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How Peru's Tourism Industry Coped

The Last Word: How Peru's tourism industry coped when its crown jewel was forced to close
By Naomi Mapstone

THE FINANCIAL TIMES

Copyright 2010 The Financial Times Ltd. All rights reserved.

April 23 2010

The ruins of Chavin de Huantar, one of Peru's many archaeolgical jewels, and among the oldest monuments of their kind in the world




Sector saw chance to highlight lesser known sites, says Naomi Mapstone

Hikers from all over the world come to Peru each year to tackle the Inca Trail, a 45km high-altitude trek with an unbeatable finish: sunrise over Macchu Picchu, the fabled City of the Incas.

In any given month, the 15th-century ruins attract 68,000 visitors, generating an estimated $1m (€750,000, £650,000) a day.

But for 66 days this year, after flooding swept away sections of the only rail route to the site, the sun rose and set on Macchu Picchu with only alpacas and chinchillas as witnesses. "We are sure that the thousands of tourists who come to Peru will come back when the rains pass," said Martín Pérez, Peru's minister of tourism and trade, told reporters after confirming that the site itself had not been harmed.

But the minister's optimism ran contrary to the fears of a tourism industry already feeling the effects of the global economic downturn. For them, the crisis raised a more immediate question: how should a sector that relies so heavily on one crown jewel respond?

Marisol Mosquera, president of Aracari Luxury Travel, which specialises in high-end tailored itineraries, had five groups of travellers en route to Machu Picchu when the rains hit.

"It was nerve-wracking," she says. "We had people travelling around the Galapagos and they were arriving in Machu Picchu next. What do you do with them? What do you tell them?"

When it became clear the ruins were completely cut off, the company decided to redirect its clients to other destinations. Some of them were redirected to other parts of South America, but others were sent to parts of Peru that usually receive play second fiddle to the Inca city.

Indeed, to some extent, the Machu Picchu crisis presented an opportunity for a tourism industry that is already working towards diversifying.

The country has an embarrassment of archeological riches other than Machu Picchu, from Caral, an ancient city and the oldest site in the Americas, to the Nazca Lines, a series of giant drawings carved into the ground that can only be seen in their entirety from the air, and mummies in the country's southern desert.

Others went to Arequipa, the country's second largest city and a colonial gem surrounded by mountains, or were sent on luxury cruises on the Amazon.

Ms Mosquera says her clients who stayed in the country were very positive about the experience. "In the end, people said, 'Ok, going to see only Machu Picchu is like going to the US to only see the Grand Canyon,'" she explains. "Everybody was thrilled, the consensus was 'Oh my god, I'm so glad I did it this way, because the trip was so much more interesting.'"

One reason that so few tourists venture beyond Macchu Picchu is the country's lack of tourism infrastructure.

Outside of the capital Lima and Cusco, the city where most tourists start their trek or train journey to Macchu Picchu, it can be hard to find a good hotel and a decent cappuccino - things that matter to the big-spending tourist the country would like to see more of.

Investment is starting to close the gap, with a doubling in the number of four and five-star hotels in 2009 to 63. Hotel groups Hilton, Radisson, Marriott International and Four Seasons are all mulling projects, and local investors such as Delfin Cruises and Aqua offer luxury options as part of their jungle treks.

According to travel industry operators such as Ms Mosquera, however, the bottom line, is that Machu Picchu remains the jewel in the crown of Peru's tourism industry. Since the site re-opened on April 1, 20,000 tourists have visited.

But even with actress Susan Sarandon lending some Hollywood pizzaz to its re-launch, not enough people realise the site is back open for business.

"I have the feeling that we're probably 30 per cent down on bookings at the moment as a result of these vibes that Machu Picchu has been damaged," she says. "People keep asking me, is Machu Picchu ok? Has it been damaged forever? Is it still there?"

 

 

 

 

 

 

 

 

 

 

 

 

Copyright © 2010 Aracari. All rights reserved. | Established 1996 | Based in Lima Peru