How to start a hotel or hostel in Colombia? Quick step-by-step guide
¿Are you thinking about starting your own accommodation business located in Colombia? Then, first of all, you must to know how to start a hotel.
Here we will introduce you to a quick guide of all the essential activities that you need to take to achieve the goal of creating a hotel, hostel, touristic apartment or whatever kind of accommodation business.
1. Define a Business plan.
Any entrepreneur should have a work plan before you begin the activities for developing yours ideas.
What is commonly known as a business plan, company plan or the definition of a business model. We recommend you to use the CANVAS methodology, this shall help define quickly the following 9 key aspects required to your business model: Customer segment, distribution channels and communications, revenue stream, key resources and activities, network strategic partners and cost structure.
2. Choose a strategic location for your customer segment.
During the examination of an ideal location to your accommodation business, people often think in the most touristic places where many hotels and hostels has traditionally been located in the city. It isn’t the only way to the perfect location.
A correct location depend on customer segment which you would like to point. You could make a difference in comparison with competence.
We recommend you to do a preference list about the needs of your customer segments with respect to the ideal place location. For example, if your idea is an accommodation to people that work in medical tourism, so you should look quite places, easy access and closer to hospitals.
3. The studies about land use (Legal Requirements in Colombia).
In this country, it needs to be taken a license for land use to start up your own business establishment open to the public.
¿Who is the entity that issues the land use? The answer is the planning municipal offices or city hall of each city. They are attendants of issue to the people who request it.
When you decide to apply for a license, you do not need to have a company establishment. Consequently people can apply as a natural person with the personal colombian id and all necessary documents by planning office.
4. Enter an establishment at chamber commerce and DIAN (Legal Requirements in Colombia).
As part of the legal requirements is necessary to carry out some procedures depend on the kind of business. There are two different ways to register a business: as a natural person or as society.
In this link you can find differences between each one and the guide step by step to do the register at chamber of commerce located in Bogotá. The process is similar in all the cities.
5. Construction Licenses to new and refurbished properties (Legal Requirements in Colombia)
If you start from scratch and the idea is making an important refurbished in an antigua house or adapt a local or house to your accommodation business, then you need a construction permission to making all the necessary changes.
We recommend you the following article that details the kind of licenses, requirements and the process to achieve it.
6. Apply to National Tourism Registry and make a registration at system migration (Legal Requirements in Colombia).
When people already make the legal registration and your accommodation house be ready to receive people.
Then you need to achieve two more additional legal requirements. These may be requested at the same time when start the commercial activities. They prescribe in a period to get it. Otherwise, people can facing sanctions which directly affect your business.
National Tourism Registry is a legal requirement that all the tourism companies must meet in Colombia; you can follow this link to know about the details to enrollment process.
The entity Migracion Colombia is a custom agency entrusted of monitor and have an internal control in the colombian country.
One of the legal obligations that a person as businessman could have is send to migration the list of foreign people entering and leaving the accommodation place every day. It is implemented by a page called SIRE – Sistema de Información de Registro de Extranjeros (Register Information System). Business person receives an access code when applying to register on the mentioned website. For it, should be ready four step ‘‘Enter an establishment at chamber commerce and DIAN’’.
7. Make your dreams come true.
According to an economical article in “La República” newspaper about tourism sector in Colombia, colombian tourism continues to establish itself as one of “the economic sectors with higher growth’’. Based on the previous new start an accommodation hotel or hostel could be a success investment.
Also passion, perseverance and discipline determine the key success factors.