La Paz, Bolivia, August 5, 2014—IFC,
a member of the World Bank Group, will provide a $7.2 million loan to finance
the construction of the first Marriott hotel in Bolivia, in Santa
Cruz de la Sierra, a key business destination where the project will
help create jobs and address a gap in the city's business infrastructure.
The Andean Development Corporation (CAF)
will provide a co-financing of US$8.7 million for the project, which is
scheduled to be completed over the next two and half years. The hotel is
slated to have 172 rooms and conference space which may accommodate more
than 600 people to hold business conferences.
The project will create hundreds of
jobs during the construction period and more than 200 direct jobs once
it starts operations. Additionally, jobs in the tourism industry usually
have a strong multiplier effect and generate as many as three new indirect
jobs per direct job created, one of the key reasons behind IFC’s support
for the hotel industry in developing countries like Bolivia. Hotel projects
also stimulate local economic activity, and maintain high labor standards
The hotel will be Santa Cruz’s first
internationally branded and managed hotel, with extensively trained staff
and high service standards. This will also be IFC’s first hospitality
project in Bolivia and its tenth with Marriott affiliation, which included
investments in Haiti, Armenia, Jordan and Central America.
“We are excited to partner with IFC
in this project, which will have a positive impact in terms of job creation
and improving the infrastructure for business travelers,” said Carlos
Saavedra Bruno, board president at Empresa Hotelera Icon S.A., which will
own the hotel.
This company has chosen an architectural
design that will promote energy efficiency. The hotel will be the first
commercial green building in Bolivia and will meet IFC’s green building
standards to qualify for IFC’s EDGE (Efficiency in Design for Energy Efficiency)
“This project will promote an increase
in international and domestic visitors to Santa Cruz and will support the
development of the city as a business destination,” said Irene Arias,
IFC’s director for Latin America and the Caribbean.
“Travel and tourism plays an increasingly
important role in the economy as Bolivia attracts larger numbers of foreign
and domestic travelers, many of which are business travelers to Santa Cruz,
and we are pleased to be supporting this sector,” Arias said.
IFC’s strategic investments in the
hotel sector are designed to bolster the industry’s contribution to employment,
tax-revenue generation and the sector’s ability to generate economic activity
for small- and medium-sized businesses which supply goods and services
both during construction and operations.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org