Peru Tourism 2010

8/3/2019 Peru Tourism 2010

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PerusTourismCluster

MicroeconomicsofCompetitivenessGroupAssignment

WidharmikaAgung|MalikaAnand|SonnyBhardan|DaniellaIlanos|AteeqNosher


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ExecutiveSummary

Inthispaper,weexaminePeruscompetitiveness,bothatthenationalandtourism

clusterlevels.Wedrawonseveraldatasources,includingglobalcomparativestudies,

academicliteratureanddetailedPeruvianreports.Wesupplementthiswithover15expert

interviews,includingtheViceMinistersofCommerceandTourism,theDirectorofthe

PeruvianNationalTourismObservatoryandthePresidentoftheHotelsAssociation.

Atthenationallevel,weshowthatPeruisheavilyreliantonendowmentbasedclusters,

andthatitsrecentimpressivegrowthhasbeendrivenbyminingwithdisproportionally

littlebenefitforPeruvians.Wefindstrongmacroeconomicpoliciesbutweakersocial

infrastructure.Inthenationalbusinessenvironment,wehighlightstrengthsinthecontext

forfirmstrategyandrivalrybutsignificantweaknessesinotherareas.Ouroverarching

proposalisforPerutodiversifyitsexportbasket,whichwerecommenditdoesby(i)

promotingclusterdevelopment(ii)investinginhealthandeducation(iii)tackling

corruptionand(iv)securingafairrevenuestreamfromminingcompanies.

Forthetourismcluster,wefindthatPeruhaspostedimpressiverecentgrowthinboth

numberoftouristsandrevenues,butthatthisisgrowthfromaverylowbase.Wefindthat

Peruhasawealthofhighqualitynaturalandculturalendowments,butthattheclusteris

overlyreliantonasinglesiteandtypeoftourist.Weidentifysignificantpotentialrelatedto

thegastronomicboomintherelatedfoodcluster,butnotecriticalweaknessesintransport

infrastructureandinstitutionsforcollaboration.Ourstrategyfortourismistodiversify

awayfromMachuPicchuandattractbothmoreandhighervalueaddtouristsby(i)

initiatinganationaltourismstrategy(ii)developingnewtourismproducts(iii)upgrading

thetransportinfrastructureand(iv)strengtheningtheinstitutionsforcollaboration.


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I. PeruCountryAnalysisPeruisaSpanishspeakingSouthAmericancountrywithapopulationof29.8million1

andaGDPpercapitaof$8,7222.Ithas3,362kilometersofPacificcoastline3,andshares

borderswithEcuador,Colombia,Brazil,Bolivia,andChile.

1. OverallEconomicPerformance1.1. EconomicHistory

WithGDPgrowingatarateof9.2%,PeruwasthefastestgrowingcountryinLatin

Americaandthe14thfastestgrowingcountryintheworldin20084.In2009,Peru

continuedtoshowimpressiveresults,posting1%growthwhilemostcountriesfaced

shrinkingeconomies5.

Thisimpressivegrowthfollowsalmost

twodecadesoflostprogress.Likemany

LatinAmericancountries,Peru

experiencedadisruptivemilitaryrule

duringthemiddleofthecenturyandthena

periodofdamagingimportsubstitution

policiesintheeighties.In1983,Peruwas

adverselyaffectedbytheElNinoweatherphenomenon,whichcausedfloodinginsome

areasanddroughtsinothers.Followingthisepisode,commoditypricesdroppedtotheir

lowestlevelssincetheGreatDepressionandtheterroristgroupsShiningPathandTupac

1INEI.Per:Poblacinestimadayproyectada,segndepartamentos,19902015.2PPPadjustedfiguretakenfromIMF.2009.2009WorldEconomicOutlook3INEI.http://www.inei.gob.pe4CIAFactbook.http://www.cia.gov/library/publications/theworldfactbook/geos/pe.html5ibid


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AmaruRevolutionaryMovementgainedprominence,inpartfundedbynarcotraffickers

whohadgainedastrongholdintheAndeanregion6.

Theninetiesweresignificantlybetterundertheauthoritarianadministrationof

AlbertoFujimori.Fujimoriopenedthecountrytoforeigninvestmentbyreducingthe

averageMFNtariffsfrom16.0%to13.6%between1993and1999,causingFDItoincrease

5foldbetween1993and2000(EIU2008,WTO2000).Fujimorialsosucceededin

dismantlingtheShiningPath,thoughusingrepressiveandviolencemeanstodoso(WTO

2000).Moreover,hiscorruptgovernmentstolealmost$600millionwhileinpower

(TransparencyInternational,2004).

MovingfromGDP/capitatooneofitskey

determinants,laborproductivitylevels($22,800

perpersonemployed)arecurrentlyinlinewith

othercountriesofPerusincomelevel7,though

therehasbeenpoorgrowthinrecentdecades,

consistentwiththeaveragetrendinLatinAmerica.

Thislacklustergrowthinproductivitypalesin

comparisonwithcountrieslikeIndonesia,whichis

aleadingexporterofcopper,muchlikePeru.

1.2.Recentgrowth:theimportanceandconsequencesofmininginPeruThepoliticalstabilityofthe2000sandrisingcommoditypriceshavejointlycontributed

tosignificantgrowthofGDPinPeru.Inparticular,thisgrowthhasbeendrivenbythe

6UnitedStateDepartmentofState.http://www.state.gov/r/pa/ei/bgn/35762.htm7PPPadjustedfiguretakenfromTheConferenceBoardTotalEconomyDatabase,January2010,http://www.conferenceboard.org/economics/database.cfm


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miningsector,whichhasgrownfrom$0.2billiontoover$31billioninthepast60years,

andnowrepresents59%ofexports8.

In2006,miningcompaniesaccounted

forover50%ofmarketcapitalizationofthe

Limastockexchange(foratotalof$30

billion)andwererankedhighestfor

profitability9.TheCentralReserveBankof

Perupredictsminingwilldominate

investmentgoingforward,accountingfor

58%ofprivateinvestmentoverthenext3years10.

Unfortunately,thisimpressiveminingdrivengrowthinGDPhasnotresultedin

improvedincomesforPeruspopulation,duetothehighlycapitalintensivenatureof

mining,whichemploysonly1%ofthepopulationwhilegenerating6%ofGDP11.

Miningcompaniescurrently

benefitfromhighlyfavorable

contracts.TheseLegalStability

Agreementswereawardedunderthe

Fujimoriadministrationand

guaranteethestabilityofthelegal

frameworkinplaceatthetimethe

investmentwasmade,includinglabor,tax,andincomepolicy(UnitedNations,2000).Asa

8CentralBankofPeruhttp://estadisticas.bcrp.gob.pe/9LimaStockExchange.2006.InformeBursatil.http://www.bvl.com.pe/pubdif/infmen/M2006_04.pdf10CentralBankofPeruhttp://estadisticas.bcrp.gob.pe/11CentralReserveBankofPeru.http://www.bcrp.gob.pe


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result,25ofthe27topminingcompaniescurrentlypaynoroyalties,eventhoughcurrent

lawswouldrequireroyaltiesofbetween13%ofrevenues12.Hadroyaltiesbeencollected

inthefiscalyear20067,Peruwouldhavecollectedanadditional$2.7billionintaxes13.

1.3.CompositionoftheEconomyMoregenerally,thePeruvianeconomyhascometorelyheavilyonendowmentbased

industriessuchasmining,oilandgas,goldandsilverjewelry,andagriculture.Thelargest

oftheseindustriesarestillgrowing,agoodsignforPeruseconomy.However,somewhat

worrisomeisthesparsenessoftheclustermap;therearefewclustersandevenfewerthat

qualifyashighvalueadded.Onepromisingcluster,tourism,wewilldiscusslater.Another

isthenontraditionalsubcomponentoftheagriculturecluster,asectorthanhasrecently

shownpromisinggrowth.Exportsofasparagusandartichoke,whichgrew33%and19%

in2007,respectively,havereceivedpositiveattentioninthepressandfromdonorsfor

theirinclusivesupplychains

(Shimizu,2006)14.

Perusrelianceonendowments

isnotsurprisinggiventhe

abundanceandhighqualityof

theseresources.Peruisthethird

largestcountryinLatinAmerica

andboaststhreediverseclimates

12AccordingtotheMinistryofEnergyandMinesasquotedinSalazar,Milagros.GovernmentGenerositySwellsMiningCompanyProfits.IPSNewsService4February2009.http://ipsnews.net/news.asp?idnews=4106113Ibid14PROMPERU.2008.TendenciasdelaAgroExportacion.http://www.siicex.gob.pe/siicex/resources/sectoresproductivos/d92ddd0cf3ae4d16b5287e046ef0a7b3.pdf


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coastal,Amazon,andAndeanhighlands.ThisdiversityinclimatesprovidesPeruwith

extremebiodiversity.Asoneoftheworlds10megadiversecountriesPeruisfirstinthe

numberoffishspecies;secondinbirdfauna;thirdinamphibians;andthirdinthenumber

ofmammals15.Thisabundanceextendstotherealmofminerals.Today,Peruistheleading

producerofsilver,secondincopper,andthirdinbismuth,tin,andzinc16.

2. MacroeconomicFactors2.1.Strongmacroeconomicpolicy17

ThePeruviangovernmenthas

pursuedprudentfiscaland

monetarypolicy.Afteralongperiod

ofhyperinflation,(from1984to

1990wheninflationsurpassed

7000%)recentadministrations

havebeenabletobringinflation

undercontrolandmaintainastable

realexchangerate.Thismonetarydisciplinehasbeenmirroredbyfiscaldiscipline.Peru

wasabletopostafiscalsurplusoverthepastfewyears(e.g.,2.1%ofGDPin2008)andhas

halveditsdebtbalance.In2009,thebudgetwentbackintodeficit(1.9%ofGDP),asthe

governmentengineeredafiscalexpansionaspartofacountercyclicalpolicyresponseto

theeconomicdownturn.Ingeneral,globalmarketshaverecognizedthisdiscipline.Perus

15TheEarthdayNetworkhttp://www.earthday.org/countries/peru16CIAFactbook.https://www.cia.gov/library/publications/theworldfactbook/geos/pe.html17Unlessotherwisenoted,thissectiondrawsondataprovidedbythestatisticsbureauoftheCentralBankofPeru.http://estadisticas.bcrp.gob.pe/


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emergingbondmarketindexshowsasmallerspreadthantheLatinAmericanaverageand

in2008,Peruwasawardedinvestmentgradestatusbyleadingratingagencies18.

2.2.WeaksocialinfrastructureandpoliticalinstitutionsThisfiscalrestraintmayhavecomeatthecostofsocialpolicypriorities.Perushows

concerningeducationandhealthoutcomes.Whileschoolattendanceandyearscompleted

haveincreased19,thequalityofeducationispoor.PeruhasthelowestProgramfor

InternationalStudentAssessment(PISA)scoreforallLatinAmericancountries,andthe

highestinternalinequalityofPISAscores(WorldBank,2007).In2006,investmentin

educationwasonly2.5%ofGDP,puttingit157thoutof182countries20.Similarly,

investmentinhealthistroubling;at4.3%ofGDP,Peruvianinvestmenthealthisthelowest

inLatinAmerica21.TheWorldHealthOrganizationranksPerushealthsystempoorly,

129thoutof190countries(WorldHealth

Organization,2000).

Despite,strongeconomicgrowth,Peru

continuestofacesignificantpovertywith36%

ofthepopulationunderthepovertylinein

200822.Someprogressagainstpovertyhas

beenmadesince,in2003,52%ofPeruvians

livedunderthepovertyline.Similarly,

extremepovertyhasbeenreducedfrom21%

18http://www.reuters.com/article/idUSN024602622008040319TeamAnalysisofENAHOHouseholdsurvey2008,e.g,todays615yearoldswillreceiveoverelevenyearsofeducationcomparedtojustsevenyears,thelevelattainedbytodays5665yearolds.20CIAFactbook.http://www.cia.gov/library/publications/theworldfactbook/geos/pe.html21WHO2006numbers.http://www.who.int/countries/per/en/22INEI.2009.LaPobrezaenPeruenel2008.


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in2003to14%in2008.However,mostofthisimprovementhasbeenconcentratedin

Cusco,Limaandothercoastalareas,givingrisetoseveregeographicinequalitiesand

contributingtoaGinicoefficientincreasefrom46.2in1996to52.0in200823.

CorruptionhasalsobeenaprobleminPeru.In2009,Peruranked75outof180

countriesonTransparencyInternationalsCorruptionPerceptionsIndex,farbehindChile,

whichcameinat2524.Asrecentlyas2009,theMinisteroftheInteriorwasaccusedof

negotiatinganovervaluedcontractforpolicecarsinwhichtwomilliondollarsmayhave

beenembezzled.SimilarscandalshaveeruptedoverChinesearmytanks,ambulances,a

handfulofinfrastructurecontracts,andthenationaloilcompany,Perupetro.

3. NationalBusinessEnvironmentWiththesemacrofoundationswecometoPerusnationalbusinessenvironment,which

showsparticularstrengthsinthecontextforfirmrivalrybutsignificantweaknessesinthe

othermajorcategories.

3.1.FactorConditions25Peruwillsoonbenefitfrom

ademographicwindowof

opportunity.Overthe

nextfewgenerations,as

todays1014yearolds

becomeadults,the

23WorldBank.WorldDevelopmentIndicators.http://data.worldbank.org/24TransparencyInternationalhttp://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table25Unlessotherwisenoted,thissectiondrawsonTeamAnalysisofENAHOHouseholdsurvey2008


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proportionofworkingagePeruvianswillgrowastheburdenofdependentgenerations

(elderlyandyouth)shrink,thusboostingtheproductivepotentialoftheeconomy.

Furthermore,laborforceparticipationrateshavebeenimproving,reachingalmost75%in

2008.

However,innovationinfrastructureisaclearweaknessforPeru,ranked105outof133

countriesontheGlobalCompetivenessIndex(GCI).Thisresultsinapoorpatentoutputas

showninthefigurebelow.Underlyingthispoorperformanceisthepooroveralleducation,

particularlyinmathandscience,ranked130thinGCI.

AfurtherissueforPeruis

thatbulkofthepopulation

worksintheinformalsector.

Shareofinformalemployment

intheeconomyhasbeensteady

ataround70.1%since1997,

thusexcludingmanyPeruvians

fromstrongformalsector

growth.

3.2.ContextforFirmStrategyandRivalryPeruperformswellontheDoingBusinessreport,movingup9placesfromlastyear

toreceiveanoverallrankingof56outof183countriesin2010.Whilethereareareasthat

needparticularfocussuchasconstructionpermitsandclosingbusinessesasshowninthe

figurebelow,only4countriesconductedmorereformsthanPeru26.Recentreformsinclude

26WorldBankDoingBusinessReport2010.http://www.doingbusiness.org/features/Reformers2010.aspx


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improvementinlandtitling,simplerlaborregulationforsmallbusinesses,onlineservices

forenforcingcontractsandfilingtaxes,and

additionalequipmentattheportstoexpedite

transittimes.

MovingtoFDI,PeruranksbetterthanIndia,

China,andBrazilintermsofFDIopenness

accordingtoOECD27rankings,andalsoearnsa

highrankingof20onGCIforbusinessimpactof

rulesonFDIand14foropennesstocapital

flows.ForeignerscaninvestinPeruunderthe

sametermsasdomesticinvestorswithveryfewexceptions(restrictionsonlyapplynear

theborder).Theyareabletoremitprofitsanddividendswithoutlimit,andhavetheright

tousethemostfavorableexchangerateonthemarket(UnitedNations,2000).Asaresult,

theprevalenceofforeignownershipinPeruishigh,ranking16intheworldaccordingto

theGCI.

In addition, Peru has initiated a number of trade reforms. Peru has free trade

agreementswithMERCOSURmembers,Chile,US,Canada,Singapore,ThailandandChina,

andisseekingdealswithSouthKorea,EFTA,Mexico,Australia,NewZealand,andtheEU28.

MFNtariffshavedroppedevenfurther,from13%underFujimorito8.2%in2007 29.In

2008,thegovernmentcreatedasinglewindowforforeigntradepaperwork.Inaddition,

Peruhasnineindustrialandcommercialfreetradezones.

27OECD(2006).OECD'sFDIRegulatoryRestrictivenessIndex:RevisionAndExtensionToMoreEconomies.http://www.oecd.org/dataoecd/4/36/37818075.pdf28EconomistIntelligenceUnit.2008.Peru:CountryProfile.29Ibid


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However,bothDoingBusinessandtheWorldCompetitivenessreportsfindthatlabor

regulationsareasignificantweaknessinthebusinessenvironment.IntheDoingBusiness

report,PerusworstrankingisintheEmployingworkerscategorywherePerucomesin

at149outof181countries30.TheGCIalsoidentifieslaborrigidityasaproblem,ranking

Peru102outof133countries.However,ourresearchshowsthatthelabormarketis

actuallyquitecompetitive.LaborcostperhourisnotunusualgivenPerusGDPandis

lowerthancountrieswithsimilarproductivitylevelssuchasBrazilandColombia31.

Furthermore,firingcostsandsocialsecuritycostsarebothextremelylowgivenPerusGDP

percapitalevels32.Overall,itseemsthatPeruslabormarketisquiteunrestricted.

3.3.RelatedandSupportingIndustriesThoughPeruappearstoperformingrelativelywellonbothquantityandqualityof

suppliers,ithasaclearweaknessintheextentofclusterpolicy,ranked103th.Thisisin

partduetothepoorresourcingandlackofcoordinatingpowerofPerusinstitutionsfor

collaboration(IFCs).PeruCompite,theNationalCompetitivenessCouncil,isstaffedbyonly

sixpeopleandhasanannualbudgetofonlyUS$0.3million(Tello,MarioDeetal,2010)..

Furthermore,clusterdevelopmentinitiativeshave,untilnow,beenasubsetofSMEpolicy,

ratherthanastandaloneinitiative(Tello,MarioDeetal,2010).Assuch,clusterstrategy

hasonlybeenappliedtosectorsdominatedbysmallandmediumenterprises,ratherthan

thefastgrowthsectorssuchasagribusinessandtourism,whicharedominatedbylarger

firms.Ultimately,firmsratePerushandfulofIFCsasonlyacceptable,ratingthem3ona

30DoingBusinessReport.http://www.doingbusiness.org/ExploreEconomies/?economyid=15231TeamanalysisofEIUDatabase200832TeamanalysisofEIUDatabase2008,andHeckmanandPages2003


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scaleof5(Tello,MarioDeetal,2010).GCIrankingshaverecognizedtheseweaknesses,

rankingPeruonly65fortheextentofclusterdevelopment.

3.4.DemandConditionsEventhoughtaxrevenuesasapercentageofGDPreachedonly13.8%in200933,many

governmentinstitutionsdonothavethecapacitytousetheselimitedresources.For

instance,in2008,localgovernmentsusedonly55%ofresourcesbudgetedfor

investment34.Governmentdoesnotactassophisticatedbuyerwithgovernment

procurementofadvancedtechnologyproductsandsuccessinICTpromotionranking

verypoorly,95and99respectivelyonGCI.

Demandconditionsamongthepopulationareimproving,butareunremarkable.Wages

havebeenstagnantforoveradecade.Privateconsumptionhasgrown7%annuallyinthe

pastfiveyearsbutprimarilyinconsumptioncreditandexpendituresinretailstores.This

improvementisalsoevidentintheGCIrankingsinwhichPeruranks45outof74countries

forimprovingdemandsophisticationasaresultofanemergingmiddleclass.Accordingto

PeruvianAssociationofMarketResearchFirms,themiddleclassinLimagrewfrom14.0%

to16.5%between2003and2009(as%oftotalsocioeconomiclevels)35.

4. NationalRecommendationsWhilePeruhasshownimpressivegrowth,tobesttakeadvantageofthisgrowthandto

sustainitgoingforward,Peruneedstodiversifyitsexportbasket,andreduceitsreliance

onmining.Thecountrysgrowthiscurrentlylargelydeterminedbycommodityprices,and

33CentralReserveBankofPeru.www.bcrp.gob.pe34GobiernosLocalesconbajaejecucionpresupuestalinElComercio,May2009.http://elcomercio.pe/impresa/notas/gobiernoslocalesbajaejecucionpresupuestal/20090511/28499335El16.5%delosLimenosyaesdeclasemediaGivonio,Sonia.February2010,Gestion.http://gestion.pe/noticia/413012/165limenosyaclasemedia


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isthusatthewhimofexternal,andoftenvolatilefactors.Furthermore,thehighlycapital

intensivenatureandlowtaxrevenuegeneratedbythissectorresultsinlimited

employmentorfinancialbenefitfromminingforPeruvians.Thegovernmentisfacing

decreasingapprovalratesandasurgeinriotsinthefaceofrisingdomesticinequalityand

limitedwagegrowth,soatimelyresponseisneeded.

Whilestrongendowmentshavebeenastrongbaseforgrowth,Peruneedstoexpandits

nationalvaluepropositiontootherarenas.Withastrongfinancialsector,politicalstability,

andgrowingneighbors(Colombia,BrazilandChile),Peruhastheopportunitytodevelop

newclustersthatarelessreliantoncommodities.Ingeneral,thegovernmentmustfinda

waytomovePerufromafactordriventoinvestmentdriveneconomy.Weoutlinefour

mainrecommendationsforthePeruviangovernment,privatesector,andcivilsociety

organizationstopursuewiththisgoalinmind.

4.1. PromoteclusterdevelopmentthrougharestructuredPeruCompitePerushouldapplytheclusterdevelopmentframeworkasanoverarchingnational

policyinitiative,ratherthanembeditasasubsetofSMEdevelopment,whichlimitsthe

scopeofpotentialopportunities.PeruCompitewouldtaketheleadcoordinatingroleand

wouldbetaskedwithidentifyingemergingclusterswithsomedemonstratedlevelof

competitiveness,forupgrading.PeruCompitewouldfacilitatedialoguebetweenkey

privateandpublicactorstoidentifyinitiativesforthegovernmenttoadoptortosupport

thedevelopmentoftheclusters.

Thegovernmentmustsignificantlyincreasefinancialandhumanresourcestoensure

PeruCompitehassufficientcapacityandcapabilitytomeaningfullyplaythisrole.To

accomplishthistask,PeruCompitehastoengagewiththeprivatesectoranddecentralize


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thescopeofdiscussionandpolicyinitiativestoreachoutsideLima.CreatingRegional

CompetitivenessCouncilswouldalsoproveusefulinachievingthisgoal.

4.2. InvestinhealthandeducationPerusabilitytocompeteanddevelopnewclusterswillcontinuetobehamperedwhile

itsuffersfrompoorhealthandeducationaloutcomes.Thegovernmentmustsetthe

improvementoftheseoutcomesasatoppriority;thishasnotbeenthecaseinthepast.

Oneducation,thekeyistomoveorientationfromafocusonquantity,whichhasbeen

largelyachieved,tooneofquality.Thiswillrequireclarificationofstandardsand

accreditationmechanismsandstringentimplementationofaccountabilityandmonitoring

mechanismsbytheMinistryofEducationandrelevantcivilsocietyinstitutions.Thiscanbe

achievedbycreatingaharmonizedteachereducationsystem,ongoingtrainingprograms

forteachers,andbycreatinganationalsystemtoevaluateandaccrediteducativequality36.

Onhealth,themainneedistosignificantlyincreasespending.Werecommenddoubling

spendingtomatchLatinAmericanaverages(Poullieretal,2002).TheMinistryofHealth

willneedtoidentifypriorityinvestmentstoensurethattheincreasedspendingcanbe

efficientlyabsorbedandeffectivelydeployedtoimprovetheconcerninghealthindicators.

Inparticular,thegovernmentshouldallocateeffortsinimprovinguniversalcoverageand

developmentofhumanresourcesforthehealthsector37.

4.3. TacklecorruptionAsPerulookstodiversifyawayfrommining,developnewPeruvianenterprises,and

attractnewplayerstothecountry,thegovernmentmustinvestinimprovingitscredibility

asalegitimate,nonrentseekingpartner.

36ConsejoNacionaldelaEducacion.2006.ProyectoEducativoal2021.37Franckeetal.2006.SaludenelPeru:DiagnosticoyPropuestasparaelPeriodo20062011.


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Totacklecorruption,thegovernmentshouldstreamlineitsprocessesandrevise

regulations.Moreover,thegovernmentshoulddevelopegovernmentprocesses,clarify

procurementstandards,andincreasetransparencyingovernmentprocurement.Finally,

thegovernment,privatesector,andcivilsocietyinstitutionsshouldrequestaccountability

andprogressreportsontheimplementationoftheNationalPlanagainstCorruption.

4.4. Secureafair,competitiverevenuestreamfromtheminingcompaniesTherecommendationsaboveallrequiresignificantfunding.Whilethegovernmentmay

beabletoreprioritizeotheractivitiesordeployfundingthatmightotherwisehaveformed

afiscalsurplus,webelievethatitisessentialtosecurerevenuesfromthemining

companies.Theycurrentlyenjoycontractsthat,duetolegacyagreements,aresignificantly

beyondwhatisnecessaryforinternationalcompetitiveness.Forexample,mining

companiespaybetween45%ofroyaltiesinChile,totaling$24.8billionintaxesoverthe

pastfiveyears38.Thegovernmentshouldatleastchargewhatthelegalroyalty

requirementsstipulate,whichwouldgenerateanestimated10%increaseinbudget39.Ifa

negotiationimpasseisreached,andgovernmentcontinuestobeunabletosecuredirect

taxesinatimelyfashion,onecreativeoptionwouldbefortheminingcompaniestodirectly

fundPeruCompiteactivities,butwithnomembershipontheboard.Thismayprovide

themwithafacesavingopportunityonthetaxfront,whilstallowingthegovernmentto

pursueitsaims.

38BloombergNewshttp://www.bloomberg.com/apps/news?pid=20601086&sid=afTImVbrHf6E39Estimated$2.7billionincreasesinrevenuesfrom13%royalties,onanestimatedbudgetof$26billionin2007


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II. Tourism ClusterAnalysisTheWorldTourismOrganizationdefinestourismastravelandstayinplacesoutsidea

personsusualenvironmentformorethantwentyfourhoursandnotmorethanone

consecutiveyearforleisure,businessandotherpurposesnotrelatedtotheexerciseofan

activityremuneratedfromwithintheplacevisited."40

Tourismcanbeofseveraltypes.ThePeruviangovernmenthasidentifiedthemost

importantonestobe:urban(cities),cultural(archeologicalsites,museums,etc.),nature

(naturalreserves,etc.),community,adventure,andbeachtourism41.Inthissection,our

discussionwillcenteroninternationaltourism,acrossalltheabovetypes,asitcanbe

definedasanexportandismorescalablethandomestictourism.

1. Theriseoftourism1.1. Globaltrends42 In1950,therewereonly25millioninternationaltouristarrivals43worldwide

comparedto922millionin2008.Thisrepresentsanaverageannualgrowthrateof6.5%,

makingtourismnowoneofthelargestandfastestgrowingeconomicsectorsworldwide.

Thetravelandtourismsectornowaccountsfor9.9%ofglobalGDP,10.9%ofexports,9.4%

ofinvestment44and30%ofcommercialserviceexports.Theshareofarrivalsreceivedby

developingcountrieshasrisenfrom31%in1990to45%in2008.Thesestatisticsshowthe

potentialofinternationaltourismtocontributetoeconomicgrowth.

40WorldTourismOrganization.1995.CollectionofTourismExpenditureStatistics.41PROMPERU.2007.Perfildelturistaextranjero.42AllfigurestakenfromUNWO2009ToursimHighlightsunlessotherwisestated43UNWTOHistoricalPerspectiveofWorldTourism,http://unwto.org/facts/menu.html44WTTC,figuresincludeestimatesofT&Tsectordirectandindirectactivities


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1.2. HistoryofPeruviantourismAstheonlyseatoftheancientIncanempire,Peruisunique.In1983,MachuPicchuand

cityofCuscoweredeclaredWorldHeritagesitesbyUNESCO.Anadditionalfivesiteswere

addedintheeighties,twointhenineties,andtwomorethisdecade,bringingthetotalto

eleven45.ThisplacesPeruinthetop20countriesglobally,andthirdinLatinAmerica

behindMexico(29)andBrazil(17).

In1988,fiveyearsaftertheinitialWorldHeritageSitedeclaration,Perustillreceived

lessthan200,000touristsayear46.Akeyturningpointoccurredin1992,whenAbimael

Guzman,leaderoftheShiningPathwascaptured.Thedisintegrationoftheterrorist

organizationledtoincreasedsafetyandstabilityinthecountry,enablinganincreasein

tourism.ThegovernmentcreatedtheCommissionforthePromotionofPeru,PROMPERU,

in1996anddeclared1997astheyearof600,000tourists47,acknowledgingforthefirst

timethattourismshouldbeapriority.In1999,theViceMinistryofTourismwascreated,

andtheNationalStrategicTourismPlanwascreatedin2004.In2007,intheassociated

foodcluster,theNationalGastronomicAssociation(APEGA)wascreated.Inthesameyear

MachuPicchuwasdeclaredoneofthe7newwondersoftheworld.

2. TourismEconomicPerformance2.1. Growthandcurrentperformance

ThePeruviantourismindustryhasgrownatstrikingratesastheeconomyhas

stabilizedandpublicsafetyhasincreased.Since2004,tourismarrivalshavegrown12%

annually,over3timesasfastasaveragegrowthratesintheworld(UNWTO,2009).

45UNESCOwebsitehttp://whc.unesco.org/en/statesparties/pe46ObservatorioTursticodelPer,http://www.observatorioturisticodelperu.com/badatur.php?pa=peru&id=datecoperu47Targetmissedby1year576Kin1997,616Kin1998


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Thestoryregardingtotalreceipts(spendingbytourists)issimilarlyadvantageous.

Whilethisgrowthisimpressive,ithasbeenhighonalowbaselevel.AsfigureCshows,

Perureceivesonly71touristsper1000capita,whichislowrelativetootherLatin


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AmericancountriesandalsotoothercountriessuchasCambodia,Egypt,Thailandand

JordanthatarecompetitorsforPeru48andhelpsetabenchmarkfordesirableoutcomes.

AsPeruhasMachuPicchuandthecityofCusco,theseselectedcountriesalsohave

uniquehistoricalandculturalendowments,suchasthepyramidsinEgypt,AngkorWatin

CambodiaandPetrainJordan.However,thesecountrieshavemanagedtobuildtourism

intoamoreimportantpartoftheireconomy,representing69%ofGDP,comparedtoonly

3%ofGDPinPeru(WEF,2009).

2.2. TheimportanceandlimitationsofMachuPicchuPartoftheexplanationofPeruslimitedvolumeoftourismisthatthecountryrelieson

thesinglemajorattractionofMachuPicchu,whichdominatesthesector.Touristscurrently

donotexploretherestofthecountry.InsteadtheyflyintoLima,maketheirwaytoCusco,

visitMachuPicchuandthenleave.Touristsareconcentratedinthesefewareas:73%of

internationaltouristsenterLima,primarilyintransitoronbusiness,and40%visitCusco

andMachuPicchu49.Only20%ofinternationaltouristsgoontovisitthenextmost

popularsites,ArequipaandLakeTiticaca.

Moreover,thenumberoftouriststhatMachuPicchucanabsorbislimitedbytheneed

topreservethesite.Currently,thedailycapontouristsallowedintothesanctuaryis2,000

people.MachuPicchuiseffectivelysaturatedasatouristdestinationandcannotberelied

uponasafuturesourceofgrowthforthecluster.

48Intermsofattractions,anddistancefromthecountryoforiginwherelargestshareoftouristscomefrom.Source:MINCETUR.2008.PlanNacionaldeTurismo.49PROMPERU.2007.PerfildelTuristaExtranjero.http://www.peru.info/s_ftoPublicaciones.asp?HidAccion=Grupo&HidId=2&ic=1&SubTipo_ZP=1


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3. TourismClusterPeruhasdevelopedafairlyrobusttourismcluster,whichisdisplayedbelow:

Atthecenterofthemaparethekeyelementsofthecluster:theattractionsand

activities,restaurants,accommodations,andlastly,transport.Wehavealreadydiscussed

Perusstrengthsintermsofculturalattractions.Theseareaugmentedbyactivitiessuchas

hikingandtrekkingintheAmazon,communitydevelopmenttourisminLakeTiticaca,and

wildlifetourisminthemountains.

Alsoofnoteistherestaurantsector,whichisthelinktotheassociatedfoodcluster,an

increasinglyimportantsectorinPeruthatwillbediscussedlaterinthisdocument.Wewill

alsoreturntotheissueoftransportationinthefollowingsection.


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Onthelefthandsideoftheclustermaparetherelatedandsupportedindustriesforthe

tourismclusterwhichrangefromhospitalityservicesandsuppliers,toartisanand

handicrafts,toconservationandpreservationservicestomaintainhistoricalandnatural

sites.Ontherighthandsidearethesupportinggovernmentagencies.Itisclearthatthere

areplentyoftheseagencies,thoughtheirefficacycouldbeimproved,aswewilldiscuss.

4. TourismBusinessEnvironmentPerustourismclusterisextremelypromising,buthasyettoperformtopotential.At

thecoreoftheclusterarerichhistoricalandculturalendowments,whichserveasakey

driverfortourism.Beyondtheseendowments,Perualsohasthebenefitofavibrant

culinarycluster,whichis

showingpromisinggrowth.

However,criticalissues

remainacrossallcomponents

ofthediamond,including

poortransportinfrastructure,

weakIFCs,limited

competition,andthelackof

diversificationawayfrom

MachuPicchu.

4.1. FactorConditionsTheIncanruinsandthebiodiversityprovideastrongbasefromwhichtoattract

tourists.AstheTourismCompetitivenessratings(WEF2009)furtherillustrateinfigureG


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below,Peruhasastrongcompetitiveadvantagehere,particularlyonnaturalresources

whereitranks8 thglobally.

However,fortourismtothrive,a

robusttransportinfrastructureisneeded

inadditiontotheattractions.Perudoes

notperformwellhereasillustratedby

verypoorrankingsongroundtransport

andairtransportinfrastructure.On

groundtransport,therearequantity

issuesintermsofroaddensitywhichis

ranked114thoutof133countries.One

mayarguethatthismetricislessrelevant

foracountrywithlargeareasofmountainousandjungleregions.Howevermoreworrying

isthepoorqualityoftheexistinginfrastructure.Theroadqualityisranked99thandthe

overallqualityofgroundtransportnetwork,whichreflectsthecountrysinabilitytooffer

efficient,accessibletransportationtokeybusinessandtouristattractions,isranked120th.

Thisislikelyaresultoflowinvestment;publicinvestmentininfrastructureislessthat1%

ofGDPcomparedtoover3%inColombiaandBolivia50.

Onairtransportinfrastructurethepictureismorecomplex.Perudoeswellinterms

ofthecarryingcapacityofitsairlines,withacompetitiveadvantageinavailableseat

kilometers(ranked33rddomesticand47thinternationallyaccordingtoWEF2009).Limas

JorgeChavezairportrecentlyretaineditspositionasthebestairportinSouthAmericain

50Dreesgros(2006),InfraestructuraparaelPerudemananausingdatafromEasterlyandServen(2003).


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Skytrax2010WorldAirportAwards.Thisairportisoperatedunderathirtyyear

concessionbyaGermanconsortium.Underthisconcession,thefirmwillbuildasecond

runway,constructanewterminalcomplex,expandtheretailstrategy,anddevelopnewair

cargofacilities.

Howevermovingbeyondthisairport,thequalityofairporttransportinfrastructureis

low,ranked94thbytheWorldEconomicForum.Furthermore,forthesizeofthecountry,

Peruhasfewairports,leadingtoarankingof73rdonairportdensity,puttingitbehindits

neighborsEcuador,Chile,ColombiaandBolivia.Perualsodoesparticularlypoorlyinterms

ofinternationalairtransportnetwork,ranked90th,primarilyduetorestrictiveAirService

Agreementsasdiscussednext.

4.2. FirmRivalryRestrictiveAirServiceAgreementsmeanthatthenumber,size,andpricesofflightsin

andoutofPeruaresubjecttoreviewbythegovernment.Expertsfoundthatonlyoneof

Perusairserviceagreementswouldqualifyastrulyopenskies,thatwiththeUS

(IntervistasEU,2009).In2004,PeruwithdrewfromanopenskiesagreementwithChile,

thesecondlargestorigin/destinationcountryfromPeru(IntervistasEU,2009).Forecasts

saythatliberalizingtheAirServiceAgreementswouldincreaseinternationaltraffictoPeru

by2.2millionpassengers,anincreaseof56%from2007numbers(IntervistasEU,2009).

Thesamereportfoundthat,forpassengers,fareswoulddeclineby35%ifbothmarket

accessandownershiprestrictionswererelaxed(IntervistasEU,2009).

Theairlineindustryisrestrictedmuchliketheairinfrastructuresector.Forexample,

Perurestrictsforeignownershipandcontrolinaircarriersto49%(IntervistasEU,2009).

Asaresult,LanPeru,asubsidiaryofLanChile,serviced80%oflocalflightsin2010.Star


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Peru,anotherlocalfirm,reached12%ofdomesticflightsbutmostsmallairlineshavevery

limitedparticipationandmanyhavegonebankrupt51.

Thelimitedcompetitionintheairlineindustryismirroredbylackofcompetitionin

thehighendhotelmarket.Thoughthenumberofhotelshasincreased,occupancyratesfor

hotelroomsremain

highrelativetoother

touristdestinations.

Thissuggestsa

higherthanaverage

profitmargin,

especiallywhen

combinedwiththe

insightfromour

interviewsthathighendhotelroomstendedtobeoverpriced52.Inacompetitivemarket

wewouldexpectthisapparentprofitabilitytoattractentry,resultinginareductionin

occupancyandpricestomorecompetitivelevels.However,wemightbeobservingatime

lag,asnewspapersarenotingtheappearanceandconstructionofseveralnewfivestar

hotelsinPeru,includingthreebytheStarwoodGroup53.Thesestatisticsshouldbe

monitoredgoingforwardtoseeiftheymovetolevelsthatsuggestthereisacompetitive

environmentwithoutsignificantbarrierstoentry.

51AmericaEconomica http://www.americaeconomia.com/notas/peru debate sobre una competencia para la aerolinea chilena lan 52InterviewwithDiegoComin(HBS)afterhisworkstudyingtourisminPeru,supplementedbyDanielAlfaros(headofPENTUR)viewofindustryconsolidationleadingtolackofcompetition53NASDAQhttp://www.nasdaq.com/aspx/stockmarketnewsstory.aspx?storyid=201003221725dowjonesdjonline000394&title=hotelshotinperuasnewdevelopmentsdriveboom


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Thoughcompetitivenessintheairlineandhotelindustriesappearslimited,signsforthe

futureseempromising.Awardingaconcessionfortheairportwasagoodfirststep.The

governmenthasgonefurther,enactingataxbreaktohelpboostthesector.Asof2001,the

salestaxontourismrelatedindustriesincludinghotels,touristpackages,andrestaurants

waseliminated54.

4.3.RelatedandsupportingindustriesAsinthenationalbusinessenvironment,theinstitutionsforcollaborationinthe

tourismclusterarequiteweak.Therearethreemaingovernmentbodiesinfluencingthe

tourismclusterdevelopment.PROMPERU,thePeruvianPromotionAgency,hascentered

itseffortsinpromotingMachuPicchuasthemaindestinationinPeru.CENFOTUR,the

educationalinstitutionfortourism,issupposedtobedecentralized;however,asmostof

thetourisminstitutions,itspresenceisconcentratedinLimaandCusco.Finally,

PROINVERSION,theinvestmentpromotionagency,hasallocatedmoreeffortstoattract

investmentsinminingandinfrastructure,whileinvestmentinthetourismsectorhasnot

beenapriority.

ThemainprivatesectorIFCsareCANATUR,theregionalchambersoftourism,and

APEGA.CANATUR,themainindustrygroup,iscomposedofnineofthemostimportant

nationalchambers,includinghotels,airlines,andtravelagenciesassociations.CANATURis

basedinLima,asisitsscopeofdiscussion.Althoughregionalchambersexist,accordingto

ourinterviews,theyarepoorlycoordinatedwiththenationalchambers55.Moreover,Lima

andCuscodominatediscussionsandinfluencetheclustersinitiatives.

54EconomistIntelligenceUnit.2008.Peru:CommerceReport.55HenriqueUrbanoandManuelIzaguirre.ObservatorioTuristicodelPeru.InterviewheldinMarch2010.


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AnotherIFC,APEGA(NationalGastronomicAssociation)showspromise.Itsleader,

GastonAcurio,isaleadingrestaurateurandhasgarneredbroadpublicandprivatesupport

fortheorganization.Thisbringsustothecriticalrelatedfoodcluster,whichislinkedtothe

tourismclusterthroughtherestaurantindustry.

Peruisexperiencingagastronomic

boomreflectedbyaneardoublingof

restaurantsoverthelasttenyears.The

cuisinebenefitsfromthebiodiversity

oftheregionandisoneofthemost

diverseintheworldwithalmost500

typicaldishes56.In2009,BonAppetitemagazinecalledPeruviancuisinethenextbest

thinginworldcuisines.ChefGastonAcuriohasbeenattheforefrontoftheexpansionof

PeruvianrestaurantsandhasopenhighlyratedrestaurantsinSanFrancisco,MexicoCity,

andColombia,makinghimtheonlyLatinAmericancheftoopenaninternationalchainof

restaurants.

Thisboomhasbenefittedthetourismindustryaswell.42%oftouristsnotethat

PeruviancuisinewasafactorintheirdecisiontocometoPeru57.Over90%oftouristsare

highlysatisfiedwiththefoodandwouldrecommendittotheirfriendsandrelatives58.

Evenmoredirectly,anumberoftouristsarecomingonlyforthefood.5%oftourists

describethemselvesasgastronomictourists.InMexicoandSpainthesetouristsmakeup

56ExpatPeru,http://www.expatperu.com/peruvianfood.php57PROMPERU.2007.PerfildelTuristaExtranjero.http://www.peru.info/s_ftoPublicaciones.asp?HidAccion=Grupo&HidId=2&ic=1&SubTipo_ZP=158Ibid


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8%and10%oftouristsrespectively59.Travelagenciesarenowofferinggastronomic

toursofPeru.Thisindustrycouldprovetobearealadvantageforthetourismsector.

DemandConditions

Perucurrentlyappearstoattractapredominatelylowprofitmarginbackpacker

segment.Whiletouristsspendonaverage$970pervisit60,thisisspreadoveran11day

triponaverage61.46%oftouristsstaymorethan2weeks,and26%staymorethan3

weeks62.VisitorstoPerutendtobelesswealthy48%haveanannualfamilyincomeof

lessthan$40,000.52%stayinlowendaccommodations(12starorcamping)63.An

additionalpartoftheexplanationofloworlowmarginspendisseeninthecountryof

originoftourists.Currently,Perureceivesthevastmajorityofitsinternationaltourists

fromLatinAmericancountries.Whilethe

USisthesecondlargestsender,theother

topfivesendingcountriesareallneighbors.

Peruisunabletoattractsignificant

numbersoftouristsfrommoredistant

countriesbecausePeruisundersold.To

start,despiteallthemanyissuesthathave

beenmentionedthroughoutthisdocument,

59SecretariadeTurismodeMexico.2008.PerfilyGradodeSatisfacciondelTurista.http://www.sectur.gob.mx/wb/sectur/sect_perfil_y_grado_de_satisfaccion_de_los_turista,InstitutodeTurismodeEspana.2008.ElTurismoEspanolencifras.http://www.iet.tourspain.es/paginas/Publicaciones/FichasPSel.aspx?clase=12&option=public&idioma=esES60WorldTravelandTourismCouncil.http://www.wttc.org/eng/Tourism_Research/61Ibid62PROMPERU.2007.PerfildelTuristaExtranjero.http://www.peru.info/s_ftoPublicaciones.asp?HidAccion=Grupo&HidId=2&ic=1&SubTipo_ZP=163Ibid


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thesatisfactionlevelsoftouristsareveryhigh,reflectedbythefactthat87%ofvisitors

wouldrecommendtootherswithoutadoubt64.Interviewsalsosuggestedthattourists

areoftenpleasantlysurprisedbyPeru,whichsuggeststheyhadlowexpectationsofthe

country65.Thegovernmentlaunchedamarketingcampaignin2008usingthesloganPeru,

LivetheLegend,whichreplacedthepreviousPackyoursixsenses,cometoPeru.The

newcampaignwasintendedtotargetanaudienceof510millionpeopleacrosstheUS,

WesternEuropeandthewealthierSouthAmericancountries.However,advertisingdoes

notappeartobepenetratingsuccessfully,asevidencedbythelackofvisibilityofthe

campaignintheUS,especiallyrelativetoColombianandChileancampaigns66.

5. ClusterRecommendationsPeruneedstodiversifyitstourismofferingsawayfromCuscoandMachuPicchu.It

needstoattractmoretouristsandalsomovetohighervalueaddtourists,whowillspend

onhighermarginactivities.However,Perushouldnotloseitscurrenttouristbase,asthey

contributetotheeconomyandmayreturninlateryearswhenmorewealthyandableto

spend.Toachievethisaim,weproposefourspecificrecommendations.

5.1.InitiatearobustNationalTourismStrategyGiventhepotentialoftourism,Perumustpositionthisclustersdevelopmentasa

nationalpriority.Itmustdevelopauniquevaluepropositionarounditsimpressive

cultural,naturalandculinarystrengthsandaconcretenationalvisionwithspecifictargets

(e.g.numberoftourists,numberofvisitorstoeachsite),timelinesandintermediate

milestones.Theexistingplans,whichlacksufficientclarityandactionsteps(e.g.,Tourism

64MINCETUR.2008.NationalTourismPlan.65InterviewwithDiegoComin(HBS)afterhisworkstudyingtourisminPeru,66PerceptionsfrominterviewedPeruvianslivingintheU.S.


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plan,COPESCO,CALTUR)needtobeupdated,revampedandifnecessary,consolidated.We

suggestthattheMinistryandTradeandTourismbeheldaccountablefordeliveringthe

vision,butshouldbeempoweredtodosothroughallocatingappropriateresourcesand

decisionmakingpower.

5.2.DevelopandpromotenewtourismproductsPeruneedstoinvestsignificantlyindiversificationofitstourismproducts.First,itmust

acceleratedevelopmentoftheotherruinsandsitessuchasKuelaptobroadentheportfolio

oftourismlocations.Strongertiesanddevelopmentofarcheologicaltrainingcanbeused

aspartofthedriveinthisarea.

Second,inadditiontolocationdevelopment,Perumustalsofocusonthematic

development.Thealreadyemerginggastronomicandecotourismproductsshouldbe

supported.Theybothbuildonstrongnaturalandhistoricendowmentsbutwillbenefit

fromthedevelopmentofspecificinfrastructureandtrainingprograms,whichthe

governmentcansupport,bringingintheprivatesectorwhereprofitincentivesare

sufficient.Perushouldalsolookbeyonditsgeographicboundariestocoordinatecross

countryinitiativessuchasAmazonadventureswithBrazilandColombiaorAndeancircuits

withBoliviaandEcuadortotakeadvantageofanddevelopregionalstrengths.

HoweverPerushouldnotassumethatdemandwillgrowsufficientlyjustbyimproving

thesupplyoftouristproducts.PROMPERUshouldbetaskedwithpromotingPeruasa

diversecountrywithseveraldestinationsandactivitiesintradefairs,writtenmedia,and

television.Inadditiontobroadnationalcampaigns,targetedmessagesforparticular

audiencesshouldbedeveloped(e.g.PROMPERUshoulddelegatetoAPEGAtoleadin

marketingtointernationalgastronomicaudiences).


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5.3.UpgradetransportinfrastructureThegovernmentshouldliberalizeitsairserviceagreementsandallowmarket

mechanismstoplayagreaterroleindeterminingthenumber,size,andpricesofflights.

Thegovernmentwillalsoneedtoincreaseinvestmentinregionalairports,giventhelow

airportdensityandourrecommendationofdevelopingnewtouristsitesandlocations.

Thegovernmentshouldacceleraterelevantexistingtransportinfrastructureprojects

byincreasingthebudgetallocatedtotheseinitiativesandunlockingmoreofthebudgetfor

immediatedeployment.However,focusshouldbeappliedtothoseprojectsthatarecritical

totourism.WhiletheMinistriesofTourismandofTransporthavetakenfirststepsin

coordinationthroughthedevelopmentoftheCOPESCOInfrastructurePlan,the

governmentshouldstrengthenthis,andensureadequateoversight,leadershipandbudget.

5.4.StrengthenIFCsInordertosupportadiversification,theIFCsshoulddecentralizethescopeof

discussionstopreventLimaandCuscofromdominatingallinitiatives.Thegovernmentcan

encouragetheexistingIFCstodothis,ornewIFCstoemerge,bysharingthenewNational

Strategy,andearmarkingfundsthatcanbeusedforpublicgoodprojectsthatalignwiththe

newplan.AspartofthediversificationtheIFCsmustfocusonimprovecoordination

betweenregional,nationalandlocallevels.

Currently,tourismsIFCsrelytooheavilyongovernmentinvolvementanddrive.

Ownershipmustbesharedwiththeprivatesectortosecurenecessarybuyinandensure

sustainability.Whilethegovernmenthassuccessfullyidentifiedafewchampionsthe

baseofprivatesectorinvolvementshouldbebroadenedtoincludeentrepreneursfrom

otherregionsandbusinesslinese.g.,travelagencies,Universities,traininginstitutes.


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