Decorations are structures in Tropico 4 and Tropico 5 that typically have no effect on the game beyond cosmetics. There are, however, three kinds of decorations which do have actual effects on the game. Along with basic miscellaneous decorations, some Tropico 4 DLC packs come with their own decorations that fit with the theme of the DLC.
Fountains[]
Fountains give areas a touch of class. They improve the local beauty and environmental happiness, making them useful for brightening up ugly areas or places that are heavy in tourist traffic.
Gardens and Trees[]
Gardens and trees help bring some flora back into the city. They improve the local beauty and environmental happiness, making them useful for brightening up ugly areas or places that are heavy in tourist traffic. Environmentalists in particular are fond of planting gardens and trees.
Statues[]
Statues are intimidating reminders of the state's power, thus increasing crime safety but lowering the liberty of the area they're placed in. Loyalists often enjoy placing lots of statues around the island but Intellectuals don't.