Business Daily (BBC World Service)

Episode Summary: "Monetising Machu Picchu"

Date: November 24, 2025
Host: Jane Chambers

Overview

In this episode, Jane Chambers travels to Peru to explore the economic engine that is Machu Picchu. The episode delves into how this iconic UNESCO World Heritage Site generates massive tourism revenue, the conflicts over its lucrative transport franchises, challenges for local businesses, and the pressure of over-tourism. The program highlights the broader debate over who benefits from Machu Picchu’s success—and at what cost to the site, local communities, and cultural preservation.

Key Discussion Points & Insights

1. The Economic Impact of Machu Picchu

• Revenue Generation:
  • Machu Picchu draws millions of visitors and generates significant income for Peru.
  • Carlos Gonzalez (President, Chamber of Tourism, Cusco):

    "They receive an average of 200 million soles as an income for the visitors. So we're talking about US$70 million per year roughly."
    (01:32)

• Local Dependency on Tourism:
  • In Aguas Calientes (the nearest town), tourism represents about 95% of the economy.

2. Transport Monopolies and Local Conflict

• Bus Monopoly Controversy:
  • For 30 years, Concerto (a consortium of 12 local companies) held the exclusive, lucrative contract to bus tourists up the mountain.
  • When the contract expired, a new company (San Antonio de Torontoi) was selected, comprising other surrounding communities. This led to protests, train line blockades, and stranded tourists.
  • Concerto’s Defense:

    "Our priority has always been the tourists and giving them the best service we can. This is not a monopoly. Concerto is made up of 12 different companies with different types of partners."
    (04:16)

• Ongoing Legal Battles and Community Rivalry:
  • Both companies anticipate future cooperation but the underlying tension highlights fierce competition for control over tourist flows:

    "If they're given the final approval, we don't have a problem with working with them. We won't stop them." (04:57)

3. Tourist Experiences & Overcrowding

• Personal Accounts:

  • Elizabeth Radke (Tourist, Eugene, Oregon):

    "I convinced my two best friends that I hike with at home we have to do this. It's a bucket list item for me." (06:56)

  • She praises preservation efforts—such as daily trail cleanups—while expressing appreciation for controlled visitor numbers:

    "One of the beauties of making this a UNESCO site is that they are limiting the number of people on the trail… it was very clean because you could see that they do that once a day."
    (07:32)

• Booking Frustrations:

  • Tourists struggle with confusing ticketing processes for trains and buses, and high costs.
    • "It was really hard, especially if you're not doing it through a tour… the tours that we were looking at were like 550 Australian each and that's just not affordable." (11:06)
    • Miscommunication about additional bus transfers led to near-missed connections:

      "We just thought they would take us all the way up because no one really told us that we needed to get a bus… we started walking… it's a two hour hike." (11:42)

• Time Pressure:

  • New restrictions limit visitors to specific time slots and routes, increasing tourist stress and reducing flexibility:

    "Now, with thousands visiting every day, you have a specific time slot and need to book a circuit around the site. This leads to stressed out tourists trying to fit train times with their slots and often worried about missing them." (12:14)

4. The Train System: Accessibility vs. Exclusivity

• History and Pricing:

  • Once, a single train served all, but now luxury tourist trains dominate, and local options are scarce and uncomfortable.
  • Miguel Ango Delgado (Local Guide):

    "When I was little, my mother would go on the train to sell things… there was only one train then for locals and tourists. Now there are two train companies running the train services. And I think that Peruvian tourists get the worst deal these days." (12:55)

  • Local trains for Peruvians are limited, leading to long waits and lack of seats:

    "They always have to queue for many hours to get a ticket. And when they do, there aren't enough seats, so they often have to stand up and it's not comfortable." (13:47)

• Corporate Ownership:

  • Peru Rail (jointly owned by Belmond/LVMH and Peruvian partners) is seen as slightly more accommodating than Inca Rail (owned by The Carlyle Group), but both have captive, dissatisfied audiences.

5. Distribution of Tourism Revenue

• Ticket Sales and Local Investment:
  • 90% of site ticket revenue goes to Peru's Ministry of Culture; only 10% remains in the district for public services.
  • Elvis La Torre (Mayor, Machu Picchu District):

    "We want to receive a bigger percentage of the money for it to stay here in the Cusco region so that we can improve services for tourists here in Machu Picchu and in the rest of the region." (15:20)

  • Political instability and frequent government turnover hinder reforms.

6. Visions for the Future: Managing and Diversifying Peruvian Tourism

• Tourism Management Proposals:

  • Carlos Gonzalez: Suggests that the Ministry of Tourism (not Culture) should lead, and proposes diverse visitor experiences tailored to different tourist segments (archaeology buffs, trekkers, spiritual tourists, young social media seekers):

    "If we start to understand the visitor and their interests and use that for defining more and better circuits…" (16:54)

• Alternative Destinations – The Promise of Choquequirao

  • A new cable car could make the so-called "sister city" of Machu Picchu, Choquequirao, accessible in 20 minutes instead of a grueling multi-day hike.
  • Inan Omosa Gamara (Local Guide):

    "I think that when there's a cable car, the tourists who like trekking will be frustrated… but… it will help the communities around there… even maintaining the cable cars. So I think it will be a good thing for the region and all of Peru." (18:21, 18:58)

Notable Quotes & Memorable Moments

• On Monopoly Allegations:
  "Other local communities have accused Concert of having a lucrative monopoly on the bus service to Machu Picchu." (03:21, Jane Chambers)
• On Overcrowding Controls:
  "One of the beauties of making this a UNESCO site is that they are limiting the number of people on the trail." (07:32, Elizabeth Radke)
• On Local Train Disadvantages:
  "Peruvian tourists get the worst deal these days." (13:12, Miguel Ango Delgado)
• On Future Tourism:
  "We won't stop them." (04:57, Cristian Alberto Caballero Chacon, on potential for working with rival company)
• On Infrastructure Constraints:
  "Because of the geography of where we are, it's hard to have a train line and a road as well." (08:56, Marte Tito)
• On Regional Benefit:
  "It will help the communities around there that have been abandoned in the mountains for years." (18:58, Inan Omosa Gamara)

Important Segment Timestamps

• Economic Impact of Machu Picchu: 01:32
• Bus Company Monopoly Dispute: 03:21–05:11
• Tourist Impressions & Preservation: 05:40–07:32
• Restaurant Supply Challenges: 08:16–09:11
• Problems with Ticketing and Logistics: 11:00–12:14
• Access Inequities for Locals vs. Tourists: 12:55–14:04
• Distribution of Ticket Revenue and Local Needs: 15:20
• Tourism Management Vision: 16:38–17:54
• Introduction of Choquequirao as Alternative: 17:54–19:15

Tone & Language

• The tone is investigative but sympathetic, weaving in local and tourist voices to highlight both opportunity and tension.
• Jane Chambers maintains a friendly, curious, and probing approach, allowing locals and visitors to share their frank views.

Final Thoughts

"Monetising Machu Picchu" provides a vivid, on-the-ground perspective of the challenges and opportunities swirling around Peru’s tourism crown jewel. Listeners learn not only about the economic and logistical complexities but also about the deeper cultural and political dilemmas of sharing, protecting, and profiting from world heritage. The episode balances voices of authority, concerned locals, and wide-eyed visitors, painting a nuanced picture of a site—and a national industry—at a critical crossroads.