Tourists to buy Peru's handicrafts worth US$ 200 mln

Foreign tourists are expected to buy Peru's handicrafts worth 200 million dollars this year, stated Monday National Director of Handicrafts at the Ministry of Foreign Trade abd Tourism (Mincetur), Madeleine Burns.

"More than 2 million tourists who have arrived to Peru this year will buy handicrafts worth 200 million dollars, they are also expected to buy 50 million in other export products," she stated to Andina.

This is a significant increase compared to last year's figures.

"We don't only expect total sales to increase this year but also tourists' per capita consumption, which currently rises to 98 dollars," she said.

The most demanded handicrafts by tourists are jewelry and alpaca garments as their highly quality has received worldwide recognition.

"Jewelry is mostly demanded by Americans who can afford to spend as much as 100 dollars, each one. They are closely followed by Europeans, but Asians are not that far," she stated.

Burns opened today Peru's National Handicrafts Fair 2010 –Makipuray, gathering more than 1,000 artisans in 255 stands representing 20 regions of the country.

Makipuray's goal is to promote, develop and improve trade articulation of Peruvian artisans. (Andina)

Peru to promote tourist attractions in U.S. next month

Peru’s Export and Tourism Promotion Board (Promperu) will promote the country’s tourist attractions in New York, Boston and New Orleans (United States) during the first half of December.

A supreme resolution issued today authorizes the trip of Promperu representatives to attend the “Puerta a Puerta en la Costa Este de Estados Unidos” (Door-to-Door campaign along the U.S. East Coast) to take place from November 30 to December 12 in the numerous cities throughout that area.

Promperu’s initiative aims to get in touch with travel agencies and tour operators in order to provide them directly specialized, updated information on Peruvian tourist destinations.

Another objective is to strengthen Peru's position in the tourism market, the document states.

Promperu creates and executes promotion plans and strategies of exportable goods, services, and domestic, inbound tourism by spreading the image of the country in terms of tourism and exports. (Andina)

Joint stock exchange MILA launches in Chile, Peru and Colombia

The stock exchanges of Chile, Peru and Colombia Friday launched the test phase of a joint stock exchange, a move that could produce enough trade to outstrip Mexican and Argentine equity markets.

Under the acronym MILA (for Mercados Integrados Latinoamericanos, Integrated Latin American Markets), it will be possible to trade in the stock of all 560 firms listed on the three exchanges from each separate exchange.

MILA's trading volume is projected to reach 300 million dollars per day, which would make it the second largest in Latin America, behind Sao Paulo but ahead of both Mexico and Buenos Aires.

Within five years, daily transactions are expected to amount to 1.5 billion dollars, as MILA authorities hope to attract more foreign capital.

The test phase will last until mid-January, said Santiago Stock Exchange president Pablo Yrarrazaval. He said the test phase would serve to iron out technical and administrative glitches, German press agency dpa reported.

The merger will not only create a single stock exchange but also allow similar investment and financing opportunities for all those involved, said Lima Stock Exchange president Roberto Hoyle.

All three countries have conservative governments with friendly ties to the United States, and they are keen to expand their trade relations, particularly with South East Asian countries. (Andina)

Yale to return all Machu Picchu artifacts

Peruvian President Alan Garcia announced Friday that Yale University has agreed to return the entire collection of archaeological pieces taken from Peru's famed Machu Picchu citadel almost a century ago.

In an address to the nation, the president said the artifacts will be sent back to Peru starting early next year, after completion of Yale's inventory of the artifacts.

President Garcia added that once in Peru, the objects will remain at the San Pedro de Abad University in Cuzco.

"The Peruvian government welcomes this decision and recognizes that Yale University preserved these artifacts, which otherwise would have ended up scattered in private collections around the world or would have even disappeared. We also acknowledge the studies that have been made along all these years," said the president. (Andina)

Peru remains as the second country with the best business climate in Latin America

Peru remains as the second country with the best business climate in Latin America according to Brazil’s Getulio Vargas Foundation and the Institute for Economic Research (Ifo) at the University of Munich (Germany).

Peru’s Economic Climate Index (ECI) reached 7.1 points in October, a decrease from the 7.5 points registered in July.

Peru’s ECI in January, July 2009 and April 2009 was 7.3, 6 and 5 points respectively.

This is the first decrease since January 2009, where the index showed a level of 2.9 due to the world financial crisis.

The countries with highest ECI in the region are Chile (7.5 points), Peru (7.1), Uruguay (7), Brazil (6.8), Colombia (6.8), Paraguay (6.5), Argentina (5.9) and Bolivia (5.6).

The ECI is the average of the evaluation done about the current economic situation in the region, the Present Situation Index (PSI), and the Expectations Index (EI). (Andina)

US hotel chain Thunderbird plans to expand in Tacna, Iquitos

US hotel chain Thunderbird Hotels plans to expand its operations in the cities of Tacna and Iquitos (Loreto) in the next two years as part of their consolidation efforts in Peru, its manager Francesc Martin reported.

“The idea is to operate existing hotels, we are not going to build new ones because it wouldn’t be profitable”, he told Andina news agency.

“We plan to start in Lima. This is the reason why we are looking hotels located mainly in the district of Miraflores, although we might be interested in San Isidro too”, he said.

Martin stated that they are negotiating with a hotel located in Tacna’s main square, which will be remodelled in order to attend business tourists from Bolivia and Chile.

“We plan to open a hotel in Iquitos by 2012. We have a casino operating inside the El Dorado hotel there, the only five-star hotel in the city”, Martin added.

Thunderbird owns Las Américas Hotel & Suites,  Las Américas Suites, Las Américas Apart Hotel  and Residencial Las Américas, all located in the district of Miraflores.

It also owns Carrera Hotel in the district of Lince and El Pueblo Resort and Convention Center in the district of Ate Vitarte. (Andina)

USDA to hold Peru/Ecuador trade and investment mission

A select group of companies have been invited to participate in the U.S.-Peru/Ecuador Trade and Investment Mission, sponsored by the United States Department of Agriculture (USDA), and set for January 31-February 3, 2011, in Lima, Peru.

In an effort to turn around the U.S. trade deficit and increase U.S. exports, particularly in the agricultural sector, the USDA invests a great amount of time and resources in order to ensure successful Trade Missions.

USDA Agricultural Counselor Emiko Purdy recently invited U.S. companies to explore all of the export and investment opportunities in the Peru/Ecuador region.

"U.S. agricultural exports to Peru have spiked in the past year, because of the U.S.-Peru Trade Promotion Agreement. Following the agreement, two-thirds of U.S. agricultural products received immediate duty-free access to the Peruvian market," said Purdy.

"Our exports as of July doubled in comparison to the same time last year. But, we can do better and hit that $1 billion mark for U.S. agriculture in Peru," she added.

The United States and Ecuador do not have a trade agreement to help U.S. agricultural exports skyrocket. However, there is potential for U.S. products in Ecuador.

According to the USDA official, both Peru and Ecuador have a growing middle class with increasing incomes and a preference for high value foods. Secondary cities are importing high value products in order to satisfy the growing demand from the local population and the tourism industry. (Andina)

Prince of Asturias to visit Peru on November 22-25

Prince of Asturias Felipe de Borbon y Grecia and Princess Letizia Ortiz Rocasolano will pay an official visit to Peru on November 22-25 invited by President Alan Garcia, according to Spain Minister of Foreign Affairs and Cooperation.

During their official, the prince and his wife will be accompanied by the Secretary of State for International Cooperation, Soraya Rodríguez.

The visit “will contribute to strengthen bilateral relations,” said Spain Chancellery in a statement.

This will be Prince of Asturias's first official visit to Peru, but the third time he visits the country. In 2001, he was in Lima to attend Former President Alejandro Toledo's inaugural ceremony, and in 2006 he came again to witness President Alan Garcia's.

King Juan Carlos and Queen Sofia paid an official visit to Peru in November 2001. (Andina)

Southern Andes announces uranium discovery at Accocucho Sur, Peru

Southern Andes Energy has announced the discovery of widespread uranium mineralization from preliminary work on its Chacaconiza project area in the Macusani Uranium District, Southeast Peru.

Initial results from a comprehensive exploration program consisting of detailed mapping, hand supported radiometric surveys, trenching and channel sampling from a portion of the Accocucho Sur target, one of four targets located in the large Chacaconiza project area, have returned significant widespread uranium mineralization from intensely fractured volcanic ash flow tuffs and ignimbrites.

The mineralized area is characterized by a radiometric anomaly striking for 1.5 km that was outlined during a regional survey done in 2006.

Commenting on the results, Nick Tintor, President and CEO stated that "These are excellent preliminary results from just a small part of one large radiometric anomaly that underscores the potential we see at Chacaconiza."

Tintor further added that "The increase in disseminated uranium in Trench 14 is especially of significance as the majority of uranium found to date in the Macusani Uranium District is fracture controlled." (Andina)

Peru's GDP expands 10.41% in September, highest growth since June 2010

Peru's Gross Domestic Product (GDP) expanded 10.41% in September over the same month a year earlier, posting its highest growth since June (11.92%), Peru's National Statistics Institute (INEI) said Monday.

The accumulated figure for January to September was 8.7 percent and in the last twelve months it was 7.39 percent.

The INEI attributed the September growth to a 22.97 percent increase in the construction sector, while activity in the manufacturing sector grew 16.68% in the same month.

Finance sector activity increased 16.58%, while the retail and farming sectors rose 10.96% and 4.08%, respectively.

Electricity and water production increased 6.82%, while transportation and communications activity increased 5.43%.

Production in Peru's mining and hydrocarbon sector fell 2.74% in September, while fishing sector production was down 36.13%. (Andina)

Peru, Japan wrap up free trade negotiations

Peruvian President Alan Garcia and Japanese Prime Minister Naoto Kan on Sunday signed a joint declaration to conclude negotiations for a bilateral free trade agreement.

The signing ceremony was held at the Pacifico Yokohama Conference in the presence of Peruvian Foreign Minister Jose Antonio Garcia Belaunde, Trade and Tourism Minister Eduardo Ferreyros and Peruvian Ambassador to Japan, Juan Carlos Capuñay.

Prior to the announcement of the successful conclusion of negotiations, Garcia Perez held a thirty-minute meeting with Prime Minister Naoto Kan.

Tokyo and Lima launched their FTA negotiations in May 2009, following up on an agreement the previous year between then Japanese Prime Minister Taro Aso and Garcia on the sidelines of an APEC summit in Lima.

The Economic Partnership Agreement (EPA) with Japan will further strengthen trade and investment ties between the two countries, which will have a direct impact on the prosperity of our country, specifically with regard to economic growth and employment creation.

Rounds of negotiations

The first round of negotiations took place in Lima from May 25 to 30, 2009. The second round was held in Tokyo from July 6 to 10, 2009. The third round took place in Lima from August 24 to 29, 2009. The fourth round was held in Tokyo from October from 1 to 6.

The fifth round of negotiations was held in Lima from February 1 to 6, 2010. The sixth round took place in Tokyo from August 18 to 31 this year. (Andina)

International fairs and business missions prove profitable for Peru

Peru’s Export and Tourism Promotion Board (Promperu) estimates that for every dollar the government spends on international trade fairs and business missions like Expo Peru, the country earns 45 and 85 U.S. dollars in exports, respectively.

According to Promperu official Luis Torres, the participation of Peruvian entrepreneurs in international fairs has allowed local export-oriented companies, especially those in the food industry, to position themselves in new markets.

Torres also noted that Expo Peru trade and investment promotion events in Mexico and Chile brought together 650 Peruvian exporters who held talks with more than 800 entrepreneurs from different Latin American countries.

He pointed out that there are some 6,000 exporters in Peru who have seen their sales climb as much as 33.33 percent between January and September this year.

Peruvian exports are expected to reach $33 billion this year, including $7 billion from non-traditional exports, said Torres. (Andina)

Germany's Hochtief to build Cheves hydroelectric power station in Peru

German construction company Hochtief AG has been awarded a contract to build the 168MW Cheves hydroelectric project in Peru.

Hochtief Construction will build the Cheves hydroelectric power station in Peru for roughly EUR 110 million together with a partner.

Hochtief’s share runs up to almost EUR 70 million. The facility is to cover the peak electricity requirement in the Lima region from the end of 2013.

The Cheves hydroelectric power station will be built in the Andes at a height of 2,000 meters.

In addition to the underground power plant, Hochtief Construction will build 17 kilometers of tunnel, two weirs and a dam.

The Cheves hydropower plant is Hochtief Construction’s second project in South America as the first phase of the La Confluencia facility in Chile will be handed over as of year-end. (Andina)

Peru is second most reputable country in Latin America

According to a recent study by Reputation Institute, a New York based survey organisation, Peru is the second most reputable country in Latin America, only behind Brazil.

Peru was also ranked as the 27th most reputable country in the world in Reputation Institute’s CountryRep 2010 - an annual survey measuring public perception of 39 countries around the world.

Sweden was rated the most reputable country, closely followed by Canada, Australia and Switzerland.

The CountryRep 2010 study measures the overall respect, trust, esteem, admiration and good feelings the public in the G8 countries hold toward 39 countries outside of their home country and how 35 of those countries rate their own nations.

According to an official of Grupo Inmark, the study puts Peru on the world map primarily due its political and economic strength. Inmark Perú is a strategic partner of Reputation Institute and contributed to this study.

“The report focuses on three aspects: quality of life, effective government, and economy and culture,” said Manuel Lopez, who leads Inmark Studies and Strategies.

Consumers in each of the G8 countries (Canada, France, Germany, Italy, Japan, Russia, UK, and USA) rated 39 country brands and thereby provide a snapshot of the reputation of emerging markets with G8 consumers. More than 26,000 consumers were interviewed online and asked to rate countries, providing over 46,000 country ratings. (Andina)

Germany to fund modernization of Peru's scientific research vessel

The governments of Peru and Germany have signed an agreement to modernize the Humboldt, a Peruvian scientific research ship, informs the Ministry of Production (Produce).

Those that participated in the signing of the agreement include the head of Produce, Jorge Villasante Araníbar and the Minister for Economic Cooperation and Development, from Germany, Dirk Niebel.

The German authorities will give a loan of EUR 2 billion to modernize the ship, so that it can continue doing scientific research fishing on the coast of Peru, fis.com reported.

The Humboldt is of great importance to food security because it can "explore our oceans, resources and ensure their sustainability," said the Peruvian minister.

According to Villasante Araníbar, the bilateral pact will increase the levels of quality and timeliness of scientific research in the ocean and lead to better decisions regarding fisheries management.

For its part, Niebel said the vessel was significant in order to safeguard the marine wealth and seek to improve the living conditions of the population.

The loan will be repaid over a period of 30 years, with a 10 year grace period at 2 per cent interest.

The Humboldt was built through cooperation between Germany and Peru, with a share of approximately 60 per cent and 40 per cent respectively.

Peru: Integrated stock markets will mainly foster Lima stock exchange

Peru’s Finance Minister, Ismael Benavides, said the forthcoming integration of the Lima Stock Exchange (BVL) with those of Colombia and Chile will further enhance our own stock exchange's market power.

"The integration of the Chile, Colombia and Peru’s stock exchanges will enhance our market rather than the others," he said.

According to the Finance Minister, this stock exchange integration initiative will bring a new challenge for Peru and has to be faced in the best possible way.

Such integration will allow investors to have a more diverse portfolio of stocks.

Integrated stock markets will start joint operations next November 22, the president of the Lima Stock Exchange, Roberto Hoyle said in previous statements.

He said the markets’ integration will be the second most important stock exchange in Latinamerica behind Brazil’s Bovespa. (Andina)

Americas Society: Peru, an exciting story of transformation

Peru is a very exciting story of transformation based on its consistent growth and low inflation rate, one of the lowest in Latin America, said Susan Segal, President and CEO of Americas Society and Council of the Americas.

“Peru will grow more than 8% this year. It was one of the few countries in the entire world that grew last year during the economic crisis”, she said to Andina.

The entrepreneurial environment in Peru has improved significantly as it is shown in the fact that the country leads the list of best countries to do business in Latin America.

Peru jumped to 36th place from 46th in the Doing Business 2011 ranking made by the World Bank and unveiled Wednesday, becoming one of the most attractive economies to do business and make investments.

“As you go through the country and Lima, you can see the difference. Peru is offering its citizens a great opportunity to live in an economy with growth and entrepreneurial spirit”, she said.

As Peru continues to grow, the government and the private sector are focusing on ways to improve education, access to health and technology, and entrepreneurship to make more people reap the benefits of the country’s growth.

She said Peru’s standards of education have dramatically changed in terms of criteria.

“Peru has reduced the level of poverty, it ahs lifted people out of literacy, there are more children that can read and write”, she stated.

However, with 30 percent of the population still living in poverty, Peru still faces challenges to improve the quality of life of the poorer sectors, The Americas Society CEO said. (Andina)

Barclays Capital doubles Peru's 2010 growth forecast to 8.9%

London-based investment bank Barclays Capital has substantially raised Peru's growth forecast for 2010, the bank's director for emerging markets research, Roberto Melzi, said Thursday.

Barclays Capital has more than doubled its forecast for Peru's economic growth this year to 8.9 percent from an earlier projection between 3 and 4 percent. The bank also projected that Peru's economy will expand between six and seven percent in 2011.

Melzi noted that the Andean country's strong GDP growth is the result of the government's economic stimulus package and rising exports.

“This year's growth is mainly driven by the recovery of exports and increasing demand , fueled by the government's anti-crisis plan which is still in progress in the infrastructure sector,” he told Andina.

The International Monetary Fund (IMF) and the Peruvian government have projected economic growth in 2010 at 8.3 percent and 8.5 percent, respectively. (Andina)

Peru moves up 10 positions in Doing Business 2011

Peru has moved up 10 positions from 46 to 36 in the Doing Business 2011 ranking by World Bank as it increased its competitiveness and ease of doing business.

“Our country has given a great drive of competitiveness,” he said adding that Peru is set to rank in position number the following year.

President Garcia stated that few countries in the world have registered Peru's speed of economic growth. "Without growth and development, distribution does not exist," he added.

Peru's GDP will grow 8.5% this year spurred by foreign direct investment and public investment, said Garcia in the closing ceremony of the Americas Society's conference: "Peru: Investments, Inclusion and Social Responsibility”. 

This conference took place at the Ministry of Foreign Affairs headquarters in Lima.

The Doing Business project provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level.

Launched in 2002, the Doing Business project looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle.

Doing Business 2011 will be officially launched November 4th at 00:01 hours. (Andina)

Peruvian ambassador to offer closer ties with Utah Valley University

Peru’s ambassador to the United Nations, Miguel Valdivieso Montano, will visit Utah Valley University on Nov. 6 to speak with the University’s leaders about creating greater ties between institutions of higher education in Peru and UVU.

David Utrilla, the Peruvian honorary consul general in Salt Lake City who will accompany the ambassador on his visit, said Valdivieso’s efforts are aimed at facilitating greater engaged educational opportunities for students in both countries. Utrilla is enthusiastic about Valdivieso’s visit and the opportunity to address UVU’s Hispanic students.

“There is such a large Hispanic population in Utah, and there are many Peruvians in the community,” said Utrilla. “The ambassador wants to speak to them as well as to community leaders. He understands that UVU is a new university, but it is growing into a very important one. He also knows of the interest UVU has in creating ties with other countries. The international outreach that UVU has made has created a great interest in furthering relations with the university.”

In honor of the ambassador’s visit, there also will be a dinner and cultural presentation at UVU on Nov. 6. The evening will focus on Peru and its culture, filled with traditional Peruvian dances, music and food. Valdivieso will speak on forging connections between countries and will also encourage local Peruvian-American business leaders to focus on growing Utah’s economy.

“The Peruvian ambassador’s visit to UVU strengthens both our local community and global partnerships by opening new windows of opportunity for students on both ends of the Americas,” said Yudi Lewis, program director of UVU’s Latino Initiative.

The event will be presented by UVU’s Latino Initiative and Office of International Affairs & Diplomacy, with the support of the Peruvian consulate in Salt Lake City and the Latin American Coalition. It will be held from 6 to 9 p.m. at Centre Stage in the UVU Sorensen Student Center. This event is open to the public, but tickets must be purchased in advance. Cost is $20 per person. Please call the UVU Latino Initiative at 801-863-8744 for ticket information.

Valdivieso became the Ambassador Extraordinary and Plenipotentiary of Peru in the U.S. in 2009 after filling the position of Minister of Economy and Finance of Peru. In that capacity, he also represented Peru on the board of governors of the World Bank and Inter-American Development Bank. Most of Valdivieso’s professional career was at the International Monetary Fund, where he worked for 28 years, holding senior management positions in various departments.

Valdivieso also was a special technical advisor to Peru’s Ministry of Economy and Finance of Peru. He holds a bachelor’s degree in economics from the Catholic University of Peru, and a doctorate and master’s degree in economics from Boston University, and has also held teaching positions at both universities.

Vía Andina

Peru attracts $3.4 billion in FDI in first half 2010

Peru attracted $3.4 billion in foreign direct investment (FDI) in the first half of this year, according to the Economic Commission for Latin America and the Caribbean (ECLAC).

Figures show that Peru attracted $1.8 billion in foreign direct investment in the first quarter and 1.6 billion in the second quarter.

Foreign direct investment (FDI) in Latin America and the Caribbean recovered significantly in 2010 with regard to the drop in 2009 as a result of the global financial crisis.

According to new data released today by ECLAC, FDI to 11 of the region's economies grew 16.4% during the first semester of 2010 in comparison to the same period last year. This increase totaled over US$7 billion, rising from US$43.2 billion in 2009 to US$50.3 billion this year.

Latin American and Caribbean investment abroad grew strongly, jumping from US$5.5 billion in the first semester of 2009 to US$20.8 billion in the same period this year.

Based on these results, ECLAC estimates that FDI will rise moderately in 2010, but will fall short of the record levels seen in 2007 and 2008.

The increase in FDI is due in the first place to the economic stability and growth in most countries of the region. In South America, the high prices of prime materials have continued to encourage FDI flows to mining and hydrocarbons. Added to this are the recovery of world trade and the improved outlook for international financial markets.

FDI flows to Mexico in 2010 showed signs of a significant recovery, as in Chile and Peru. In Central America, FDI to the two main FDI recipients in the subregion -Costa Rica and Panama- also grew with regard to 2009.

During the first semester of 2010, Brazil continued to be the region's prime FDI recipient, with flows reaching US$17.1 billion. This is largely explained by the strong interest in investing in traditional activities and emerging sectors (oil prospecting and ethanol production), as well as loan payments from Brazilian subsidiaries of multinational corporations to company headquarters. (Andina)