Destination Analysis Cusco – Peru Destination Analysis Cusco, Peru Placement ITMC 3rd year NHTV International University, Breda 3. February, 2009 Arthur Hannert 072536 3ITMC-05 Preface This report is an individual assignment for the International Tourism Management & Consultancy programme at NHTV. It is part of the practical placement which started 2nd February and ended 31st July. This Destination Analysis provides a variety of insights into tourism activities within Cusco and Peru. This report would not have been possible without the time and help of Violeta Dueñas. I am very thankful for her assistance. Table of content page Introduction ........................................................................ 4 Summary ........................................................................ 5 chapter 1 General introduction to the destination ........................ 6 chapter 2 reports on 5 perspectives 2.1 Tourism Demand 2.1.1 Adventure Tourists .................................................... 8 2.1.2 Ecological Tourists .................................................... 11 2.1.3 Cultural Tourists .................................................... 13 2.2 Tourism Supply 2.2.1 Attractions .............................................................. 18 2.2.2 Facilities .............................................................. 21 2.2.3 Infrastructure .............................................................. 21 2.2.4 Transportation ............................................................. 23 2.2.5 Hospitality .............................................................. 24 2.3 Tourism Impact Studies 2.3.1 economic impacts .................................................... 27 2.3.2 socio-cultural impacts .......................................... 28 2.3.3 environmental impacts .......................................... 29 2.4 Tourism Planning and Development 2.4.1 national and regional planning structure ....................... 30 2.4.2 organizational structure of DIRCETUR ....................... 32 2.4.3 past and present tourism development of Cusco ............. 32 2.5 Cross Cultural Studies 2.5.1 Peruvian way of life .................................................... 36 2.5.2 summary on perspectives .......................................... 37 2.5.3 Analysis of story .................................................... 38 chapter 3 Executive Summary 3.1 A professional typification …................................................. 41 3.2 Analysis of the main characteristics ................................ 41 chapter 4 References to sources in text ........................................... 42 chapter 5 Bibliography ............................................................. 58 chapter 6 Appendices ............................................................. 59 3 Introduction This destination analysis of Cusco is part of the placement requirements of NHTV. While living and working in this beautiful city, I had the chance to observe everyday life of the locals, to contact tourists and discover the many cultural and historical attractions within and around the city. This work is based on these observations, desk research and help from my company supervisor Violeta Dueñas. 4 Summary With a diversity of cultural and archaeological heritages, Cusco is still in a growth phase and gaining attention as a growing tourism destination. Machupicchu's popularity is expanding as several tourism associations are developing new attractions and are targeting international markets. Cusco is located in the Andean Mountain Range on an altitude of 3,350 meters above sea level and is considered one of the highest cities in the world. It is both a city and is also one of the thirteen provinces of Peru. Cusco has been the most important tourism destination in Peru for many years. The region enjoys one advantage recognized worldwide; it is a place of monumental historical and cultural importance. Cusco attracts three major markets of tourists: (1) adventure tourists, (2) cultural tourists and (3) ecological tourists. For these market segments Cusco is an important destination, especially for the North Americans. Adventure tourists are attracted to Cusco’s Alpine sports such as mountain climbing and hiking. Only Bolivia and Chile represent competing destinations on the entire American continent. Therefore Cusco with the Inca Trail can be regarded as a major destination. Cultural Tourists see Cusco as one of the most important destinations on the American continent as well. The city of Cusco with its surrounding districts and provinces include natural resorts, colonial mansions, and ruins from the Inca times. These form a unique and diverse range of attractions. Some of the most famous attractions, however, are the Sanctuary of Machupicchu and the Inca Trail. Besides these natural and cultural heritage sites, a growing number of adventure attractions such as canoeing and kayaking are evolving. The Inca Trail is the most famous route for hiking to Machupicchu. This trail is enriched by beautiful views of the Sacred Valley of the Incas. Moreover, there are many other trails to choose from such as the Trek to Lares, Choquequirao (the new Inca Road), and others for mountain biking and horseback riding. Because the distinct Inca culture has its origin in Cusco, tourists have the opportunity to see a lot within a fairly small geographic area. Affordable accommodations, food and transportation make low-budget travelling possible. Ecological tourists wanting to experience traditional Andean culture can visit urban places and villages where time seems to stand still and the influence of modern times hardly has an impact. The cordial hospitality of these people makes every foreigner feel at home. Letting the visitors stay in their houses and eating meals together is a common gesture. In addition to the cultural heritage, Cusco offers breathtaking landscapes and natural sights, that satisfy the heart of every nature lover and that could be perceived as main attraction in itself. 5 chapter 1 General introduction to the destination Cusco is located in the Andean Mountain Range on an altitude of 3,350 meters above sea level and is considered one of the highest cities in the world. It is both a city, and one of the thirteen provinces of Peru. The department of Cusco is located at the central and south-eastern zone of Peru with a department area of 76,225 km² (5,9% of the country's territory)1. In the North, Cusco is “bounded by the jungle areas of Junín and Ucayali; to the South it is bounded by the Southern area of Arequipa and Puno; to the East it borders on the large Amazonian plain of Madre de Dios, and to the West it is bounded by the mountains of Apurímac and Ayacucho's jungle.”2 Since 1988 it constitutes together with the departments of Madre Dios and a part of Apurímac, the famous Inca Region. The department of Cusco, consists of 105 districts and 13 provinces. According to Mintel, Peru drew a total of 1.4 million foreign visitors in 2005, a rise of 70% since 20013. A majority of these tourists spend at least one day in the most famous city centre of the country. Due to Cusco's great historical, cultural and environmental diversity, tourism is considered one of the most important opportunities for economic development. In order to cover the broad range of demand and benefit from the tourism activities, various businesses have been established, enriching tourism supply with art and music, transportation, service sectors, and gastronomy. Hence, it is not a surprise that Cusco has been the most important tourism destination in Peru for many years. The region enjoys one advantage recognized worldwide: it is a place of monumental historical and cultural importance. Understanding Cusco's tourism product requires certain background information, which will be provided in chapter five. Since 1980 until 1992 Peru has been socially and politically isolated on an international scale. Political and social instability prevented an integration into 1 http://www.cusco-peru.org/cusco-information-cusco-information.shtml 2 http://www.cusco-peru.org/cusco-information-cusco-information.shtml 3 Travel and Tourism – Peru – November 2006 6 international economies and finances. In 1993 things started to change and a process of rejuvenation began. Social and political tension started to disparage and it became possible to travel on a national scale. The Government implemented new policies to establish a more consistent and stable environment through a reform of the state, stabilization of the economy, and the pacification of the inhabitants. In addition other action were undertaken such as liberating the market, control of inflation, increase of the GDP (Gross Domestic Product), reintegration into the international economy and the control of socio-political problems. This recession state left its mark on the tourism industry. Nevertheless the department and the city itself managed within the last decades to establish a diversified and exciting tourism product that is unique not only in South America, but on a worldwide scale. A majority of tourists are in love with the city centre of Cusco. They enjoy walking around in the so called 'open air museum', admiring the fascinating architecture, tasting delicious local dishes, and shopping for colourful handicrafts and souvenirs. The city map above gives an image of the various attractions that can be found within 15 minutes walking distance, e.g. the Cathedral, Qoricancha and San Blas. Other attractions