Due to COVID-19, the most affected sectors in Colombia are tourism and aviation, therefore, the Government has taken measures that help relieve the obligations of the companies that are part of these sectors (airlines, hotels, travel agencies, restaurants and events).

Regarding the financial obligations and a possible illiquidity situation, the Government implemented measures that included postponing the payment of the private liquidation of the parafiscal contribution until July 2020 for the promotion of tourism, and the establishment of special deadlines for the payment of the VAT tax declaration of the first semester 2020, as well as for the income and complementary taxes of the taxable year of 2019. Therefore, the payments scheduled for the first semester of this year, are now scheduled for the second semester.

Likewise, it was created an initial credit line through Bancoldex of $250.000 million COP, which was increased to $650.000 million COP last week. This credit line will be available for the tourism, aviation, restaurants and public event’s sector, in order to maintain the all-size companies’ liquidity and replace the financial loss due to the falling demand.

On the other side, measures associated to register obligations, allow a term extension until July 3rd 2020 to renew the commercial registration and the records that make up the Single Business and Social Registry, which includes the National Registry of Tourism (NRT), according to the decree 434 of 2020.

Focus on eco-lodging:  It has been well documented that COVID-19 is creating a positive environmental impact on a global scale. Pollution and greenhouse gas emissions have fallen across continents as countries try to contain the spread of the new virus.

It remains to be seen if this is just a fleeting change, or if it may be more permanent and lead to longer-lasting falls in emissions. It is likely that consumers across the globe (especially millennials) will be encouraged by this trend and will look to contribute to environmental sustainability when travel restrictions are lifted.

This could create an increase in the demand for eco-lodges. Multi-national companies may consider acquire smaller, eco-focused lodging providers, whilst independent/small-scale lodging companies may look to gain eco certification to attract environmentally conscious travelers (Source: Global Data).