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              Grey outlook for Latin America


                 The outlook for the Latin American   spread of mutations and new varieties of   traffic also means that border stores solely
              travel retail industry remains unclear.   COVID.                    depend on local residents from sister towns
              As we go to press, Brazil continues with   According to ANAC, the Brazilian   for sales.
              record numbers of deaths and infections   Civil Aviation Authority, domestic air   Ferries are not much better off with
              from the coronavirus; Argentina, Peru and   travel in Brazil fell last year by 52.5% and   Buquebus only having six weekly sailings
              Paraguay are also recording high numbers   is down by 38.4% through to the end of   on the Buenos Aires - Montevideo route
              of infections.                    February this year. International travel fell   compared to the normal 26. The Colonia
                 But critically, the lack of vaccinations   by 72% in 2020 and was down 86.5% for   route served by Buquebus (between 28
              in most countries in the region prevents   the first two months of 2021. The figures   and 40 sailings) and Colonia Express
              governments from opening frontiers to   are equally depressing in other countries   (28 sailings) has not operated since the
              tourists and business travelers. Only Chile   with many aviation authorities delaying   pandemic began.
              and Uruguay seem to have key sectors   publication of new results.      There are rumors of further
              vaccinated, although the number of    Passenger traffic was also dramatically   restrictions in the short term with only
              infections remain high in both countries.  down in 2020 compared to 2019 in Buenos   the most optimistic observers expecting
                 Travel possibilities have been very   Aires (-76%), Lima (-70.3%) and Santiago   openings and improvement in Q3 and Q4
              much stop-go and it seems likely to stay   de Chile (-72.8%).       this year.
              that way as governments try to curtail the   Restrictions on movement of vehicular                JG




              Rising virus numbers pause South American recovery – for now

                 As TMI goes to press at the end of   be reprogrammed to ensure that all health   people on March 27 and 28, equaling about
              March, the rising number of cases of   protocols are adhered to.    86% of the country’s population, after a
              COVID-19 and its variants are causing new   Under the new measure, Mercopress   rising number of the British and Brazilian
              restrictions in South America.    reports that Argentines returning from   variants of the virus were detected.
                 Brazil reported more than 100,000   abroad will have to pay for the PCR tests
              Sars-CoV-2 infections in a 24-hour period   and quarantine will have to be observed   Uruguay
              on March 25. The virus has already killed   at a venue to be chosen by the authorities.   On March 24, the government of
              over 310,000 people nationwide in Brazil,   Non-resident foreign nationals will under   Uruguay ordered all schools and public
              second only to the United States in the   no circumstance be allowed into the   offices to remain closed at least until the
              number of Covid-19 deaths and infections,   country for leisure purposes.  end of Easter Week, due to its biggest wave
              in a situation than continues to worsen.   Flights were already banned to and   of COVID-19 infections, including heavy
                                                from Great Britain and Northern Ireland   spread of the variant of the virus out of
              Argentina                         out of fear of a second coronavirus wave.   Manaus, Brazil. In addition, all duty free
                 As of March 27, in a move to curb                                shops on the country’s border with Brazil
              the spread of infection, Argentina halted   Chile                   are to remain closed until April 12. The
              all flights to and from Brazil, Chile and   The government of Chile imposed   government did not order a lockdown or
              Mexico. Flights to other countries are to   mandatory lockdowns on some 16 million   mandatory quarantine, however.


              Brazil: Privatization in times of pandemic


                 The Brazilian government has insisted   interest in bidding for the 22 airports up for   aviation, both are key for the Brazilian
              that the COVID-19 pandemic would not   auction. The airports are divided into three   aviation business. The two airports, seen by
              halt their airport privatizations plans,   groups in the north, center-west and south   many observers as Infraero’s last remaining
              arguing that the airports to be privatized   of the country with Curitiba (6.5m pax),   crown jewels, will be tendered along with
              depended mainly on domestic aviation   Foz de Iguacu (2.3m pax), Goiânia (3.3m   15 other airports and the objective is to
              as opposed to international and that the   pax) and Manaus (3.1m pax) being the top   complete the process prior to the 2022
              concession period of 30 years was more   attractions for interested parties.  Presidential elections. Then the government
              than enough for the winners to regain their   Only last month, the Brazilian Civil   must decide the future role of Infraero,
              investment.                       Aviation authorities announced preliminary   which may be liquidated following the final
                 The sixth round, however, was   studies for the seventh and last round of   privatisation tender.
              postponed late last year and is now due   privatisation. Both Congonhas (22.1m pax)                            JG
              to take place on April 7. Civil aviation   in Sao Paulo and Santos Dumont (9.1m
              authorities told the Brazilian press that   pax) in Rio de Janeiro are up for grabs and   Passenger numbers 2019 – last full year
              more than 15 groups have shown an   although both depend totally on domestic   pre-COVID– source Infraero



                                                                              31                 April 2021 The Virtual Summit of the Americas Issue
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