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Travel and Tourism in Peru to 2017

The lost Incan city of Machu Picchu near Cusco, Peru.
The lost Incan city of Machu Picchu near Cusco, Peru.

SYNOPSIS

The report provides detailed market analysis, information and insights, including:

  • Historic and forecast tourist volumes covering the entire Peruvian travel and tourism sector
  • Detailed analysis of tourist spending patterns in Peru
  • The total, direct and indirect tourism output generated by each category within the Peruvian travel and tourism sector
  • Employment and salary trends for various categories in the Peruvian travel and tourism sector, such as accommodation, sightseeing and entertainment, foodservice, transportation, retail, travel intermediaries and others
  • Detailed market classification across each category with analysis using similar metrics
  • Detailed analysis of the airline, hotel, car rental and travel intermediaries industries

SUMMARY

Tourism has a significant contribution to GDP as well as employment. According to the World Travel and Tourism Council, the tourism sector contributed 8.9% to the total gross domestic product (GDP) in 2012 and 7.4% to the total employment in Peru. The National Strategic Plan for Tourism (PENTUR 2008?2018) was prepared by the Ministry of Commerce and Tourism and details the guidelines for developing tourism. The main areas of the plan include the development of tourist destinations, business development, communication, promotion, marketing and institutional coordination and management.

SCOPE

This report provides an extensive analysis related to tourism demands and flows in Peru:

  • It details historical values for the Peruvian tourism sector for 2008?2012, along with forecast figures for 2013?2017
  • It provides comprehensive analysis of travel and tourism demand factors with values for both the 2008?2012 review period and the 2013?2017 forecast period
  • The report provides a detailed analysis and forecast of domestic, inbound and outbound tourist flows in Peru
  • It provides employment and salary trends for various categories of the travel and tourism sector
  • It provides comprehensive analysis of the trends in the airline, hotel, car rental and travel intermediaries industries with values for both the 2008?2012 review period and the 2013?2017 forecast period

KEY HIGHLIGHTS

  • In an effort to promote domestic tourism, the government has extended public holidays moving them closer to weekends. A four-day long weekend in April 2013 saw two million people travel within the country. This generated domestic tourism expenditure of PEN630 million (US$244 million), according to the National Chamber of Tourism. In January 2012, a campaign called ?FEBRERO VIAJERO? (Traveller February) was launched with the aim of promoting tourism over the festivals which fall in February including Cajamarca?s Carnival and Virgen de la Candelaria in Puno.
  • Inbound tourist volumes are largely dominated by neighboring countries such as Chile, Argentina, Brazil, Ecuador and Colombia which account for 46.6% of total inbound tourists to Peru due to proximity. Tourism products, currently mostly confined to Cusco and Machu Picchu, can be diversified to attract a larger base of tourists.
  • Neighboring Latin American countries, including Chile and Bolivia, are key outbound destinations. Over the forecast period, an upturn in departures to neighboring countries is expected with the FIFA World Cup 2014 and Olympic Games 2016 being held in Brazil.
  • LAN Peru holds the highest amount of passenger traffic in the country, both domestically and internationally. The airline held 61.5% of domestic operations and 33% of international operations. The closest competitor is TACA Peru which held a 13% of domestic operations and 11.5% of international operations.
  • With increasing tourist volumes and the growth in demand for hotels, many international hotel brands have expanded their operations in the country. In December 2012, Hilton opened the company?s first managed hotel in Peru, Hilton Lima Miraflores. In February 2013, Marriott International Inc. also announced its plan to open a new 150-room Courtyard by Marriott in Lima. In 2009 San Lorenzo Island Development: Hotel project was announced by Proinversion, construction on which is expected to start by 2014 and complete by 2017.
  • Cost pressures on car rental suppliers are likely to be felt due to a rise in fuel costs as crude oil prices rise. Rental rates are expected to rise only slightly or even remain flat in some markets as a result of aggressive competition between the major operators.
  • Aggressive promotion campaigns by PromPeru and travel agents are expected to increase tourist arrivals. In April 2013, officials organized a two day road show in Istanbul and Ankara to provide information about tourist destinations to the Turkish tour operators. A ?Door to Door? campaign was launched in several cities of Argentina and Uruguay at the same time.

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