Page 33 - Travel Markets Insider October 2021 Final

INSIDER

Slow return for travel retail in Latin America by John Gallagher

The COVID-19 pandemic has not week, compared to the normal 26/28. Both to re-establish something close to normal
been kind to South America. More than Buquebus and Colonia Express cancelled service.
38m infections and just over 1.15m deaths service to the Uruguayan port of Colonia Chile has also reopened airports for
are the sober numbers which tell you during the pandemic, although both fully vaccinated passengers but is requiring
how bad things were. Brazil, Argentina, companies have announced a limited restart all travelers to spend 5 days in quarantine
Chile, Colombia and Peru were the worst in mid-October. – clearly this is not viable for many tourists
hit and still are struggling to restart their The number of infections and deaths and 1- or 2-day business trips are simply
economies. have been falling throughout the continent impossible. Restrictions are expected to
The aviation business has been badly since mid-August and governments ease prior to the end of the year.
hit with many countries either closing are now easing restrictions on travel; a Brazilian domestic flight numbers
borders or restricting the number of flights; measure which comes just in time for have grown since the start of the year
at the same time many countries cancelled the southern hemisphere summer and the and reached levels close to 70% of pre-
flights to and from Latin America in an peak time for vacation for most families. pandemic levels. International flights are
attempt to prevent infection – clearly this Fully vaccinated travelers will benefit in still to recover and passenger throughput
has had a knock-on effect on the travel many cases from no quarantines rules but is only around 25% of 2019 levels in most
retail business in the continent’s airports some PCR testing is still required by some airports. Flights to many European airports
and many operators have had to furlough countries. have been cancelled and demand is still
staff or simply let them go. Argentina has opened airport weak. Recent passengers at Sao Paulo
The border business in Uruguay, immigration posts for fully vaccinated Guarulhos told TMI that the airport is still
Paraguay and Brazil has also suffered travelers from Brazil, Chile, Paraguay very quiet and the duty free shops are still
as governments throughout the region and Uruguay – but the number of flights nowhere near as busy as normal.
restricted travel and is only recently is still small and still restricted. Airports The immediate future of the Latin
beginning to recover as restrictions ease. will open for all travelers from November American cruise industry remains unclear
Border store operators indicated to TMI 1. The government opened land borders at as Brazil has insisted that regional cruises
that passenger numbers were just over 35- Mendoza and Iguazu on an experimental do not operate outside of Brazilian ports.
40% and they expected number to continue basis and other land borders are expected Argentina and Uruguay are negotiating
increasing over the next few weeks. to open at the beginning of November. The with the Brazilian government to lift this
Ferries between Argentina and strict allocation system applied to many new restriction to ensure that the summer
Uruguay have also been badly hit with international flights will be lifted from mid- season can start in December.
services from Buenos Aires to Montevideo October. The big question is how quickly MSC has announced that the
still restricted – as we go to press demand will return and how quickly uncertainty has led them to cancel their
Buquebus was operating 6 services per airlines and ferry companies will be able program.

A Selection of South American Passenger Statistics
Santiago de Chile Rio de Janeiro International – Buenos Aires Ezeiza – Argentina
Jan – Aug - 2021 – 0.88M Brazil Jan – Aug 2021 - 0.78m
Jan – Aug - 2020 – 2.64M Jan – Jul 2021 – 182.1K Jan – Aug 2020 - 2.6m
Jan – Dec - 2020 – 3.02M Jan – Jul 2020 - 1.08M Jan – Aug 2019 - 7.8m
Jan – Dec - 2019 – 11.1M Jan – Dec 2020 - 1.2M Jan – Dec 2020 – 2.86m
Jan – Dec 2019 - 4.3M Jan – Dec 2019 - 11.55m

London Supply to open new store in Rio Gallegos

London Supply, Argentina’s premier that the Free Zone will compete directly forced potential opening dates to be
duty free operator, is to open a new 700 sq- with Chile’s Punta Arenas Free Zone, continually postponed.
meter store in Rio Gallegos, the capital of located just over 200 km to the West of Rio Assuming that the warring
Santa Cruz province, just over 2,500 kms Gallegos. government departments have reached a
south of Buenos Aires. The store is located The new store has been planned for truce, it now seems certain that the store
in a new 200-hectare Duty Free Zone, just several years but internal discussions and will open in mid-October.
outside of Rio Gallegos. disagreements between senior officials of JG
Local observers have commented both national and regional governments

33 October 2021