With the start of the new year, the 19% VAT returned to tourist products and, in the case of air taxes, it went from 5% to 19%, this after two years of reduction as a measure to support the sector in the crisis generated by the covid-19.
(See: How users will feel the increases that airlines are having).
“It must be taken into account that, in addition to the 14 percentage point (pp) increase in VAT, there is an increase in inflation in Colombia, which, according to data from Dane, was 13.12% by 2022.“, warns the commercial director of the flight search engine Viajala.com.co, Romain Maciejewski. “With this, it is expected that the traveler feels an increase between 30% and 40% in the final price of the ticket this year“
Viajala observed the price variation in the 5 most searched routes of the last 15 days, which are to travel to Bogota since Monteria, Medellin, Barranquilla, Cartagena and Santa Marta, on one-way flights, and made a comparison with the 15 days exactly before (that is, the second half of December 2022) and with exactly one year before (that is, the first half of January 2022).
The average price to travel from Santa Marta to Bogotá, for example, increased from $318,163, on average, a month ago, to $487,660, an increase of 53%. The Cartagena – Bogotá route presented 48% average price increase between the first half of this month and the second half of December: it went from $285,062 to $412,501.
(See: They freeze the price of the tourist card in San Andrés due to low visits).
Average price for the route in the first half of January 2023: $407,744, almost 27% more expensive than the average price in the second half of December 2022 (which was $322,038) and almost 17% more expensive than the average price from a year earlier, in the first half of January 2022 (which was $349,576).
Average price for the route in the first half of January 2023: $197,347, almost 28% more expensive than the average price in the second half of December 2022 (which was $154,623) and 40% more expensive than the average price of a year earlier, in the first half of January 2022 (which was $141,290).
Average price for the route in the first half of January 2023: $405,707, almost 42% more expensive than the average price in the second half of December 2022 (which was $286,253) and 21% more expensive than the average price of a year earlier, in the first half of January 2022 (which was $334,225).
(See: Learn about the most powerful passports to travel this 2023).
Average price for the route in the first half of January 2023: $412,501, 48% more expensive than the average price in the second half of December 2022 (which was $285,062) and 15% more expensive than the average price of a year before, in the first half of January 2022 (which was $357,911).
Average price for the route in the first half of January 2023: $487,660, 53% more expensive than the average price in the second half of December 2022 (which was $318,163) and 30% more expensive than the average price of a year before, in the first half of January 2022 (which was $375,166).
Trips.
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According to the Hotel and Tourism Association of Colombia (Cotelco), With the elimination of the VAT exemption, a drop between 9.5% and 38% is expected, which is equivalent to a decrease of 138,000 quarterly tourists.
(See: After annulment decision, Viva still sees light to continue in the market).
For the commercial director of Viajala, the return of the total collection of VAT was already expected due to the return of normality, even if it is a bad news.
“The expectation is that this will have a terrible impact on the sector, since air tickets have a very high tax burden, even with VAT at 5%.“.
The manager says that the way to save in 2023 is replan trips in advance: “It was more difficult to make long-term plans in the pandemic, when uncertainty made the traveler plan last-minute flights. Now more than ever we must take advantage of the security we have in flying to plan trips in advance“.
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