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August 28, 2022
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Hotels expect 90% occupancy by Expocruz and sector revenues improve in the first half

Hotels expect 90% occupancy by Expocruz and sector revenues improve in the first half

August 28, 2022, 4:00 AM

August 28, 2022, 4:00 AM

In the countdown to the international fair Expocruz 2022 to be held from September 16 to 25 at the Fexpocruz fairground, hotel chains and airlines that operate in Bolivia and, from Santa Cruz, report a positive and increasing percentage of guest occupancy and passengers. Hotels foresee an occupancy greater than 90% and the Government highlights an improvement in the income of the sector by 32% until June 2022.

From Novotel Santa Cruz, the project director, Jorge Baldivieso Ormachea, said that, like the entire population, they are looking forward to the arrival of the new edition of Expo 2022, since it represents an important point in the post-pandemic economic recovery stage. He noted that the hotel has been preparing for some time to exceed customer expectations.

“We are pleased with the demand for reservations that we have, which generates an occupancy projection of more than 90% during the Expocruz 2022 period,” said Baldivieso.

In the case of Novotel Santa Cruz, the executive indicated that the demand is concentrated entirely by people at the executive level, senior management and CEO of the companies participating in Expocruz. “This event is traditionally the most important of the year, therefore, and after a pandemic, hotels are expecting this to be the beginning of the economic recovery,” he hinted.

Novotel Santa Cruz has 145 rooms with views of the city and a 600-square-meter lobby.

From Los Tajibos, to Tribute Portfolio Hotel, its general manager, Samuel Doria Medina Monje, stated that all the rooms are in high demand this season, in which the outdoor social spaces are the most enjoyed by guests, given the captivating tropical climate of Santa Cruz de la Sierra. “At the moment, we have an occupancy rate that is increasing for September, the month of Expocruz, which generates a great economic movement in the city that, without a doubt, will help boost the tourism and hotel sector in the region,” he pointed out. .

As Los Tajibos is now a Marriott International Tribute Portfolio premium hotel, guests will be able to benefit from the benefits of Marriott Bonvoy, a travel program present in 129 countries and territories.

According to Doria Medina, they have 164 rooms available, in an attractive price range for travelers who want to enjoy the Santa Cruz hospitality in the month of the ‘city of rings’ and visit the Expocruz or participate in this, which is the largest showcase Bolivian business. Likewise, she announced that the new expansion block of Los Tajibos will soon be inaugurated, which will have 33 new rooms with unique characteristics in the market and an exclusive lobby for this area.

“To meet the high demand, we are making progress in expanding the hotel’s occupancy capacities, with the construction of a new block of rooms for guests whose investment exceeds Bs 90 million,” the general manager of Los Tajibos told Tribute Portfolio Hotel that is characterized by being a corporate hotel and on weekends it covers a family target. Of the total occupancy, 50% corresponds to national corporate clients and 50% to guests from abroad.

According to the general manager of Hotel Marriott Santa Cruz, Javier Giles, they have a higher volume of requests as of September. “The Expocruz fair, being one of the most important events that takes place in the city during the year, means that there is great business potential by increasing domestic and international travel,” he said, adding that in said month the number of corporate clients from abroad.

For Giles, the Expocruz is, without a doubt, the most important commercial showcase in the country and a special opportunity for the tourism sector to receive a select group of visitors who come from other departments and abroad.

However, in his opinion, the reactivation of the sector not only goes through a conjunctural moment, but also through a series of incentives and initiatives that guarantee the constant flow of passengers.

“Nobody is unaware that, as of the first quarter of this administration, the flow of passengers, both domestic and foreign, has increased, as well as corporate events. This allows us to see the future with more optimism”, Giles pointed out.
From Hotel LP Equipetrol, the national manager, Luis Pomarino, pointed out that at this moment they register 50% of guest occupancy, of which an average of 20% are foreigners. “We hope that Expocruz will be better than last year and we will have an increase in occupancy in the 10 days of the fair,” said Pomarino, recommending policies to reactivate tourism and position Santa Cruz as the center of business fairs and conventions.

In the sectorial balance, the president of the directory of the Departmental Chamber of Hospitality of Santa Cruz, Marco Antonio Cortez, stated that the lodging centers register an average percentage of occupation that is around 39% to 48%. At this time of year -August and September-, the market segment that represents the highest occupancy rate is the ‘business tourist’ or corporate.

“This type of tourist represents an important segment for hotels since, being representatives of a company or institution, they normally plan to incur additional expenses that benefit the entire tourism chain (restaurants, shopping malls, purchase of tickets through travel agencies). travel, purchase of tourist packages, purchase of souvenirs and handicrafts, among other sectors)”, Cortez said.

The top executive of the hotel sector of the ‘city of rings’ considers that Expocruz is a great catalyst and promoter of the economic reactivation of the sector, as it is the fair of fairs, as well as one of the most representative in Bolivia and the region . “As a Hotel Chamber, we have been promoting actions that allow Santa Cruz to be consolidated as a preferential venue for holding national and international events that have a positive impact and a multiplier effect on the entire tourism economy, by attracting a greater number of events, fairs, exhibitions, etc. and incentives to our city,” Cortez said.

From the perspective of the president of the Santa Cruz College of Economists, Juan Pablo Suárez, Expocruz is an event that generates more than 70,000 sources of employment. On the other hand, he points out that the fair is the ‘tip of the ball’ for future business that will be consolidated in the coming months and years. “From any point of view, it only has positive effects on the regional and national economy”, he summed up.

Positive Load Factor

The aviation market is also experiencing an encouraging performance. According to the general manager of the state-owned Boliviana de Aviación (BoA), Ronald Casso, until August the company is with an occupation of 82% and 84% in national and international flights, respectively. The information considers the operations to the nine departments of Bolivia being, according to him, the only airline that integrates the country. “This is possible thanks to the high frequency of flights on the country’s trunk axis,” he mentioned.

According to Casso, the trunk routes -Cochabamba, Santa Cruz and La Paz- represent the greatest occupation factor, and then Tarija and Sucre appear. Regarding the international market, he highlighted that the five international destinations in which BoA operates (Miami, Madrid, Buenos Aires, São Paulo and Lima) reach high demand, thanks to the agreements they have to connect with other international routes.

“Expocruz is a highly important event on a national scale, being the commercial showcase for the most important brands in the country and also all entrepreneurs,” said Casso, insinuating that BoA has promoted the economic reactivation of the industry and also of other sectors. on a national scale such as tourism, gastronomy and hotels.

In turn, the general manager of Amaszonas Línea Aérea, Dardo Gómez, explained that they expect to reach the load factor achieved in July, between 83 and 84%. “In other months the average variable was above 75%, but we hope to pass the 80% barrier in September,” he noted.

He stressed that the routes that comprise the trunk axis concentrate the highest occupancy factor and in terms of passengers, he noted that it is variable, between tourists, businessmen and travelers who move in the country for work or internal tourism.

“We try to ensure that the condition of choice that people have towards the airline can reach all levels of satisfaction and for that they work on fare plans, itineraries and schedules so that they can be adequate to the pocket, the comfort and efficiency of the schedules for the people,” he said.

He noted that sectoral evaluations and statistics show that the country is breaking the barrier of 400,000 passengers transported per month and that, in his opinion, is very important because they are scales higher than those of 2019.

An example of the recovery is that hotel sector sales grew from US$31 million as of June 2021 to US$45 million in the same period in 2022.

Employment growth

This week the demand for skilled labor rebounded in the Fexpocruz properties, which, according to the organizers, generates more than 75,000 sources of direct, indirect and induced jobs, with an impact of 2.5% of the GDP of Santa Cruz .

Expocruz brings this year the return of iconic brands from the telecommunications sector (Tigo, Viva and AXS Bolivia), absent from the show for several years.

The Expo brings together all the productive sectors in one place, as the largest multisectoral exhibition in Bolivia. This year it is projected to exceed half a million visitors, with the participation of 2,000 exhibiting brands and more than 20 countries and international delegations. In terms of business volume, Fexpocruz projects to generate more than US$138 million in direct sales and business intentions.

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