Announcement of IFC Investment in Compania de Desarrollo de Hoteles y Turismo Limitada, Colombia on December 11, 1968

. . . FOR IMMEDIATE ~ELEASE IFC News Release No. 68/11 Subject: IFC Investment in Compania de December 11, 1968 Desarrollo de Hoteles y Turismo Limitada, Colombia The International Finance Corporation announced today that it has joined a broaa group of Colombian public and private o~ganizations to sponsor a company formed to develop Colombia's tourism potential. The commitment is IFC's first under a new policy of investing in specialized promotional companies whose purpose is to prepare the groundwork for, organize, and help launch full-scale projects that will contribute to the economies of developing nations. The new Colombian company, Compania de Desa~rollo de Hoteles y Turl~mo 4I Limitada (Hoturismo), is being established to plan, promote and assist in setting up hotel and other tourism projects; mobilize t.echnical and financial sponsors for individual ventures; and foster an integrated tourist program. Hoturismo was incorporated in Bogota yesterday with an initial capital cf 1.3 million Colombian pesos ($78,000). The thirteen sponsors, including IFC, subscribed equally to the capital. Hoturismo is IFC's third tourism investment. In Octob~r of this year the CorporatiG~ COll1lllitted $2.9 million to an $8.5 million convention and tourist hotel project in Kingston, Jamaica. In December 1966, it committed $3.4 million equivalent to a $6.7 million hotel and game lodges project in Kenya. In addition to IFC, the World Bank affiliate that invests in private enterprises in developing member countries, the sponsors include: •  ~ I \ I p I I I [ - 2 - ~ 0 Two Governrnent organizations -- Instituto de Fomento Industrial and Corporacion Nacional de Turismo; The principal Colombian airline -- Aerovias Nacionales de Colombia (Avianca); Four private development finance companies which the World Bank Group has helped finance -- Corporacion Financiera Colombiana, Corporacion Financiera Naci0nal, Corporacion Financiera del Norte, and Corporacion Financiera del Vall~; Two insurance firms -- Compania Colombiana tle Seguros and Compania de Seguros Bolivar; And three industrial concerns -- Bavaria s.A., Cerveceria Andina s.A. and Cuellar Serrano Gomez. Colombia has a variety of attractions for the traveler, varying from the 0 cool interior highlands to its tropical Caribbean beaches. However, tourism from abroad has not contributed significantly to the nation's economy because of limited hotel and related tourist facilities. IFC's growing interest in tourism reflects its view that the industry can be an important means for economic development, especially through its labor intensive and foreign exchange earning aspects. # # # 0