Analysis of a country from an hospitality point of view : Colombia, Bogota Introduction:
According to a study made by Jones Lang LaSalle Hotels, four of the top spots in South America for investors are Bogotá, Colombia; Buenos Aires, Argentina; Lima, Peru; and Santiago, Chile. According to that fact, I will try to explain in what reasons Bogota could be better and a more attractive place for investors in the hotel industry then others. 1) Country overview
Colombia is among the largest economies in South America and has the continent’s second-largest population. Bogotá, the capital of Colombia, has over seven million residents and is Colombia’s principal commercial and financial centre. Almost one third of the country’s domestic companies are located in Bogotá. Bogotá is the main gateway to Colombia and the distribution hub for tourism within the country and as such is experiencing growing demand for hotels. 1.1) PESTLE highlights
* President Juan Manuel Santos has imparted political stability, but internal security remains a problem * Colombia signed free-trade agreements with the US and the European Union in 2011–12 and the relations with Venezuela are also improving.
* According to Transparency International, the country ranked 78th (out of 178 countries) in 2010 Corruption dropping since 2009. The country scored 3,5 on a scale of 10 (0 = corrupt).
* The country has strong macroeconomic policies, but the increasing current account deficit and external debt offer cause for concern (budget deficit = 3.6% of GDP in 2010) * Colombia escaped a contraction in 2009 as Domestic consumption raise, increasing private investment, high public expenditure, increased consumer confidence and strong exports supported economic growth of 4.9% in 2011. * A favorable foreign investment regime has made Colombia the second most sought after destination for FDI in South America after Brazil. FDI reached an estimated $8.3 billion in 2008. Due to private investment, the latest positive commodity market trends, and the improving external sector.
* Consumer inflation averaged 6.3% from 2000 to 2009
* Policy interest rate : Banco de la Republica (Central Bank) cut the reference interest rate to 5.00% in late 2012.
* The country has a demographic advantage as the number in people of working age. * Gini coefficient averaged 58.5 for 2010 (score of 100 is the extreme inequity).
* Growth in the ICT sector presents new opportunities, but low research and development expenditure is a major problem for technological advancement * According to the US Trade Representative’s Special 301 report for 2011, Colombia has been retained on the piracy Watch List. Internet and optical disc piracy remain a concern in the country.
* The country has undertaken judicial reforms, but legal processes remain heavy * Colombia was ranked as the 45th open economy in the world by the Heritage Foundation's and the Wall Street Journal’s 2011 Index of Economic Freedom. * The implementation of the victims’ law will be a major challenge, as to date more than 42 community leaders who were representing people displaced by the armed conflict since 2002 have been assassinated.
* In May 2011, Colombia denied environmental clearance for a mining project in the Santurban, the project violated national and international environmental laws and the Colombian constitution. * CO2 emissions increased from 57.8 million metric tons in 2000 to 68 million metric tons in 2010. According to MarketLine forecasts, CO2 emissions in the country are expected to surpass 70 million metric tons by 2012.
2) Colombia’s travel and tourism industry
2.1) Government’s effort to promote
Colombia’s government has worked to change the country’s image abroad through...