World Bank Document

RESTRICTED Vol. 2 This report was prepared for use within the Bank and its affiliated organizatiohs. Public Disclosure Authorized They do not accept responsibility for its accuracy or completeness. The report mly not be published nor may it be quoted as representing their views. UNt~K1NA1IiJNA.L DArNI rOR~J R ±CNSTRUCTIIO1I~N A±'NLJ JJmVi-LJrIVflzi nwr.,f I *rywt%Ty I T flr'I tTrY r%t .rlWT * (t9IIT I fl,& iN 1 r,R NA 1 1V~JN AL LJ1: V CL'.±VI2Vi N T AD~JA I:IVJAT1N Public Disclosure Authorized CURRENT ECONOMIC POSITION AND PROSPECTS OF VENEZUELA (in see volrCnes)r~ Public Disclosure Authorized VOLUME II TOURISM I IT h Tn I 1 2 6 CWU J %- October 12, 1970 _j C r Public Disclosure Authorized Central America and Caribbean Department CURRENCY EQUIVALENTS Basic rate US$1 = 4.50 Bolivares (Bs.) Bs.1 = US cents 22.22 Petroleum export proceeds: US$1 - 4.40 B-livares (Bs.) Bs.1 - US cents 22.73 Petroleum imports: US$1 = 4.48 Bolivares (Bs.) Bs.1 US cents 22.32 SUMMARY AND CONCLUSIONS ............................. i - iii I. INTRODUCTION . ....................................... 1 II. RESOURCES ........................................... 1 III. PAST TOURIST DEVELOPMENT . ........................... 3 Organization, Policy and Financing .... ............ 3 Accommodation ...................- 4 Tourism Generated within Venezuela ................ 5 Foreign Tourism ................................... 6 Foreign Currency Earnings and Foreign Exchange Component .............................. 8 1V. RECENT CIANGES IN LTE PUBLIC AND PRiVA1E SECTORS' ArTITUDES TOWARDS TOURISM ........................... 9 V. PROSPECTS FOR TOURISM DEVELOPMENT .... ............... 10 Analysis of Venezuela's Tourism Potential .... ..... 10 Market Considerations ............................. i1 Recommended Strategy .............................. 12 Medium-Term Projections (1970-1974) .... ........... 19 Long-Term Projections (1974-1985) .... ............. 20 Forecast of Foreign Currency Receipts .... ......... 21 STATISTICAL APPENDIX SUMMARY AND CONCLUSIONS 1. Situated in the northernmost part of the South American continent, Venezuela is relatively close to its primary tourist market, the United States. The country's tourist attractions are concentrated (i) on tracts of its Carib- bean littoral which include beautiful, exotic beaches, (ii) in the grasslands and forests of the Cordillera de Merida, (iii) in the Guayana tablelands where rain forests and varied wildlife evoke a genuine tropical atmosphere, and (iv) in metropolitan Caracas, which holds cultural interests. 2. Tourism has not been given much consideration by the Venezuelan authorities in the past. No major infrastructural project has been carried out snecifically aimed at the development of this sector. No funds of anv significance were allocated to provide incentives to private investors for tourism. As for nromotion activities, they were non-existent prior to 1964 and scarce thereafter. 3. In the public sector, the Direccion de Turismo, the Corporacion Naclonal de Hotels y Turismo (CONAHOTU) and the Corporacion Venezuela de Fomento (CVF) have been responsible for tourism development. The functions of the Direccion de Turismo. a department of the Ministrv of DeveloDment. consisted of making policies and plans. The CONAHOTU, a state enterprise, has been mainly concerned with the develonment of the hotel industry. The CVF's role in tourism has been the provision of credit. 4. Only 112 hotels out of the existing 1,390 in Venezuela are reported to be suitable for domestic nleasure-motivated traffic. Of these, no more than a dozen meet international standards. The lack of even a minimum of services and comfort renders the remainine accomodations unattractive to any type of tourist other than small, local business traffic. 5. Various indications show that many Venezuelans travel extensively within their nwn country. The maiorltv of these trins are- however, for strictly business purposes. The scarcity and inappropriateness of the resort tnpe nf hot-el encounrAgpe wAelth4ipr Venezuielans to do their nleasure-travellifn abroad and obliges lower income segments of the population to remain at home for their holidays. 6. In 1969, 108,203 foreign tourists visited Vene7iel2 Of these arrivals, 53 percent originated from North America, 21 percent from Europe, 14 percent from LTatin America and 13 percent from other countries, On the whole, foreign tourism increased at an average growth-rate of 22.5 percent 4 _ XChe period 1 loa _r. A1 .Al# lg a o .b Sf .1 e-u_e-A-1-1 t^..._ at LLVU. W LILC JJC LJA U U.VLtJ .- Vl~ a &u _F. _ V.Otfl._~ have been attracted to the country since 1964 when a number of accommodations of interr.ation.al standard weecmpleted on the coast .-andt4ptoir i ia abroad, business and family-motivated visitors still account for the majority of foreign tourists. - ii - 7. The average length of stay and daily expenditure of foreign visitiors in Venezuela are estimated to be 13 days and $30, respectively. Due to the relatively high propensity of Venezuelans to travel abroad, the "tourism balance" is largely unfavorable, expenditures (US$134 million in 1969) being about three times receipts (US$46 million in 1969). 8. The uncertain outlook for Venezuela's oil sector has recently drawn the Government's attention to tourism as a possibility for diversifying the country's economy. A first step towards coordinating tourism activities in the public sector was recently taken when one official was appointed presi- dent of both CONAHOTU and director of the "Direccion General de Turismo." Moreover, an overall tourism plan is now being prepared within the framework of the projected 1970-1974 Economic Plan. 9. The mission considers that the coastal sections of Los Caracas- Higuerote, Puerto La Cruz-Cumana and certain tracts of the Falcon State li:t- toral are probably the only areas in the country which possess a tourist potential per se capable of attracting a significant number of overseas tourists. Attractions existing in other areas such as Caracas, the Andes range and the Guayana region may have, on the other hand, a complementary role in the development of international pleasure-motivated tourism. 10. The U.S. rather than Europe or South America. is likely to be the primary market for any prospective development of vacational tourism to Vene- zuela. More specifically, the country's promotional efforts should be directed at penetrating the beach and climate oriented segment of the U.S. market wlhich has supported the development of the Caribbean islands in the sixties. 11. A successful future tourism development strateev should include the following elements: a. The principle of geographic concentration of Government efforts adopted in the Plan de Turismo draft proposals should be further intensified; b. the tourist development of the 93 km. coastal area, Los Caracas-Higuerote. which combines rich tourism notential with proximity to metropolitan Caracas and Maiquetia In- ternational Airport, should be given "ton" priority: C. this development should be attained thrnugh a nrogram of integrated infrastructural work; in order to ensure its maximum economic vlabilitvy this progranm should he franmed within an overall general master plan for the area to be develeped; d. a re-allnratinn of funds as aaninst the present nattern of expenditures envisaged by the Plan de Turismo draft propo- 4 4 sals ould be effected ir. ch a wa as t (a ol m n.tn - iii - almost entirely! the infrastructural program for Isla Mar- garita where significant tourist development is rendered problematic by narrow beaches, insufficient coastal vegetation, and remoteness from the Federal District and (b) reduce the funds allocated for hotel credit and current expenditure; e. the resultant savings should be redirected to the Los Caracas-Higuerote area in order to increase the financial means for the execution of the infrastructural program mentioned under point c above. 12. Even though the suggested re-allocation would actually be effected, availabilities would probably still be inadequate to meet the financial renuirementR involved in the imnlementation of Los Caracas-Higuerote infrastructural program. Part of the required financing may well be sought from foreian lendera: in the context of a aeneral develonment investment and financing strategy, such borrowing, on appropriate terms, would seem eminently suitable. I. INTRODUCTION 1. Tn the nast. tourism was not given much consideration by Vene- zuelans. The country's tourism potential is thus practically untapped. There are fewer international visitors to Venezuela's 3)OO ckm.of coast than to the combined shores of the small neighboring islands of the Nether- land Antillpes Reeentlvy however- the need to tievelon new sourree of foreign exchange earnings has given rise to an increasing awareness of eco- nomin hbnefits that may he derived frnm Pxpanding tni1ritsm Puhlic and private entities alike are including tourism in their plans for economic devel opment. II. RESOURCES 2. CSituated in the northerimost part of the South Americ4an cnt-F nent, Venezuela has traditionally been divided into four regions: a. the mountainous north-western area, including the Cordillera- de Merida with -eaks soaring to over 4,000 meters, the Barquisimeto plateau and 4Chn CoM mou.nta 4 ns; b.. tbe coastal zone f1o.n"ed by 4eth Caribbear. mount= U * LA~ A. LA ~ LiL &LLI L .LIUU~A L%J1 ain range (the highest peak, Mt. Niqueta, rising L. 2,6 Meters), whichl stretchLes parallel to the sea from Valencia to the peninsula of Paria; c. the llanos region, between the Caribbean range and t'he O.riLnoco RKiver, UULEL.C11 a series of vast alluvial plains where savanna vegetation predomi- n-ates; A. the Guayana tabOlelan.ds, to the south of the Ori= noco River which are covered by dense forests and coLUprise half oL'the cour.try's territory. 3.* '.rLJ.LC ClOUUU.LJL LcnionsLn thLie moun tainLous northLlern area vary grea;- ly according to altitudes, with average annual temperatures decreasing and precipitatL.on rates i'Lncreasn as tle LanU r'Lses auove sea level. Caracas and Merida, for example, at 1,000 and 1,600 meters respectively, have average annual temperatures ofi..L 9.6 anUU L01 IJ .

Load more