Importance Of Tourism In Ecuador

Part 2: Ecuador

The country which we’ve chosen to base our tour in is Ecuador. Compared to other South American countries, Ecuador had little tourist interest in the 1980s which meant tourism wasn’t a huge factor in its economy. In 1985 around 250,000 tourists visited, offering over US$200 million to the economy. The government provided little support meaning many colonial towns, ancient ruins, and areas of natural beauty were undeveloped due to lack of promotion and poor tourist infrastructure. This has all changed drastically in recent years however. According to the 2016 UNWTO Tourism report, there were 1.542 million International tourist arrivals in 2015, a 47% increase since only 2010. The most popular source countries are Colombia, the

Successful advertising movements such as the “All you need is Ecuador” campaign have generated results and prizes as recently the country was awarded for the best tourism video of the Americas by the World Tourism Organisation. In 2014 all this investment caused a 14% increase in International tourist arrivals, growing three times faster than the world average. There are a number of reasons as to why tourism is beginning to flourish in Ecuador. It has been recognised as one of the countries with the greatest megadiversity in the world per square metre. Almost 8% of amphibian species, 5% of reptile species, 8% of mammal species, and 16% of bird species on Earth can be found in Ecuador, a country that makes up only 0.2% of the world’s land area. Nature and wildlife enthusiasts make up a significant proportion of international visitors as Ecuador is starting to be recognised as a hub for Eco tourism. The most popular attractions among these eco tourists include the Andes mountains, the Amazon Basin, coastal regions and the Galapagos islands. The country has been cited as a destination which is becoming desirable to the “grey” market. The low cost of living, famous food and scenery attract pensioners constantly according to International Living, an American overseas retirement advice

President Rafael Correa quadrupled the budget from US$40 million to the US$150 million per year which it currently is in 2017. Across the country over 30 touristic projects are in development, representing around US$1.6 billion in investments since 2013 from local and foreign funding. The public policy towards tourism is based on five core values: Safety, Quality, Destinations and Products, Connectivity and Promotion. Domestic financing has been the main aid in positive development but a substantial amount of foreign investment has contributed. The successful “Invest Ecuador Tourism” campaign helped immensely in attracting investment from abroad. A number of different benefits for investors were offered including: clear investment guidelines, the liberalization of investment regulations by giving equal treatment to local and foreign investors, tax incentives such as a five-year exemption from paying income tax and an additional deduction for depreciation. These funds not only went towards directly improving tourist facilities but also to indirect improvements in public