Market Trends of Chile Facility Management Industry
The Growth of the Tourism Industry is Expected to Drive Market
- The growth of the tourism industry is leading to an increased number of hotels, resorts, and accommodations facilities and creating demand for in-house facility management services to maintain infrastructure, ensure safety and security, utility management, and others to improve the guest experience and quality of services. According to The National Statistics Institute of Chile, in July 2022, Chile registered around 571 thousand tourist arrivals to hotel establishments, the highest figure recorded since March 2021, which showed an increase of 40% compared to the same month of the previous year.
- The strong interest from tourists in visiting Chile's capital during 2022 has shown remarkable progress towards regaining the sector growth. The tourism and hospitality sector contributed over 2.6 trillion dollars to the city economy in 2022, representing 1.7% of its total economic output. This represents a growth of 54% compared to 2021, when the contribution reached 1.7 trillion dollars.
- Meanwhile, the Undersecretary of Tourism estimates around 3,483,121 arrivals of foreign tourists will be registered in 2023, reaching the pre-pandemic levels. Such growth prospects of the country's tourism sector are expected to present more opportunities for facility management service providers, creating significant demand.
- Moreover, the government supports encouraging companies engaged in tourism by 2023, and the promotion and development of adventure tourism in Chile by implementing the second phase of AdventurePro by The Adventure Travel Trade Association (ATTA) is likely to support market growth, creating demand for various facility management services in the country.
Understand The Key Trends Shaping This Market
Download Sample
The Public/Infrastructure End-user Segment to Witness Significant Growth
- The public/infrastructure end-user segment includes FM applications in federal, state, and local office buildings. It also covers office buildings for administrative work and other such projects. The infrastructure comprises facilities covering water and land transportation.
- Various buildings use services such as fire alarms and safety, energy management solutions, CCTV monitoring services, and other integrated facility management services. Construction projects in multiple sectors are expected to develop rapidly, which is anticipated to create a considerable influx of investments toward infrastructure and public building structures, thereby driving the market's growth.
- The government is actively delivering its infrastructure plan for 2021-2025, including infrastructure projects with a combined value of CAD 19 billion. This infrastructure project includes 53 projects, including hospitals, airports, public buildings, stadiums, highways, orbital roads, and others. Completion of such infrastructure projects by the government is likely to create demand for hard and soft facility management services in the country.
- Moreover, in September 2022, the Chilean government launched a new plan called "Let's Invest in Chile" to stimulate investment in Chile. Under the new plan, the government is making significant strides to improve public investment. Moreover, under this plan, the Chilean government is also looking forward to attracting foreign investment and participation in this program, with the government working hard to encourage public-private partnerships.
- Among other initiatives in the proposed plan, the government aims to promote investment through public-private work. Four public-private working groups will be convened in sectors such as construction, transport, energy, and mining to create a set of measures that would reduce the number of stalled construction projects and create more favorable conditions for forthcoming projects. Such developments would result in high investments in public sector infrastructure in the country, thus creating opportunities for facility management market vendors.
