Investing in Uruguay's Tourism: A Blend of Stability and Rich Diversity

Tourism has historically been a strategic axis of economic development in Uruguay; therefore, the President of the Republic, Luis Lacalle Pou, and representatives of high-level government and international organizations presented the first guide to attracting tourism investors to Uruguay.

The guide, called “Tourism Doing Business, Investing in Uruguay,” was developed by the Ministry of Tourism in collaboration with the United Nations (UN) and was supported by the Development Bank of Latin America and the Caribbean (CAF) and cooperation of Uruguay XXI.

This document proposes the fundamental reasons that make Uruguay an attractive destination for tourism investment, including its recognized political and economic stability, its strategic regional location, the quality of its infrastructure, its position as a hub for innovation and human talent, and its diverse, sustainable and accessible tourism offer.

The Vice President of the Republic, Beatriz Argimón; the Minister of Tourism, Tabaré Viera; the Minister of Industry, Elisa Facio; the Undersecretary of the Ministry of Tourism, Remo Monzeglio; the President of CAF, Sergio Díaz Granados; the Executive Director of UN Tourism, Natalia Bayona; the Regional Director for the Americas of that organization, Gustavo Santos; and the Executive Director of the investment, export and country brand promotion agency, Uruguay XXI, Sebastián Risso, also attended the event.

“Uruguay is a great country to invest in,” said Viera during the presentation of the guide, which brings together information on investment opportunities, the competitive landscape, current regulations, and tourist attractions in five chapters that cover everything from the economic scenario to the positioning of the tourism sector in the region and the world.

The general director of the Ministry of Tourism, Ignacio Curbelo, was in charge of presenting the guide. “Our country has a series of conditions that make it unique for investment,” he said. He informed that tourism, an essential pillar of the Uruguayan economy, has a multiplier effect in several sectors; it contributed 7.3% to GDP and was 7.8% of exports of goods and services in 2022.

Uruguay’s tourism offers historical-cultural proposals, coastal, cruise, meeting, rural, and natural tourism, inviting visitors to visit charming towns, shopping, thermal, nautical, and wine tourism. The country is in the top five of the World Economic Forum travel and tourism index, growing as a recipient of foreign visitors and domestic tourism.

Curbelo emphasized the interest in attracting green investments. “Uruguay is firmly committed to protecting the environment and developing a sustainable economy. Now the country is moving forward in a new stage of transformation of the energy sector based on green hydrogen, and opportunities are opening up for green investments in the tourism sector,” he explained.

In addition, he added that Uruguay offers significant incentives to invest, such as its Investment Law, while tourism is a sector with specific decrees that translate into exclusive benefits.

“The country has a varied and quality tourism offer. We invite you to make your next investment in Uruguay, the safest country to invest in Latin America”, he closed his speech.

During the closing panel, Sebastián Risso, the executive director of Uruguay XXI, Miguel Ostos, the CAF representative for Uruguay, and Ignacio Munyo, the director of Ceres, participated and emphasized Uruguay’s attraction as an investment destination. They also highlighted experience, sustainable, and luxury tourism as areas of growing global interest where Uruguay holds a favorable position.

Risso highlighted the confidence investors place in Uruguay, evidenced by the US$ 4.1 billion of Foreign Direct Investment registered up to September last year, approximately 7% of GDP, representing a positive indicator of the country’s perception of a safe and business-friendly environment.

“Something important is that more or less 40% of the FDI we receive are reinvestments of the companies installed here, and that marks investors’ confidence in the country,” he stressed.

The director of the investment promotion agency explained that when investors are asked why they chose Uruguay, stability, certainties, and the rule of law are the first things that come to mind. Risso also indicated as fundamental the solid investment regime, free ports and airports, free zones and industrial parks, free repatriation of capital, and ease of doing business, all state policies maintained with the passing of different governments.

“In addition, we are very well positioned in ESG (Environmental, Social, and Governance) factors, which have become essential for investment decisions in the world,” he said and recalled that last year opened the Single Window for Investment, which will facilitate the procedures for the arrival of companies to the country.

Tourism promotion is one of the five objectives of the Uruguay country brand managed by Uruguay XXI, which also includes investment promotion, export promotion, attraction of residents and national pride.

With this launch, Uruguay reaffirmed its commitment to sustainable development and the promotion of a tourism sector, inviting investors worldwide to discover the unique opportunities offered by the safest country to invest in Latin America.