Colombia’s hotel industry entered 2026 with occupancy, real revenue, and formal employment all falling at once, a convergence that the country’s main lodging trade group says threatens the financial and labor sustainability of hotels nationwide. 

The Colombian Hotel and Tourism Association (Asociación Hotelera y Turística de Colombia, Cotelco) issued the alert based on the first-quarter results of the National Administrative Department of Statistics (Departamento Administrativo Nacional de Estadística, DANE) and its Encuesta Mensual de Alojamiento (Monthly Lodging Survey, EMA).

“The results of the Monthly Lodging Survey show that the sector is facing a moment of high pressure: we have lower real income, an occupancy rate that cannot recover the levels of previous years, and a reduction in formal employment,” said José Andrés Duarte, president of Cotelco. “The hotel industry remains an engine of economic and regional development, but it needs conditions that allow companies to sustain their operations and keep generating jobs.”

Occupancy at its lowest in five years

The national occupancy rate stood at 48.4% between January and April 2026, the lowest reading for that period in five years. The figure confirms a downward trend: the indicator reached 52.6% in 2022, 52.1% in 2023, 49.5% in 2024, and 49.3% in 2025. The gap against 2022 amounts to 4.2 percentage points; against 2023, the drop was 3.6 points, while the declines relative to 2024 and 2025 moderated to 1.0 and 0.9 points, respectively. Cotelco sees the recent readings as an apparent stabilization around 49%, though still below the levels recorded during the post-pandemic recovery.

Revenue has not recovered since 2024

Even with this stabilization, however, real revenue in the lodging subsector fell 5.1% between January and April 2026 against the same period of 2025. Comparing January-April 2024 with the same months of 2026, the sector has accumulated a real reduction of 6.9% in billings, a sign that hotels have not fully rebuilt their income levels. For the single month of April 2026, real hotel revenue fell 5.7% year-on-year, according to the EMA.

The contraction was far from uniform across the twelve regions the survey tracks. Antioquia posted the deepest fall, with real revenue down 14.8%, followed by the Central region at -12% and Cartagena at -8.9%. At the other end, only the Pacific region and the Santanderes grew, rising 3.3% and 3.4%, respectively.

While wages have gone up in the hotel sector, headcounts of employed people in the sector have gone down. Photo by Rodrigo Salomón Cañas from Pixabay.

Formal employment keeps shrinking

Because of falling revenue, the personnel employed in the subsector fell 4.1% between January and April 2026 against the same period of 2025, a decline Cotelco attributes to staffing adjustments amid weaker tourism activity. Since 2024, formal employment in the subsector has accumulated a contraction of 5.1%. In April alone, national hotel headcount fell 5.4% year-on-year, with the sharpest cuts in San Andrés and Providencia (12.1%), the Pacific region (6.5%), and Antioquia (6.2%).

The employment cuts coincided with sharp wage increases. Hotel salaries rose 10.9% in April year-on-year, and real wages in the sector accumulated growth of 10.3% between January and April, even as revenue fell and staffing shrank. 

The increases were driven largely by the 23% rise in Colombia’s minimum wage that took effect at the start of the year, with the steepest gains in the Amazon region (21.9%), the Coffee Axis (13.7%), the Pacific (13.3%), and the Caribbean Coast (13.0%). The combination of softer demand and rising operating and labor costs, Cotelco warns, is squeezing the finances of establishments that must sustain daily operations with fewer resources.

Occupancy leaders and the Bogotá exception

San Andrés and Providencia recorded the country’s highest occupancy in April, at 62.6%, up from 58.5% a year earlier. Cartagena remained the second-highest at 59.8%, slightly below the 60% of the prior year. Bogotá registered 55.0% occupancy, with a distinct profile: unlike most regions, where leisure is the main reason for travel, business trips contributed 30.1 percentage points to the capital’s total. Nationally, leisure remained the predominant motive, contributing 25.6 points to the 46.3% total occupancy recorded in April, down from 46.7% in the same month of 2025. Room rates rose only modestly on an annual basis, with single accommodation up 1.8% and double up 2.6%, though both fell month-on-month against March.

“The sector is facing a moment of high pressure: we have lower real income, an occupancy rate that cannot recover the levels of previous years, and a reduction in formal employment.” — Jose Andres Duarte, president of Cotelco

Travel agencies diverge from hotels

While hotels contracted, travel agencies showed relative resilience. The DANE Encuesta Mensual de Agencias de Viaje (Monthly Travel Agency Survey, EMAV) reported that agencies’ nominal revenue grew 2.1% in April, even as their headcount fell 2.8% — the lowest reading since the series began — and average nominal wages rose 11.4%. 

Commissions drove the positive result, contributing 1.7 points to the 2.1% total, while the online sales channel edged up to 37.1% of bookings from 36.3%, and the traditional channel slipped to 62.9% from 63.7%. Because hotel figures are stated in real terms and agency figures in nominal terms, the two are not directly comparable, but the divergence points to a shift in how tourism spending is distributed along the value chain.

Cotelco’s requests to the government

The trade group is calling for technical roundtables with the national government to stimulate tourism demand, strengthen formality, and improve operating conditions. Cotelco has also reiterated the urgency of updating the national tourism registry and tightening control over informal supply, which it says undermines the sustainability of destinations, formal employment, and the safety of residents and visitors. The market closed in 2025 with roughly 12,957 hotels and 297,487 rooms.

The current weakness marks a reversal from the sector’s recent peaks. Finance Colombia has previously reported that Colombia hit record-high hotel occupancy and that March occupancy once reached its best level in 11 years, even as domestic tourism approached pre-pandemic levels. The latest DANE readings suggest that rising visitor numbers are no longer translating into stronger results for the formal lodging sector.

According to a first-quarter report released by DANE, hotel occupancy has fallen as tourism revenue slows its growth. Photo by Manuela Jaeger from Pixabay.

Mayor Federico Gutiérrez Zuluaga announced plans for the festival, including 21 musical stages distributed across the city’s 16 communes and five corregimientos, all offering free admission. The Alcaldía de Medellín (Mayor’s Office of Medellín) has allocated $336 million COP (approximately $81,000 USD) for the renewal of attire for 535 silleteros and silleteras—flower farmers who carry elaborate floral arrangements. This update marks the first such renewal since 2017. The new attire includes trousers and shirts for men, and skirts and blouses for women, along with traditional accessories such as cotizas (sandals), paruma (wrap-around skirt), aprons, hats, and scarves.

Mayor Gutiérrez stated that the Feria de las Flores remains a public event, with over 110 activities organized by the Mayor’s Office. He emphasized the role of the silleteros as central to the festival, representing the region’s values and customs. Both adult and child silleteros are expected to debut new uniforms.

Above photo of Medellín’s “Feria de las Flores” (Flower Festival) courtesy of Medellín Convention & Visitors Bureau.

Under the theme “Medellín Te quiere celebrando lo que somos” (Medellín Loves You, Celebrating Who We Are), the program includes five parades. These are the second edition of Avenida Primavera, the Classic and Antique Cars Parade, the Chivas and Flowers Parade, and the Heroes of the Homeland Parade.

The 68th edition of the Iconic Silleteros Parade will feature 535 silleteros and silleteras, including five children with neurodiversity. Martín Atehortúa, a silletero from Santa Elena and president of the Corporación de Silleteros de Santa Elena (Cosse), acknowledged the inclusion efforts, noting it as an advance for equality. The parade is scheduled for Sunday, August 10. On this day, which marks the close of the Feria de las Flores, each silletero will wear a black ribbon in honor of victims of winter weather in the metropolitan area and nationwide.

The District Administration will provide 44 grandstands with a total capacity of 22,000 people per parade, each accommodating 500 attendees. Over 50% of these spaces will be open to the public without charge to ensure broader access. A specialized module with a capacity for 50 individuals with reduced mobility will also be available. The remaining grandstand spaces will be managed by the Greater Medellín Convention & Visitors Bureau for commercialization among festival sponsors and tourism operators.

Throughout the 10-day festival, musical stages will return with artistic programming in each of the 16 communes and five corregimientos, aiming to decentralize the event’s reach. Attendance at these stages is projected to range from 10,000 to 40,000 attendees per stage.

The inaugural concert is scheduled for Friday, August 1, in the Obelisco sector, featuring artists such as Jorge Celedón, Fernando González, and Jessi Uribe. Additionally, the Parque Cultural Nocturno (Night Cultural Park) will take place at Plaza Gardel, offering high-level performances. The program includes Colombian, Afro, and bolero music, along with a tribute to the 50th anniversary of El Combo de las Estrellas.

The 19th edition of the National Trova Festival Ciudad de Medellín will hold its semifinal rounds on August 1 and 2 at the Parque de los Deseos. The grand final for the Rey or Reina de la Trova (King or Queen of Trova) will be on Friday, August 8, at Plaza Gardel.

Other scheduled activities include the Silleteritos Parade and Sancochos Festival in Santa Elena, the La Floresta Silleteritos Parade, the Feria al Ritmo de Bici (Fair to the Rhythm of Bike) Parade, the Canine and Pet Walk, Plazas de las Flores (Flower Plazas), Fondas de Mi Tierra (My Land’s Inns) at Aeroparque Juan Pablo II, and “Florecer: orquídeas, naturaleza y tradiciones” (To Blossom: Orchids, Nature, and Traditions) at the Jardín Botánico de Medellín.

Mauricio Londoño, president of the Corporación de Silleteros de Santa Elena (Cosse), noted that grandstand ticket sales for 2025 will include the experience of visiting a silletera farm, aiming to increase visibility for these farms and allow visitors to experience them firsthand.

Migración Colombia projects that between 55,000 and 60,000 international passengers will arrive during the Feria de las Flores 2025, with at least 55% being foreign visitors and non-resident Colombians. Terminales Medellín estimates that land transport passenger arrivals will range between 250,000 and 260,000 people. Cotelco, the Colombian Hotel and Tourism Association, forecasts hotel occupancy rates between 77.0% and 81.0%, indicating an upward trend.

Medellín’s Féria de las Flores. Photo credit: Loren Moss

Mayor Federico Gutiérrez Zuluaga reaffirms his commitment to the silleteros and silleteras. In this way, 535 of them will update their wardrobe, marking a significant change not seen since 2017. This year, the updated attire includes pants and shirts for men, skirts and blouses for women, as well as traditional accessories such as the cotizas, the paruma, the apron, the hat, and the kerchief. The investment was $336 million USD.

Under the slogan “Medellín loves you, celebrating what we are,” the program invites attendees to enjoy five major parades. Among them are the 2nd edition of Avenida Primavera and the Classic and Antique Car Parades, the Chivas and Flores Parades, and the Heroes of the Nation Parade. For its part, the iconic Silleteros Parade celebrates its 68th edition this year and will feature 535 silleteros and silleteras marching, including five children with neurodiversity.

The event will take place on Sunday, August 10, the day that marks the end of the Flower Festival. Each participant will wear a black ribbon in honor of the victims of the winter storm in the metropolitan area and throughout the country. The district administration will set up 44 grandstands with a total capacity of 22,000 people per parade, each with a capacity for 500 attendees. More than 50% of these spaces will be open to the public, ensuring greater inclusion.

In addition, a special space with capacity for 50 people with reduced mobility will once again be available. The remaining grandstands will be marketed by the bureau to flower fair sponsors and tour operators. During the 10 days, musical stages will return with artistic programming in each of the 16 communes and five districts, a way to decentralize this event. These spaces are expected to have an approximate audience of between 10,000 and 40,000 attendees per stage. On the other hand, the inaugural concert will take place on Friday, August 1st, in the Obelisco area, with renowned artists who will be adding to the evening’s musical program, such as Jorge Celedón, Fernando González, and Jessi Uribe, among others.

Also, the Parque Cultural Nocturno (Night Cultural Park) in Plaza Gardel will feature a program of high-level performances. Each night will be filled with Colombian, Afro-Colombian, and bolero music, as well as a very special moment to pay tribute to the 50th anniversary of the Combo de las Estrellas. In addition, the Medellín National Trova Festival is now in its 19th year and will have its semifinals on August 1st and 2nd, in Parque de los Deseos.

The grand finale to select the King or Queen of Trova will be on Friday, August 8th, in Plaza Gardel. Other notable activities include: the Silleteritos Parade and Sancocho Festival in Santa Elena; the Silleteritos Parade in La Floresta; the Fair to the Rhythm of a Bike Parade; the Dog and Pet Walk; Flower Plazas; Fondas de Mi Tierra (My Land Feasts) at Juan Pablo II Airport; and Florecer: Orchids, Nature, and Traditions at the Botanical Garden; among other activities.

Finally, according to information from Colombian Immigration, between 55,000 and 60,000 international passengers are expected to arrive during the 2025 Flower Fair, of which at least 55% will be foreign visitors and non-resident Colombians.
Terminales Medellín estimates that land transportation passenger arrivals will range between 250,000 and 260,000. Furthermore, according to Cotelco, hotel occupancy could be between 77.0% and 81.0%, with an upward trend.

The schedule can be found at https://www.feriadelasfloresmedellin.gov.co/ or on the @cultura.med social media channels.

Mayor Federico Gutiérrez Zuluaga reaffirms his commitment to the silleteros and silleteras. In this way, 535 of them will update their wardrobe, marking a significant change not seen since 2017. This year, the updated attire includes pants and shirts for men, skirts, and blouses for women, as well as traditional accessories such as the cotizas, the paruma, the apron, the hat, and the kerchief. The investment was $336 million USD.

“Always remember that the Flower Fair is 100% public. The mayor’s activities are 100% public. There are more than 110 activities, and we will have the opportunity to be together again as a city. We will have our silleteros, who are the heart of this festival, who represent us, who represent those values, those customs. All our silleteros and the silleteros will wear new uniforms, all of them will wear new ones,” said Mayor Federico Gutiérrez Zuluaga.

Under the slogan “Medellín loves you, celebrating what we are,” the program invites attendees to enjoy five major parades. Among them are the 2nd edition of Avenida Primavera and the Classic and Antique Car Parades, the Chivas and Flores Parades, and the Heroes of the Nation Parade. For its part, the iconic Silleteros Parade celebrates its 68th edition this year and will feature 535 silleteros and silleteras marching, including five children with neurodiversity.

“Every year, we are adding more people with this theme of equality, with these themes of resilience and hope. We have children with this condition in the event, and five of them will be in the parade. This is a great step forward for equality and inclusion,” said Martín Atehortúa, a silletero from Santa Elena, who thanked the district for its willingness to ensure the well-being of the parade participants.

Medellín’s “Feria de las Flores” (Flower Festival) courtesy of Medellín Convention & Visitors Bureau.

The event will take place on Sunday, August 10, the day that marks the end of the Flower Festival. Each participant will wear a black ribbon in honor of the victims of the winter storm in the metropolitan area and throughout the country. The district administration will set up 44 grandstands with a total capacity of 22,000 people per parade, each with a capacity for 500 attendees. More than 50% of these spaces will be open to the public, ensuring greater inclusion.

In addition, a special space with a capacity for 50 people with reduced mobility will once again be available. The remaining grandstands will be marketed by the bureau to flower fair sponsors and tour operators. During the 10 days, musical stages will return with artistic programming in each of the 16 communes and five districts, a way to decentralize this event. These spaces are expected to have an approximate audience of between 10,000 and 40,000 attendees per stage. On the other hand, the inaugural concert will take place on Friday, August 1st, in the Obelisco area, with renowned artists who will be adding to the evening’s musical program, such as Jorge Celedón, Fernando González, and Jessi Uribe, among others.

Also, the Parque Cultural Nocturno (Night Cultural Park) in Plaza Gardel will feature a program of high-level performances. Each night will be filled with Colombian, Afro-Colombian, and bolero music, as well as a very special moment to pay tribute to the 50th anniversary of the Combo de las Estrellas. In addition, the Medellín National Trova Festival is now in its 19th year and will have its semifinals on August 1st and 2nd, in Parque de los Deseos.

The grand finale to select the King or Queen of Trova will be on Friday, August 8th, in Plaza Gardel. Other notable activities include: the Silleteritos Parade and Sancocho Festival in Santa Elena; the Silleteritos Parade in La Floresta; the Fair to the Rhythm of a Bike Parade; the Dog and Pet Walk; Flower Plazas; Fondas de Mi Tierra (My Land Feasts) at Juan Pablo II Airport; and Florecer: Orchids, Nature, and Traditions at the Botanical Garden; among other activities.

“We’re not just at the fair, we’re here all year round. In 2025, the sold-out stands will have the experience of visiting a silletero farm, to raise their profile and allow visitors to learn about them. We’re on the right track, and the silleteros are happy to be able to parade this year,” added Mauricio Londoño, president of the Santa Elena Silleteros Corporation (Cosse).

Finally, according to information from Colombian Immigration, between 55,000 and 60,000 international passengers are expected to arrive during the 2025 Flower Fair, of which at least 55% will be foreign visitors and non-resident Colombians.
Terminales Medellín estimates that land transportation passenger arrivals will range between 250,000 and 260,000. Furthermore, according to Cotelco, hotel occupancy could be between 77.0% and 81.0%, with an upward trend.

Above photo:Medellín’s Féria de las Flores. Photo credit: Loren Moss

According to data from the National Association of Entrepreneurs of Colombia (ANDI), Colombia has become a significant player in the motorcycle sector. Motorcycles reportedly constitute 61.94% of the country’s total vehicle fleet. In 2024, 833,178 new motorcycle registrations were recorded in Colombia, positioning it as the tenth-largest market globally in terms of demand. Additionally, statistics show that just over 93% of the motorcycles registered in the country are assembled locally in one of the eight plants located across five departments.

The F2R aims to serve as a platform for showcasing industry innovations and trends, as well as a networking space for companies, professionals, and enthusiasts. The event includes business, academic, sporting, and cultural activities intended to foster strategic alliances and strengthen the sector in the region.

F2R is anticipated to generate economic benefits for Medellín, with an estimated economic impact of $29.6 million USD, according to figures from the Medellín Mayor’s Office. Hotel occupancy is projected to exceed 78%, as reported by Cotelco. The fair is also expected to create employment opportunities and stimulate various sectors, including commerce, tourism, entertainment, and gastronomy.

The Feria de las 2 Ruedas is collaborating with the Medellín Mobility Secretariat on the “Te Queremos Vivo” (We Want You Alive) campaign, an initiative focused on raising awareness among motorcyclists about accident prevention and adherence to traffic regulations. Additionally, sensitization activities will be conducted during the fair in conjunction with the Medellín Mobility Secretariat and the National Road Safety Agency (ANSV), reinforcing the event’s commitment to safer mobility.

Organizers have announced that the F2R 2025 will feature new experience spaces, business events, and academic forums, with further details to be released in the coming weeks. The agenda is expected to include participation from key brands in the mobility sector.

Event Details:

Date: May 15 to 18, 2025 Location: Plaza Mayor, Medellín

Schedule:

Thursday, May 15: 12:00 pm. – 08:00 pm. Friday, May 16: 10:00 am. – 08:00 pm. Saturday, May 17: 10:00 am. – 08:00 pm. Sunday, May 18: 10:00 am. – 07:00 pm.

Photo credit: Loren Moss

But beneath it all there was hard work being done and whilst all the pavilions were bustling, one bustled more than rest. Latin America is quite clearly in play and the multitude of countries represented weren’t going to miss a trick.

Colombia 🇨🇴 is a absolutely central to that demand for the region and it is important that it acts as a collective to harness that goodwill towards the country. My personal thanks to all who took time to sit down with me and also for the beautiful messages of support. If seaplanes were majestic in 1920, just wait and see what they can do now.

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.

COTELCO executive director Angela Patricia Lastra (Photo: COTELCO)

“From the hotel and tourism association of Colombia, COTELCO, we celebrate the RNT requirement and obligation for lodging service providers. It is a point that we have been requesting for some time and we consider that it is a stimulus for formalization, which in turn will generate greater competitiveness in the sector,” said the trade association’s executive director Angela Patricia Lastra.

Registering with Colombia’s RNT is free, but is done through local Chambers of Commerce, which may mean additional registrations and business licenses would be required. Registering with the Chamber of Commerce requires business or individual contractor tax registration with the DIAN, Colombia’s tax authority. In Colombia, Chambers of Commerce are not trade groups, but government-affiliated institutions responsible for business registration.

New tax on digital platforms

The digital platforms such as AirBnB & Booking.com operating in Colombia are also subject to a new excise tax of 2.5 pesos per 1,000 pesos of revenue. The ministry says that the funds raised will be earmarked for the Fontur Tourism development fund, and that the platforms will benefit from the increased investment in tourism development.

The ministry says that an international dollar-denominated account will be created in Fontur’s name, and taxed entities must deposit the tax in dollars, converted to Colombian pesos with the TRM (official exchange rate) at the time of payment of the tax.

“This contribution allows us to strengthen the promotion, competitiveness and tourism infrastructure,” said the Fontur President, Irvin Pérez, who pointed out that the expectation of parafiscal collection for this year is $64 billion Colombian pesos, or approximately $16 million USD.

Image by InstagramFOTOGRAFIN from Pixabay 

“For 2022 we expect a complete recovery in this indicator, and we estimate a GDP of accommodation and food services around $ 37.5 billion, which would represent an increase between 8% and 14% when compared to the same values of the year 2019,” said Minister of Commerce, Industry and Tourism, María Ximena Lombana (above, center), citing the projections of the Directorate of Sector Analysis and Promotion of the Vice Ministry of Tourism.

With regards to international tourism, the country expects to end 2021 with 1,982,000 foreign tourists, between 39-47% of the 2019 visitor total, though during 2022, the country projects 3 million arrivals.

Referring to the results obtained so far by the sector, Lombana stressed that the GDP of lodging and dining services reached 22.86 billion Colombian pesos between January and September. The third quarter saw a GDP of $9.1 trillion, the best quarter in revenue since 2005 when the measurement began.

Hotel occupancy in October reached 51.6%, compared to the 2019 level of 49.6%. “We estimate that at the end of 2021 the economic activity of accommodation and food services will be around $32.9 trillion (pesos), that is, above the end of the year level for 2019,” said Minister Lombana.

The president of Cotelco, the lodging industry trade association, José Andrés Duarte, said that the sector expects “a year-end with an average of 56% national hotel occupancy for the month of December. This is slightly higher than December 2019. We are optimistic that the reactivation is evolving in a positive way, although somewhat slow in certain regions where tourism of meetings, congresses and conventions has not taken off.”

Colombia has already exceeded 70% of the population vaccinated against the coronavirus with at least one dose, which places it among the countries with the highest immunization in the world. As of December 10, 60,385,993 vaccines had been applied in the country, of which 32,139,067 correspond to first doses.

The minister invited Colombians and their families to complete their vaccination regimes in order to enjoy the attractions offered by cities and municipalities. “Let’s travel through Colombia maintaining the corresponding biosecurity measures,” Lombana said.