 2018 - 2019 PDF

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

EMIS Insights - Colombia Tourism and Leisure Sector Report 2018 - 2019 PDF

Загружено:

Авторское право:

Доступные форматы

COLOMBIA

TOURISM & LEISURE

Any redistribution of this information is strictly prohibited.

CONTACT US www.emis.com FOLLOW US

ARS Argentine Peso

CONFECAMARAS Commerce Chambers Confederation

COP Colombian Peso

COTELCO Colombian Tourism and Hotels Chamber

DANE National Administrative Department of Statistics

FONTUR National Tourism Fund

GIHS Great Integrated Household Survey

MINCIT Ministry of Commerce, Industry and Tourism

RNT National Tourism Registry

SIC Colombian Superintendence of Industry and Commerce

UNWTO United Nations World Tourism Organisation

WEF World Economic Forum

WTTC World Travel and Tourism Council

Any redistribution of this information is strictly prohibited.

CONTENTS 01 EXECUTIVE SUMMARY

02 SECTOR IN FOCUS p.14

03 COMPETITIVE LANDSCAPE p.28

CONTENTS 04 COMPANIES IN FOCUS

05 REGULATORY ENVIRONMENT p.47

06 HOTEL INDUSTRY p.51

07 TOURIST SERVICES p.59

Any redistribution of this information is strictly prohibited.

Note: Data for 2017.

COLOMBIA TOURISM & LEISURE SECTOR 2018/2019 6

Source: FONTUR, ANATO, Reportur, DANE, COTELCO, WEF

COLOMBIA TOURISM & LEISURE SECTOR 2018/2019 7

INBOUND TOURISM DOMESTIC TOURISM

HOTEL INDUSTRY TRAVEL AGENCIES

KEY PLAYERS REVENUES

COLOMBIA TOURISM & LEISURE SECTOR 2018/2019 8

Source: WTTC, Reportur, ANATO

COLOMBIA TOURISM & LEISURE SECTOR 2018/2019 9

Travel and Tourism Contribution to GDP

20,284 21,160 21,982 22,837 23,644

2018f 2019f 2020f 2021f 2022f

Source: WTTC, BMI Research

COLOMBIA TOURISM & LEISURE SECTOR 2018/2019 10

Sector Outlook (cont’d)

Internal Travel and Tourism Consumption Inbound vs Outbound Tourism Spending,

39,139 40,664 42,054

Capital Investment in Travel and Tourism Government Individual Spending on

2.1% 2.1% 2.1% 2.1%

COLOMBIA TOURISM & LEISURE SECTOR 2018/2019 11

Source: DANE, ANATO, Reportur

COLOMBIA TOURISM & LEISURE SECTOR 2018/2019 12

Source: ANATO, COTELCO, Semana

COLOMBIA TOURISM & LEISURE SECTOR 2018/2019 13

Any redistribution of this information is strictly prohibited.

Main Economic Indicators

2012 2013 2014 2015 2016 2017

GDP, constant prices, y/y change, % 4 4.9 4.4 3.1 2 1.8

Consumer Price Index, Leisure Services, y/y change,

Unemployment Rate, %, year-end 9.6 8.4 8.7 8.6 8.7 8.6

FDI Inflow in Wholesale, Retail Trade, Hotels and

Source: Central Bank of Colombia, DANE, OANDA, ANATO

COLOMBIA TOURISM & LEISURE SECTOR 2018/2019 15

Main Sector Indicators

2012 2013 2014 2015 2016 2017

Hotels and Restaurants GVA, constant prices, y/y