economy and politics

Why would it be more expensive to travel within Colombia than abroad?

Why would it be more expensive to travel within Colombia than abroad?

In an interview with Portafolio, the president of Aviatur, Samy Bessudo, affirms that the return of the 19% VAT and the exit of air competitors from the market have negatively impacted tourism, with a decrease of between 20 and 25% in passenger volumes. Despite this, Aviatur works on strategies and alliances to encourage leisure travel inside and outside Colombia.

(See: Air ticket prices increase up to 18% in 2023).

How have you perceived the return of VAT?

It is understood that it was a measure due to the pandemic and to reactivate the sector, but the return of VAT has clearly had an impact, not only at the level of prices in the air part, but also the affectation that has occurred in tourist destinations. The clearest example has been the island of San Andrés.

Likewise, we see a drop in the volume of passengers, not only the airlines are seeing it, but the hotels, operators and restaurants are seeing it.

How much has the volume of travelers dropped?

Between 20 and 25% less compared to 2022.

Added to the effect of inflation, what are those services that have been most impacted?

As an agency we see a significant increase in air fares, not only due to taxes, but also due to the exit of competitors from the market.

(See: El Dorado Airport will increase the number of air operations).

How much does the departure of Viva impact your finances?

In our case it is an affectation that exceeds $2,000 million. It is a sad fact.
As president of Aviatur, I hope that it is seated and it is understood that we are travel agencies, not the providers of the services, therefore we should not be responsible for the bankruptcies of the airlines, that is not seen in any industry. As it is going to be said, that if the milkman goes bankrupt it is the fault of the cow, it does not make sense.
Here the airline went bankrupt and it is very easy to point to the travel agency as responsible, but I believe that measures must be taken, not only in guarantee policies, but that they are responsible first hand. The payment was made directly to them, despite the fact that the purchase was made in a travel agency, the money is no longer in our hands.

What does the government tell you?

We are still waiting. I think there is still a lot of cloth to be cut there.
In addition, we are waiting for the decision-making by the Government to be able to return to the levels of 2022. It is important to continue encouraging the number of passengers, not only those who leave Colombia to take their vacations or for corporate trips, but also those who enter to the country, that the security and infrastructure conditions are in place so that foreigners can enjoy the country.

Speaking of a destination like San Andrés, how are the pricing dynamics going?

There are increases in some cases exceed 25%. That indicator is very sad because supposedly after all the catastrophe that San Andrés suffered, the idea was for the island to recover. It is a territory that lives on tourism, and today when we talk to hotels, restaurants and tourist service providers they are in a moment of despair, they do not know what to do and it is not being very different in the rest of the country.

(See: Tourist packages have raised their rates up to 50%: why is it).

Has all this made people want to travel less?

If they wanted to, I think they do want to travel, but it’s not a secret to anyone that the market is down. There is a situation with a lot of uncertainty due to the different reforms. People become reticent with something that is for pleasure, they already think twice.
This panorama, plus the tax issue, the exit of players from the market, the rise in the prices of air tickets and the rise in prices in different aspects of the market -gasoline and family basket- means that there is an undoubted contraction in the tourist aspect.

Have you analyzed the impact of the reforms?

I don’t want to comment on it. But I can say is that from our side what has been the salary increases, we welcomed them and it is a significant increase and we agree, but it must also be said, these increases should also be linked and carried hand in hand with an increase in market dynamics that lead companies to have economic stability.

At Aviatur, what plans are you making to encourage people to travel more?

We have just had several meetings internally to look at strategies, making negotiations and alliances to encourage the decision making of these travelers.

Is there a change in the travel trend? Are there more domestic or international trips?

Traveling within Colombia can sadly be more expensive than traveling abroad.
Basically, it can be found that traveling abroad to destinations such as the Dominican Republic, Mexico or various countries in Central or South America may be less than or equal to traveling within Colombia.

(See: Satena Barranquilla – Caracas Route: prices and frequencies that it will have).

And the Government wants to boost tourism in the country… What do you think of this dynamic?

It is that it is cheaper, perhaps for the foreigner who comes to the country due to the rise in the dollar, but for the Colombian it is not.

How was last year and what do you expect this year?

The year 2022 was an exceptional year, it managed to exceed the levels of 2019, which was a very good year. This year there is a contraction in all sectors due to the reality of the country. However, we expect this 2023 to be able to maintain ourselves, I do not want to think that we are going to decrease in volume of transactions, it is a pity, but I could not say that we are going to grow either.

What are the projects that Aviatur is preparing to maintain itself?

Projects are coming in the hotel part, we will tell you later. In addition, important alliances are getting ready, we have representation of shipping companies, representation of Disney and Universal parks.

PAULA GALEANO BALAGUERA
Portfolio Journalist

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