Peru's Tourism Industry

Abstract

Despite its natural beauty and Incan archaeological treasures, Peru has had trouble attracting tourists. Peru's apparent unattractiveness may stem from political unrest and economic instability. Seventy percent of Peruvians were living in poverty in 1992. Feeding on the government's ineffectiveness and the distress and hunger of the populace are several militant revolutionary groups. These rebels have tried several times to topple Peru's government, including late in 1996 when hundreds of prominent individuals were taken hostage by insurgents. Nevertheless, Peru enjoyed a banner year for tourism in 1997. Credit for Peru's apparently turning the corner goes in part to President Alberto Fujimori and his plan for “national reconstruction” to improve the nation's infrastructure, which included construction of several deluxe hotels and started the privatization of the government-owned lodging chain. Despite Peru's improving public facilities and growing tourist arrivals, there continues to be political instability that presents a real threat to residents and international visitors alike.