In the past, Colombia had a somewhat dubious reputation among travelers that, unfortunately, kept many from experiencing its numerous charms. Colombia’s government and its people have risen to meet many challenges over the past decade, working to improve the country’s attractiveness to international tourists as well as investors. After a recent visit to Colombia, I found the country to be an appealing travel destination with an incredible variety of attractions, festivals and natural beauty including snow-white beaches, mountains, tropical jungles, waterfalls and even volcanoes. My colleagues and I also recently explored the many potential investment opportunities in the country and were generally encouraged by what we saw and heard during our visit. Our first stop in Colombia was Cartagena, which has an interesting historical background. The city is an important center for oil refining and a major port; as our plane was landing, we could see large shipyards with modern cranes unloading a German container ship. We felt, however, there was probably better investment potential for Cartagena tied to tourism, and wanted to find out more about that aspect. Tourism on the Rise In 2015, some 2.5 million foreign tourists visited Colombia, up about 12% from 2014 and nearly triple that of 2005.1 Weakness in Colombia’s currency (the peso) has encouraged foreign travelers, particularly those from the United States as the US dollar has doubled in value against the peso over the past year and a half. Cartagena gets its share of tourists but I think there’s no reason why it couldn’t match the numbers of visitors to Bogotá, the country’s capital and leading tourist destination. In the recent past, tourism in Colombia has suffered because of drug-related violence in the country. However, the Democratic Security and Defense Policy of Álvaro Uribe Vélez (Colombia’s president from 2002–2010) designed to regain government control and fight illegal drugs and organized crime, and the “tourist caravans” (caravanas turísticas) proved largely successful. The tourist caravans involved military forces that provided reinforced protection on specific days on roads to major holiday attractions. The full name of Cartagena in Colombia is actually Cartagena de Indias (Cartagena of the Indies) to differentiate it from the city in Spain from where it got its name. Tourists in Cartagena, Colombia, not only enjoy the tropical climate, the beaches and sea, but also the incredible colonial-era buildings in the old fortress city. The city was a key port for the Spanish empire from the 1500s to 1700s and became a center for wealthy traders, soldiers and royalty. The walled city and fortress is designated as a UNESCO World Heritage Site. Gold and other treasures from all of Latin America were the impetus for the city’s early growth since the port was an ideal jumping-off point for the Spanish galleons to ship treasures to Spain via Havana. Cartagena’s walled city and fortress are among the best-preserved of any in the Americas, probably because having such wealth made it the target of Spain’s enemies in Europe as well as pirates. Walking around the old city was a joy for me since it took me back to colonial times when the city was the jewel in Spain’s Latin America crown. Within the fortress walls are streets and alleys lined with old colonial buildings which have been beautifully restored into all kinds of shops from cheap tourist trinkets to high-end fashion stores, restaurants and hotels. As we were walking, we came to a square near a cathedral where singers and dancers were holding an impromptu concert. Further on, we had to avoid horse-drawn carriages taking tourists through the narrow cobblestone streets. We passed an elegant hotel originally built in 1621 that formerly served as a Catholic convent, charity hospital, a prison and a school of medicine throughout its history. In 1991, a group of Colombian investors restored the building and many artifacts were found hidden under the ruins, water wells and other parts of the foundation. The nuns’ former dining room was transformed into one of the city’s most-famous gourmet restaurants. Cartagena’s walled city today is just a small part of what has become a major metropolis. The Boca Grande (Big Mouth) area between Cartagena Bay and the Caribbean Sea includes most of the tourist attractions, including hotels, shops, restaurants, nightclubs and art galleries, as well as beaches with volcanic gray sand and comfortably warm water to match the warm weather. We also visited a new, modern mall in the city, along with high-rise developments and the port and industrial area. Cartagena’s port services cities all over the country with truck drivers converging there. The drivers we encountered using a popular, on-demand car service were polite and helpful, and I peppered them with various questions to get a local perspective as we toured the city. When my colleagues and I saw a police barrier with cars being stopped, I asked our youthful driver whether the police were honest. His answer, “no,” was equally honest and quick. Unfortunately, we have found corruption is fairly widespread around the world (even in developed countries) and is often considered a cost of doing business. The good news is that with smartphones and the Internet and the like, it is becoming more transparent and there have been strides in eradicating it in many areas. We scanned the Spanish-language newspapers for other topics of concern to the city and nation, with one interesting headline translated as: “The Economic Environment Is Difficult but Not Dire.” The paper featured an interview with President Juan Manuel Santos and quoted him as saying that if peace with the FARC rebels is accomplished it will be the most spectacular year in the country’s history. FARC, a Marxist-Leninist guerrilla movement fighting the government since 1964, is short for “Fuerzas Armadas Revolucionarias de Colombia,” translated into English as, the “Revolutionary Armed Forces of Colombia.” The United States and Europe consider FARC a terrorist organization responsible for a number of crimes. Colombia’s government and FARC have come together over the past month to negotiate a possible bilateral cease-fire agreement,...
Investment Adventures in Emerging Markets - Notes from Mark Mobius
Mark Mobius, Ph.D., executive chairman of Templeton Emerging Markets Group, joined Templeton in 1987. Currently, he directs the Templeton research team based in 15 global emerging markets offices and manages emerging markets portfolios. As he spans the globe in search of investment opportunities, his “Investment Adventures in Emerging Markets” blog gives readers a taste for what he does, when, where, why and how. Dr. Mobius has written several books, including “Trading with China,” “The Investor’s Guide to Emerging Markets,” “Mobius on Emerging Markets,” “Passport to Profits,” “Equities—An Introduction to the Core Concepts,” “Mutual Funds—An Introduction to the Core Concepts,” ”The Little Book of Emerging Markets,” and “Mark Mobius: An Illustrated Biography."
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