Economy
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The economic activity of Iquique, capital of the Tarapacá Region, is mainly based on international trade through the Iquique Free Trade Zone (ZOFRI) and the maritime port (one of the six busiest ports in Chile), large-scale copper mining, tourism, the fishing industry, manufacturing, and construction.
In 2018, the number of companies registered in Iquique was 7,404. The Economic Complexity Index (ECI) in the same year was 0.89, while the economic activities with the highest Revealed Comparative Advantage (RCA) index were:
Manufacture of Batteries and Primary Cells (49.64)
Judicial Power Activities (27.5)
Electrical and Electronic Repairs (19.43)
Trade[edit]
Night view of Iquique from Alto Hospicio.
Iquique Municipal Theater.
Trade is important, as the region serves as a transit point for Chilean products heading toward the northern countries (Peru and Bolivia) and Brazil, due to the existing interoceanic corridor. The Iquique Free Trade Zone (ZOFRI) has spurred commercial development, especially in the sale of automobiles and technological products, which attract a large number of Chileans and foreigners.
The city has three shopping centers (Malls), one of which is Mall Zofri, part of the free trade system that sells retail products exempt from the 19% VAT; another is Mall Plaza Iquique (formerly Mall Las Américas), which includes Falabella and La Polar stores. This business hub hosts more than 1,650 companies that carry out trade operations worth about 4.7 billion USD annually.
Additionally, the city has a well-established service center where large department stores coexist with banks, public entities, and SMEs mostly covering sectors such as manufacturing, retail, and food services. Around Paseo Baquedano, a highly touristic area, businesses and services thrive to meet the needs of local enterprises, making this part of the city a commercial and business hub due to its comparative advantages and the presence of key institutions like the General Police Station and several fire brigades.
Used clothes[edit]
The port of Iquique plays a central role in Chile’s importation of used clothing, which totals around 123,000 tonnes annually according to government estimates. As part of a free-trade zone, it enables businesses in Iquique and surrounding areas to import and sell goods without paying customs duties or tax.
Fishing Industry[edit]
The production of fishmeal and fish oil represents 50% and 60% of the national total, respectively. Industrial fishing, which began in the 1950s, provides the largest contribution to the Gross Geographic Product (26%). Iquique is Chile’s largest fishing port, accounting for 35% of the nation’s total catch (mainly anchovy and jack mackerel), with 95% of the production destined for oil and fishmeal, and the remaining 5% for canned, frozen, and other products.
Manufacturing[edit]
The manufacturing industry accounts for 5% of the Gross Geographic Product. Its main activities include shipyards, which have expanded their building capacity — for instance, the Marco Chilena shipyards, which construct both fishing vessels and luxury yachts. The city’s workshops manufacture spare parts and components serving primarily the mining and fishing industries.
Construction[edit]
The Astoreca Palace in Iquique, reflecting the influence of Spanish colonial architecture.
Civil construction has been the driving force behind Iquique’s growth over the past 15 years, giving the sector a highly dynamic character. However, the lack of available urban land has limited housing development, leading to the dominance of high-rise buildings. Many buildings exceed 25 floors, efficiently using the limited land.
Currently, residential construction projects are concentrated in the southern area, mainly Bajo Molle, but since it lies outside the urban boundary, it lacks proper infrastructure, resulting in fewer housing projects. Another area with major construction activity is the coastal zone — mainly Cavancha and Playa Brava — where the tallest building in the city (37 floors) is being built.
Mining[edit]
Metallic mining mainly involves copper extraction, which takes place in Quebrada Blanca, Cerro Colorado, and Doña Inés de Collahuasi, which began full production in 1999 and has become one of the world’s largest mines.
Non-metallic mining mainly focuses on Sodium Chloride (common salt), extracted from the Salar Grande salt flat. This mineral has a crystalline body and is nearly pure (98.5% purity). More than six million tons are extracted annually.
The production of nitrate and iodine is also significant, obtained by recycling old nitrate works in Huara and Pozo Almonte, as well as from new facilities such as Nueva Victoria.
Tourism[edit]
Tourism is highly important for the city as it represents one of its main projected economic resources. It offers essential natural attractions — a city beach safe for swimming thanks to the protection of the peninsula, a mild climate with pleasant temperatures, scenic desert landscapes, and convenient accommodations.
Its heritage architecture from the nitrate era also adds to its appeal. Iquique has one of the best-developed tourism industries in the country, with the hotel, restaurant, and commerce sectors accounting for 30.68% of the GDP.
Labor Organizations[edit]
Iquique has numerous and influential labor organizations, many affiliated with the Central Unitaria de Trabajadores (CUT). The most important include:
Port workers’ unions
ZOFRI unions
Mining unions
Commerce unions
Public sector unions
Labor movements have also been historically strengthened by events such as the “Santa María Massacre” of December 17, 1907. The main union sectors are:
Commerce
Public employees
Mining
Construction, among others
