Introduction

In Colombia's changing hotel sector, a recent Infobae news has highlighted a drop in hotel occupancy. Trade associations have responded by requesting a reduction in VAT to 5%. This scenario raises a question for investors: How decisive is VAT in the profitability of hotels, especially those that serve international guests?

Context in Medellín

Medellín, the city of eternal spring, is experiencing a boom in tourism. In 2023, it welcomed more than one million tourists, surpassing the previous year's figures and pointing to an even more successful year-end. This steady flow of international visitors presents a promising outlook for the hotel sector.

Impact of VAT for International Guests

VAT, an important tax consideration, affects hotels that primarily cater to international tourists differently. These guests are exempt from VAT, which means that the profitability of these hotels is not as affected by changes in this tax rate.

Financial Data on Tourists in Medellín

The average spending of foreign tourists in Medellín is a key indicator for understanding the revenue potential of the hotel industry. These visitors contribute significantly to the local economy and the hotel sector.

Analysis of BlackRoom in the Current Market

At BlackRoom, we understand the importance of adapting to market trends. Despite fiscal challenges, we focus on offering attractive returns while keeping our investors informed and active in a growing market.

Conclusion

The hotel market in Colombia, and in cities such as Medellín, offers unique opportunities for investors. At BlackRoom, we are committed to delivering operational and strategic excellence, taking advantage of the opportunities that the current market offers, beyond fiscal concerns such as VAT.