How has Peru's tourism offer evolved after the pandemic?

The pandemic has considerably changed the profile of national and foreign tourists. In this sense, the tourism offer we present as a country has also changed.

For example, in the need to develop local tourism for the local market, the Strategy for the Reactivation of the Tourism Sector 2022-2025 has expanded the prioritised tourist destinations and development zones. Thanks to them, Mincetur's Multiannual Investment Programming 2022-2024 no longer includes 472 prioritised tourism resources to be intervened through public works, but 1847.

On the other hand, throughout the pandemic, we have managed to certify 75 destinations and 4706 tourism service providers with the Safe Travels Seal, thereby guaranteeing the incorporation of biosecurity protocols in tourism operations.

Finally, from MINCETUR, in accordance with the strategy promoted by the Presidency of the Council of Ministers to promote digital transformation, we have been developing efforts from the Vice-Ministry of Tourism, Promperu and CENFOTUR, to bring the country's new tourism offerings closer to the use of information technologies in the tourism value chain. We seek to be more competitive as a country, in order to face the new market demands.

Do you think the Peruvian industry has changed after the pandemic?

The pandemic has motivated more informed travel and with it, the search for destination information before travelling has grown (from 27% in 2019 to 69% in 2022, among Peruvians travelling on holiday).

Digital sources are gaining relevance in the search for tourism information, so the sector has had to find new forms of communication and promotion of its tourism products, which are adapted to new tourist trends. Thus, it is observed that, among travel agencies, sales through online channels (email, WhatsApp and other media) are perceived by the sector with a contribution of more than 50% of sales.

What do you consider to be the keys to tourism in a country of Peru's size?

Peru has enormous potential for tourism development, given its mega-diversity, history, multiculturalism and innumerable natural resources. Therefore, in a context of reactivation, it is a priority to achieve a real diversification of the tourism offer, around the segments prioritised by the country for the development of tourism: nature, adventure, wellness, culture and RICE (Meetings Tourism).

From the State, we are helping to create the necessary conditions for investment in tourism in the regions. On the one hand, we are ensuring the generation of new revenues, such as those established in the new law regulating distance sports games, which will allow a shock of investments focused on the prioritised tourist destinations. On the other hand, we are working on regulatory changes to accelerate the recovery of the sector, such as the recently approved law that reduces the VAT from 18% to 8% for Mypes of accommodation, lodging and restaurants.

Finally, we consider it of utmost importance to accompany these processes with decisive policies for the promotion of private investments, the strengthening of tourism safety, the increase of area connectivity and the frontal fight against informality that threaten the accelerated growth of tourism activity.

In your opinion, what are the basic pillars of Peruvian tourism policy?

In the tourism sector, we have divided our work and efforts into the four pillars established in our current National Strategic Tourism Plan and included in the National Strategy for the Reactivation of the Tourism Sector 2022-2025.

These four pillars are:

1. Strengthening the public-private institutional framework.

2. Improving territorial conditions for tourism

3. Develop a tourism offer in line with the new demand.

4. Position Peru and its destinations in accordance with the requirements of the post-Covid-19 stage.

We aim to carry them out with a focus on inclusion, which allows the incorporation of communities and actors who are generally neglected, with a territorial approach, which allows the State's action in the development and consolidation of destinations to be comprehensive. A focus on competitiveness, which allows for added value, innovation and digitalisation in industry processes, accompanied by quality investment in free market conditions with social justice, as well as a focus on sustainability, which guarantees the preservation of our tangible and intangible heritage, as well as our natural environment.

Where are you directing your efforts with regard to the international promotion of tourism in Peru?

Efforts are aimed at positioning our destination in international markets of interest through actions aimed at both the international commercial chain and the end consumer, in those markets that mainly have significant air connectivity to our country. The new international tourist has a preference for open spaces, which is why our promotional efforts are focused on activities for the adventure and nature segments, high-end and strongly in gastronomy.

Where should we act with more intensity, strength and dynamism to strengthen Peru's tourism offer?

At the moment, much of our concern is focused on restoring adequate conditions for the flow of passengers, mainly through our land borders and at the most important airports.

We have been working with the health sector to make the sanitary measures imposed by Covid-19 more flexible, without any major impact on public health, and we have also managed to eliminate social distancing at airports, allowing us to increase their operational capacity in the short term.

Equally important has been the entry into the country of new airlines, many of them with the low cost business model, which has allowed the generation and intensification of new commercial routes, areas and flight frequencies.

A decision taken by the sector to safeguard tourism jobs in the country has been the extension of the payment of the REACTIVA Peru for up to three years, and the allocation of an additional 400 million soles for the placement of guaranteed credits through the FAE Tourism. We have been closely monitoring the recovery of formal tourism companies, as well as generating incentives for formality, through the reduction of the IGV for Mypes in the sector, as well as programmes such as Turismo Emprende.

We have also taken actions aimed at encouraging the demand for handicrafts, such as the income tax deduction for consumers of services (50% of the cost) and handicraft products (25% of the cost), we have decentralised events and commercial exhibitions reaching sales levels of S/. 7, 441,729 and capacity building activities, such as Digital Craftsman with 930 beneficiaries to date.

We seek to encourage artisan entrepreneurship, among other virtual training, which has benefited more than 3000 people on topics such as: "Cycles of conferences Thursday of Artisan Design", Workshop on financial education, talks on improving the artisan offer, design tools for crafts, tourism adaptation of craft workshops, the application of Peruvian technical standards of crafts and good environmental practices.

What are the main milestones achieved by the Ministry (verify institution and title)?

So far this year, 1.2 million international tourists have arrived in Peru, generating around S/. 7 billion soles in foreign exchange earnings, exceeding our expectations for inbound tourism by 2022.

So far this year, 25 million domestic tourism trips have been made, achieving an economic movement of more than S/. 10 billion soles, 55% of what was generated during the whole of 2019.

S/ 54.1 million non-refundable grants were given to 266 tourism SMEs, 4,474 tourist guides and 2,077 artisans, thanks to competitions "Turismo Emprende", "Guiando al turismo a la reactivación" and "Somos Artesanía".

The payment deadlines for "Reactiva Perú" were extended. Likewise, thanks to the FAE-Tourism, S/. 48.9 million soles were allocated to 328 entrepreneurs for their reactivation, totalling 2403 Mypes with a disbursement of S/. 164 million in credits to date. In addition, requirements for tourism entrepreneurs were facilitated. The Law that Regulates the Exploitation of Remote Gambling and Sports Betting was approved, which will allow an injection of S/. 160 million per year to the public treasury.

The Law regulating the operation of remote gambling and sports betting was approved, which will allow for an approximate collection of S/160 million per year.

The law that reduces the GV from 18% to 8% for lodging, accommodation and restaurants of micro and small enterprises was approved.

As a result of the implementation of articulated intersectoral actions, social distancing at airports was eliminated, allowing the increase of their operational capacity; likewise, the opening of land and water borders has been achieved. Two (02) new airlines began operations in Peru, increasing connectivity with nine (09) domestic routes from Lima, four (04) intra-regional routes and five (05) international routes.

It was incorporated into the process of promoting private investment in the future Cerro San Cristóbal de Lima cable car project.

With the cultural sector, the capacity of admission to the Machupicchu Llaqta was increased to 4,044 visitors per day.

The National Registry of Community-Based Tourism Organisations was created.

02 hotel investments of 45 million dollars are being developed, which will culminate in 2022.

New initiatives were promoted: "Pueblos Con Encanto" and "Viajes Con Sabor", to strengthen the country's tourism offer.

Give us a preview, what relevant projects will be presented in the coming months?

Together with Proinversión, we are making progress on an emblematic project for the sector, the Cerro San Cristóbal cable car. It has been incorporated into the private investment process, under the Self-Financed Private Initiative modality. In the coming months, we will finalise the necessary institutional arrangements to arrive at a preliminary version of the concession contract.

As an additional effort to increase public investment spending, we are in the process of structuring with the Ministry of Economy and Finance, two public debt operations with the World Bank and the KFW, to intervene in major tourist destinations and 42 Natural Protected Areas throughout the country.

To encourage private investment in our country, we will be presenting to the Congress of the Republic, a draft of a new General Law of Tourism, as well as the extension of the validity of Law N°29963, Law of customs facilitation and entry of participants for the realization of international events declared of national interest, as well as the amendment of Legislative Decree N°1963 that creates the Regime of Early Recovery of the IGV for investments from 2.5 million dollars.

Finally, why come to Peru?

Peru is a magical country, cradle of civilisation and ancestral cultures. It offers for all its visitors, breathtaking places of enormous biodiversity and history, as well as the highest gastronomy, recognised worldwide. It is a completely biosecure destination, which has been able to adapt to the demands of the new tourist and awaits him with open arms, to live unique experiences, with quality services of international standard.

Mr. Roberto Sánchez Palomino, Minister of Foreign Trade and Tourism of Peru, it has been an honour to share with you this time to learn more about the reality of Peruvian tourism.