- August 3, 2021
- Posted by: medium
- Category: National

The Vice Minister of Air Transport explained that the fiscal impact would be $ 14 million, but it is expected to reactivate tourism by about $ 1,400 million.
President Guillermo Lasso has stated that in these days he will issue the decree in which the ISD for the air sector is eliminated. ISD is a tax that is paid when capital leaves the country. In the air sector there are international airlines that operate in Ecuador and to which the tax is applied when, for example, they take out their profits. It is necessary to indicate that the open skies policy has existed since the previous government. But it has not been possible to execute it because countries like the US and Panama, due to a reciprocity issue, demanded that the ISD be eliminated prior to the signing of open skies agreements. So when the president issues the decree, it will eliminate the transactions carried out by the airlines. This will allow the signing of open skies agreements and thus there will be more supply, which will lower the prices of services and tickets.
Would the decree generate the benefits in future ticket prices and as a result of the greater offer?
Indeed. For example, now with the US we have 15 destinations, between direct and shared; But when the open skies agreement is signed, we will be able to have frequencies to 150 cities in the US Having so many airlines will end up influencing the cost of airfare.
But then, would the result be more for tourism outside the country and not necessarily the receptive one?
The benefit for national tourism is direct. This is an issue that we have been working on with the Ministry of Tourism and the Ministry of Foreign Trade. If we promote this issue, four times more visitors are expected in Ecuador and this means that we will have up to $ 1,400 million of income for the country. This, considering that each tourist who arrives in the country spends $ 1,200 on their visit. This is a very powerful benefit, compared to the $ 14 million that ISD generates in the airline industry today. There is no comparison.
Is there a date for the signing of open skies agreements?
We are awaiting the report of the Ministry of Economy and Finance, so that immediately President Lasso issues the decree eliminating the ISD of airlines from countries with which there is an open skies policy. The open skies agreements for the US and Panama are advanced, only the elimination of the ISD was expected. It is a matter of days or weeks.
There are analysts' criteria that indicate that the decision would not be legal because a generality and fairness criterion is not applied. What is your stance?
The elimination had already been working for several months, as it was a strong request from the airlines. Now that we must reactivate both the airline sector and the tourism sector, as they are one of the hardest hit industries, then it begins with this sector. President Lasso's idea is to start with the airline sector, but we will move forward with the analysis of other sectors of the economy