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Peru: Boosting community-based rural tourism can spur GDP growth to 5%

15:13 | Lima, Jun. 20.

Peruvian economy will grow 5% if community-based rural tourism is enhanced, International Management School—IGS Global Business Manager Alfredo Reyes estimated.

Reyes believes that community-based rural tourism might be invigorated, and the economy can experience strong growth if construction, investment, and tourism sectors work together.

"A specific case concerns Laraos and Huancayo, whose landscapes are great to spend time with the family," he told Canal N local channel.

"The best native potato in the country is cultivated up in Laraos. However, we have a poor quality road, the access is not good, and there are long delays and abyssal paths along the way," he added.

IGS Global's manager said that 44.41% of the country's GDP concentrates in the capital city, Lima, while the opposite occurs in rainforest Madre de Dios region, which contributes 0.49% of it, according to the National Institute of Statistics and Informatics (INEI).

"Madre de Dios has a great mining and agricultural potential but —due to the lack of connectivity, investment, and State presence— has a lot of problems such as tax evasion, trafficking in women and children, among others," Reyes emphasized.

Peru's economy expanded 3.2% in the first quarter of 2018, mainly underpinned by the positive evolution of domestic demand.

According to INEI, said growth was fueled by increases in consumption and investment.

Reyes thinks that if the region can provide a huge source of wealth, part of the country's investment should go there.

(END) ECS/JJN/RMB/MVB

Published: 6/20/2018

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Peru: Boosting community-based rural tourism can spur GDP growth to 5%

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