Losses due to the state of emergency in Ecuador may reach US$250 million

The emergency in several Ecuadorian provinces is affecting businesses, and heavy losses are expected for the sector. Impacts at the national level could reach US$ 250 million.

After the Government of Guillermo Lasso decreed a state of emergency on November 1 in the provinces of Guayas and Esmeralda, and extended the measure on November 4 to Santo Domingo deLoss Tsáchilas, commerce suffered the consequences of the actions.

The reduction of opening hours in commercial activity on the eve of the time of the year in which most consumption takes place had negative impacts that have alerted the authorities.

For November, an 8% increase in invoicing was estimated. Still, after the measures announced by the Government, only 4% growth could be expected, according to statements of the executive director of the Chamber of Commerce of Guayaquil (CCG), Juan Carlos Díaz-Granados.

“Commerce would be losing US$250 million during November”, said the director, warning that if this situation were to occur, the temporary hiring that usually takes place at the end of the year would be compromised.

The sector is asking for a reconsideration of the most convenient hours for the current curfew from 9 pm to 5 am.

Likewise, gas stations suffered substantial impacts, with a 25% reduction of their sales in the provinces where the state of exception is in force.

For this reason, the National Chamber of Petroleum Products Distributors of Ecuador (Camddpe) maintains that the reduction of mobility and the closure of commercial activity, which includes gas stations, will not solve the security problems in the region, although “immediate militarization” could.

Another of the affected sectors is tourism.

According to statements made by Holbach Muñeton, president of the Federation of Chambers of Tourism of Ecuador, to the newspaper El Universo, while destinations such as Cuenca and Baños, Riobamba and Napo had total or almost complete attendance, tourist destinations within the provinces under a state of emergency did not exceed 22% attendance.