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Guidelines on requirements for preparing an economic study

All economic studies must be prepared and signed by a member in good standing of the Professional Association in the Economic Sciences.

In order to obtain the Tourism Contract, it is necessary to assess the contribution the project will make, by submitting an economic study that complies with the requirements set forth in Article 6 of the Law on Incentives for the Development of Tourism:

a) the contribution to the balance of payments

b) the use of national raw materials and inputs

c) the creation of direct and indirect employment

d) the impact on regional development

e) the modernization or diversification of the national tourism industry

f) the increase in demand (internal and international tourism)

g) the benefits derived by other sectors.

I-  Specific Aspects of the Economic Study:

Indicate the principal characteristics of the artificial or natural person submitting the application:  owners, location, corporate or personal identification number, date corporation was recorded in the Registry, firm name, commercial name, telephone and fax numbers.  Provide an address for service of legal notices.

II- Detailed description of the project, timetable for construction, and costs:

Specify what the project consists of and the principal and complementary services its will offer.  A timetable for the construction must be drawn up, specifying the starting and ending dates, and the cost of each stage.  Also, indicate the following:

Area and cost of land:

1. Cost of works of infrastructure
2. Area in square footage (expressed in square meters) and cost of construction of buildings (rooms, complementary services and amenities) by square meter.
3. Number and cost of rooms (for lodging establishments).
4. Total cost per room (for lodging establishments)

For projects that are to be developed in stages, indicate what works and services are included in each stage.

III-  Market analysis:

1.   Conduct an analysis of the current supply of the type of service the project plans to offer, detailing the following:

1. number and type of services that will be offered.
2. specify clearly what new and innovative services the project will offer, and what improvements they  offer over services already offered in similar activities (value added in terms of quality and type of  service).
3. average fee that will be charged for each type of service.

 2.  Conduct an analysis of the intended market of the project, detailing the following:

1. Describe the target market of the project.  Define the type of client or clients (if services are offered by market segments) who is the service targeting (by age, average income, educational level, place of origin, etc.)
2. Estimate the average number of clients expected, based on the estimated median annual occupancy rate.

This detailed information will be used to estimate the project's contribution to the balance of payments, and assess how it will modernize and diversify the national tourism industry and increase internal and international demand.

IV-  Administrative organization:

Provide the number of employees to be hired, and an estimate of the total payroll.  This will help in determining how much direct employment the project will generate.

V-   Effect on regional development, and benefits in other aspects:

Indicate the economic, social and cultural benefits the region will derive as a direct or indirect result of execution of the project.

Specifically, estimate:

1. Complementary economic activities that could be carried out in connection with the project; for example, in the case of hotels:  souvenir shops, shops for the  sale and rental services of sports equipment, restaurants, etc.

2. Other works of infrastructure that may arise from execution of the project.

3. Cultural activities to be carried out as part of the complementary services that are being offered.

This will help in assessing the effect of the project on the development of the region and other sectors, and evaluate the potential for the generation of indirect employment.

VI- Purchase plan:

Projects must submit a preliminary purchase plan, with a description of all national and imported goods to be exempted, and the number of each item that is needed to operate.

It is also necessary to submit in accordance with the plans, an itemized budget showing the quantities and types of materials that will be used, certified by the engineer or architect in charge.

In the case of vehicle rental companies, the purchase plan must include a complete description of the vehicles to be used in the rental activity; under no circumstances will the fleet consist of fewer than twenty vehicles owned by the company.

Also, it is necessary to clearly explain all suppositions used in preparing the estimates.


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