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Have you considered the tax consequences back home and if SS is involved them as well? If not,or even if you have, get yourselves a well "connected" Ecuadorian attorney for attention to those little things naivety creates.
In a pinch naivety doesn't play in the courts, here or there.

Hal, there is no lack of B&B's in Ecuador (aka "Hostel"). You are competing against locally owned/managed hostels which charge $20-25 and low end properties which charge $5-8/night. Owning these properties is basically "buying a job" that will demand your constant attention. Your potential financial upside is if the real estate value grows. Not an attractive way to spend your retirement years.

If you still want to try it out, I suggest getting a job managing an existing property to learn the business with goal of potentially buying the business after you know what you are getting into.

It's true, there is a lot of competition in pretty much every place that has any sort of tourism in Ecuador. That said, most of the local owned places do a terrible job of advertising to foreign tourists. Most places have no web site, terrible signage, and the low price places are often dark and moldy. In my opinion, there is still a lot of opportunity here, but it requires doing a bit of advertising and possibly working with and giving a cut to the tour agencies. Since both hiring labor, or contacting out services such as cleaning and laundry are super cheap here, there are certainly ways to lighten the load, so running a B&B can be a fun job and not overwhelming.

Lately, there's been a lot of negativity on these forums. Some of it is a legitimate response to all the people with unreasonable expectations and silly ideas, but there are also those who simply don't want more people to discover this place. They moved here to get away from N. America or Europe, and now they don't want other gringos to follow in their footsteps.

My suggestion, is to get a 6 month visa and take your time touring the country. For me, it took a long time, visiting towns in the sierra, the coast, and the Oriente, before I felt like I was able to critically and accurately evaluate the business potential of different places.

Ecuador, Quito in particular, is a very remarkable place and I am glad it now has such an optimistic and positive voice on this expat forum! Jesse, thanks for the wealth of positive information you bring us. Ecuador is many things to many people and it is great to hear about the experiences of successful expats, especially in Quito.

fdmcg, you appear to be following me from thread to thread attempting to pick an argument. I'm sorry if my comment touched a nerve with you. I didn't mention you, nor do I have any idea if your advice to the original poster was intended to be truly constructive or was just an attempt to be discouraging. My comments about people being negative on the forums were not directed at any one person or any forum thread in particular, but rather were an observation about a trend of negativity I see happening on the forums that contradicts my personal experiences in Ecuador.

Jesse, my intention is not to "pick an argument with you". What touch's a nerve with me is a poster being criticized for expressing their opinion and sharing experiences. The reason this site exists is for an open and free sharing of information.

Perhaps what you believe is negative is reality based on experiences of individuals that are more familiar with Ecuador. Lets let each individual reader be aware of alternative views.

I have two suggestions, fdmcg. First, perhaps you should review the advice your are giving me and follow it yourself. Second, I suggest we both go our own ways and stop bothering each other.

Hi Hal,

Congrats to you and your bride :-) Yes, I have a buddy who opened up a business, and I met with a legal advisor named Sara Chaca to do so.  She got him all set up, registered as needed, good to go.  If you want to contact her, this is her email address: sara@ecuadorvisas.com

Best of luck sir!,
Adam

Jesse,

Your comments about most of the hostels not being good at advertising to foreigner made me think of a business idea.

James designs web sites prototypes---you just got to the spaces and replace pics with pics, writing with writing... you get the idea.

With your internet cafe you and your wife could help local businesses set-up websites to attract guests.

Your wife could write the Spanish and you the English...

I think a small community newspaper distributed to local businesses promoting things.... really just an advertisement. Especially during high season would help too.

Judy

Judy, it's an interesting idea, but I think there's a bit of a perception problem. Ecuadorians do not, from my experience, place the same value on advertising and promotion that people from N America do. It shows not just in the lack of hostels and hotels with web sites and online booking, but in all sorts of things. When you see photos of food at tourist restaurants and they don't even look like food, or the businesses who's only sign is spray pained on a cement wall. I don't think offering a service such as your describing would work. It might work in the bigger cities...

Jesse,

Just a thought.

Maybe someone could take some photos for them of the food... naw that would spoil the adventure...ha.

The idea of giving tour agencies (ecuadorian) a cut is a good idea for NA tour companies.

Most US travel agents went belly up when do it yourself online (travelocity.com)etc) started. But there are travel agents around  who know the business.

I have in-laws working out of their house now that only stay open to keep medical insurance till age 65.(They owned business, building and parking lot and sold it to the State so they're not hurting)One of the things they do now is book the more "exotic" type vacations for people (individuals not tour groups) who want to get off the beaten path. I know also that they put together package deals with places that they go check out,take photos etc and then can offer for a good price. Mostly Mexico and Hawaii I think. Ecuador is probably not the idea of a vacation destination for the average joe.

I agree with Jesse about the importance of advertising to attract foreign tourists with money to spend. Places to stay would have to have have reasonable amenities or be high end

Sue

Judee: I think your idea about providing marketing help to Ecuadorian businesses might be a good one. Taking into account the point Jesse raises, such a service probably would need to be focused on those sectors trying to attract tourists/expats (who are used to doing much of their searching via advertising).

Having spent most of my working life in advertising and marketing, I might look into the idea when I'm there, but I'm really not planning to do much (if any) work.

Whether there would be enough work and whether it would pay enough to justify the effort is unknowable until it's tried. It might actually make a fun volunteer job, helping small businesses. Some at least of the bigger businesses understand the importance of marketing -- I've seen decent websites for big hotels and other tourist businesses.

Hello Hal, I actually know of a BnB that's up for lease. The owners are N Americans and need to be away for an extended period of time.I can get you the contact info if you would like.
All the best.
Vistamar

Please send what info you have to my em@il at halcwhitley@yahoo.com .  My wife and I thank you for your response and  look forward to hearing more. Have a great day and God bless.
   Hal

Thanks for your feedback. Please email me at halcwhitley@ yahoo.com with details. I look forward to your response. Have a great day and God bless.
   Hal

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hi. mr.  i am oscar  i from  colombia but i live in ecuador from 6 years  ago,  y  wonder if we can met us to be friends, i want to met people from usa. would you like?

Judee boy they sure don't think like us that is for sure example.  In Gringo Hill which I need not tell you there are lots of Gringos a Coffee Shop opens not one speak English what???? Then on menue is Cocoa
I immediately thought Oh it is Gringo Cocoa wow made with Real Whip Cream and Real cocoa wow and Milk wow in Gringo Hill what a wonderful Idea.  I took one sip and could not swallow it that bad.  Now I waited at the table for my friends Gringos so when they arrived.  I was a cat...I said oh Cocoa want a sip I watched their face they jumped.  The look of dissatisfaction was so funny.  They acted like I poison them.  Now I wonder who put the thought into this?  They are on Gringo Hill who are their customers?  What were they thinking?  Hello...all the ingrediences they needed are in this country it just takes time.  No thought.
With all the Ecuadorians going out of business here why aren't they thinking more.  I don't get it don't they want to get busy are they afraid to succeed here?  Will the gov hurt there chances here or something I just don't understand it.  They are not lazy.  I get it they want to close for 1/2 the day ok. But can't you serve the right thing?  And why don't they hire a person like you????  They need help a lot.

Oscar are you thinking of open a B & B if so Sara mentioned above is an excellent facilitator and reasonable.  She can show you the direction and paper work of Ecuador.  She is down to earth.  She understands how it works now and it has changed a great deal since you were here in laws and ways.  If you do buy a B & B it is important to get a good Marketing person as the lady above talked about in ´ó¿§¸£ÀûÓ°Ôº she is right get some one really good that can bring in Expat who are retiring from USA and other countries.  I would plant a big marketing budget for 2 years at least to move the business along.  I think this is a big mistake in businesses.  When I go into businesses that slow I ask to see their budget and I ask what their Marketing budget was 3 yrs ago and today.  If I don't see it going up and their business profit going up then I know they are not listening.  In a B & B I am 6' tall my husband is 5'10" tall talk to the next 10 people and ask their height.  You better have the right length beds because people want to be comfortable when they sleep.  And if you are planning on cooking how Gringos eat and Ecuadorians are two separate taste bids and even the cookies are different.  So I run in a bakery and they look good but I taste and they are terrible.  So some how you have to figure out what you service the Expat that is easy but solves that problem.  And there is a way.  We see many people go in business and they are under fast out of business.  so you need a lot of capital and you need traffic and returns and the only way to get returns is to figure how to get people in and return.  So you have to have grande opening parties parties, weddings, etc and you have to have some one out there selling fast and hard and the Ecudorians do not do this.  You have to do it in computer, Gringo Tree, New Paper and Front Desks Bulletin Boards Salons women who have their hair done....Apartment Building You have to go to their web sites and ask if you can go to their meetings and invite them over for tea.  And give them a little something to eat and tour and prices and please have guest stay with you.  PR..  And at least two a week.  You can not get lazy.  It is not a lay back business just to be friends and bike ride it is difficult.  Or you hear out of business boom.  They come and go or they have family problem and have to go home and close their business.  I am not sure I would want to go into business or buy a business that has failed in businesses.  We have a business in town that has tried to sell we all know about it over and over again now he is selling to a waitor we laughed.  to the waitor oh my God.  He had it up for sale to long and he wanted out to much and just over exposed it sold it incorrectly.  Built it up and then gave it away to the waitor silly.

Don't agree with the comments above about there being so much competition in Quito. There's plenty of hostels but that's not a B&B, and even the hostels I believe there is a gap in the market with the quality that is available. But with a nice B&B marketed well, I think there's a very high chance of success.