Mincetur estimates that tourism businesses lose S/. 25 million per day in Peru

29-01-23

The head of Mincetur, Luis Helguero, pointed out that due to the protests, arrivals at lodging establishments fell by 52% and passenger arrivals at land terminals contracted by 56% and at airports by 31%.

Tourism in Peru has been one of the main drivers for the economy because it positively impacted a whole productive chain including hotels, restaurants, travel agencies, guides, commerce and transport. However, the wave of social protests that has led to the temporary closure of airports and the inoperability of trains in the Cusco tourist corridor has caused millions of dollars in losses to the tourism sector.

The most affected regions in the country are Cusco, Madre de Dios and Puno, all three located in the south and with important road blockades and pickets.

Economic losses due to social protests reach S/2,150 million, MEF estimates

The accumulated impact in December 2022 was S/. 1,000 million and so far in January (up to Monday 23) the losses reach S/ 1,150 million, detailed the head of Economy, Alex Conteras. In addition, the most economically affected regions were Cusco, Madre de Dios and Puno.

In view of this problem, Luis Helguero, head of the Ministry of Foreign Trade and Tourism (Mincetur), estimated that, between 12 December 2022 and 22 January 2023, businesses in the tourism sector recorded losses of S/. 1,052 million. This negative figure would be jeopardising the operations of tourism companies and would put thousands of jobs at risk.

The minister also pointed out that a recovery of 27% was planned for this year, representing an increase of 540,000 additional international arrivals by 2022.

Meanwhile, in terms of tourism, an increase of 26.4% was projected, equivalent to 7 million additional trips. Both figures suggested that by 2025 the levels of 2019 would be reached," said Helguero during his presentation to the Foreign Trade and Tourism Commission of the Congress of the Republic.

Peru's growth in 2023 will be less than 1.9% due to protests, says Moody's

Although the Peruvian economy has been isolated from the political turmoil of recent years, the current social protests "mark a turning point".

However, he lamented that the sector's growth projections have been directly affected. "Nationally, the tourism sector has been registering losses of S/. 25 million soles per day.

Foreign tourists stranded in Cusco were taken by bus to airports to return to their places of origin.

Regions in the red

According to figures from Mincetur, the tourism sector in Lima has been losing S/. 3.78 million per day; in Cusco, S/. 3.37 million; in La Libertad, S/. 1.94 million; in Ica, S/. 1.51 million; in Lambayeque, S/. 1.35 million; in San Martin, S/. 1.23 million; in Arequipa, S/. 1.21 million; in Piura, S/. 1.17 million; and in Junin, S/. 1.08 million.

Likewise, the tourism sector in Ancash loses S/. 1.07 million per day; in Puno, S/. 1.02 million; in Cajamarca, S/. 919,030; in Loreto, S/. 683,650; in Tacna, S/. 616,146; in Huánuco, S/. 584,398; in Ayacucho, S/. 583,500; in Ucayali, S/. 550,677; and in Amazonas, S/. 461,293.

Similarly, the tourism sector in Madre de Dios loses S/. 460,100 per day; in Apurímac, S/. 409,880; in Pasco, S/. 322,918; in Tumbes, S/. 274,009; in Moquegua, S/. 256,068; and in Huancavelica, S/. 167,257.

Foreign tourists' visits are reduced

Along these lines, Helguero pointed out that the regional foreign trade and tourism departments reported that the arrival of national and foreign visitors had decreased by an average of 54%.

Approximately 1% of national copper production has been compromised by the social protests, estimated the Department of Economic Studies of Scotiabank.

"While arrivals to lodging establishments fell by 52%. Likewise, passenger arrivals at land terminals contracted by 56 per cent and arrivals at airports by 31 per cent," it added.

Operations at Cusco Airport were suspended due to protests.

Similarly, the head of Mincetur revealed that representatives of hotel establishments in Lima, Cusco, Arequipa, Puno and Tacna reported that the occupancy rate of rooms was reduced by 83%, while 84% were cancellations of package tours.

"Also representatives of interprovincial land passenger transport companies reported that ticket sales decreased by 76 per cent, 69 per cent were cancelled and 23 per cent were postponed," Helguero said.

In addition, the minister said that the owners of travel agencies in Lima, Cusco, Arequipa, Puno and Tacna reported that tourism recorded an average of 86% cancellations of sales of services, such as package tours, city tours, ticket sales, tourist circuits, guided tours to museums, reservations in tourist restaurants, among others.