IIC Supports Culturally and Socially Inclusive Tourism in Rural Communities in Peru
IIC loan will create development opportunities for residents of the department of Cuzco
Washington, D.C., September 9, 2015 — The Inter-American Investment Corporation (IIC) approved a loan for up to US$7 million for Peruvian company Mountain Lodges of Perú S.A.C. (MLP) for adding on to two mountain lodges in Lamay and Huacahuasi, Cuzco, and for building a new mountain lodge in the neighboring community of Patacancha, the income from which will directly benefit the local community.
This is the IIC’s second operation with MLP. The company will use the financing to complete development of a trail used for high-value adventure and cultural tourism that goes through the Lares Region, in the Sacred Valley of the Incas.
“MLP uses an innovative inclusive model under which the Huacahuasi and Patacancha communities contribute a portion of their lands to a corporation owned jointly with MLP in exchange for active participation in the management of the mountain lodges and a share of up to 25% of the earnings,” said Aniceto Huertas-Corcelles, the senior IIC investment officer in charge of the operation. “The IIC has structured a senior loan and another subordinated loan that will be used to finish the Lares Trail and consequently benefit the local rural communities.”
“The idea is to strengthen and diversify the local tourism supply and infrastructure with the goal of valuing and protecting the cultural and natural resources of these ancestral Andean communities, thereby creating a virtuous circle. This is an important step toward sustainability for the tourism industry. It represents progress and a better quality of life for the communities that live in conditions of extreme poverty,” said Enrique Umbert, MLP’s general manager.
MLP is a Peruvian tourism company specialized in adventure and cultural tourism. It offers lodging in Santiago de Viñak, Lima, as well as on the Salkantay and Lares access trails to Machu Picchu, including lodging in its own mountain lodges.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). The Corporation provides companies with financing in the form of equity investments, loans, and guarantees, as well as with technical assistance, advisory services, and knowledge products. In 2014, the IIC approved 64 operations totaling $426.3 million. Since its inception, the IIC has approved more than 920 loan and equity investments for SMEs and financial intermediaries, for a total of US$5.63 billion. An additional $3.7 billion has been mobilized through cofinancing and syndication agreements. For additional information on the IIC’s activities, visit www.iic.org.
Contact: Aniceto Huertas-Corcelles
Telephone: +1 (202) 623-2036 in Washington, D.C.