Tourism sector in crisis due to violent protests (La Razón [Spanish] - 1/18/2023)

Tourism sector in crisis due to violent protests (Spanish)

Six out of ten tourist reservations are canceled due to protests.


The obstructionist actions of transportation routes such as airports and/or highways, by the protesters, have put the tourism sector in Peru at risk. This, because many travelers have suffered, or fear blockades or attempts to take over the routes. This situation does not have an end in sight and the crisis in this sector continues to worsen.

Tourism is one of the main economic activities in the country and one of the sectors most affected by the coronavirus pandemic. However, after overcoming this context of health crisis, the tourism sector is now going through a new crisis: violent protests. The crisis began on December 8, one day after the fall of former President Pedro Castillo, after having carried out a coup.

This sector represents 2.5% of the Gross Domestic Product (GDP), just over a fifth of what mining produces (12%). However, this year million-dollar losses are expected due to the violent protests that take place in the interior of the country. This wave of violence has led to the closure of airports, the suspension of the train service in Cuzco, and the impossibility of traveling by bus due to roadblocks.

According to the head of the Ministry of Foreign Trade and Tourism, Luis Fernando Helguero, the violent demonstrations have caused the cancellation of 60% of the tourist reservations for the first quarter of the year. These cancellations will reduce the profits collected from national and foreign visitors destined for flights, lodging, restaurants, crafts and more.

According to figures from the Central Reserve Bank (BCR) of Peru, the tourism sector collected a total of USD 2,060 million last year, compared to the USD 2,530 million that was expected to be exceeded. For its part, the Ministry of Foreign Trade and Tourism (Mincetur) indicates that USD 2,855 million was collected. In addition, despite the wave of violence in the interior of the country, the state entity expects to generate USD 3,337 million this year.

According to the Minister of Foreign Trade and Tourism, Luis Helguero, it is expected to receive 2.5 million international tourists this year. However, the executive director of the National Chamber of Tourism (CANTUR), Tito Alegría, pointed out that "tourism is dying" and that it will not exceed 1.5 million tourists.

“Peruvian tourism is dying. Today we can say that in the months of January, February, and March there will be no tourists. The situation is dramatic," he commented to the local media.

“This year 2023 is almost lost because foreign operators project a year in advance where their passengers will go. And people who go on vacation want peace and security and we can't offer that here at this time. I think that by 2023 we will not even reach one and a half million visitors. No tourist moves to a destination where there is insecurity and violence. What they are looking for is tranquility and calm”, he added.

Likewise, employees and micro-entrepreneurs in this sector are being harmed by the protests. In the case of Cuzco, there has been a reduction in hours and salaries due to low earnings. Likewise, there were 70% layoffs in hotels in Ollantaytambo, according to the Chamber of Tourism of the town.

How much do the regions lose per day?

Among the regions with the most records of violence are Cuzco, Arequipa, Puno, and Tacna. Next, we will see how much each region loses per day.

Cuzco: According to figures from the Cusco Chamber of Commerce, the region loses about seven million soles per day.

Arequipa: According to the region's Travel and Tourism Association, Arequipa would be losing more than five million soles a day.

Puno: According to figures from the Puno Chamber of Commerce, the region generates losses of 250 thousand soles per day. However, if the protests continue and the activities for the Virgen de la Candelaria festival are cancelled, the region will lose eleven million soles.

Tacna: According to data from the Association of Hotels, Restaurants and Allied in the region, for each day of strike and protests, income of USD 500,000 is lost.

Proposals

Minister of Foreign Trade and Tourism Luis Helguero demands that a state of siege be declared in areas of "extreme conditions" because "the tourism sector no longer resists" the violent protests.

"We are worried about recovering this image and recovering it soon. The tourism sector in particular can't resist anymore”, he told local radio.

I believe that where necessary, where we are in extreme conditions, it should be established," he added.

Tags: #Peru #Protests #Tourism

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