JUNE 2022 | 15
FOREIGN MATTERS
Investment opportunities in Ecuador in the tourism sector
The Embassy of the Republic of Ecuador to the Kingdom of the Netherlands, has the pleasure to share with the community of Dutch entrepreneurs and investors, as well as with the general public, important aspects of Ecuador as concerns the promotion of tourism, and current investment opportunities in the sector. Ecuador offers exceptional conditions and natural attractions, as well as comparative and competitive advantages promoted by the current Government of Ecuador, under its slogan: “More Ecuador in the World and more World in Ecuador”“Together we achieve it”. Ecuador – A Country of 4 Worlds Ecuador is a country that promotes investment in a responsible manner, stimulating long-term economic stability, as well as implementing incentives to attract new internal and external investments with a view to boost employment and enhance the local economy, as well as reactivate the tourism sector, which has been one of the most affected by the pandemic. International statistics and indicators that reflect the dynamics of the tourism sector worldwide place Ecuador among the most attractive destinations for tourism and investment. In the InterNations ranking, Ecuador is ranked 8th out of 59 countries in the Expat Insider 2021 Survey, among the best destinations for expats in 2021 (behind only Taiwan, Mexico, Costa Rica, Malaysia, Portugal, New Zealand, Australia). Ecuador also has one of the best performances on the Personal Finance Index (fifth). Approximately three in four expats (73%) are satisfied with their financial situation in Ecuador, compared to an average of 64% globally. Additionally, 91% describe disposable household income as ¨sufficient¨ or ¨more than sufficient¨ to cover their expenses, compared to the global average of 77%. These figures place Ecuador in third place in this factor, just behind India and Vietnam.
Official figures on the importance of tourism for Ecuador • Tourism accounts for more than 550,000 jobs in hospitality and in food services activities, which represents 7% of national employment. • Foreign Currency Income from Tourism in the III quarter of 2021 contributed more than 50% to the country’s service exports. • The contribution of tourism to Gross Fixed Capital Formation is estimated at 4% National. • Tourism in 2021 had a direct contribution of 1.3% to the GDP. • For every 10 foreign visitors, 1 salaried job is generated in the national economy. • The multiplier effect of employment is estimated at 2.2 Tourism investment opportunities The Ministry of Tourism of Ecuador has identified investment opportunities throughout the country, both continental and insular, and with this has prepared and made available a “portfolio of tourist investment opportunities”, together with a national digital map of the location of some of the most important investment options. This portfolio is classified into four investment lines for an approximate amount of 900 million U.S. Dollars. Its classification contains: • 23 projects, which contain viability studies and indicators. • 69 tourist infrastructures (hotels, tourist lodges, etc.) • 70 land and properties (properties with potential for tourism development such as land, buildings, etc.) • 4 entrepreneurship and innovation, new or innovative proposals that have been accompanied by the Ministry of Tourism.
Ecuador also ranks in the top 10 countries in the cost of living index (seventh), with 78% of expats rating this aspect of living abroad positively, compared to the global average of 48%. These indicators demonstrate that Ecuador is a friendly and attractive country for receptive tourism and investment in said sector, which, over the course of many years has benefited from the strengthening and development of important connectivity and basic infrastructure in the country. Through this, the enormous potential which exists has been confirmed, particularly as concerns the identification and formulation of opportunities to strengthen touristic infrastructure and services through sustainable investment in the immense biodiversity of Ecuador - ranging from its beaches, to its mountains and Amazonia, as well as in the Galapagos Islands.
This investment portfolio is digitized and can be easily accessed by scanning the following QR code or through the electronic portal of the Ministry of Tourism or the Embassy of Ecuador in the Netherlands. In the same way, the investment map prepared by the Ministry of Tourism of Ecuador is available and is constantly updated, being a tool that allows for the localization of current tourism investment projects. Why invest in Ecuador? • Dollarized economy: low inflation. • Economic, fiscal and political stability. • Policy of commercial openness to the world. • Generation of clean energy. • Developed infrastructure: first class airports, highways and ports. • Natural resources: water, agriculture, hydrocarbons, mining, etc. • Legal certainty: The ICSID Convention entered into force for Ecuador on February 14, 1986 and was signed again on June 21, 2021. • Qualified human talent. • Geographical and logistical advantage: short distances between the 4 regions of Ecuador. • Tax incentives. • Quality and accessible medical care.
Investment portfolio
Investment map
Gastronomic map
Benefits of investing in Ecuador
This new conceptualisation contemplates local social development, together with the generation of employment and the improvement of living conditions for the population in general, and particularly for those whom participate in the activities of the tourism sector, and would as such benefit from the resulting economic growth.
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