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    Colombian Tourism, seductive for investments

    The hotel sector is one of the main beneficiaries of the tax incentives that Colombia has generated to promote investment.

    Colombia’s huge touristic potential is one of the reasons why the state has propelled the sector with important benefits; these benefits lure investors from all over the globe to participate in the touristic and hotel business of the country. After all, the country registered a total of 5,667,000 foreign and national travellers in the first quarter of 2012.

    What are the tax benefits associated with the hotel sector?

    Through decrees 2755 of 2003 and 920 of 2009, the Colombian government implemented a series of tax benefits that have powerfully stimulated the sector.

    For example, benefits like income tax deduction for 30 years for hotels built before December 31 of 2017. The same deduction covers hotels that remodel or expand in the same period, as long as the remodeling value is included in the fiscal cost of the expanded or remodeled building. (See more in Ministry of Foreign Affairs)

    Likewise, exemptions on the revenue tax are contemplated for 20 years for hotels built with ecotourism projects in zones destined for that purpose. That is how touristic investment in zones of great natural beauty have been boosted, like in Amazonas, the Sierra Nevada de Santa Marta, La Guajira, Malpelo or the Sierra de la Macarena.

    For investors in the hotel sector, Colombia also offers, besides from quality human resource, international openness and constant flow of travellers, characteristics that drive both national and international chains to bet for Colombia to develop their own investment and growth methods.

    For occupying third place in Latin America in terms of business environment, when talking about investments, the answer is Colombia.

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