Bolivia Lost US$3 Billion and the Flow of Domestic and International Tourism | Bolivia perdió $us 3.000 millones y el flujo del turismo interno y externo

By El Diario:

In 50 Days of Road Blockades

The measures imposed by Morales and allied groups such as the COB and the radical Túpac Katari factions caused irreparable damage to the country. In addition, they led to Bolivia being excluded from the international tourism circuit due to the insecurity generated by the blockades.

The Salar de Uyuni is Bolivia’s main tourist attraction and is admired by visitors. CREDIT: Estamos vivos

In 50 days of road blockades, the country not only lost more than US$3 billion but also international and domestic confidence, according to productive and service sectors. In tourism, the winter solstice traditionally generates economic activity throughout the country as visitors arrive to celebrate the first rays of the sun on June 21. However, this year the blockades caused Bolivia to lose both domestic and international tourist flows.

In mid-May, the tourism sector announced that economic losses by the end of the year would exceed 6 billion bolivianos. Last week, the Ministry of Tourism and Gastronomy reported that the impact had already reached 1.1 billion bolivianos.

Economic analyst Gustavo Machicado stated that tourism was the sector most affected and that it would not recover during the remainder of this year, with recovery expected only next year.

Meanwhile, economist and professor at the Technical University of Oruro (UTO), Ernesto Bernal, argued that the economic situation requires foreign currency and that tourism was one of the best options for attracting dollars, but the blockades seriously damaged the sector.

At the same time, the president of the Gastronomic Association of La Paz, Ernesto Olivares, said in interviews with authorities that 78.1% of restaurants and food-related businesses in the cities were affected to some degree.

He said that, on average, businesses operated at only 30% capacity, a figure similar to that recorded during the pandemic.

Likewise, the lack of supplies affected 94% of gastronomic enterprises, and 45% are facing liquidity problems because they experienced almost no economic activity for a month due to a sharp decline in sales.

“We do not have the capacity to make payments,” he said, referring to obligations such as municipal taxes, employee salaries, and other responsibilities.

Unfortunately, this situation has had repercussions in La Paz and El Alto, particularly in terms of job losses, with unemployment estimated to affect around 20,000 people.

CANCELLATIONS

Tour operators reported that the blockades caused reservation cancellations and also pushed Bolivia out of the international tourism circuit because of the insecurity associated with the protests.

Furthermore, tourists stranded by the blockades reinforced the country’s negative image abroad, despite the attractions Bolivia offers the world, including the Salar de Uyuni, Sajama National Park, Madidi National Park, Samaipata, Toro Toro, the dinosaur footprints in Sucre, and Lake Titicaca and its islands.

Tiwanaku alone lost approximately 11 million bolivianos during the winter solstice period, since the event normally generates activity for transportation providers, tour operators, restaurants, and local product vendors.

For example, the Tiwanaku Archaeological Complex lost significant revenue because for more than a month it was unable to receive tourists, who generally pay an average entrance fee of 100 bolivianos, while Bolivian students pay 5 bolivianos.

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