The Pacific's pearl: with favorable winds and calm waters, Ecuador's business capital is finding its place in the investments map.

A change of direction was necessary for Guayaquil, main port and economic hub of Ecuador, to take a turn for the better in terms of services and infrastructure, and consequently in quality of life and incentives for tourism and investment. City authorities have succeeded in their 12-year effort to bring together the public and private sectors to achieve a common goal: reviving a city full of history, human warmth, and a tireless spirit for progress, making it the most populated city in the country. Guayaquil has a population of over two million and harbors 40 percent of Ecuador's industrial and business ventures.

"Investment is more than welcome here; the city of Guayaquil offers legal certainty," says Mayor Jaime Nebot who, separately from the rest of the country, is attracting investments through new tax breaks that can lower taxes up to 19 times for companies with new lines of business settling in the city. He also stresses that the dollar, as the country's official currency, invites long-term investment with no risk of devaluation. Nebot, recently reelected, is the most popular Mayor in Ecuador and credited with the urban transformation that has rejuvenated the city. He claims that his secret is to allocate 10 percent of income to expenses and 90 percent to public works and services. Of this amount, $30 million are spent in transforming the city, a seemingly never-ending project. He believes this is his way of creating a virtuous circle: tourists are attracted, more jobs are created and new investments pour in.

So far, the travel log for this project includes refurbishing the inner city and the buildings by the Guayas River, the city's birthplace, with its picturesque Santa Ana hill, with its 400 steps leading to bars, galleries, restaurants, and finally a towering lighthouse lighting the nights by the water. Other improvements include Malecon 2000, a modern pier with gardens, an Anthropological and Contemporary Art Museum housing over 50,000 artifacts and a valuable modern art collection, an art house movie theater, an Imax theater, malls and food courts. South of the pier is Palacio de Cristal, a metallic building dating from 1905 recently recycled into a convention center for events such as last year's Miss Universe designers fashion show.

Guayaquil is building a name for itself as an ideal city for conventions, conferences and fairs. And it started big, by hosting the fifth round of talks for a Free Trade Agreement, including delegations from everywhere in the region. "They have been to Cancun and Cartagena enough times already!" the Mayor pointed out, adding that Guayaquil provides all it takes to arrange an event and move on to the famous paradise destination of the Galapagos Islands and the beaches along the Ruta del Sol.

In fact, the city is firmly achieving this status and has inaugurated a new convention center at the Plaza Rodolfo Baquerizo Moreno, next to another recovered pier by the Estero Salado, a branch of the river that has overcome a long period of pollution and is again a natural recreation site in the city.

From his office in City Hall, a waterfront building built in 1929, Nebot is enthusiastic about his next project: Santa Aha Port. It will include not only a new convention center and a five-star hotel by the river, but also thematic museums dedicated to Guayaquil's most emblematic features--music, soccer, beer and great facilities for nautical sports.

THE KEY TO SUCCESS

No doubt, a fresh funding source has contributed to the realization of ambitious projects in the city that seeks to be reborn as the pearl of the Pacific. On October 15, 1997, a new law allowed taxpayers to contribute 25 percent of their due taxes to organizations and foundations such as Malecon 2000, a pioneer in this program with an initial budget surpassing $100 million. A wave of citizens' donations has made possible the first facility that thousands of citizens of Guayaquil and all of Ecuador really feel a part of.

The success of Malecon 2000 has meant that the same procedure will be applied to Santa Ana Port. According to the Mayor, donations have gone up 30 percent. The citizens' will for a better city and efficient management are to be honored for Guayaquil's new status as a national and international tourist destination, and for its recognition by the United Nations as a Human Development Paradigm in Latin America.

Tourism and industry flourish in Guayaquil's year-round tropical climate, which promotes the city for "light" tourism: just pack a light bag and enjoy the sun. Hotel occupancy has increased 15 percent, and exports from the city port 14 percent, between 2003 and 2004. The Mayor has forged strategic alliances with the city's port and airport--the gates to the city.

Nebot believes that Guayaquil, thanks to its location, may well become a key spot in the South Pacific as a cargo transfer point to the Atlantic through the route to Manaos (Brazil), and an air transportation hub in the center of the world.

With this in mind, he has been hard at work with the Port of Guayaquil, managed by the Port Authority (APG), operating for almost 50 years and handling over 70 percent of cargo and most banana exports in Ecuador. It is currently ranked 11 among Latin American and Caribbean ports, but it is expected to reach the top ten through enhanced services, explains the port manager, Lieutenant Jose Davila Marin.

His commitment is also as a citizen: he wishes to rekindle the city's links to the port, once broken when the inevitable expansion of the country's most populous city, widened the gap between the southern docks and the northern residential quarters. He is also working with the city to supply safety equipment, maintain a popular beach in the estuary area, and plan a future passengers dock in Malecon 2000 for cruise ships to disembark right in Guayaquil's tourist area, since as many as six passenger ships have come in through the port during the first days of this year. APG's manager explains that the purpose behind these projects is to acknowledge that the port has Guayaquil to thank for what it is today--number one in the country.

On the other hand, Guayaquil Airport is taking off after decades in the dark. Guillermo Suaya is manager for Tagsa, the company with funds from Argentina, Uruguay, Armenia, Ecuador and the US that has won a 15-year concession for the airport. He has announced the arrival of two new airlines, presumably China Airlines and Aeropostal, to join the 15 national and international airlines currently operating in Guayaquil. "This is the gate to the city," says Suaya, while explaining that an investment of over $90 million will be made between 2004 and 2006, and improvements will continue until 2010. This concession has turned Guayaquil Airport into a modern and comfortable building delighting passengers who return to the city after a few years, and boasting all IATA and ICAO safety certifications. Suaya explains that the airport's cargo service is the most important in the country since it remains competitive with Quito Airport, whose high altitude hampers the airplanes' normal takeoff. By 2006, a new 10,000 square mater cargo terminal will give Guayaquil Airport the chance to compete with other airports in the region.

MORE "LIGHT"

For those who are wrapping up a day of conferences or good business in Guayaquil, even more options await. The city never rests, day or night. While the banking district closes early, downtown stores remain open well into the night and the main artery, 9 de Octubre Avenue, becomes livelier than during the day.

Lights appear in parks, gardens, churches, and beyond downtown in the bridges with colorful murals that have become the city's trademark, leading to the malls in the north and south and their multiple shopping opportunities and movie theaters.

If you need to catch your breath during the day, you can choose among many activities for ecotourism, such as: Cerro Blanco tropical dry forest, Puerto Hondo mangroves, or a visit to the Botanical Garden with its exotic orchids, one of which is named after the city.

If losing your breath is what you want, there is Guayaquil's sizzling nightlife--which begins when the high temperatures ease off and the soft lights come on. Citizens of Guayaquil, as well as foreigners agree that Guayaquil is a place for everything and everyone. As in any port city, imports and exports pave the way, but in Guayaquil ideas for new business flow like the river.

Direccion de Turismo, Relaciones Internacionales y Competitividad

M.I. Municipalidad de Guayaquil

10 de Agosto y Pichincha

Telephone: [phone] o 200 ext. 3477 o 3479

Fax: [phone]

E-mail: [e-mail]

www.visitaguayaquil.com

A PORT FOR INVESTMENTS

* Guayaquil's port exports Ecuador's most emblematic products to the world: bananas, cocoa and shrimp.

* Guayaquil is a popular site for new companies. The Brazilian AmBev has introduced its Brahma beer with a recent $36 million investment in a beer plant, and employs 400 workers in the city and beyond.

* Investments are also made in cellular telephony by international companies such as America Movil, expected to invest around $120 million in 2005. Telefonica recently purchased Ecuador BellSouth (Otecel) for $830 million, and the new cell operator Telecsa-Alegro PCS entered the market in 2004 with a $102 million investment, managed by Swedtel.

* Public and private ports are a target for investment, as reflected in Dole's interest to open its own port and new Chilean shipping investors. In 2004, Fertisa multipurpose terminal spent $25 million of private funds, while the public port managed by Guayaquil Port Authority plans an open seaport to be built with $80 million of its own funds over four years in Posorja, for ships with a deep draft, and plans to become an important center of attraction for the region.

* The city is promoting the future "California" Service Park, and Guayas Customs-Free Area.

* In real estate Nobis Consortium, headed by Isabel Noboa--daughter of the creator of the banana empire Luis Noboa Naranjo--leads investments in business centers. $70 million are expected to go into their Plaza del Sol project, including hotels, an executive center, casino and spa.

* Ecuador's largest cement company, La Cemento Nacional, Holcim Ecuador, invested over $7 million in a palletizing plant, including a 7,000 square meter building.

* Julio Moscoso, exports manager with the Corporation for the Promotion of Exports and Imports (CORPEI) explains that Guayaquil is strategically located since 60 percent of exports are coastal goods. The most coveted products are oil, tuna, banana, seafood, fruit and vegetables.

* The Mayor of Guayaquil has announced that one of the industries to be benefited with tax breaks will be computer technology.

TOURISM AND BUSINESS

* Founded in 1534, Guayaquil is Ecuador's business capital, with the leading port in the country and a direct path to the Galapagos Islands and Ruta del Sol, with perfect beaches for surfing, aquatic and adventure activities.

* With over a decade of urban development, the United Nations has recognized the city as a human development paradigm.

* Its main cemetery, dating from 1880, has been named a cultural asset for its over 1,100 architectonic graves and gothic, baroque, neoclassical and renaissance sculptures.

* Its main avenue is 9 de Octubre, stretching from the tip of the Guayas River to Malecon del Estero Salado.

* Malecon 2000 is the most popular tourist site, including the Anthropological and Contemporary Art Museum (MAAC), an art house movie theater and an Imax theater.

* The city was first born in the Santa Ana hill steps, Las Penas neighborhood, and Corazon de Jesus in Cerro del Carmen.

* Seminario Park, better known as the iguanas park, sits facing the Cathedral.

* Other centric churches that are worth visiting are San Francisco and La Merced, near the banking district.

* Malls: San Marino, Mall del Sol and Riocentro, offer banking services, food courts, stores, pharmacies and movie theaters.

* Morgan ship, sailing the Guayas River from Malecon 2000, can be hired for conference closings and other private events.

* The main hotels include: Grand Hotel Guayaquil, Hotel Continental, Hilton Colon, Sheraton, Hampton Inn, Oro Verde, Unipark and, facing Malecon 2000 gardens, and the Ramada Hotel.

* While the native foods are varied, seafood is the specialty. High quality seafood can be found in hotels and renowned restaurants such as Caracol Azul, Anderson and Lo Nuestro.

* Other museums include, the Museo Nahim Isaias and Museo Municipal.

* Cerro Blanco and the Botanical Garden boast a parrot and an orchid native from Guayaquil, respectively. Other options for ecotourism are canoeing at Puerto Hondo to explore the mangroves, and visiting El Pantanal mini zoo.

* The airport exit fee is $25.

* Finally, there is also a varied offer in agrotourism, including new and enriching visits to cocoa, banana and shrimp farms and facilities.