The Law of Productive Development provides special benefits to the sector and includes small businesses. The Government executes projects to attract revenues to Esmeraldas and Manabí.
Tourism is one of the prioritized sectors for the application of the incentives contemplated by the Law of Productive Development. In the event “Ecuador Destinations of Investments”, the minister of Tourism (e), Carlos Larrea, maintained that the norm will boost the competitiveness of the sector.
“Tourism is the only sector that will have up to 20 years of exemption from income tax (IR).” The benefit applies to projects that are executed in Manabi and Esmeraldas in the next five years, to the investments of micro, small, medium enterprises and community tourism associations. A special Economic Tourism Development Zone will also be created through the law.
In addition, the entry of merchandise for fairs and conventions related to the sector enjoys exemptions. Larrea highlighted the creation of a tourism promotion fund to finance plans and projects aimed at tourism facilities, maintenance and promotion.
“The idea is to keep it with time and that Ecuador can get more tourists.” This state portfolio already develops specific programs in Esmeraldas and Manabí. One of them is the Riviera del Pacifico project that seeks to attract investments to the Pacific coast of Ecuador and in a first phase will focus on large hotels and resorts.
Pueblos Mágicos is another initiative that will empower small populations with an urban change and equipping them with infrastructure to increase the arrival of visitors. Both these programs and the other incentives proposed by the law channel the coordinated work so that the productive sector is the one that stimulates the economy through new investments, explained the Minister of Foreign Trade and Investment, Pablo Campana.
The Minister of Economy, Richard Martínez, also attended the event. He said that the law guarantees a fiscal sustainability trajectory. “It is a guarantee that, in the future, fiscal policy will not run counter to the productive policy that has been a mechanism of divergence in recent years,” he said. (I)