Summary of Proposed Investment
Project Number
10651
Company Name
INKA TERRA PERU S.A.C.
Date SPI Disclosed
Nov 9, 2000
Country
Peru
Industry
Tourism, Retail and Property
Projected Board Date
Dec 13, 2000
Status
Completed
Sector
Tour Operators (i.e., Arranging and Assembling Tours)
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Dec 22, 2000
Signed : Jan 25, 2001
Invested : Jan 31, 2001
Project Description
The Project proactively supports positive environmental development by encouraging environmentally friendly, sustainable tourism activities and may generate more widespread uptake of eco-tourism through replication by others. The Sponsor has a proven track record in development of eco-toursim facilities and dedication to ecological study, development and conservation. The Company has been offering eco- tourism experiences since the mid-1970s, initially with Cuzco Amazonico and more recently with the Machu Picchu Pueblo Hotel. The existing hotels are recognized internationally as locations for scientific research. Furthermore, Inka Terra is in the process of offering ecological study programs that provide academic credit for accredited institutions in the United States. Over the years, the Company has achieved the delicate balance necessary to operate a profitable business while fostering an environment that protects local nature and culture, as well as augmenting scientific studies and ecological awareness of the area. Sr. Koechlin has also contributed significantly to the government''s efforts and awareness of environmental protection.
The Project builds on IFC''s cultural heritage and tourism strategies. At several sites, the Project will embody direct, proactive development of cultural heritage through several measures. The project will contribute to the preservation, renovation and interpretation of Inka and Spanish Colonial cultural heritage into the tourist experience. Furthermore, the Project will facilitate the growth of cultural-heritage or nature related travel in a sustainable manner to several regions, including Machu Picchu, Amazonia, and the Andes (Lake Titcaca). The development of higher quality lodging in such areas is expected to encourage increased visitation and, thus, economic benefit to the local areas. The expansion of this Peruvian, private sector, small business will bring related positive impacts on local employment, local training, foreign exchange and tax revenue.
IFC Role: Inka Terra does not have access to financing from traditional sources due to its limited size, specialized focus and related ecological undertakings. Despite these limitations, the Company has built up an impressive record of sustainability and growth. By supporting the Company, IFC will allow it to expedite the implementation of its strategy to build a network of eco-tourism lodges. Such a network will enable the Company to offer a broader range of eco-tourism vacation packages and significantly increase its visibility vis-à-vis tour operators and the public in general. This, in turn, will improve the Company''s financial performance and help it build a stronger financial structure for future growth. IFC''s support for this project will also help to publicize the success of the concept, set physical standards for future investments and increase foreign exchange earnings for Peru.
Development Impact: Mr. Jose Koechlin and Inka Terra have shown that eco-tourism is an effective mechanism for balancing conservation and social development opportunities with commercial reality and demands. The proposed Project will help them to build on their successful experiences in the Amazon and elsewhere in Peru. By promoting sustainable tourism in a culturally and ecologically sensitive environment the Project could potentially have wider beneficial impacts through replication by others. The Project is also expected to contribute to Peru''s tourism infrastructure by providing international standard accommodations in a variety of important tourist destinations throughout the country, thereby attracting more visitors, more foreign currency spending and more jobs. Meanwhile, traditional culture and other natural elements will be preserved. Additionally, the Company will upgrade its human capital by imparting professional training to its employees, and providing life style changing career paths in the hospitality industry.
The Project builds on IFC''s cultural heritage and tourism strategies. At several sites, the Project will embody direct, proactive development of cultural heritage through several measures. The project will contribute to the preservation, renovation and interpretation of Inka and Spanish Colonial cultural heritage into the tourist experience. Furthermore, the Project will facilitate the growth of cultural-heritage or nature related travel in a sustainable manner to several regions, including Machu Picchu, Amazonia, and the Andes (Lake Titcaca). The development of higher quality lodging in such areas is expected to encourage increased visitation and, thus, economic benefit to the local areas. The expansion of this Peruvian, private sector, small business will bring related positive impacts on local employment, local training, foreign exchange and tax revenue.
IFC Role: Inka Terra does not have access to financing from traditional sources due to its limited size, specialized focus and related ecological undertakings. Despite these limitations, the Company has built up an impressive record of sustainability and growth. By supporting the Company, IFC will allow it to expedite the implementation of its strategy to build a network of eco-tourism lodges. Such a network will enable the Company to offer a broader range of eco-tourism vacation packages and significantly increase its visibility vis-à-vis tour operators and the public in general. This, in turn, will improve the Company''s financial performance and help it build a stronger financial structure for future growth. IFC''s support for this project will also help to publicize the success of the concept, set physical standards for future investments and increase foreign exchange earnings for Peru.
Development Impact: Mr. Jose Koechlin and Inka Terra have shown that eco-tourism is an effective mechanism for balancing conservation and social development opportunities with commercial reality and demands. The proposed Project will help them to build on their successful experiences in the Amazon and elsewhere in Peru. By promoting sustainable tourism in a culturally and ecologically sensitive environment the Project could potentially have wider beneficial impacts through replication by others. The Project is also expected to contribute to Peru''s tourism infrastructure by providing international standard accommodations in a variety of important tourist destinations throughout the country, thereby attracting more visitors, more foreign currency spending and more jobs. Meanwhile, traditional culture and other natural elements will be preserved. Additionally, the Company will upgrade its human capital by imparting professional training to its employees, and providing life style changing career paths in the hospitality industry.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Sr. Jose Koechlin, Presidente
422-6574
Inka Terra
Andalucia 174
Miraflores-Lima-Peru
422-6574
Inka Terra
Andalucia 174
Miraflores-Lima-Peru