Ecuador’s tourism sector lost US$70 million in the last two weeks due to protests

RIO DE JANEIRO, BRAZIL – The protests in Ecuador, which began last June 13, have left millions of dollars in losses for several sectors, including the tourism sector.

According to the Minister of Tourism, Niels Olsen, the more than 15 days of demonstrations have left losses exceeding US$70 million.

According to Olsen, this amount represents only the cancellations of reservations that have occurred in the last two weeks.

The losses from cancellations in the following weeks and months and the impact on Ecuador’s reputation as a tourist country for international travelers have not yet been evaluated.

Quito has been one of the cities most affected by the demonstrations, as the road closures prevented access to the Mariscal Sucre International Airport.

According to Quito Turismo, companies in this sector have reported losses of around US$18 million.

The tourist operation has losses of US$11.9 million, food and beverage businesses US$3.5 million, events and social gatherings with losses of US$1.9 million, and accommodations with US$520,000.

Most companies that provide tourist, food, beverage, and lodging services had to close their doors for security reasons since the confrontations between the demonstrators and the public forces have taken place in the limit between the northern center and the historical center of Quito, highly touristic areas.

The alerts about the crisis in Ecuador, which warned international travelers of the risks, also affected the country’s tourism entrepreneurs.

Quito Turismo determined that these publications had a commercial effect of more than US$10 million. The information about the protests would have reached more than 420 million people, mainly in the United States and Europe.

In an interview with Radio City, Minister Olsen indicated that “it will be very difficult to recover the losses of these two weeks” but announced that the necessary actions would be taken so that the tourism sector does not register more losses.

Olsen announced that Ecuador would participate in several international events this year, some related to gastronomy and bird watching.

The minister also pointed out that the government has assisted tourists who during these weeks have arrived at the airports of Quito and Guayaquil and stressed that both terminals have continued to operate despite the strike.

The Quito Tourism report highlights that the demonstrations have affected at least 3,000 national and international passengers.

On June 21, there were 15 cancellations of flights from the United States, Colombia, or domestic flights to Manta, Cuenca, or Guayaquil, according to the company that manages the capital airport, Quiport.

At the Mariscal Sucre airport, rest areas were set up for travelers who, due to the country’s crisis, had to stay longer inside the terminal.

The president of the National Emergency Operations Committee, Juan Zapata, has publicly regretted that the profits obtained after lifting the measures applied due to the coronavirus pandemic have been lost in these days of protest.

According to Zapata, there was an economic movement of more than US$200 million in the holidays before the demonstrations, but that would have been lost.

On June 29, in a joint statement, the productive sector asked for the strike to end. They stated that the strike and the riots “cause human and economic losses that will be paid by the country’s hardest working and peaceful Ecuadorians”.

The statement was signed by:

• The Quito Chamber of Commerce;
• The Ecuadorian Federation of Exporters;
• The Chamber of Industries and Production;
• The National Association of Producers and Exporters of Flowers of Ecuador;
• The National Corporation of Poultry Farmers of Ecuador;
• The Chamber of Small and Medium Enterprises of Pichincha;
• The Chamber of Agriculture;
• The Ecuadorian Association of Cosmetics, Household Hygiene, and Absorbent Products Companies.

In their letter, they supported the work of the forces of law and order and asked the government to make the law prevail over political calculations.

With information from Infobae