The decree is dated January 31, and bears the signature of the president Luis Lacalle Pou and the ministries of Economy and Finance (MEF)of the Inside and of Transportation and Public Works (MTOP). The provision establishes a “Price for Security Services” of $2.10 — more VAT— to passengers entering or leaving the country by sea or river. The proceeds, as the text explains, will be used for the effective implementation of an advanced border control systemsimilar to that used in airports.
In total, the value added to the final cost of the ticket will be $2.56, will be collected directly by the shipping companies—which will act as withholding agents—and will come into effect in May. “It is not a rate, because to be a rate it must be a law and this is a decree,” he clarified. Andrés Castellano, president of the Cologne Tourist Associationin dialogue with Ambit.
A new cost is a damage for Cologne
Given the publication of the decree and the officialization of this new price for security service, the Tourist Association of Cologne sent a letter to the agencies of the Executive Branch that participated in the decision—along with the Ministry of Tourism—, asking “that it be analyzed and reviewed.” As she emphasized Castilian, They are not asking to reverse the improvement of the border control system, but rather to look for alternatives.
“We identify this as a negative situation for Cologne because it is where it has the most impact cost of the ticket: our destination is the destination with the shortest stay in hours of a tourist in Uruguay and we have a very large number of visitors on the day. The impact of $2.10 plus VAT within, let’s say, a budget of $5,000 is not the same in Punta del Este or on a cruise than on a ticket where this impact is an average of around 10% of the annualized ticket,” explained the president of the Tourist Association.
Graphed in concrete figures, the department’s tourism sector indicates that the application of the price for security service means a total of between 7.5 and 8 million dollars per year – considering round trip tickets – in a contract that will be signed for ten years—according to the tender included in the decree. “For us it has a impact on tourismespecially when we are juggling to bring the Argentines,” Castellano added.
A no less important fact: the ships already pay a migration rate for each berth in Uruguayan ports. “It is another cost within the costs of a ticket,” considered the businessman, and although he pointed out that “each ticket is not worth the same going and returning due to the different rates that each country applies,” on average there is 15 dollars of rates: “Here they would be increasing it by 2.5 dollars.”
Doubts about the decree
Likewise, the president of the Tourist Association of Cologne explained that, in addition to the economic impact that the implementation of a new cost on sea and river passages will entail, some doubts regarding the financing of the new border control system.
“What about the dry border, Why is it only charged to maritime and river transport, what is going to happen to the bridges where there is no collecting entity like the shipping companies?”, Castellano listed. The concern, in this sense, is that passengers who enter the country by sea or river will be the ones who finance border security on international bridges.
On the other hand, the also CEO of BigBen Developments He announced that the shipping companies that arrive to Cologne —Colonia Express and Buquebus— They are going to appeal the measure decreed by the government because, with the collection scheme implemented, “they assume an obligation.” “They are going to present their judicial defenses by not considering this as part of an agreement,” he explained.
In general terms, Castellano insisted on the position of the tourism sector. “It seems to me that, at the very least, we had the obligation to decide that for Cologne “the application of this new cost is not insignificant”—unlike what was pointed out, for example, by the Undersecretary of Tourism, Remo Monzeglio, about-; “And I worry about these things that, once they are installed, stay forever.”
A good season with little profitability
Castellano also referred to the current summer season that, although it has not yet felt the impact of the price for security service on maritime and river passages – while the measure has not yet come into force -, it must face other problems that, In turn, they must be taken into account when considering new costs for the sector.
“Is a good season in occupancyand taking into account the context,” said the president of the Tourist Association of Cologne, emphasizing that they have had a significant level of influx since Brazil —24%— and from domestic tourism —42%—; while the Argentine presence dropped from representing more than 40% last year to 25% this year.
“If we analyze it in depth and, for example, in cost effectiveness, The returns are below those of 2017, 2018, at least 40%,” he added.
Colonia Bullring
Photo: Cologne Municipality
Particularly during the weekend of Carnival Occupancy was 91% on Saturday, Sunday and Monday. “The scenario is a good performance within a complex situation and with lower returns than before, but even so we are bringing tourists, which is the important thing,” said Castellano.
For the Tourism Weekmost important moment of the season for Cologne —while it presents the best numbers for the tourism sector—, expectations are high and different activities, both public and private, are already being prepared, and even in coordination from both spaces. The objective is “to try to ensure that our tourist services are connected, that Cologne Don’t just come for half an hour to the historic neighborhood: if you did that, you got lost Cologne. There is a lot to offer,” concluded the president of the Tourism Association.
Source: Ambito
