Natalia Bayona, 
 Executive Director, UN Tourism

UN Tourism has signed a cooperation agreement with the CAF - Development Bank of Latin America and the Caribbean with the main objective of promoting investments in the Americas through technical cooperation and capacity building for the development of the Tourism Sector, as well as redesigning an investment framework where education, innovation, and sustainability are the fundamental pillars. 

The investment guide "Tourism Doing Business, Investing in Ecuador” is the first result of this collaboration, constituting a tourism investment tool developed for the Republic of Ecuador which aims to present the favorable conditions of the country to attract foreign direct investment (FDI) in the tourism sector, considering its unique value proposition.  

Economic Outlook

Ecuador has a strategic geographical position, advanced infrastructure, outstanding natural diversity, and a dynamic and growing population. 

Likewise, it is worth highlighting the solidity of the Ecuadorian economy and its growing diversification, as well as the significant progress in reducing poverty and inequality. In the tourism context, progress was observed in the post-pandemic recovery, with a 70% increase in international tourism receipts in 2022 compared to the previous year. Regarding the creation of new employment, it represented around 6.6% of the national total in 2022. 

FDI Performance

The publication addresses the investment landscape in Ecuador, highlighting a 22% increase in the flow of foreign direct investment (FDI) in 2022 compared to the previous year, driven mainly by capital expansions and utility reinvestments. This reveals confidence in the country and its future prospects. 

Regarding investments in tourism, these are also growing. Between 2018 and 2022, the country was among the top ten countries in Latin America and the Caribbean in greenfield FDI announcements in tourism, and according to the Ministry of Tourism (MINTUR), investment contracts were signed for around USD 639.6 million in the case of tourist services. 

Value Proposition

The third chapter explains why Ecuador is an attractive option for tourism investment, including its macroeconomic stability, consolidated legal framework, the wide diversity of the tourist offer, and its clear focus on the development of the sector in accordance with environmental preservation. It also offers a summary of corporate taxes and specific benefits for tourism investments in the country. 

Green Investments Outlook

When it comes to green and sustainable investments in Ecuador, its strategies and commitments towards sustainability stand out, including the National Plan for Adaptation to Climate Change and the investment and climate adaptation programs implemented in the country. In addition to this, the report also analyses green finance in Latin America and the Caribbean, thematic bonds, and it describes sustainable financial mechanisms applied to tourism. 

The guide also details the world's largest debt-for-nature swap operation, carried out in Ecuador. 

Competitive Outlook

Finally, the fifth chapter examines Ecuador's positioning in the tourism sector at a regional and global level, and it details the elements that impact the competitiveness of the sector, such as international tourism receipts, companies providing services and their regional operations, and jobs associated to tourism, among others.