Ministry of Foreign Trade and Tourism The Republic of Peru Pilot Study for Project Formulation Rural Development through Tourism Promotion Project in The Republic of Peru Final Report February 2009 JAPAN INTERNATIONAL COOPERATION AGENCY Nippon Koei Latin America- Caribbean Co., Ltd. KRI International Corp. JICA Pilot Study for Rural Development through Tourism Promotion Project Final Report Republic of Peru Location Map of the Study Area in Amazonas JICA Pilot Study for Rural Development through Tourism Promotion Project Final Report Republic of Peru JICA Pilot Study for Rural Development through Tourism Promotion Project Final Report Republic of Peru JICA Pilot Study for Rural Development through Tourism Promotion Final Report CONTENTS Location Map 1. INTRODUCTION ..................................................................................................................... 1 1.1 Background ...................................................................................................................... 1 1.2 Objective of the Study......................................................................................................1 1.3 Study Area........................................................................................................................ 2 1.4 Execution of the Study ..................................................................................................... 2 1.5 Structure of the Study....................................................................................................... 4 2. CURRENT CONDITION OF TOURISM SECTOR IN AMAZONAS................................ 5 2.1 Socioeconomic Condition................................................................................................ 5 2.2 Current Condition of Tourism Sector ............................................................................... 7 2.3 Current Condition of Cultural Heritage.......................................................................... 21 2.4 Current Condition of Infrastructure................................................................................ 34 2.4.1 Transport............................................................................................................. 34 2.4.2 Water and Sanitation........................................................................................... 43 2.4.3 Electrification ..................................................................................................... 47 2.4.4 Telecommunication ............................................................................................ 55 2.4.5 Solid Waste Management ................................................................................... 61 2.5 Summary of Current Condition...................................................................................... 66 3. BASIC CONCEPT AND STRATEGY FOR RURAL DEVELOPMENT THROUGH TOURISM PROMOTION................................................................................ 69 3.1 Identification of the Priority Sites ................................................................................ 69 3.2 Projection of Number of Tourism................................................................................. 73 3.3 Basic Concept and Strategy.......................................................................................... 74 3.4 Strucutre of Integrated Rural Development ................................................................. 75 3.5 Concept and Strategy on Tourism Promotion............................................................... 76 3.6 Concept and Strategy on Infrastructure Improvement ................................................. 78 3.7 Concept and Strategy on Poverty Alleviation .............................................................. 83 3.8 Tourism Promotion Image............................................................................................ 87 4. PROPOSED PROGRAM FOR PRIORITY PROJECTS ................................................... 88 4.1 Sub-Program of Toursim ................................................................................................ 88 4.1.1 On-Site Value Enhancement............................................................................... 89 4.1.2 Off-Site Services and Facilities........................................................................ 103 JICA Pilot Study for Rural Development through Tourism Promotion Project Final Report Republic of Peru 4.1.3 Tourism Marketing ........................................................................................... 116 4.2 Sub-Program of Infrastructure...................................................................................... 120 4.2.1 Transport........................................................................................................... 123 4.2.2 Electricity ......................................................................................................... 127 4.2.3 Water and Sanitation......................................................................................... 131 4.2.4 Telecommunication .......................................................................................... 141 4.2.5 Solid Waste Management ................................................................................. 145 5. IMPLEMENTATION PLAN FOR PROPOSED PROGRAM.......................................... 152 5.1 Institutional Setting...................................................................................................... 152 5.2 Implementation Schedule............................................................................................. 155 5.3 Estimated Cost.............................................................................................................. 155 6. PROGRAM EVALUATION................................................................................................. 157 6.1 Social Imapcts .............................................................................................................. 157 6.2 Environmental Imapcts................................................................................................. 159 6.2.1 Initial Environmental Evaluation..................................................................... 159 6.2.2 Results of Initial Environmental Evaluation .................................................... 159 6.3 Economic Justification................................................................................................. 171 6.4 Risks............................................................................................................................. 172 7. ALTERNATIVES FOR DEVELOPEMNT PACKAGE .................................................... 174 7.1 Preconditions................................................................................................................ 174 7.2 Alternatives for Development Package........................................................................ 176 7.3 Proposed Development Package .................................................................................. 180 8. CONCLUSION AND RECOMMENDATIONS ................................................................. 184 8.1 Conclusion.................................................................................................................... 184 8.2 Recommendations ........................................................................................................ 199 ATTACHMENT Attachment 1 Minutes of Understanding.......................................................................................... A.1 Attachment 2 Information on Major Tourism Resources in the Study Area..................................... A.2 Attachment 3 Information on Water and Sanitation Condition in the Study Area............................ A.3 Attachment 4 Long List Showing Road Improvement Projects/Plans.............................................. A.4 Attachment 5 Summary List of Priority Projects in the Proposed Program ..................................... A.5 Attachment 6 Cost for Vehicles and Equipment ............................................................................... A.6 Attachment 7 Benefit and Cost Calculation...................................................................................... A.7 Attachment 8 Presentation Material (December 9, 2008 in Lima) ................................................... A.8 JICA Pilot Study for Rural Development through Tourism Promotion Project Final Report Republic of Peru Abbreviations and Acronyms AADT Annual Average Daily Traffic ARG Amazonas Regional Government B/C Benefit-Cost Ratio B-C Net Present Value (NPV) CIRA Certificado de Inexistencia de Restos Arqueologicos(es) Certificate of Non-existence of Archaeological Remains CNR Commission Nacional de Arqueologia(es) National Archaeology Commission CPT Compania Peruana de Telefonos(es) Peruvian Company of Teleophnes DF/R Draft Final Report DGER Dirección General de Electrificación Rural(es) General Directory of Rural Electrification DIGESA Dirección General de Salud Ambiental, Ministerio de Salud (es) General Directorate of Environmental Health (in Ministry of Health) DIRCETUR Dirección Regional de Comercio Exterior y Turismo (es) Regional Office of Foreign Trade and Tourism DPBP Development Package for Basic Project DPTA Development Package by Tourism Area EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EPS Empresa Publica de Servicios