Medellin’s Top Business-Development Leaders Reveal Big Investments, Expansions Coming
In a December 21 press conference at Mayor Federico Gutierrez’s office, Medellin’s top business-development agency leaders revealed a host of initiatives that promise to bring millions of dollars in new investments and re-investments starting in 2018 and subsequent years.
One example: At least three of the world’s top hotel chains are mulling a proposal to build a 180-room executive hotel adjacent to Medellin’s Plaza Mayor convention center, as Agencia de Cooperación e Inversión (ACI) director Sergio Escobar revealed in a post-presentation interview with Medellín Herald.
If a deal is struck in 2018, then it’s possible that construction would start soon afterward — and the hotel could open for business as soon as 2020, he added.
In his presentation here, Escobar revealed that foreign direct investment (FDI) in Medellin soared to US$372.7 million this year, up from US$211.6 million in 2016.
Among the biggest 2017 investors in Medellin include airport concessionaire Airplan SA (US$34 million), Hotel Marriott/Grupo Roble (US$40 million), and French multinational Almacentes Exito (US$200 million), he said.
Source countries for FDI in Medellin this year include USA (four companies), France (three companies), Canada (two), and one each from Argentina, Brazil, Denmark (a brand-new entrant), El Salvador, Holland, Panama, the UK, Switzerland and Uruguay, he explained.
In a separate presentation here, Maria Fernanda Galeano — Medellin’s Secretary of Economic Development — revealed that as of December 10 this year, Medellin has hosted 254,541 foreign visitors, up 4.21% year-on-year, with the USA (49%), Panama (18%) and Mexico (15%) accounting for the most visitors. Over the past five years, foreign visitors to Medellin have more than doubled — and business tourism is especially emphasized, as such tourists spend far more on average than typical pleasure tourists, she added.
So far this year, Medellin has captured 92 major events, up from only 15 events 10 years ago, Medellin Convention & Visitors Bureau director Ana Maria Gallego added here.
Besides well-known annual events for the textile, fashion, electric power and transport industries, Medellin also this year nabbed the prestigious “Smart City Business” convention, Gallego explained.
In 2018, Medellin will host the pioneering “IPBES” biodiversity conference; the South American Hotel & Tourism Investment Conference; and the 74th annual Sociedad Interamericana de Prensa (SIP) conference of journalists, she said.
Plaza Mayor Strengthens Events, Finance
Meanwhile, Plaza Mayor director Juan Santiago Escobar cited in his presentation a drastically improved financial situation for the convention center (which posted several yearly losses prior to 2016, blamed on prior-administration mismanagement) as well as continuing improvements and expansions of facilities.
Through November 2017, Plaza Mayor realized sales growth of 30% year-on-year, while 2017 earnings before interest, taxes, depreciation and amortization rose to more-than COP$3 billion (US$1 million), he said.
Total events at Plaza Mayor grew from 482 in 2016 to 496 in 2017, including big conventions such as ExpoAgrofuturo, World of Business Ideas (WOBI) and the “Feria de las 2 Ruedas” motorcycle show.
Total visitors to Plaza Mayor events so far this year hit 837,584 up 10% year-on-year, he said.
In 2018, major shows coming to Plaza Mayor include Colombiatex, Expofitness, Expoinmobiliaria, Congreso Nacional de Enfermeria, Feria de las Dos Ruedas, Exposolar, Colombiamoda, Expocamacol, Feria Internacional Minera, Congreso Colombiano de Pediatria, Congreso Panamericano de Transporte, Smart City Business Congress and the “INCUBATOUR” tourism conference, Escobar added.
Ruta N/Innovation District Advances
Meanwhile, Medellin’s “Innovation District” high-tech business-development center director Paulina Villa explained in her presentation that Medellin and its “Ruta N” tech center have attracted 49 new businesses this year, including the “Grupo Konekta” multinational software development factory.
In addition, global package-delivery giant UPS has recently added 200 high-tech back-office specialists at Ruta N, while another 108 high-tech companies are now exporting services from Medellin for the first time, Villa revealed.
Additionally, another 86 more companies are expected to join the “Innovation District” in 2018 – joining 204 companies from 30 countries already here, Villa said.