Peru has strong potential to leverage tourism as a source of regional growth and economic diversification. The travel and tourism industries are the fourth largest employer in the country (1.3 million job posts or 7.7%) after agriculture, retail and education, and a substantial employer of both women and youth. Tourism is the third-most important source of revenue within the national economy, generating US$4,895 million (8.8% of total exports) according to ComexPeru, with the potential to further extend its reach into secondary cities and more diverse geographic regions within the country. International arrivals have reached 4.4 million visitors in 2018 and are expected to continue growing, according to MINCETUR. This shows the urgency of achieving a better coordination between all levels of government to manage such growth in the sector. At the operational level, poor coordination and excessive red tape is stalling the investments needed for the sector to grow, formalize, and move into new areas. These delays potentially represent lost revenues, fewer salaries, lower taxes, and diminish both direct and indirect channel growth (food & beverage and other services). To use lodging as an example, the number of hotels and other accommodation providers is one of the highest in the region on a per capita basis. However, about half of all firms in the tourism sector are formally registered due to the difficulties of registering. The consequence for the sector and its reputation is clear: the quality of products and services across the middle and lower ends of the sector is low and will constrain growth prospects and economic inclusion. Three destinations are particularly challenged by a combination of high growth and poor coordination: Chachapoyas, Arequipa and Piura. This project will address some of the most critical cross-cutting issues holding Peru's tourism sector back at a destination level. These include business environment issues, accommodation regulation, investment promotion, data and statistics, and adventure tourism standards. At the same time, there are multiple coordination failures among national-level entities, between national and regional/municipal entities, and between the public and private sectors at all levels. These were highlighted in a 2013 WEF Insight Report on tourism which pointed to the need for better coordination between the public and private sectors on a range of issues from pricing to strategy implementation.