Foreign airlines, against the rise of the tourist dollar: “It will generate fewer seats in Argentina”

The Chamber of airlines in Argentina (Jurca) expressed his “concern” on the occasion of the Government’s decision to increase the system of perception of expenses abroad from 35% to 45%. He stressed that “he is opposed to the incentive of tourism and its consequent foreign exchange income for the country”.

The entity, which brings together foreign airlines operating in the country (curiously: Aerolineas Argentinas is still a memberafter its nationalization), added that with the new increase every passenger pays taxes a 82% more on the fare.

The declaration, signed by its executive director, Filippo Baravalle, He also stressed that “while other countries strive to continue to attract hospitality tourism, making available as many seats / flights as possible, this measure takes us in the opposite direction”.

Here is the full text of the statement:

“From JURCA we express our concern on the occasion of the new AFIP General Resolution issued yesterday, July 13, with reference to the Amending Regulation of the Perception Regime (General Resolution no. 4.815) with a direct impact on the Aerocommercial Industry and Tourism”.

“From the Chamber of Airlines in Argentina – JURCA, we express our bewilderment and concern for this measure, which has not been consulted or anticipated. The application of the PAIS Tax and the Perception of 35% at the beginning of 2020 resulted in a drop in local demand, not only of passengers but also of the movement of goods“.

“We believe that this 45% increase in Perception runs counter to the tourism incentive and its consequent foreign exchange income for the country. Argentina, in recent times, has applied a number of taxes on the fare value, such as 30 % of the PAIS Tax and now the 45% update of the Perception + 7% of the DNT (Tourist Tax) “.

“This forces every passengeror pay an additional 82% tax on the farediscouraging demand and increasing the total cost of the ticket “.

“The commercial airline industry is recovering from the worst economic crisis in its history, operating only 55% of passengers in 2019. And while other countries strive to continue to attract hospitality tourism, making as many seats available as possible / flights, this measure it takes us in the opposite directionlimiting the generation of more jobs and increasing the unpredictability of operations and planning in our country, attacking demand and the increase in operations and requiring companies to review their operations to and from the country “.

“Airlines are profitable when both directions (round trip) have healthy load factors. If we continue to make it more expensive and limit access to travel for Argentines (less emissive passengers), this is it it will generate the reduction in the size of the aircraft or the number of frequencies depending on the case, which will have a direct impact on the feasibility of foreign tourist travel in the country (receptive passengers), on the capacity of the goods warehouses for export and with it on the reduction of foreign exchange and jobs in the country “.

“As we have expressed on other occasions, we are concerned about this type of restriction on the commercial / tourist operation, which profoundly damage the development, investment and continuity of businesses that generate employment in our country “.