Op-Ed: For Tourism to Flourish in Colombia, Hospitality Investors Need Government Collaboration, Brad Hinkelman

It has been my vision for more than 15 years that tourism in Colombia represents an economic and social opportunity of a lifetime. In 2008 my first entry to Colombia was registered among only 500,000 foreigners that year. For 2024 it appears certain Colombia will see more than 5,000,000 foreigners enter and exit the country, an astounding 1000% increase in tourism in only 15 years.

Today there are approximately 12,000 hotels and 120,000 Airbnb hosts in Colombia according to Cotelco and Asohost respectively. In December 2023 alone, Airbnb alone recorded more than $87M USD in payouts in a single month to property owners across the country. In 2024 it is likely that Airbnb will pay out nearly $1billion to their Colombian hosts (AirDNA). President Gustavo Petro called tourism “one of the largest drivers of economic well being”, ex-President Ivan Duque called tourism “Colombia’s new petroleum”. Indeed the country has come a long way since 2008.

My own humble beginnings started with a single Airbnb listing in 2010 when Airbnb first opened the market in Medellin. I was literally a pioneer. One listing became 2, then 3, and today more than 500, making my company Casacol the largest Airbnb operator in Medellin. Adding this to our 350 room hotel operations makes us the largest tourism operator in Medellin. More than 250 foreign investors have followed me and the international promotional activities of Procolombia, ACI Medellin and the Ministry of Commerce to help me build and acquire more than $100M USD in Medellin real estate. We sell almost 20,000 rooms per month only in the city of Medellin and support almost 300 direct full time jobs, and hundreds more indirectly. The growth of my company has been nothing but meteoric in line with the growth of tourism in Medellin and Colombia.

Minister German Umaña and Procolombia President Carmen Caballero recently presented a showcase for foreign investment in Colombian tourism infrastructure at the prestigious Raffles Hotel in London which charges guests $1,000 a night. The topic was sustainable tourism and this is the question that I think all foreign investors and local participants have in mind; is tourism quantity and quality in Colombia sustainable? Recently I have had my doubts.

We are ready to work collaboratively with policy makers for a brighter, more sustainable future for all 50 million Colombians with responsible and sustainable tourism as our core values.

In the last 5 years and especially exiting the COVID period, I have been a front row witness to a precipitous decline in tourism quality in Medellin. Our colleagues in Cartagena have reported similar concerns. Social media overflows with content that promotes what can be called international dating at best and just plain sex tourism more appropriately. Not to mention foreigners who wish to obtain cheap cocaine or experiment with locally manufactured synthetic substances can freely indulge with impunity. Colombia has recently been more and more a meeting place for the supply and demand for low quality tourism and their counterparties. 

On March 28, 2024, we too became victims when an Aribnb tourist was reported to police with 2 underage victims of presumed sexual abuse. Our property was smeared with the association to the accused despite our strict policies and best efforts being thwarted by the individual. To add insult to injury, politicians suggested that property could now be subject to asset forfeiture, a risk that every investor in Colombian hospitality small and large now has to evaluate.

Colombia is indeed at an inflection point with respect to its reputation in the world. Medellin has recently invoked a brand for the city “aqui todo florece,” and Colombia “the country of beauty.” But responsible tourism in Colombia can start with policy makers inside Colombia collaborating with governments around the world. There are more than 850,000 registered sex offenders in the United States visible in public databases. The Angel Watch Center from the Department of Homeland Security is designed to alert foreign law enforcement about Americans convicted with sex crimes that might be traveling to their countries. Colombia doesn’t yet participate in the program. Countries like Canada work with the US on reciprocal programs like NCIC/CPIC to ensure that any criminal record (of any kind) registered on a citizen of one country means automatic denied entry into the other country. Australia and the UK have similar programs. Colombia would be wise to explore cooperation with those governments to ensure those of us in the private sector never have to deal with criminal tourists in the first place.

But this is not to mention the true victims in this story. How can we overlook the deep social problems that allow for human trafficking in the first place? Where are the parents, where are the grandparents and who are they? What kind of conditions did these children grow up in? What kind of education did they have, if any at all? Were they caught in the vicious cycle of Colombian poverty that the OECD reports takes 11 generations for a Colombian child born today to escape? This is where Colombian policy makers have some deep soul searching to do.

But tourism can be part of the solution. Tourism is a labor intensive industry that benefits every single socioeconomic strata. The workers needed to pour the cement, lay the bricks, the engineers and architects who design the hotels and restaurants where they eat and drink. Every taxi and Uber driver which shuttles the tourists to and from museums, parks, beaches, attractions. The cooks, waiters, baristas. To the maids, receptionists, security guards who keep them safe while they sleep. And the entrepreneurs large and small, local and foreign who risk their capital to develop the infrastructure to bring them to Colombia in the first place. If tourism in Colombia (2% of GDP) rises to meet only the level of Spain (12%) there would be millions of Colombians lifted from poverty into stable, decent jobs in the formal economy.

Brad Hinkelman

I think I speak on behalf of every foreign investor, every hotel owner in Colombia, every Airbnb host when I say we are ready. We are ready to work collaboratively with policy makers for a brighter, more sustainable future for all 50 million Colombians with responsible and sustainable tourism as our core values. But please don’t threaten our capital, our private property. Please don’t break the social contract between the private and public sector based on the criminal action and intent of a few. Colombia can define its place and image in the World, and transform its society with a robust tourism industry. But only through a national tourism policy that protects its citizens, investors, and tourists alike.

Brad Hinkelman is the founder and CEO of Casacol.