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Malecón del Pacífico colombiano al atardecer con hoteles y hostales frente al mar, turistas paseando y botes en la bahía
Un malecón turístico del Pacífico con alojamientos frente al mar, imagen alusiva a la reactivación turística propuesta. · Imagen generada para EPM

Lower VAT to help quake-hit towns welcome travelers back

Centro Democrático senators filed a bill cutting VAT from 19 to 10 percent on lodging and air tickets to municipalities hit by the magnitude 7.4 earthquake…

--- The context --- The magnitude 7.4 earthquake of August 10 left heavy damage across the economies of several departments, especially in the west of the country. For the municipalities that depend on tourism and on the trade that travelers bring, the blow reaches beyond broken infrastructure: it threatens the livelihoods of communities still living with the disaster's aftermath. --- The facts --- Senators Honorio Henríquez and Julia Correa, of Centro Democrático, filed a bill designed to offer incentives to travelers, especially Colombians, in order to reactivate tourism and commerce in the affected places. The idea is to bring visitors back to those destinations so their spending once again circulates through local economies. The proposal's first point would cut VAT from 19 to 10 percent on tourist services legally taxed at the general rate, covering lodging —hotels, hostels, apart-hotels and other tourist accommodation establishments— as well as air tickets bound for the benefited sites, during the 12 months following the law's entry into force. Its second point would create, for one year, monthly VAT-free tourism days: 3 consecutive calendar days including a weekend each month, with establishments exempt. The initiative also mentions the possibility of differentiated prices for Colombian travelers. --- The positions --- Henríquez said the aim is to energize the economy of the affected areas amid the communities' grief. Read that way, the bill is framed as relief first: a concrete hand for territories whose hotels, hostels and shops lost the flow of visitors on which they depend. Correa noted that the mood in Congress is favorable, that several lawmakers have already joined the proposal, and that they expect support through the debates. The Senate president stated that the initiative forms part of a legislative package from Congress's Bicameral Commission for the Earthquake, created after the emergency to legislate in favor of the victims. --- What remains unknown --- The bill does not remove VAT from other sectors such as commerce, agencies or guides, although it argues they would also benefit from the arrival of more tourists consuming their services. What remains unclear is whether that indirect effect will reach the smallest businesses in the benefited municipalities, or concentrate in the operators best placed to capture demand. --- Unanswered questions --- Which municipalities will be named exactly among the benefited sites for the rate cut and the VAT-free days? Will small hostels and family-run lodgings manage to capture the demand the incentive promises to attract? Will the differentiated prices for Colombian travelers survive in the text that Congress ultimately approves? --- EPM analysis --- Viewed from the affected communities, the proposal treats tourism as a tool of social reconstruction: instead of waiting for demand to return on its own, it makes the trip cheaper so that visitor spending can restart hotels, hostels and shops in the hardest-hit zones. Its promise will be measured by whether relief reaches modest local accommodation rather than only the largest operators. 📌 EPM Take: In EPM's view, the heart of this bill lies in looking at the emergency from the communities that endured it rather than only from the tally of damage. Turning Colombian travelers into an engine of recovery could return income to western municipalities whose demand has collapsed. For that gesture to become real reconstruction, the legislative process should ensure that small lodgings and local businesses receive a genuine share of the announced benefit.
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