A Special International Report Prepared byThe Washington Times Advertising Department
                           Published on May 28, 1999
                           [Home Page]

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Advertisers

(1) Associated Banks

(2)Andimesa Enterprises

(3) FEDA

(4) Prestige Hotel

(5) Holiday Inn

(6)Pyrenees S.A.

(7)Andorra Online

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A Special International Report Prepared by The Washington Times
Advertising Department

Writer and Marketing Director:
Elena Sanchez
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For more information, call
The Washington Times International Advertising Department
at (202) 636-3035
(202) 635-0103 fax
e-mail: natlad@wt.infi.net

Copyright © 1999 News World Communications, Inc.

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A country of contrasts
Andorra's tourism industry is a gift of nature

Andorra is a country of contrasts with astonishing natural scenery for visitors to explore. This tiny Pyrenean country - set in the border between France and Spain - has been transforming itself into a playground of spas, ski resorts and shopping malls. The building of new attractions in Andorra la Vella, the capital, is part of the principality's success in luring ever more visitors across its scenic mountain passes. Thanks to its geographical advantages, Andorra has become an exceptional tourist destination, receiving around 10 million visitors a year - 86% of them loyal visitors who come over and over again.

"Tourism is, and will continue to be, the principal economic activity and source of wealth for Andorra. It is the country's "modus vivendi", Minister of Turism Enric Pujal said. "The importance of tourism lies not only in its direct contribution but also in its role as a benefactor of other industries, particularly construction and the hotel business." He explained that the sector forms 80% of the country's GDP.

Tourism first flourished in Andorra in the early 1960s, thanks to development of the commercial sector, but the country remained mainly a shopping location until the 1980s. During the last decade, however, winter sports have gained importance, mainly due to public and private sector investment in the country's state-of-the-art ski infrastructure. "Snow is the only product made in Andorra," Joan Viladomat, president of the ski resort Pas de la Casa/Grau Roig, said. He added, "Spain's entry into the EU eroded this country's commercial advantage and prompted a policy shift, when the government realized skiing had enormous potential."

Today, with a strong reputation for its ski resorts and first class international shopping, Andorra is finding a new dimension to its tourist trade. With improved ecological management, the Principality now has more to offer the tourist. It is a country rich in heritage, tradition and cultural life, with valleys, lakes and mountains to discover.

"Although it is most known for its winter sports and international shopping, Andorra is a tourist destination with all-year-long multiple possibilities," Minister Pujal said. He explained the government is now focussing on the potential of ecotourism activities for the spring and summer seasons.

The rising number of tourists has made it necessary to expand hotel capacity -Andorra now has over 300 hotels, apartment-hotels, residences and inns of all types, with a capacity of 35,000 beds. Adolf Vilanova, president of the Andorran Hotel Association, which includes over 350 establishments, explained that in recent years over 2 billion pesetas ($13.3 million) have been invested in order to renovate Andorra's hotels. "In recent years, visitor's demands have changed, necessitating a broader product range," Vilanova said. "We have quickly adapted to the new situation by enhancing the quality of existing hotels and building new ones in the urban, skiing and high mountain areas."

The hotel industry displays the key challenges facing its whole sector: visitors' short average stay, estimated to be between one and two days; a concentration of reasons for tourists to visit, principally shopping and winter sports; and the seasonal factor -although tourism is concentrated in the months from December to April and from June to September, the trend has decreased considerably in years.

"Now we must concentrate on visitors who wish to stay in the country and on day visitors," Vilanova said, "as well as on promoting new tourist attractions for different types of visitors -families, for example." Vilanova explained that the private sector is already catering to alternative tourism -like visiting the countryside spas and sports areas - while legislators prepare regulations, specially concerning hotel classification and the environment, the latter considered one of Andorran tourism's primary assets.

"The government is making every effort to improve and increase the present potential," Minister Pujal said. "We are training instructors, leaders and guides, signposting mountain tracks and hostels and setting up information and promotion centers for each of these activities."

Snow country
Andorra is a winter sports country. It offers the largest area for skiing in the Pyrenees -5 resorts extending over 150 miles and with a capacity of 25,000 people per day.

Efforts made over the last five years to upgrade facilities and services have been key in determining the economic impact generated by Andorra's ski stations -around 33.4 billion pesetas ($222 million). During this period, hourly lift capacity has increased 12%, about 10% more runs have been added and the number of snow cannons has doubled. The sector provides temporary employment to over 1,000 people and permanent employment to almost 200 people. "Last season facilities invested around 2.2 billion pesetas ($14.6 million), a similar figure to the previous year," said Marta Rotes, director of Ski Andorra, an association created in 1992 to organize and structure Andorra's ski product. "We are contributing to maintain Andorra as the most chosen destination in the Pyrenees, with 2.2 million days of skiing sold over the last winter season."

Rotes explained that although there is a slight improvement in tourist numbers during the summer, the highest season in Andorra remains the winter and early spring -the ski season. "Skiing is a very important economic motor," she said. "It has spurred business in the commercial sector during the winter months, which used to be slow." She stressed that Andorra's commercial offering has also been essential in promoting it as one of Europe's best ski destinations. "Our best competitive advantage is the "apres-ski" activities Andorra offers to the skier."

The land of rest and comfort
The Principality has the benefit of nature's riches: the sulphur-rich hot spring water of the Pyrenees, which makes Andorra a special place for restoring physical and psychological peace. "The stress, worries and the tough daily round modern society imposes on us have prompted a new concept of tourism in Andorra Đone with great potential," Joan Armengol, General Manager of Caldea, said. "We are anticipating the tourism of the future by responding to an increasing tourist demand for leisure, rest and health."

A unique glass structure in the heart of Escaldes, Caldea is the largest warm water treatment center in Europe. Financed by the local government and private investment, since its opening in 1994, over 1.2 million people have visited. "It was a very ambitious and innovative project, not free of criticism and skepticism from some Andorrans," Armengol said. "But visitors as well as locals are now captivated by the idea."

The Roc Blanc Hotel was a pioneer in taking advantage of the potential of the health benefits of the Principality's hot springs. But the difference with Caldea is that its services go beyond relaxation and wellbeing, but that it also has therapeutic programs directed exclusively towards health.

"One of the most precious of Andorra's possessions is water -we have been able to use its therapeutic power with great success," Joan Armengol, Roc Blanc's president, said. "We've had so much success that we've exported our knowledge of preventive medicine and bath therapy to Spain." He said the group now also has a thermal spa south of Barcelona and anticipates further investment abroad.

In search of new and ingenious ways to attract more tourists and tackle the seasonal gap, the government plans the establishment of more value-added products, such as a casino for next year. It is also promoting the idea of Andorra as conference and seminar center, especially for small conventions. "For several years, the country has had two conference and exhibition centers that are very efficient and modern," Pujal said. "It's about a new kind of tourism to consolidate the modern image of our Pyrenean country."

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Table of Contents

(1) A young country with an ancient history

(2)
Finding Andorra's place in the world

(3)
Andorran-US Relations: common hopes, common ties

(4)
Andorra At A Glance

(5)
Useful Contacts

(6)
A pillar of prosperity and security

(7)
Shaping a fiscal paradise to fit the times

(8)
Voices of Andorra's Future

(9)
The pleasure of shopping

(10)
Giving Andorra power to develop

(11)
Speeding towards the future

(12)
A country of contrasts