Peru to Strengthen the Arequipa–Colca Tourism Corridor and Promote Private Investment and Job Creation with World Bank Support

Moving beyond isolated infrastructure investments, the project uses market demand to focus on the tourism experiences with the greatest potential—cultural, nature, and adventure—and tailor investments to unlock new opportunities across the corridor. WASHINGTON, July 9, 2026 — The World Bank’s Board of Executive Directors today approved a new project to help Peru strengthen the Arequipa–Colca tourism corridor, improving tourism infrastructure and services, enhancing cultural and natural heritage sites, and promoting sustainable tourism-led growth in southern Peru. The program is expected to mobilize private investment, expand economic opportunities, and create quality jobs, particularly for women, youth and local communities. The US$77.2 million project will support strategic investments in the Arequipa region across tourism, culture, transport, water and sanitation, health, environmental conservation, and destination management. Guided by market demand, these investments are tailored to unlock high-potential tourism segments and improve access to key attractions, enhance the visitor experience, and help position Arequipa–Colca as a leading destination for cultural, nature, and adventure tourism. Tourism is one of Peru’s most job-intensive sectors and has significant potential to foster inclusive growth beyond traditional destinations. The project is expected to support the creation of thousands of direct and indirect jobs throughout the tourism value chain, benefiting local businesses, service providers, artisans, farmers, and communities across the corridor. “This project represents a new approach to regional development in Peru, bringing together investments in tourism, roads, water and sanitation services, environmental sustainability, and destination management to strengthen the Arequipa–Colca corridor. By making the region more attractive to visitors and investors, it can help unlock private investment, create quality jobs and expand opportunities for communities in southern Peru,” said Ariel Yepez, World Bank Division Director for Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela. This loan supports one of Peru’s first multisectoral investment programs and will be implemented by the Regional Government of Arequipa, with the technical support of the Ministry of Trade and Tourism. It provides a blueprint for other subnational development initiatives in the country and beyond that seeks to unlock the economic potential of specific regions and translate it into more opportunities for people and communities.