Aspects to be taken into account in the draft tourism bill

In this sense, the articles of the proposal are important because they would promote the transformation of the tourism activity, seeking the sustainability of tourist attractions, the formalization of the sector and its actors, as well as the recovery of the industry [1].

Now, it is worth mentioning that the bill has been going through the legislative process under the figure of "urgent message"[2], which makes it even more important because of the speed with which it could become a law of the Republic. In accordance with the foregoing, we proceed to summarize some of the most relevant provisions of the bill presented to the first report:

Some new definitions to take into account:

Limits of Acceptable Change: The project introduces the definitions of "Carrying Capacity", "Capacity of tourist attraction" and "Limits of Acceptable Change", which would establish criteria and limits in the use of tourist attractions, achieving their sustainability.

Electronic or digital platform of tourism services: This is understood as the one that mediates between the tourist and the service providers, obtaining a commission, remuneration or fee. The definition is important in the sense that specific obligations are imposed on this type of non-conventional intermediaries.

Tourist service providers and tourism quality:

Minimum levels of quality, safety and sustainability: It is foreseen that the Ministry of Commerce, Industry and Tourism would determine the levels of quality and characteristics of tourist attractions and destinations, in order to ensure minimum standards of quality, safety and sustainability in the sector.

Tourist Guides: In order to obtain the tourist guide card: i) the requirement of accreditation of knowledge of a second language is eliminated and ii) the accreditation of competencies through evaluations or certifications is allowed, eliminating the imperativity of a higher education degree..  

Control and penalties for service providers:

Suspension of registration in the RNT for non-compliance with environmental regulations. The sanction of suspension in the National Tourism Registry (RNT) is established when a service provider is sanctioned with the closing of its establishment, building or service for noncompliance with the norms related to environmental conservation and use of natural resources.

Penalties: The bill seeks to modify the penalties applicable to tourist service providers, or whoever presents himself before the public as such, by modifying Article 72 of Law 300 of 1996 and empowering the Superintendence of Industry and Commerce to sanction in accordance with the provisions of Article 59 and subsequent articles of the Consumer Statute; in such sense it would be empowered to sanction up to 2. 000 SMLMV (and 300 SMLMV with respect to administrators, fiscal auditors, partners, owners who have authorized operations in violation of the regulations in force), to close the commercial establishment, among others.

Of the electronic or digital platforms of tourist services: The bill seeks to impose special obligations to the operators of electronic or digital platforms of tourist services, understood as natural or legal persons that manage, operate or represent an electronic or digital platform of tourist services, among which are the following:

• Active and current registration in the RNT.
• Not to publish, or to remove and eliminate, advertisements and/or offers of tourism service providers that do not have active and valid registration in the RNT or when requested by the competent authorities.
• Deliver the information of tourism service providers using the platform, when requested by the Ministry of Commerce, Industry and Tourism or the inspection, surveillance, and control authorities, including the tax authorities.
• Pay the parafiscal contribution for the promotion of tourism.

Additionally, the operator of the electronic or digital platform of tourism services will be liable to the consumer for misleading advertising by service providers using the platform [3].

Tax incentives for the promotion of tourism activities:

The tax incentives presented in the first report of the Congress of the Republic are summarized below:

1. Exemption from the payment of the surtax or special contribution in the electricity sector for tourism service providers with current registration in the RNT, and who develop any of the following activities [4]:

• Lodging in hotels, aparthotels, vacation and rural resorts.
• Other types of lodging for visitors.
• Organization, promotion and/or management of events such as business or commercial exhibitions, conventions, conferences and meetings.
• Activities of amusement parks and theme parks.

2. Rate of 9% on income and complementary taxes[5] with respect to income from: (i) services rendered in hotels that comply with the conditions set forth in the bill; (ii) new theme park, ecotourism, agrotourism and nautical dock projects that comply with the conditions set forth in the bill; (iii) care, food, nursing, accommodation, physiotherapy, recovery and other assistance services rendered in assistance centers for tourists (senior citizens) that comply with the conditions set forth in the bill; and, iv) profits on the first alienation of land, real estate or real estate units that are new constructions, for a term of twenty years, provided that they are destined for the housing of senior citizens and comply with the other conditions set forth in the draft law.

3. Tax discount for the acquisition of land destined to the execution of activities for the conservation and restoration of renewable natural resources, even when these are used for tourist activities (the area destined to the development of tourist activities shall be up to 20% of the total of the acquired land) [6].

4. Decrease to 5% in the VAT rate for the sale of passenger air tickets, related services and the administrative fee associated with the commercialization of the same.

5. Exclusion of VAT on the rendering of hotel and tourism services until December 31, 2021.

6. Reduction to 0% of the national consumption tax rates for restaurant and bar services provided in articles 512-9 and 512-12 of the Tax Statute.

7. Reduction in territorial taxes during 2021 and 2022 provided that the municipal and district councils grant them as incentives to tourist service providers for the reactivation of the sector in their territory.

As can be seen from the above, the bill has provisions that would have a relevant impact on the tourism sector, and which should be followed up during the legislative process since, due to the urgency message with which they are being processed, they could become law in the short term.

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[1] The objectives of the bill may be evidenced in the first debate; Congressional Gazette No. 1159 of October 20, 2020.

[2] Article 163 of the National Constitution provides that, in the urgency procedure, the respective chamber shall decide within a maximum term of 30 days, granting speed to the same.

[3] This would be done in accordance with Article 30 of Law No. 1480 of 2011.

[4] The exemption will be until December 31, 2021.

[5] Article 27 of the proposal seeks to modify paragraph 5 of Article 240 of the Tax Statute, which contains the preferential income tax rate of 9%.

[6] The tax discount would be applied by virtue of the tax discount provided for in Article 255 of the Tax Statute.