Locations
Blog written by: Lina Fernández (Head of Exploration Accelerator LAB Colombia) and Diana Gonzalez (National Program Officer IRFF Colombia)
Edwin Muñoz: A Dream of Sustainable Tourism in Colombia
Edwin Muñoz starts his mornings early, working tirelessly at 5ta SaRoCo, a Cultural and Agroecotourism Hacienda established over a decade ago. The initiative was created as a sustainable solution for rural communities in Sumapaz, a region in Colombia historically affected by armed conflict and environmental degradation due to overexploitation of natural resources. Edwin dreams of growing his enterprise into a B2B sustainable tourism business, built on a profitable model that protects ecological corridors and promotes Nature-Based Solutions. Despite national and international recognition, the journey has not been easy. The business is still in a growth phase, requiring significant investments and protection against risks that could jeopardize its sustainability and Edwin's aspirations.
A Broader Context: Challenges and Opportunities in Colombia’s Tourism Sector
The tourism sector faces a dual challenge: its high vulnerability to climate change and its significant contribution to greenhouse gas emissions (GHGs). Additionally, the industry is frequently tested by its ability to adapt to environmental shifts, despite its vast potential to drive sustainable and inclusive economic development.
Edwin’s story mirrors the reality of many small, family-owned, and community-driven tourism enterprises in Colombia. According to the National Tourism Registry, as of November 2022, there were 79,987 registered tourism service providers in the country. Among these, 41.16% are small hotels, 21.80% are rural and urban tourist homes, and others include accommodation establishments (DANE, 2022; MinCIT, 2022). When planned and managed effectively, sustainable tourism can reduce territorial inequalities, improve livelihoods, promote inclusion, and protect cultural heritage and natural resources. The sector is labor-intensive, fosters infrastructure development, and revitalizes both modern and historic cities (World Bank, 2017).
Bringing Collective Intelligence to Action: An Insurance Innovation Challenge for Small and Community Hotels
Recognizing these challenges, the UNDP Colombia office identified insurance as a key strategy to enhance the tourism sector’s resilience. These tools are essential for protecting people, communities, and businesses from crises and disasters. As risks increase and resilience weakens, insurance will play a critical role in achieving the SDGs and ensuring that no one is left behind.
In this context, we launched an innovation challenge in collaboration with the UNDP Insurance and Risk Finance Facility (IRFF) and the Accelerator Lab in Colombia, Fasecolda (Colombian Insurance Federation), Banca de las Oportunidades (a government program promoting financial inclusion), and the Ministry of Trade, Industry, and Tourism (MinCIT). This four-day challenge aimed to design cost-efficient insurance solutions for small hotels.
Small hotels, defined as rural or urban accommodations with fewer than 10 rooms, are often micro-enterprises owned by individuals rather than large hotel chains. The challenge attracted 12 diverse teams from Colombia's insurance ecosystem, including not only insurance companies but also reinsurers, microfinance entities, fintechs, insurtechs, and tourism associations. By fostering strategic alliances, we leveraged collective intelligence, diverse perspectives, and innovative approaches to tackle the unique challenges faced by small hotels.
Similarly, over 10 allied entities participated as mentors, thematic experts, and process collaborators. These allies, specializing in financial inclusion, insurance, and tourism development, played a key role in designing comprehensive solutions. Their contributions addressed the bottlenecks faced by small hotels and their users while considering market dynamics, public policy, and regulatory challenges, as well as opportunities for growth and problem-solving.
Evaluation Process: Recognizing Excellence
The 12 teams presented their solutions to an evaluation panel composed of experts, including representatives from tourism associations, inclusive insurance specialists, government officials, financial regulators, and a small hotel owner—the end beneficiary. The standout proposals featured parametric, embedded, and modular insurance solutions, integrating financial education, gender considerations, and strategies to enhance connectivity among small accommodations.
The winning proposal came from an alliance between Banco Agrario (Public Agriculture Bank) -Axa Colpatria (Private Insurance Company) – and Correcol (Insurance broker company). Their embedded insurance solution offered comprehensive protection for small hotels, including:
Infrastructure protection,
Guest safety through pet insurance and health coverage for international tourists, and
Employee-focused insurance addressing social well-being.
This proposal was celebrated for its innovation, addressing multiple actors' needs within the tourism value chain, and its strategic alliances within the insurance ecosystem.
Looking Ahead: Bringing Solutions to Market
Our goal is to take this exercise beyond ideation and implement sustainable solutions. The innovation challenge served as a platform to address bottlenecks, foster collaboration, and encourage unconventional solutions for sustainable development. One participant remarked: “It’s very inspiring to see so many minds working together to combine innovation and generative solutions.” Another noted: “Challenges like this give people and organizations a platform to make their ideas heard.”
This journey was captured in a video that documents the challenge’s milestones, showcasing how the insurance sector, with support from UNDP’s IRFF and Accelerator Lab, is positioning itself as a key player in bridging socioeconomic gaps, enhancing resilience, and protecting vulnerable populations in Colombia. The winning team spent 2024 refining their product, which is expected to hit the market in the first half of 2025. By building on collective intelligence and strategic partnerships, this initiative aims to drive meaningful change and resilience in Colombia's tourism sector.
