Peru announces 121 million euro package to revive tourism

23-02-23

The Peruvian government has presented a package of 500 million soles (121.8 million euros) with the aim of reactivating the tourism sector in Peru, which is one of the sectors that has suffered the most from the negative effects of the social mobilisations of recent months.

This plan, announced jointly by the Ministry of Economy and Finance and the Ministry of Foreign Trade and Tourism, is part of the 'Con Punche Peru' programme, which seeks the economic recovery of the country around three axes, namely the reactivation of the sector, the region and household incomes.

The conflict that erupted in December against the government of Dina Boluarte continues to hinder the development of activity in Peru, mainly in sectors such as tourism, which has suffered "a great impact", in the words of the Minister of Economy and Finance, Alex Contreras.

Currently, according to figures from his ministry, tourism represents 2.2% of GDP, employs one million people and generates income of 2,855 million dollars (2,672 million euros). Before the pandemic, its share of GDP was more than half, while jobs amounted to 1.5 million and income to 5 billion dollars (4.679 billion euros).

According to the government, to the initial 500 million soles must be added a credit boost of another 500 million soles and tax benefits, bringing the final figure to 2 billion soles (486.8 million euros). "This is the biggest plan in Peru's history to support tourism," said the economy minister.

Among the items planned, 121.3 million soles (29.5 million euros) will be allocated to improving infrastructure, mainly airports, while another 145.5 million soles (35.4 million euros) will be aimed at making the tourist experience more positive, with a focus on the country's cleanliness and safety.

"The tourist has to feel calm and safe. In most of the regions, conflict is decreasing and there is room to promote these measures," said the Minister of Foreign Trade, Luis Fernando Helguero.

With these measures, the Peruvian government hopes that the first results will begin to be seen at the end of the first quarter of the year, with the Andean country's economy growing by 3.5% by the end of 2022.

In this sense, the government's economic head reminded the audience that the reactivation plans are short term, but also medium term. "With this tourism package we are seeking to improve the industry and security in the sector, with the ultimate aim of strengthening tourism," he added.