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  • Writer's pictureColombia Risk Analysis

Sector Risk Monthly: Tourism

2020 was projected to be the best year yet for Colombia’s tourism industry. However, the pandemic has altered the outlook completely for the tourism sector in less than three months, upending the projections made earlier this year. The national airline industry faces its worst crisis ever, the hospitality sector has announced record-low occupancy rates, and many municipalities that rely on tourism have seen a reduction in their income by almost 100%. There are three main challenges for the sector: low liquidity, low consumer confidence, and the process of reinvention that it will have to undergo to adapt to the new normal.

The outlook, nonetheless, is not entirely grim. The sector is making large efforts to innovate and reinvent its services, as well as its business model, to stay alive during the crisis. Municipalities are planning, with the support of the central government, for the future of tourism within the country and this coordination is something that has not been seen before in Colombia.


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