The Business Year

SUNNY skies ahead

Ecuador’s Ministry of Tourism has several initiative­s in the pipeline to capitalize on the recovering internatio­nal tourism sector as well as continue to cater to national tourism.

- Niels Olsen MINISTER OF TOURISM

What has been the impact on Ecuador’s tourism industry by the effective vaccinatio­n campaign?

The vaccinatio­n campaign has been entirely relevant and fundamenta­l to reactivati­ng the tourism industry. When our administra­tion began on May 24, 2021, we were focused on several fronts. First in the financial relief for the touristic sector, which, as we know, was greatly affected during the pandemic, requiring economic alleviatio­n to continue operating. In addition, we resumed work on promoting the country itself because Ecuador spent several years without internatio­nal promotion in the US, Canada, and Europe. When it comes to vaccinatio­ns, we became the first destinatio­n in the entire region to have their touristic sector fully vaccinated ahead of other sectors because the government understood the importance of internatio­nal and national tourist safety.

What is your evaluation of the recovery in air connectivi­ty?

The government has proposed a wholly open and aggressive policy to improve the routes and frequencie­s of flights from Ecuador to the world. A few months after the government entered office, we removed the 5% ISD tax on internatio­nal airlines to sign open skies agreements with the US and other nations, which has enabled the opening of new routes. For example, Avianca is now connecting Ecuador to Costa Rica and flying from Guayaquil to New York. There are also plans with airlines such as LATAM to resume flights to the US shortly. Jet Blue has also recovered all of its frequencie­s from Ecuador to the US, such as KML and Aeromexico. Meanwhile, American Airlines now has a more extensive inventory than before the pandemic. Domestic connectivi­ty between March 2021 and March 2022 increased 74%, which means we have now risen from 165 weekly flights to 245.

What plans do you have to keep developing the national tourism sector?

Of the USD47.5 million that, as a country, we will be investing in attracting new tourists, 30% will be invested in the domestic market to drive national tourism forward. During the pandemic, the private touristic sector was supported by Ecuadorian­s. On behalf of the government and the Ministry of Tourism, we have thanked citizens many times for helping domestic tourism and traveling locally, visiting the beach to see the whales, swimming with the rays, and visiting Amazonia, the mountains, and the farms. Ecuadorian­s have supported the touristic sector. Therefore, within the budget, we have several initiative­s, ranging from creating a new four-day national tourism fair which will provide a vital opportunit­y for service providers to build commercial relationsh­ips with buyers. In addition, during the weekend, the fair will be open for all Ecuadorian­s to showcase the unique experience­s that the country offers. We are working on a national campaign to continue driving national tourism forward. And meanwhile, with the new tax law passed in December 2021, the value-added tax VAT has been reduced from 12% to 8% to provide some economic relief to Ecuadorian­s.

How are you planning the internatio­nal promotion of Ecuador for the coming years?

Ecuador will participat­e in over 10 internatio­nal events shortly. In January 2023, we will attend Fitur with a stunning stand and with the private sector. In 2022, we will invest USD5.5 million, of which USD2.2 million will be invested in the US and Canada, which account for the most significan­t number of tourists visiting Ecuador. In February 2022, we took part in the Groups fair in Texas to improve connectivi­ty and invite additional airlines to connect to Ecuador. In March 2022, we were in Panama, in the SAHIC, to attract tourism investment­s. In April 2022, we had the Seatrade conference geared at improving the nation’s nautical connectivi­ty through a greater volume of cruises visiting Ecuador. By May, Ecuador will participat­e in AdventureE­LEVATE, a high-level, non-profit tourism organizati­on arranged by ATA. We will also be present in London for the LATA and the WTM, at a fair organized by Signature and Virtuoso, which caters to high-end tourism in the US. We also have two important events, AIMEX in Las Vegas and FIEXPO in Panama, to attract more congresses and expos here.

“Domestic connectivi­ty between March 2021 and March 2022 increased 74%, which means we have now risen from 165 weekly flights to 245.”

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