- September 8, 2021
- Posted by: medium
- Category: National
The airlines presented plan to promote the country
Once the Government has decided to eliminate the tax on the outflow of currencies (ISD) for the aeronautical sector, the Executive aims to take a new step: increase the item destined annually to the tourist promotion of the country.
The government showed that intention to announce yesterday a review of what happens with the management of Ecodelta (ED) and Ecuador Tourist power, which are charged in air tickets and were created precisely for the promotion.
To show how the funds raised by these rates have been distributed, the Government disclosed that during 2019 $ 65 million entered the state coffers, but the Ministry of Tourism only received $ 1.9 million budget for the international promotion of Ecuador.
From January to July of this year, $ 24 million have been raised and the budget inherited from the previous government to invest in promotion is $ 50,000, said Niels Olsen, Minister of Tourism.
When referring to those figures, President Guillermo Lasso said that "it is difficult to believe" that while those rates have come to generate that important amount, the Ministry of Tourism does not currently have resources to invest in promotion. Therefore, he announced that the situation will be "reversed."
"What is the use of having enormous tourist potential but we promote it properly ... we must use those resources to attract the world towards tourism in Ecuador," said the president after adding that tourism promotion will rise to state policy.
When the Ecodelta rate was created, which is charged in the tickets issued in Ecuador for trips abroad, the value was $ 5, then went to $ 20 and finally in 2016 the Government raised it to $ 50. The Ecuador Tourist power rate is charged to tickets that are issued from outside Ecuador.
The president indicated that the elimination of the ISD for the aeronautical sector is the first correction to improve tourism and have an environment so that airlines can increase frequencies. In addition, he argued that the withdrawal of the ISD will help the signing of open skies agreements, which allow opening markets without restrictions.
"The first corrective we have made is to eliminate the collection of 5 % of the ISD to the airlines, this impact has increased the price of tickets and has prevented the arrival of visitors from Ecuador," said Lasso.
According to figures, issued last August by the Ministry of Economy, the elimination of the ISD in that sector will generate a fiscal impact that would reach between $ 8.5 million and $ 10.4 million a year, although according to that portfolio, the compensation of this decline will be carried out “with optimization of public spending”.
However, Lasso said that in the first half of 2021 a recovery of almost 11 % in the sector is already evidenced and the vaccination plan highlighted as a boost for the economic reactivation of the country in general.
However, Lasso acknowledged that it is not yet enough, noting that since 2015 Ecuador has grown only in 100,000 international passengers, while Costa Rica and Peru have 800,000 and 1′000,000 passengers.
Marco Subía, president of the Association of Representatives of Airlines in Ecuador (ARLAE), thanked the government "for understanding and supporting the elimination of this rate", and "for making the historical decision."
"There have been many years of work full of frustrations, three governments and eight tourism ministers have passed, as well as finance, transport and foreign trade," said the leader, who said that the sector takes the elimination of ISD as a commitment to the country, to improve connectivity for the benefit of tourism and commercial exchange.
Although he acknowledged that there are still problems such as the high cost of flying to the country, tax burdens, the high cost of services, indicated that they must continue working, the public and private sector, to improve competitiveness.
He stressed that a sample of the private sector's commitment to the tourism of Ecuador was an agreement that has been arrived with the Ministry of Tourism to implement a promotion plan of Ecuador and will be borne by airlines.
"The Arlae member airlines are committed to the country to improve internal and external connectivity," he said.
Peter Cerdá, Regional Vice President of the International Air Transport Asociacion (IATA), was pleased that Ecuador has decided to grow its air connectivity through the elimination of the foreign currency exit tax for airlines.
"This important milestone for air transport in the country is given thanks to the close collaboration between industry and state. It will lay the foundations for creating conditions that allow air transport to facilitate the country's reactivation through tourism and exports by air," he said. (YO)