In 2021, a recovery of more than 25% was recorded, but pre-pandemic levels will be reached between 2025 and 2026.
On average, holidays accounted for between 5% and 8% of the income of all the tourism sector in recent years. Before the pandemic they totaled around $413 million, while in 2020 they reached $153 million.
During the first holiday long 2022, that is Carnival, $67 million were generated. From the different actors in the sector it is considered that these holidays, which can be 10 to 12 during a year, are helpful but do not solve structural problems.
For example, Carmen Luna Fiallos, president of the Baños Chamber of Tourism, and Norman Bock, director of the Hoteliers Association of the Metropolitan District of Quito, have stated that the VAT reduction from 12% to 8% It does not have a major impact because these types of benefits should be established for the low season times.
In other words, holidays are already in high demand, but what is needed is to generate a travel culture so that the tourism increases consistently throughout the year, not just on certain dates.
In this context, the representatives of the sector assure that it would have been better to establish a 0% for one or two years, as Guillermo Lasso included in his campaign proposals at some point.
Recovery does not help to get out of the critical zone
In 2021, the economic movement of the tourism grew 25.8% in Ecuador. In the region, the recovery was 17% and in Europe 19%.
Actors in the sector have recognized that issues such as the successful vaccination campaign against COVID-19 have allowed these results, but the Recovery of the levels that were between 2018 and 2019 will only be reached between 2025 and 2026.
Thus, the cash flow is future, but in 2022, 2023 and 2024 a significant injection of capital is needed to prevent many businesses from closing.
That injection should come through the fulfillment of another campaign promise. That promise is Credits Visit Ecuadorwhich should deliver at least $100 million, at 3% and with a three-year grace period.
According to latest statements from Tourism Minister Niels Olsenalthough not everything offered has materialized, progress has been made in aid through three channels.
Debt promotion and restructuring plan
In recent days, Olsen presented a plan to promotion with a budget of $47 million until 2025. In 2022, $5.5 million will be spent. Of that total, 70% will be invested in the international marketand 30% on the premises.
The countries where the promotion will be concentrated are the United States, Canada, Mexico, Brazil, Chile, Australia and Europe, with emphasis on Germany, Italy, Belgium, the Netherlands and the United Kingdom.
The goal is to increase international arrivals by 30% by 2025, which represents reaching 2 million visitors a year.
The Minister has assured that, unlike previous governments, a transparent plan has been established so that each dollar has the highest possible return.
Otherwise, what happened between 2015 and 2020 will be repeated, when $83 million was invested in promotion, but the number of foreign tourists was increased by 95,000. When in the same period, the international visits they increased from 500,000 to 1 million in Peru, Colombia and Costa Rica.
The tourism sector has historically received less resources, and spending has been inefficient when more has been allocated.
tax debts
Another way to prop up the sector, especially with respect to the damage caused by the pandemic, is related to measures included in the tax reform. On the one hand, you can restructure debts with the SRI and the IESS for up to 48 months, without an initial fee. However, there are complaints that these benefits are not being met for everyone.
On the other hand, the losses of 2020 and 2021 in all types of tourist activities can be deducted from income tax for up to 10 years.
The lowest point, however, is the credit. According to the authorities, there is a line of credit with Banecuador at 9.75% (7% less than the regular 16%). This line has favored more than 102 tourist operations, for a value of $1.5 million. That value is much less than the needs of the tourist industry.
Without a defined date, it is also offered that microcredits will be opened, such as those that are being given in the tourism sector, at 1% and a 30-year term. (JS)
Para 2025, la meta del Gobierno es alcanzar 600.000 empleos directos en el sector turístico. A diciembre del 2021, se cerró con 540.000 empleos directos.
54.166 turistas extranjeros, cada mes durante 2021, registraron su ingreso al país
Current Government inherited a promotion budget of $50,000
During 2021, based on the budget left by the Lenín Moreno administration, the Ministry of Tourism had just $50,000 for internal and external promotion.
This 2022, the figure rises to $5.5 million. The promotion strategy includes participation in 14 international fairs; and a direct focus on customers.
According to the World Tourism Organization, 80% of people make their decision to vacation in a country based on what they see in digital media. In addition, it has been established that what travelers are looking for are unique destinations and experiences that transform their lives.
There is an emphasis on nature and rurality, complemented by two things: biosecurity and low levels of crime and insecurity.
Public relations firms will be hired for the US market and for the European market.
However, a problem that cannot be solved is that most of the Eco delta and Ecuador tourist power taxes, which more than 60% of air tickets are more expensivedo not reach the Ministry of Tourism for promotion.
The reason is that the Constitution says that the funds cannot be pre-allocated to that dependency because it is not one of the priority sectors such as health, technology and education.
Last year, $65 million was collected from those taxes.
