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Expatriate businesses in Latin America have grown in recent years due to the attractiveness of the region: low cost of living, emerging economies, and opportunities in tourism and technology. Expatriates establish companies mainly in gastronomy, tourist accommodations, education, technology, and real estate consulting. The countries with the greatest presence of these businesses are Mexico, Colombia, Costa Rica, Panama, and Ecuador. The success of these ventures varies depending on the adaptation to the local market, but many thrive in tourist areas or with international communities.

Types of businesses:

1. Gastronomy: Restaurants that fuse local cuisine with international flavors.

2. Tourist accommodations: Boutique hotels, hostels, and eco-lodges.

3. Technology and startups: In emerging cities such as Medellin or Mexico City.

4. Language schools: In countries with a growing demand for English.

5. Real estate consulting: Assistance to other expatriates in the purchase of properties.

Examples of outstanding small businesses:

1. La Cueva del Chango (Playa del Carmen, Mexico):
Founded by European expats (Spain and France), this restaurant has been operating successfully for over 15 years. It specializes in organic Mexican cuisine, attracting tourists and locals for its unique atmosphere and commitment to fresh ingredients.

2. Pergamino Café (Medellin, Colombia):
Owned by a family of American expats, it has been operating for over 7 years. They offer high-quality coffee from Colombia's coffee-growing regions in a modern and cozy environment, being a reference for coffee lovers.

3. Danta Corcovado Lodge (Osa, Costa Rica):
Founded by expats from Germany and the Netherlands, this eco-lodge has been operating for over 10 years, offering eco-tourism in one of the most biodiverse regions in the world. Its success is due to sustainable tourism and the preservation of nature.

4. Selina Hostels (Panama City, Panama):
Created by Israeli and American expats, Selina is a chain of hostels that was founded about 10 years ago. Today it is a recognized brand in Latin America for its accommodations that combine hospitality with workspaces for digital nomads.

5. Café Mosaico (Quito, Ecuador):
Managed by American expats, it has been operating for more than 8 years. This café combines international and Ecuadorian cuisine, being famous for its location with panoramic views of Quito, attracting both locals and tourists.

Foreign Direct Investment in Latin America and the Caribbean Rose by 55.2% in 2022, Reaching a Historic High

In a new report, ECLAC calls on countries to improve their policy design to take advantage of the contribution that FDI can make to the energy transition and to the region’s sustainable productive development.

In 2022, Latin America and the Caribbean received $224.579 billion dollars in Foreign Direct Investment (FDI), a figure that is 55.2% above 2021 levels and marks the highest value on record, the Economic Commission for Latin America and the Caribbean (ECLAC) revealed today.
This result is mainly attributable to the increase in FDI in some countries, particularly in Brazil; to growth in all the components of FDI, especially earnings reinvestment; and to the increase in FDI in the services sector. This dynamic is consistent with the post-pandemic recovery and it is unclear whether it will stay at similar levels in 2023, according to the annual report Foreign Direct Investment in Latin America and the Caribbean 2023.
FDI inflows to Latin American and Caribbean countries had not topped $200 billion dollars since 2013. These flows also increased as a share of regional GDP in 2022, accounting for 4.0%, the document states.
“The challenge of attracting and retaining Foreign Direct Investment that contributes effectively to the region’s sustainable and inclusive productive development is more relevant than ever. There are new opportunities in an era of reconfiguration of global value chains and geographic relocation of production in the face of a changing globalization,” said ECLAC’s Executive Secretary, José Manuel Salazar-Xirinachs, who presented the study’s main conclusions during a press conference in Santiago, Chile.
The senior United Nations official emphasized that “the challenge is not only to attract and retain, but also to maximize FDI’s contribution to development, and to this end countries must focus on post-establishment productive development policies, which include the promotion of productive linkages, policies for adding value and moving up value chains, for human resources development, infrastructure and logistics, and building local capacities.”
The global FDI scenario in 2022 was heterogeneous, ECLAC indicates. While these flows grew in Latin America and the Caribbean and in other regions of the world, they decreased in the United States and in some European Union countries. Overall, global FDI inflows shrank by 12% versus 2021, totaling $1.29 trillion dollars.
According to the report, nearly all the countries of Latin America and the Caribbean received more Foreign Direct Investment in 2022. Leading the list were Brazil (which received 41% of the regional total and ranks as the No. 5 destination for global FDI), followed by Mexico (17%), Chile (9%), Colombia (8%), Argentina (7%) and Peru (5%).
Costa Rica was the main Foreign Direct Investment recipient in Central America. In Guatemala, these flows showed a significant decline due to an extraordinary value recorded in 2021, but they returned to their historical average.
There was also a positive change in FDI inflows to the Caribbean, fueled mainly by greater investment in the Dominican Republic, which was the second-largest recipient country after Guyana.
At a regional level, 54% of Foreign Direct Investment went into the services sector, although both the manufacturing and natural resources sectors also rebounded. Financial services; electricity, natural gas and water; information and communications; and transportation-related services had the largest share of investments in the services sector as a whole.
The United States (38% of the total) and the European Union (17%, excluding the Netherlands and Luxembourg) were the main investors in the region, while FDI coming from countries within the Latin America and Caribbean region experienced a significant increase, rising from 9% to 14% of the total.
In fact, the document Foreign Direct Investment in Latin America and the Caribbean 2023 points to a more than 80% increase in FDI from Latin America and the Caribbean to destinations both inside and outside the region. In 2022, the amount invested abroad by transnational Latin American companies, known as translatinas, reached a historic high: $74.677 billion dollars, which is the highest figure recorded since this series began to be compiled in the 1990s.
Furthermore, the amount of FDI project announcements in Latin America and the Caribbean grew by 93% in 2022, totaling nearly $100 billion dollars. For the first time since 2010, the hydrocarbons sector (coal, oil and gas) led the announcements, with 24% of the total, followed by the automotive sector (13%) and renewable energies (11%).
The study also includes two chapters that analyze FDI trends in non-renewable and renewable energies in the context of the energy transition and fulfillment of the Sustainable Development Goals (SDGs). In addition, they address the key role of governments in this area, identifying challenges and opportunities and making policy recommendations.
The energy transition is identified by ECLAC as one of the sectors driving economic growth that can become a major engine for the region’s productive transformation, which means that countries and their territories should prioritize it within their productive development policies and agendas.
The percentage of installed capacity of renewable energy in Latin America and the Caribbean is higher than the global average, and the electrical power generation matrix is among the cleanest in the world. Therefore, if the region were to increase its supply of renewable energy, it could become a place of origin for the production of goods that are being produced today in countries with comparatively less clean matrixes. FDI can play a critical role in accelerating the energy transition, facilitating technology transfer and enabling emerging technologies.
Governments must lead the coordination of strategies for the energy transition’s success in the region, the Commission underscores. “They are responsible for making sure that non-renewable energy activities are reduced radically, as required by the climate commitments, while managing to mitigate their negative effects and their economic and social costs, especially in terms of investments, employment and income. One of their central functions is to develop long-term policies that promote investments in renewable energy sources, so that the transition is rapid and secure, and does not leave the region lagging behind in a context in which energy from clean sources is a factor of competition,” the study states.
Nonetheless, ECLAC also warns that in this process, consideration must be given to the importance that the non-renewable energy sector still has for some countries in the region, especially in terms of generating revenue to address social demands, those related to productive development and to energy security.
Beyond the challenges of the energy transition, the report insists that Latin American and Caribbean countries must improve the design of policies to attract investment and strengthen their institutional capacities in this area. It is essential that progress be made on articulating efforts to attract FDI with countries’ and territories’ productive development strategies, and that FDI begin to be used with greater directionality as a strategic tool for furthering sustainable productive development processes.

Top 10 Challenges
when Doing Business in Brazil
Brazil's thriving economy and dynamic market make it an attractive destination for investors and companies looking to expand their operations. However, dealing with the country's complex regulations and bureaucratic systems can be a daunting task for organizations venturing into the Brazilian market. Discover the top 10 challenges when doing business in Brazil in 2023.
BThe current economic scenario in Brazil:
As of 2023, Brazil's economy is undergoing a period of moderate growth after several years of economic instability. The country's GDP is expected to grow by 1.2% in 2023, according to the International Monetary Fund (IMF), driven by a combination of rising exports, increased domestic consumption, and investment in infrastructure projects.
One of the main factors driving Brazil's economic recovery is global demand for raw materials, particularly soybeans and iron ore, which are some of Brazil's largest exports.
Brazil is also investing heavily in infrastructure projects. This includes the construction of new highways, ports, and airports. These investments are expected to boost economic growth by increasing productivity, creating jobs, and improving transportation and logistics.
However, the jurisdiction still faces many economic challenges that could hamper its growth. One of the main concerns is the country's high public debt, which accounted for 73.4% of nominal GDP in December 2022. The government has implemented a number of austerity measures to reduce the deficit, but there are concerns that these measures could hurt economic growth in the short term.
Another challenge is the country's high unemployment rate, which stood at around 7.9% in December 2022. While the government's infrastructure investments are expected to create jobs, there are concerns that the overall pace of job creation will not be sufficient to meet the needs of the growing population.
Brazil's thriving economy and dynamic market make it an attractive destination for companies looking to expand their operations. However, despite its vast natural resources, diverse industries, and sizeable consumer base, the country remains plagued by numerous challenges that can make it difficult for organizations to operate efficiently and effectively. Dealing with the country’s complex regulations and bureaucratic systems can be a daunting task for even the most experienced business leaders. This is why Brazil tops TMF Group’s 2022 Global Corporate Complexity Index as the most complex jurisdiction to do business in.
This article will look at the top challenges and obstacles businesses must overcome to succeed in the Brazilian market.
1. Bureaucracy
Dealing with Brazilian bureaucracy can be a huge challenge, as the country features multiple levels of government, departments, and agencies, with rules and regulations that are constantly changing. This can lead to costly delays in business operations and increase the cost of doing business. To succeed in Brazil, businesses must remain vigilant and must be prepared to respond quickly to any changes.
2. Tax complexity
The Brazilian tax system is notoriously complex, with numerous taxes, rules and regulations that can be difficult to comply with. This complexity makes it difficult for companies to comply with the laws, leading to costly fines and penalties. In addition, there is a lack of clarity when filing taxes, making them difficult to understand and calculate. Companies must stay up to date with tax knowledge and be prepared to respond to changes in order to remain compliant.
3. The process of setting up a business is easier
Setting up a business in Brazil can be a difficult process due to the complexity of the legal system. Entrepreneurs must obtain the necessary permits and licenses, and the process is often long and costly. In addition, slow bureaucracy and difficulty in obtaining financing are major obstacles for many entrepreneurs. To make it easier to set up a business, the Brazilian government has been working in recent years to simplify the regulatory framework, offer incentives, promote healthy competition in the financing system, and develop an easy-to-use online system for entrepreneurs to register their businesses.
4. Corruption
Corruption is a major challenge to doing business in Brazil. Despite progress in recent years, the country is still perceived as a place with a high level of corruption. Companies must implement strong anti-corruption measures, actively promote transparency and ethical business practices, and remain vigilant against emerging corruption risks in order to mitigate them. 5. Local workforce
The workforce is a major challenge for companies in 2023. Economic and political instability and high levels of unemployment and underemployment have led to the emigration of many skilled workers, while globalization and the global shift to remote working has also allowed them to work remotely in companies in other jurisdictions. The lack of a skilled workforce and overly protective labor legislation put a strain on companies trying to operate in the country. Organizations must invest in training programs to improve the qualifications of their current employees, as well as to attract and retain qualified candidates from other regions. In addition, the education system must be improved to ensure a sufficient supply of qualifications. Likewise, staying up to date and complying with labor laws is essential to mitigate lengthy and costly labor lawsuits and sanctions.
6. Inflation
Inflation has been a problem in Brazil for many years, and the Central Bank has raised interest rates several times in 2021 and 2022 to combat it. This has led to a decline in private investment, further hampering economic growth. Companies must constantly adjust their prices to keep pace with inflation, which can erode profit margins and reduce competitiveness. In addition, high inflation makes it difficult for companies to plan long-term investments and expansions as the future economic environment is uncertain.
7. Technology
In 2023, technology remains a challenge for doing business in Brazil. Despite significant investments in the technology sector, the country still faces a shortage of infrastructure as well as barriers in the regulatory and legal framework. Companies should carefully assess Brazil's technology landscape to take advantage of growth opportunities.
8. Infrastructure
Brazil's infrastructure has been a major challenge for companies operating in the country for many years, and this is expected to continue in 2023 and beyond. Poor infrastructure, such as roads, railways, and airports, is a major obstacle to doing business in the country, limiting companies' ability to efficiently transport goods, services, and personnel. Companies may need to make large investments in their own infrastructure to ensure their operations are not hampered.
9. Import Barriers
Import barriers are a significant challenge for companies in Brazil in 2023. These barriers can include high taxes, complex regulations, and costly bureaucratic processes. High taxes can increase the cost of imported goods and services, making it difficult for organizations to access the resources they need from abroad and to remain competitive in the global marketplace.
10. Informality
Informality, which refers to economic activities that occur outside of formal regulations, is a significant challenge to doing business in Brazil in 2023. Informal businesses do not comply with regulations and taxes as formal businesses do, allowing them to operate at a lower cost and undercut their formal competitors. In addition, the use of informal labor can create legal and reputational risks for companies operating in Brazil. Companies should take steps to ensure that they and their suppliers operate within the formal economy, comply with regulations and tax laws, and promote ethical labor practices to mitigate these risks.
Conclusion
Doing business in Brazil can be a complex and difficult task, as companies must navigate numerous obstacles to succeed in this market. However, despite these challenges, the country remains an attractive market for companies due to its diverse industries, abundant natural resources, and sizable consumer base. While the challenges are significant, the opportunities for growth and expansion in the Brazilian market are also considerable. With proper planning and execution, companies can successfully overcome the challenges of doing business in Brazil and thrive in this dynamic and exciting market.


Empresas estadounidenses le apuestan al desarrollo productivo en Colombia a través de ciencia, tecnología e innovación
The Ministry of Science, Technology and Innovation (Minciencias) is working on strengthening strategies that link international allies with the country's productive processes.
This is why Minister Arturo Luna met with delegates from the United States Chamber of Commerce and representatives of 10 North American companies with a presence in Colombia.

The meeting focused on three thematic lines: digital transformation strategy, trade mission and intellectual property.
The first axis, aimed at MSMEs, seeks to support financial inclusion and training in digital skills, especially in rural areas. This purpose coincides with the Colombia-United States Business Council in identifying and supporting the development of capacities for electronic commerce by SMEs.
The digital transformation line takes into account the mission of the Government of Change to work with business units of the popular economy and promote their participation in the digital economy, as established by the National Development Plan Colombia, World Power of Life.
Likewise, through the Bilateral Policy Council, the aim is to contribute to the joint structuring of Colombia's roadmap as an investment destination for business innovation projects, technology-based companies, or investments that strengthen the articulation of the country's science, technology, and innovation networks.
Regarding the trade mission, the minister spoke with businessmen about the promotion of business opportunities between American and Colombian companies, such as fairs and events.
At this point, Minciencias manages support programs for companies seeking to establish themselves in Colombia or the United States. For example, training programs on legal, fiscal, and business issues for companies with a view to expanding internationally.
For Minister Luna, the trade mission opens the doors to presenting developments and technologies made in Colombia that are susceptible to investment from the private sector.
In the field of intellectual property, Minciencias learned about the implementation of this policy, good practices regarding the granting of licenses, collaboration between actors to solve specific needs and visibility of patented technologies by companies linked to the United States Chamber of Commerce.
Common issues César Vence, executive director of the United States Chamber of Commerce, said at the end of the meeting that the work of his entity has many coincidences with Colombia on issues such as food security, energy transition, connectivity, environmental protection, access to health and trade.
Vence stressed that the productive sector is the country's DNA, which is why it is key to promote entrepreneurship.
"Something that identifies Colombia is its entrepreneurial spirit. Under a regulatory framework, but also with incentives and support projects, the country's productivity can grow. It is also very important that, as the country thinks about new public policies, it takes into account that its productivity and competitiveness have to be at the center of these conversations; and also, as these policies are designed, take into account the voice of the private sector,” said the executive.
After 200 years of bilateral relations between Colombia and the United States, as well as 10 years of the Free Trade Agreement, the business representative indicated that there are many opportunities for collaboration in areas of innovation, purpose, research development and sustainability. .
Among the American organizations and companies that participated in the meeting are Abbott, Amazon, AmCham Colombia, Amgen, Cargill, Drummond Ltd., FedEx, GM, Gilead Sciences, Johnson & Johnson, Kimberly Clark, Merck & Co, MetLife, Millicom, Organon. , PepsiCo, Pfizer, Uber, UnitedHealth Group and Winston & Strawn LLP.
Opportunities and advantages of doing business in Mexico
Mexico has become one of the most competitive countries for investments internationally, thanks to factors such as the size and strength of its consumer market, predictable inflation patterns, and its strategic geographic location.

Some of the advantages of doing business in Mexico are tax incentives. These include deductions ranging from 56% to 89% on investments in fixed assets and additional deductions on labor training expenses in 10 key sectors. There are also tax exemption benefits associated with 11 economic activities carried out in the Isthmus of Tehuantepec region.

Thanks to its proximity to the US, its strong manufacturing capabilities, its skilled workforce, its profitability, the resilience of its supply chain, and its extensive trade agreements, Mexico now leads the way in new nearshoring investments, that is, the practice of establishing or relocating outsourced business operations close to national markets.
Despite the advantages it offers, there are some complexities when it comes to moving your outsourced operations to Mexico. To highlight the potential risks, read our article on what foreign companies should know about the resurgence of nearshoring in Mexico.
Mexico offers a number of business-friendly cities that are attracting investors. Mexico City has good infrastructure and a pool of skilled talent to draw on. It is also home to the largest number of startups in the country, followed by Guadalajara and Monterrey.
When expanding in Mexico, it is critical to understand the complexities of the country's economic system and how to work with knowledgeable partners to deal with the cost of doing business in Mexico.
Business culture in Mexico
Work etiquette in Mexico is similar to that of many other Latin American countries, although the country's proximity to the US and strong trade between the two nations have also influenced business culture.
Strong personal relationships and loyalty are key features of work culture. Although the business environment remains formal, it is slowly changing and the traditionally hierarchical structure is becoming more horizontal.
Mexicans prefer face-to-face communication and like to do business with people they know well and trust. It is good practice to be eager and advisable to confirm the date and appointment several times before any meeting to show diligence.
Challenges when doing business in Mexico
There are still many hurdles to overcome when doing business in Mexico. Local knowledge of the investment environment and detailed information on the legal, accounting and tax frameworks are therefore crucial for overseas companies and can help you navigate the risks.
A common challenge is connecting to the power grid. According to the World Bank, Mexico ranks 106th in the world for ease of obtaining electricity, underlining the complexity of the task.
Connecting to the power grid is fraught with bureaucracy and foreign companies must submit applications and obtain certificates and inspections from the Federal Electricity Commission (CFE) before a contractor can carry out any work.

Property registration can also be a lengthy task, taking almost twice the average time compared to OECD countries. Procedures at the Public Registry of Property and Commerce can be especially lengthy. In addition, obtaining a certificate of good status with the water service and the property zoning certificate can also be time-consuming.
Although these procedures can be lengthy, some are being digitized. This means that they can be tracked electronically rather than having to be done in person.
Accounting and taxes in Mexico
Paying taxes is a laborious and complicated process in Mexico, with estimates suggesting that it takes more than 240 hours of a company's time each year, despite the fact that there are usually only six types of payments to be made.
For those wishing to set up a business, the electronic accounting system required by the Mexican tax authorities should be taken into account. It is important to have a system connected to the Ministry of Finance and Public Credit (SHCP), through the Tax Administration Service (SAT), to comply with this obligation, which is mandatory for all Mexican taxpayers.
A look at taxes
VAT: the general rate is 16%; 0% for some services and goods (basic and some exports).
Corporate tax: 30% for companies and 35% for individuals.
Customs duties: 20%.
CHAMBERS OF COMMERCE
Argentina:
Cámara de Comercio de EE.UU. en Argentina (AmCham)
Website: amchamar.com.ar
Teléfono: +54 11 4371 4500
Email: amcham@amchamar.com.ar
Brasil:
Cámara de Comercio Americana en Brasil (AmCham Brasil)
Website: amcham.com.br
Teléfono: +55 11 5180 3800
Email: atendimento@amchambrasil.com.br
Chile:
Cámara Chilena Norteamericana de Comercio (AmCham Chile)
Website: amchamchile.cl
Teléfono: +56 2 2902 5600
Email: amcham@amchamchile.cl
Colombia:
Cámara de Comercio Colombo Americana (AmCham Colombia)
Website: amchamcolombia.co
Teléfono: +57 1 587 7828
Email: info@amchamcolombia.com.co
México:
Cámara Americana de Comercio de México (AmCham México)
Website: amcham.org.mx
Teléfono: +52 55 5141 3800
Email: amcham@amcham.org.mx
Perú:
Cámara de Comercio Americana del Perú (AmCham Perú)
Website: amcham.org.pe
Teléfono: +51 1 705 8000
Email: amcham@amcham.org.pe
Uruguay:
Cámara de Comercio Uruguay-Estados Unidos (AmCham Uruguay)
Website: amcham.org.uy
Teléfono: +598 2916 1210
Email: amcham@amcham.org.uy
Costa Rica:
Cámara de Comercio Americana de Costa Rica (AmCham Costa Rica)
Website: amcham.cr
Teléfono: +506 2220 2200
Email: amcham@amcham.cr
Bolivia:
Cámara de Comercio Americana en Bolivia (AmCham Bolivia)
Website: amchambolivia.com
Teléfono: +591 3 342 7741
Email: info@amchambolivia.com
Ecuador:
Cámara Ecuatoriano Americana de Comercio (AmCham Ecuador)
Website: amchamecuador.org
Teléfono: +593 4 228 2330
Email: info@amchamecuador.org
El Salvador:
Cámara Americana de Comercio de El Salvador (AmCham El Salvador)
Website: amchamsal.com
Teléfono: +503 2263 9494
Email: info@amchamsal.com
guatemala:
Cámara de Comercio Guatemalteco Americana (AmCham Guatemala)
Website: amchamguate.com
Teléfono: +502 2417 0800
Email: info@amchamguate.com
Honduras:
Cámara de Comercio Hondureño Americana (AmCham Honduras)
Website: amchamhonduras.org
Teléfono: +504 2239 7755
Email: info@amchamhonduras.org
Nicaragua:
Cámara de Comercio Americana de Nicaragua (AmCham Nicaragua)
Website: amcham.org.ni
Teléfono: +505 2264 2690
Email: info@amcham.org.ni
Panamá:
Cámara de Comercio Americana de Panamá (AmCham Panamá)
Website: panamcham.com
Teléfono: +507 301 3881
Email: info@panamcham.com
Paraguay:
Cámara Paraguayo-Americana (AmCham Paraguay)
Website: amcham.com.py
Teléfono: +595 21 660 558
Email: info@amcham.com.py
República Dominicana:
Cámara Americana de Comercio de la República Dominicana (AmChamDR)
Website: amcham.org.do
Teléfono: +1 809 332 7221
Email: info@amcham.org.do
Venezuela:
Cámara Venezolano-Americana de Comercio (VenAmCham)
Website: venamcham.org
Teléfono: +58 212 263 0833
Email: eventos@venamcham.org
Jamaica:
Cámara de Comercio de EE.UU. en Jamaica (AmCham Jamaica)
Website: amchamjamaica.org
Teléfono: +1 876 929 786
Email: info@amchamjamaica.org
Trinidad y Tobago:
Cámara de Comercio de Estados Unidos en Trinidad y Tobago (AmCham T&T)
Website: amchamtt.com
Teléfono: +1 868 622 4466
Email: inbox@amchamtt.com
Haití:
Cámara de Comercio Americana en Haití (AmCham Haití)
Website: amchamhaiti.com
Teléfono: +509 2941 4600
Email: info@amchamhaiti.com
Some companies
1. International restaurants:
El Cielo (Bogotá and Medellín): Fine dining restaurant run by Colombian-American chef Juan Manuel Barrientos.
Original Version (Bogotá): A Spanish restaurant offering Mediterranean food, created by Spanish chef Koldo Miranda.

2. Tourism companies:
Uncover Colombia: Travel agency founded by foreigners, specializing in ecotourism and cultural experiences in the country.
The Colombia Travel Operator: Agency run by expatriates, offering personalized tours around Colombia.

3. Technology and startups:
Rappi: Although founded by Colombians, it has received strong foreign investment and its team is made up of talents of diverse nationalities.
Torre.co: Remote recruitment platform founded by Colombian entrepreneur Alex Torrenegra, with a base of foreign users and employees.
4. Azahar Coffee: Founded by a group of foreigners and Colombians, this is a company that exports high-quality coffee and has stores in Bogotá, promoting direct trade with coffee growers.
5. Gringo Tuesdays: A popular event in Bogotá and Medellín created by expats, which has grown into a small business focused on language exchange and social networking.
6. Selina Hostels: Although Selina is an international chain, its branch in Colombia has been managed and expanded by foreign entrepreneurs, offering accommodation and coworking spaces in cities like Bogotá and Medellín.
7. Artesanías Eco-Friendly: Many foreigners have launched small sustainable craft businesses, such as shops in local markets in cities like Cartagena and Medellín, where they sell handmade products made with local materials.



CRUCEROS

El turismo de cruceros y su impacto en los destinos

A cruise could be defined as a maritime journey that departs and returns to the same port, with stops at different destinations and in which travelers enjoy leisure and recreation services both on board and during stops on land.

From the point of view of impact, we see three key points: the ship, the journey and the stops at the different destinations.
If we focus on this last point, it is necessary to first analyze the global impact of this tourism model. According to data from the International Association of Cruise Companies (CLIA), this sector mobilized, in 2017, 26.7 million passengers and 28.2 during 2018. Taking into account these data and the growth expectations for the coming years – in 2019 it is estimated that it will grow to 30 million passengers – it is important to analyze the impact that this type of tourism has and will have on the destinations it visits.

Economic impact:

On the one hand, we have the direct impacts, such as the costs of stay in ports for shipping companies and consignees; the expenses of cruise tourists and crew at the destination; or public investment in infrastructure and, on the other, the indirect impacts such as the increase in consumption and job offers in the services sector necessary to cover the demand produced by this sector.

According to CLIA, during 2017 the cruise tourism sector created 1,108,676 jobs, paid 45.6 billion dollars in salaries and wages and had a global impact of 134 billion dollars.
If we focus on the impact of cruise tourism in Spain, it is estimated that 11% of the tourists who visit us come from cruise ships and, according to the Ministry of Public Works and data from Puertos del Estado, in 2017, 1,255 million euros were received in our country from cruise tourism, 0.11% of the total national GDP.

Sociocultural Impact:

The relationship between cruise tourism and the local communities they visit is complex and positive and negative consequences can be identified in the social sphere, depending on the degree of interaction that occurs between the cruise passenger, the territory and the host population.

In the case of cruise tourism, visits to the territories are reduced to a few hours, which means that only anecdotal and stereotyped knowledge of the local reality can be achieved.
On the other hand, given the concentration of this type of tourists – with several thousand arriving at a time – a feeling of congestion is caused in the destinations visited, in many cases, to the dismay of residents, who relate cruises to the phenomenon known as “overtourism”. In reality, these tourists represent a small percentage of the total number of visits. For example, in Palma de Mallorca, they represent less than 2% of the total, which then raises questions about the reasons why this sector is blamed as responsible for the tourist overcrowding.

Impact on the territory:

The simple fact that a territory becomes a destination for cruise ships already has an impact on that territory and its communities, which can be seen in areas such as the construction or modification of infrastructures.

When a ship sails, approaches a destination and arrives at port, it causes alterations in the aquatic, atmospheric and sound environment that can be reflected in their degradation.
For example, water pollution from the discharge of waste water and ballast affects the ecosystem and the marine species that inhabit it. To avoid this, there are new technologies for treating water on board and, even, the International Maritime Organization (IMO) has identified risk areas, called PSSA (Particular Sensitive Sea Areas), in which stricter regulations apply in terms of protection.

Atmospheric pollution, produced through particles generated in combustion, can cause, in addition to air degradation, degradation of the facades of historic buildings and other infrastructure. However, technological innovation is making possible a drastic reduction of these impacts, for example, with the use of gas turbines that manage to reduce particle emissions by up to 90%. In 2018, CLIA announced the cruise industry's commitment to reduce the global share of CO2 emissions by 40% by 2030, in line with the Sustainable Development Goals defined in the 2030 Agenda for Sustainable Development. In conclusion, the cruise industry, fully aware of the impacts it generates, is adapting both its ships and its activities on land to ensure the sustainability of the sector in the economy, society and territory in which it operates. On the other hand, governments and public administrations are also introducing numerous regulations and creating policies to ensure the sustainability of the destinations affected.


Cruise lines, which include major companies such as Carnival, Royal Caribbean, MSC Cruises, and Norwegian Cruise Line, cover a vast range of destinations around the world. Popular itineraries include the Caribbean, the Mediterranean, Alaska, Northern Europe (Norwegian fjords and the Baltic), and emerging regions such as Asia and South America. Depending on the destination, some itineraries are annual, such as in the Caribbean, while others are seasonal, coinciding with the best weather conditions in regions such as Alaska (summer) or the Mediterranean (spring-summer).

The concept of the modern cruise traces its origins to the 19th century, when shipping companies began offering voyages for pleasure rather than simple passenger transfers. However, the cruise industry as we know it today developed in the decades following World War II, with a boom in the 1960s and 1970s, particularly with the popularization of cruising in the Caribbean.

In recent decades, the industry has seen significant growth. In 2019, before the pandemic, more than 30 million cruise passengers were recorded globally, marking strong growth from previous decades. This surge in demand has prompted cruise lines to build larger, more technologically advanced ships capable of carrying more than 5,000 passengers per voyage, such as Royal Caribbean’s Oasis-class ships.

The industry’s expansion has not only been about capacity growth, but also about diversifying its offerings. Today, there are themed cruises ranging from food and wine to wellness and adventure travel. In addition, companies have been investing in new ports and destinations to attract a more globalized customer base, with particular attention to Asian markets, where continued growth is expected.

As for future expansion, many cruise lines have ambitious plans to increase their fleets. For example, Royal Caribbean has several vessels under construction and plans for new onboard experiences. There has also been a strong focus on environmental sustainability, with the introduction of liquefied natural gas (LNG)-powered cruises and more efficient technologies to reduce the carbon footprint.

In terms of the number of travelers, following the disruption caused by the COVID-19 pandemic, the industry has shown a rapid recovery. By 2023, the number of cruise travelers exceeded 31 million, and the growth trend is projected to continue over the next decade, with estimates predicting it will exceed 40 million passengers by 2030.

Among the key destinations of the cruise industry, the Caribbean remains the most popular region, encompassing around 40% of global cruise traffic. Other destinations that have gained relevance include Alaska, with its stunning nature and wildlife, and the Mediterranean, which attracts travelers interested in culture and history.

In short, the cruise industry has moved from a niche option to an expanding global sector that is constantly evolving to adapt to the demands of an increasingly diverse market. With a focus on new technologies, sustainability, and the opening of new destinations, the industry is well positioned for continued growth in the years ahead.

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