Ecuador: Tourism is strengthened with the entry into force of the Organic Law for the Strengthening of Protected Areas

The President of the Republic may, through Executive Decree, reduce the Value Added Tax (VAT) rate from 15% to 8% for tourism services during all national or local holidays of the year, as well as for the weekends before or after holidays. This is thanks to the provisions of the second amending provision of the text.

The VAT reduction will apply exclusively to tourist services or activities registered as tourism activities, including: accommodation, food and beverages, tourist transportation (including air transportation), operations, intermediation, agencies, and others regulated by current tourism regulations.

This measure aims to promote domestic tourism, boost local economies, and support Ecuador's tourism sector by encouraging more citizens to explore the wonders of the country's four regions, enjoy its culture, cuisine, and biodiversity, and save on travel expenses. This will foster the tourism value chain, which provides a livelihood for more than half a million families nationwide.

On the other hand, the legal framework promotes sustainable public-private investments within the National System of Protected Areas. This is intended to secure new sources of financing for their conservation, thereby creating a legal framework that provides security to investors and boosts economic recovery in these areas, where there is a significant capacity to develop ecotourism and community-based tourism, thus also promoting job creation and the development of tourism infrastructure.

The Ministry of Tourism reiterates its commitment to developing responsible, sustainable, and competitive tourism that contributes to the well-being of local communities and the conservation of Ecuador's natural and cultural heritage.

Source: Ministry of Tourism of Ecuador.