Tourism sector turns on its alerts due to fear of European travelers leaving their countries due to the war

Tourism sector turns on its alerts due to fear of European travelers leaving their countries due to the war

Since 2017 they entered Ecuador 27,468 tourists from Russia (15,834) and Ukraine (11,634) and although in the years of the pandemic, 2020 and 2021, it went from an average of 7,000 tourists a year to just over 2,000, according to figures from the Ministry of Tourism (Mintur), There is uncertainty in the tourism sector due to losing this income due to the armed conflict between these nations that began on February 24.

Even more so when this impact could be extended to European tourists in general, who represent between 25% and 30%, some 264,000 tourists a yearof the total number of foreign visitors arriving in the country.

According André Obiol, president of the Hotel Federation of EcuadorCurrently, there are tour operators and agencies in Ecuador that have begun to receive cancellations from European tourists due to the conflict; although he acknowledged that less than 20 days after the start of the war, it is too early to measure the effects on the tourism and hotel sector.

Russian and Ukrainian markets already owe more than $33 million to Ecuadorian flower growers due to the war

However, he explained that if it is assumed that tourist spending is $1,170 for each touristAccording to Mintur data as of 2019, the impact will depend on the reduction in the entry of visitors from Russia and Ukraine and other effects that it generates if the situation worsens.

Obiol added that there is already a negative impact due to the pandemic in the reduction of tourists from Russia and Ukraine who arrived 63% less (4,494) in 2020 and 74% less (5,242) in 2021, which represented around $12 .3 million less in income to the national tourism sector.

Even though Holbach Muñeton, president of the Federation of Chambers of Tourism of Ecuador and vice president of the Ecuadorian Business Committee (CEE)agrees that at the moment the impact is slight, warned that the cancellation of reservations for different parts of the country and especially for Galapagos is growing.

For the leader, if the conflict is not resolved in the short term, the sector must seek alternatives, one of which may be to strengthen domestic tourism.

“The Ministry of Tourism may have the idea, we can tell the Ministry, but whoever makes the decision in the end will be the President of the Republic (…) be more aggressive in what has to do with rescuing the tourism industry. tourism. How can it save it? Giving it liquidity, if we are not going to have liquidity at this time or we lose an important European market, here in Ecuador there is a niche of people who do travel the world, have different incomes, we must motivate them so that the money they spend abroad is spent here,” Muñeton said.

Muñeton warned that the conflict will impact the entire tourism value chain such as cruise ships, tourist transport, restaurants and others, although he believes that the most affected sector will be receptive tourism.

Richard Dávila, manager of EPR Travel and former president of the National Association of Receptive Tourism Operators in Ecuador (Optur)which brings together 92 companies, assured that they have not yet felt the impact because in any case since the pandemic they have not managed to reactivate 100% with European tourists, unlike North Americans.

However, he asserted that although European tourism, especially Russian and Ukrainian, is very low, the restrictions of their countries of origin and the uncertainty that the war will spread throughout Europe already frightens tourists.

“They tell us ‘what would happen if war breaks out at that moment when they are in Ecuador.’ At the moment they don’t want to leave Europe”, revealed Dávila, who explained that the European market is important, especially Spain, Germany, France and the Netherlands, which are the main European issuing countries for Ecuador.

Russia’s military offensive against Ukraine causes uncertainty among Ecuadorian banana and flower exporters

Concerned, Dávila thinks of the sector in general that is emerging from a pandemic and must now bear the impact of a war. However, the businessman said that his focus will continue to be the American, Canadian, South American and Australian markets.

Meanwhile, Obiol explained that probably the most affected sector in tourism will be air transport due to higher fuel prices, due to the rise in oil prices and therefore air transport prices.

Currently, the US reference barrel (WTI) is going through a week of great volatility in which it has gone from the peak of $130 registered on Sunday, a maximum not seen since the summer of 2008, to $103.6 last Thursday.

Marco Subía, president of the Association of Airline Representatives in Ecuador (Arlae), confirmed the uncertainty of the airlines regarding a virtual increase in fuel and therefore in tickets, which will affect the entry and exit of tourists from Ecuador.

According to the expert, fuel represents between 30% and 40% of the general costs of an airline, which translates into the most important operating cost of the airlines that use and import fuel. jet fuel.

He explained that there is still no increase because prices are reviewed on the 12th of each month, but he expects that on March 12 (this Saturday) there will already be a significant increase.

“Right now it is around almost $3 a gallon, I would think that it will increase by $1 more, we would be close to $4, 30%, I calculate that it would be the increase and that represents a very important cost for the airlines”, analyzed Subía, who also warned that airlines pay a rate charged by the Civil Aviation Directorate of 5% per gallon of fuel, which Arlae has requested on several occasions to be eliminated, but without success.

“Right now it is urgent, dramatic, that this rate of 5% per gallon of fuel be eliminated, because even if we have a high price, that taxes be charged? The impact that the airlines are having is brutal”, lamented the president of Arlae. (I)

Source: Eluniverso

You may also like

Immediate Access Pro