The Law to Strengthen Tourist Activities was approved in Ecuador

The fifth draft of the Urgent Economic Law sent by the Executive was approved this Thursday night in the plenary session of the Legislature with 83 votes in favor

(Source: Turismo Ecuador)

The Organic Law for the Strengthening of Tourist Activities and Promotion of Employment will boost the competitiveness and promotion of the industry, while providing financial relief for the sector.

Among the articles approved in this legal body is the provision that the Ministry of Tourism coordinate with the public and private institutions that make up the National Financial System the granting of credits for the tourism sector with preferential rates and terms, at the same time as establishing refinancing conditions with better conditions for existing operations in the sector, in order to support establishments affected by various economic situations.

Along the same lines, tourism service providers who have not been able to comply with their tax obligations with the Internal Revenue Service (SRI) until the 2023 fiscal period, will be able to access payment facilities to comply with said obligations up to a maximum of 24 months, without the need to pay an initial fee. In addition, payment facilities will be provided for outstanding obligations with the Ecuadorian Social Security Institute (IESS).

It will also be possible to access the refinancing of debts of the tourism sector with public banks without considering arrears or non-payment generated by natural phenomena or social crises, and new programs that allow access to credit with facilities by the entities must be prioritized. public finances.

To promote the promotion of the country, the “Tourism Development Fund of Ecuador” will be created to finance programs and projects for the promotion, competitiveness and tourism development of Ecuador, which will be fed with the amounts collected by the Ecodelta and Tourist Power rates.

On the other hand, payments abroad made by providers of tourist services related to artistic and cultural shows that take place in Ecuador will be subject to a withholding at source of Income Tax of 15%, instead of 25%. , which will help improve the country's competitiveness compared to its neighbors in the region.

Air competitiveness will also be boosted with the gradual reduction of the 5% surcharge on air fuel until it reaches 0%, which will improve operating conditions for airlines operating in the country, and in the future be able to have lower prices. when traveling in the country.

Community tourism will have its promotion strengthened and strategies promoted by the Ministry of Tourism to execute projects of this modality. While employment will be promoted thanks to the coordination from this State portfolio with the governing entities of Labor and Higher Education for the development and implementation of plans, programs and projects to improve the employability of tourism professionals and the professionalization of the sector.

Domestic tourism will also benefit from the possibility of reducing the current general VAT rate to 8% for 12 days of the year, through Executive Decree.

The legal body will now return to the Executive for review, which may issue a total or partial objection, or approve it.

"With the Organic Law for the Strengthening of Tourist Activities and Promotion of Employment, a great opportunity opens to support the development of the country, strengthening the productivity of tourism, which is the third source of non-oil income in the country," said the minister. of Tourism, Niels Olsen, at the conclusion of the vote on the law in the National Assembly.

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