If a business traveler were blindfolded and brought to Santiago, he would be hard-pressed to guess he was in a South American city. The capital of Chile, Santiago is surrounded by the majestic, snow-capped peaks of the Andes Mountains. Due in part to its thriving economic engine, this sliver of a country hugging the southwestern edge of South America is often cited as the continent’s economic role model.

Chile’s free-market economy, stable political system and privatization have fueled extraordinary growth. Blessed with abundant natural resources (including one-quarter of the world’s copper reserves), Chile also exports much of the production of its thriving agriculture, seafood and forest industries. The state does maintain a stake in the fishing, shipping, broadcasting and hydrocarbon industries-the only restrictions to complete private ownership-but, there is no discrimination whatsoever between foreign and domestic investment. In addition to its strong financial system and balanced budget, Chile is noted for its low level of corporate corruption.

Chile was the fourth fastest growing economy in the world during the 1990s, surpassing many developed countries. In the 15 years leading up to 1999, during a moderate recession, its economy grew about 7 percent annually. Economic growth slowed in 2002 to around 2 percent, mostly due to global conditions and the decline of the Argentine peso. The growth for 2003 is expected to be about 3 percent to 4 percent. Inflation is under control and was below 3 percent in 2002.

Foreign and domestic investment has slowed since the 1990s, with the former declining to $1.6 billion in 2002. This was, again, triggered by external factors. Despite this downturn, the Chilean economy was able to avoid a crisis. Meanwhile, the government has instituted a series of reforms to attract new private investment. It has also encouraged foreign companies to use Chile as an investment platform for Latin America. General Motors already serves as a model for that approach in Chile. With most industries already privatized, the government has been selling operating and building rights for huge infrastructure projects, such as highways and airports. More than 40 domestic and international companies formed business consortia as a result.

Chile’s modern infrastructure, private telecommunications network and strong Internet connection combine to offer low-cost communication and distribution. And foreign investors especially like the well-trained and productive labor force concentrated in the urban centers, the largest being Santiago. Others are Valparaiso, Concepcion and Valdivia. The government is encouraging the establishment of new industries in rural areas, such as Chile’s south.

Chile’s major industries range from copper refining and nitrate products to oil refining, building materials, chemicals, furniture and a wide variety of food and fish products. Textile, clothing and leather industries continue to grow. Copper is the country’s largest export, accounting for about 25 percent, while other minerals such as gold, iron, nitrate and titanium contribute another 23 percent. The value of its rich mineral resources fluctuates according to world demand and prices in the world market and Chile’s ability to compete with the other mineral producers. This relative uncertainty has led to the development of agriculture and other industries.

In 2002, exports accounted for 27 percent of Chile’s economy. Traditionally dependent upon copper and other mineral exports, Chile now sees its newer exports growing faster and accounting
for a larger percentage of its total exports. The most important nonmineral exports today are forestry and wood products, fresh fruit and processed food, fish, seafood and wine. Still, total exports fell approximately 3.4 percent in 2002.

Having declared independence from Spain in 1810, Chile signed its constitution in 1833, becoming one of Latin America’s first countries to do so. Today, Chile is a solid democracy with a commitment to human rights and a free society. Its long-term growth has enabled the government to improve the average Chilean’s quality of life. The country has halved the number of its citizens living below the poverty line, while average income has risen 70 percent. The adult literacy rate has been steadily improving and school enrollment has increased significantly.

For this Latin American role model, the latest achievement in a long string of economic successes was the Free Trade Agreement signed with the United States in December 2002, after two years of negotiations. It became effective in January of this year. The agreement is expected to result in unrestricted, duty-free, bilateral trade within 12 years and should expand trade and investment considerably between the two cooperating countries. U.S. companies are likely to be encouraged at the prospect of doing business in Chile, often cited as the best investment opportunity in Latin America. Besides eliminating tariffs and nontariff barriers, it has set up an optimal path to settle any disputes that might arise, a welcome climate for those doing business here. The United States is already Chile’s largest single trading partner, accounting for more than 40 percent of Chile’s exports and imports. The FTA is expected to spur small business development, with the U.S. Small Business Administration and the Chilean Technical Cooperation encouraging direct contacts and joint ventures.

Many familiar names are investing in Chile, including Ericsson, Nestle and Motorola. Roberto Fuentes, general manager of Motorola, Chile, credits the company’s presence there, at least in part, to one of the most advanced telecommunications industries anywhere. Chicago-based Motorola entered the Chilean marketplace in the mid-1990s and eventually built the country’s first analog mobile phone networks. While its main business here is now mobile handsets, the company has
expanded into trunking services and cable television.

Additionally, Motorola has two wireless software development centers in Chile-one in Santiago and another at the nearby port of Valparaiso. Today, when one of Motorola’s worldwide operations needs advice on software or wireless applications, the chances are good that Chile will get the business.

Motorola’s new mobile technology is available in Chile as soon as, and sometimes even before, it is introduced to U.S. consumers. By the end of 2002, more than four in 10 Chileans had mobile phones. In 2000, only two in 10 people carried phones. To encourage continued growth and development, Motorola has fostered a relationship with local universities, helping to train university staff in the use of its technology.

On a less technological, but no less significant economic front, leading wine producers in the United States and Chile have worked together for many years. Most notable is the joint venture
between California’s Robert Mondavi and Chile’s Vina Errazuriz. Together they produce Vina Caliterra and Sena wines.

Chile’s trade has increased 300 percent since the mid-1980s. The country also has FTAs with Canada, Mexico, the European Union and South Korea. In addition, Chile has 166 trading partners in Europe, Asia and the Americas. International trade accounts for more than 50 percent of its gross domestic product. Looking ahead, there is the possibility of a Free Trade Area of the Americas agreement by 2005. If established, it would be the world’s largest free trade association: 34 countries and 800 million people. Foreign investment continues to be a mainstay
of the Chilean economy. Chile attracted $82 billion between 1974 and the first half of 2001 from more than 4,300 companies representing 64 countries.

Much like its European counterparts, Santiago reflects the old and the new. South America’s fifth-largest city, inhabited by 5 million people, this gem contrasts 19th century stucco mansions and centuries-old churches with 20th century skyscrapers and first-class hotels. Considered cleaner and safer than most Latin American cities, Santiago beckons adventurers to discover and experience old-world pleasures including street musicians, vendors, hand-organ players and street photographers.

Hotels

The Ritz-Carlton, Santiago
Many hotels throughout the city-downtown, Providencia, Las Condes and Vitacura-cater to the business traveler. The most exciting hotel news in the last year is the opening of The Ritz-Carlton, Santiago, marking the upscale hotel group’s first foray into Latin America. The $45 million hotel (205 rooms and suites) opened in June. It’s situated in the exclusive El Golf area, a nice address for both the discerning business and leisure traveler. A fully staffed business center is equipped with cutting-edge technology and a rooftop spa and fitness center offers views of the Andes. There are two restaurants showcasing local food and wine (see restaurants).
The Ritz-Carlton, Santiago, Calle El Alcalde No. 15
Las Condes, Santiago, Chile, tel 56 2 470 8500
fax 56 2 470 8512, www.ritzcarlton.com

Sheraton San Cristobal Tower
Convenient to Santiago’s business district, San Cristobal Tower features a classic design incorporating both English and European styles. The recently refurbished 139-room hotel is located adjacent to San Cristobal Hill, offering views of the city and the majestic Andes. Guestroom amenities and hotel services include butlers assigned to each floor, independent phone and fax lines, Internet access, 24-hour room service, business center, laundry and dining. Recreational amenities include an outdoor tennis court and a heated indoor swimming pool. Golf is available nearby.
Sheraton San Cristobal Tower, Josefina Edwards De
Ferrari 0100, Santiago, Chile, tel 56 2 707 1000
fax 56 2 707 1010, www.starwood.com

Hyatt Regency
Located in an upscale residential neighborhood, the Hyatt Regency is close to lovely shops and just a short taxi ride to downtown. The spacious guestrooms (there are 310) offer views of the Andes and downtown Santiago. In addition to a well-staffed business center, there are both indoor and outdoor swimming pools, a health club, two outdoor tennis courts and a jogging track.
Hyatt Regency, Av. Kennedy 4601, Las Condes
Santiago, Chile, tel 800 233 1234 or 560 2 218 1234
fax 56 2 2182513, www.hyatt.com

Los Espanoles Apart Hotel
Should you be staying for a longer period, consider a well-equipped apartment hotel such as the Los Espanoles Apart Hotel. Accommodations include 49 rooms and 21 apartments with kitchenettes. Amenities include wireless Internet access, complimentary breakfast, room service, business center and laundry. The contemporary apartment building is across from the World Trade Center.
Los Espanoles Apart Hotel, Los Espanoles 2539
Santiago, Chile, tel 56 2 232 1824 or 123 800 332 7836
fax 56 2 2331048, www.bestwestern.com

Tempo Rent Apart Hotel
Another option, Tempo Rent Apart Hotel offers one- and two-bedroom apartments and suites along with hotel services, meeting rooms and a business center.
Tempo Rent Apart Hotel, Santa Magdalena 116
Providencia, Santiago, Chile, tel 56 2 231 1608
fax 56 2 334 0374, .(JavaScript must be enabled to view this email address)

Restaurants

Chile has become known for producing fine wines. Some of the best, now garnering a world-class reputation, come from Casablanca Valley. Red wines from Maipo are definitely worth tasting. Chile is also becoming known for seafood so succulent it rivals its wine. Santiago, in particular, is simply replete with seafood. Specialties include preparations of varieties from the Pacific’s icy Humboldt current. Patagonian lamb, prepared in a variety of ways, is another regional favorite.

Be sure to taste some traditional Chilean dishes such as empanadas (meat and onion turnovers) or pastel de Choclo (baked cornmeal with chicken or beef and loco, the local abalone). For an exotic treat, go for ice cream made of lucuma, a delicious Chilean fruit.

New restaurants are becoming as plentiful as the region’s seafood. The traditional restaurant-filled neighborhoods of Bellavista and El Golf now have company. Borde Rio is the latest culinary hot spot, with at least 20 restaurants offering a range of culinary styles and preparations. Ibis de Puerto Varas (Av. Monsignor Escrive de Balaguer 6400, tel 2 218 0111), an international restaurant with an emphasis on seafood from southern Chile, is the most popular. Try their carpaccio of machas (a local shellfish) and the salmon flavored with pistachio and mint. Restaurant Adra at The Ritz-Carlton, Santiago (see hotels) also specializes in preparations of Chile’s Pacific-coast fish and shellfish, and beef raised in its narrow countryside. Chef Joerg Delin prepares local king crab Napoleon with a cilantro pesto and Patagonian lamb baked with cardamom. At Wine 365, the hotel’s second restaurant and wine bar, you can taste the best Chilean wines selected from more than 100 vineyards. There are 24 wines available by the glass, ideal if you are dining alone, and a bistro-style menu.

Fuera de Borda
Fuera de Borda ranks among Santiago’s best newer restaurants. The specialty at this elegantly appointed nearly 2-year-old restaurant is seafood, most of it from the Pacific. Interesting
dishes include salmon with crushed corn leaves and thick tuna enhanced with cranberry sauce. Dinner costs about $20.
Fuera de Borda, Av.Vitacura 8411,Vitacura
tel 56 2 220 8116

Agua
Agua offers a variety of local fish, depending on the season. Freshly caught tuna is prepared with wasabi and onions. It’s also a good place to try Patagonian lamb chops, prepared with a
polenta crust. Dinner costs about $22.
Agua, Nueva Costanera 3467,Vitacura
tel 56 2 263 0008

De Cangrejo a Conejo
Tucked away in an old house in downtown Santiago, this restaurant, as its name-meaning “from crab to rabbit”-implies serves up specialties ranging from seviche to rabbit cooked with rosemary. Dinner costs about $15.
De Cangrejo a Conejo, Av. Italia 805, tel 56 2 634 4041

Gernika
For Chilean seafood cooked in a Spanish style, try Gernika. Paella (for two) is a house specialty, as is the Spanish dessert, crema catalana. Dinner costs about $20.
Gernika, El Bosque Norte 227, las Condes
tel 56 2 232 9954

Aqui Esta Coco
It’s difficult to return to Santiago and not revisit old favorites such as Aqui Esta Coco. One of the city’s top restaurants, it is known for its local seafood, such as crab-stuffed sea bass. Ask for a table in the wine cellar. Dinner costs about $30.
Aqui Esta Coco, Calle la Concepcion 236
Providencia, tel 56 2 235 8649

Marisqueria Ocean Pacific
Marisqueria Ocean Pacific is located in the slightly out of the way Barrio Brasil, but it’s worth the trek for its outstanding seafood and local wine. Dinner costs about $35.
Marisqueria Ocean Pacific, Av. Ricardo Cumming 221
tel 56 2 697 2413

El Caramano
Located in an old adobe house, El Caramano is a good place to sample Chilean cuisine, including the pescado escabechado (fish cooked in vinegar and onions). Dinner costs about $12.
El Caramano, Calle Purisima 257, Bellavista Antiguo
tel 56 2 737 7043

Cap Ducal
Another good dining choice, Cap Ducal is a branch of a popular restaurant from the coastal city of Valparaiso. Try the chanfaina de mariscos (shellfish). Dinner costs about $20.
Cap Ducal, Avda Suecia 281, Providencia
tel 56 2 231 1400

Donde Augusto
A must at lunch, this restaurant inside the colorful Mercado Central features some of the world’s most interesting fish and seafood. Try the gambas al ajillo (garlic shrimps) and the comida criolla, a local stew that blends seafood with corn, beans and potatoes. Lunch only, costs about $15.
Donde Augusto, Mercado Central, Santiago Centro
tel 2 672 2829

Chupe de Centollas
Also very good, Chupe de Centollas is popular with well-dressed businessmen, laborers and even Placido Domingo, when he visits Santiago. It’s considered the best value for seafood along with draft beer and pisco sour (the national drink). Groups of strolling musicians add to the local color. Open every day. Lunch only, costs about $15.
Chupe de Centollas, Ismael Valdes Vergara &
21 de Mayo, tel 56 2 672 2829

Shopping

Also known as Los Dominicos, after the nearby convent, Los Graneros del Alba (Av. Apoquindo 9085), is a replica of a rural village (unpaved streets included) where artisans sell interesting, high-quality crafts from all over Chile. You can find a wide variety of lovely crafts from hand-painted napkin rings and wooden trays to jewelry and alpaca clothing.

The Bellavista neighborhood, considered Santiago’s Bohemian section, is the site of numerous restaurants, cafes and pubs, in addition to interesting artisans workshops. It’s also a good place to buy lapis lazuli, a delightful blue semiprecious stone indigenous to Chile.

The Business of Tourism

Santiago, Chile’s gateway, beckons adventurous souls with some of the world’s greatest outdoor experiences. It’s not surprising that tourism has become important for the Chilean economy. The long, unspoiled coastline (the distance is comparable to that between Juneau, Alaska, and Mexico
City) and spectacular mountains make it a compelling destination, adding another major element to a thriving economy. Business travelers should make it part of their business to explore some of its amazing natural wonders. Chile is one of the world’s most physically diverse countries, with scenery ranging from expansive fertile valleys to the Americas’ highest mountain peaks, from the world’s driest desert to lush rain forests and sandy beaches. Santiago itself enjoys a pleasant Mediterranean climate, with some smog affecting the winter months (June through September).

Although Chile is twice as large as California, from Santiago it’s easy to arrange a day trip to fantastic ski resorts, famous beaches and the now celebrated wine-growing district. Even the most remote corners of the country, Patagonia and the Altacama desert, have been discovered by tourists. The fjord and lake districts are breathtaking and peaceful-well worth the journey. The grand vistas, frozen peaks, daunting glaciers and rushing, white-water rivers are picture-postcard perfect for trekking and world-class fly-fishing.

Getaway Ideas

Weekend in the Wine Country

Visit Vina Santa Rita, just outside Santiago, or take a more extensive wine trip to the Maipo Valley, south of Santiago. Wineries you’ll want to include on your itinerary are Cousino Macul, Chile’s oldest vineyard, and Concha y Torro, the country’s largest exporter.

Hacienda los Lingues (tel 56 2 235 5446, loslingues@entel chile.net) is a special hideaway that has remained in the same family for four centuries. Only two hours south of Santiago by car, Hacienda los Lingues is a perfect place to experience gracious old-style Chilean living, food and wine. Today, the 800-acre property is widely known for its thoroughbred stable where the
family has been breeding horses since 1760. The grounds are covered with native flora and populated by many species of birds found only in Chile’s central valley. In addition to exploring this wonderful property on horseback, guests can go fly-fishing, mountain biking and hunting. Day and overnight fly-fishing packages can also be arranged.

For another wine country excursion, travel west toward Santa Cruz in the scenic Colchagua Valley, three hours from the capital. The colonial-style Hotel Santa Cruz Plaza (tel 56 72 821010) is the place to stay while visiting the region’s award-winning wineries including Vina Pueblo Antiguo and Vina Bisquertt.

Summer Skiing

Chile has challenging and sophisticated ski resorts. (The ski season lasts from June to September.) Good skiing can even be found close to the capital. La Parva, less than an hour
from Santiago, is popular among well-heeled Chileans, many of whom own condos there. Also popular is Valle Nevado, one of the country’s most exclusive resorts. Portillo, considered
another one of Chile’s best ski resorts, is the oldest and probably the most sophisticated in the region. Just over two hours from the capital, you will find excellent accommodations along with opportunities for all levels of skiing, including heli-skiing. Contact Ski Ahorro Chile (tel 56 2 229 4532) for information about round-trip day or overnight packages.

Fishing

Fly-fishing in southern Chile is probably as good as it gets, especially for the serious trout fisherman. In Chile, rivers are generally wider and faster than in neighboring Argentina, which allows float-fishing as well as wading. Where you fish in Patagonia often depends on the time of year. Fishing season is from November to April. Some fishing lodges are better early in the season; others later depending on the rivers. It is essential to request a knowledgeable local
guide (www.frontierstrvl.com).

Back to Nature

Spectacular guided treks and white-water rafting are other leisure options. Lodges are the accommodation of choice. Heart of Patagonia (www.heartofpatagonia.com), a renovated farmhouse, and Fundo El Salto, in the lake district overlooking the spectacular Osorno volcano, are both good choices. Frontiers International (tel 800 245 1950, www.frontierstrvl.com), a well-established company in business for 33 years, will arrange accommodations, fly-fishing and guide services to meet your individual needs.

One of the best ways to enjoy Chile’s sensational scenery is to stay at Hotel Explora (tel 56 2 251 2625), a remote yet upscale, contemporary hotel in the unspoiled Torres Del Paine National Park. While the park is five times the size of Yellowstone National Park, the number of visitors each year roughly equals the number of visitors to Yellowstone during an average week. It’s interesting to note that the region is not nearly as cold as its reputation suggests. A microclimate ensures temperate weather most of the year, although the best time to visit is October through May. That’s when average daytime temperatures range from 60° to 75° F.

Hotel Explora appeals to travelers seeking a true outdoor experience. Guests enjoy guided treks, horseback riding and mountain biking in the shadow of mountain peaks inhabited by llama-like guanacos, nandus (they resemble ostriches), pink flamingos and perhaps even pumas. Trekkers have a choice of five half- or full-day excursions ranging from an easy one-hour walk to a glacial lake to a more difficult daylong trek to the base of the Paine Towers. The latter is worth the
effort, if just to hear the rumbling of avalanches in the distance. Back at the hotel, weary trekkers can unwind in a swimming pool (with views) and dine on local specialties such as Patagonia lamb and just-caught fish from the southern Pacific-accompanied, of course, by local wines. Stays of three to four nights are recommended and all expenses are included in the rate. LanChile flies from Santiago to Punta Arenas, where arriving guests are met and driven about five scenic hours to the hotel.

Hotel Explora’s sister property, Explora en Atacama in northern Chile is equally remote. Located in the Atacama Desert, the hotel offers visitors an opportunity to explore geysers, sand dunes
and the remains of a Paleolithic civilization rich in archaeological treasures. As experienced desert trekkers probably already know, deserts are replete with wildlife. Both Explora properties are available for booking through Frontiers International.

Getting There

Santiago has become more convenient and comfortable to reach with more direct and nonstop flights. LanChile (tel 866 526 2445, www.lanchile.com) has daily service from the United States to Santiago. The airline offers nonstop flights from Miami. From New York and Los Angeles, the flight itinerary includes a short stop in Lima, Peru. Delta Air Lines (tel 800 221 1212, www.delta.com) offers daily nonstop service to Santiago from Atlanta. American Airlines (tel 800 433 7300, www.aa.com) offers daily nonstop flights from Miami and Dallas. The advantage of flying LanChile, an award-winning Latin American carrier that is part of the oneworld alliance, is that its New York flight is about two hours shorter than other carriers’.

Doing Business in Chile

Business practices are very similar to those in the United States. A business day generally
begins at 9 a.m. and runs until 6 p.m. or 7 p.m. Lunch begins at 1 p.m. and lasts an hour (two to three, if business is being conducted). A late-morning meeting will generally be followed by lunch.

Social Code

While social gatherings hardly ever begin on time, Chilean business meetings usually do. In a social situation, such as at a party, avoid asking a person what he or she does for a living. It’s considered bad manners.

Meeting

Initial meetings should be attended by an upper-level executive accompanied by midlevel executives.

Greeting

Men shake hands, while women often pat each other on the right forearm or shoulder when meeting and being introduced.

Don’t address a Chilean by his or her first name unless invited to do so. Remember that
most Latin Americans have one surname from their father (listed first) and a second (from their
mother). When you address someone formally, use only the father’s surname.

Patience is usually a virtue here, as Chilean business can take several meetings to consummate.

Many Chilean businesspeople speak English, however the ability to speak Spanish is a plus when doing business here.

Promotional materials should be in Spanish.

Discovering Santiago

Walk around the lively Plaza de Armas, Santiago’s main square. Dating to colonial times, the square is the site of an 18th century cathedral.

The Museo Chileno de Arte Precolombino is one of Latin America’s best museums and the 16th century Convent of Saint Francis, now home to the Museum of Colonial Art is not to be missed.

Get a bird’s-eye view of the city from atop Cerro San Cristobal.Walk or ride the funicular to the top.

Travel Tip-During the summer months, stick to shellfish prepared and served in the best restaurants. It’s also good to keep in mind that Santiago moves to the beat of a Latin drummer. That means the dinner hour begins around 10 p.m.