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Uruguay regulated an incentive for airlines that bring in tourists and open new routes

The scheme provides for contributions from the Ministry of Tourism and the concessionaires of the national airport system. According to La Diaria, the joint fund could reach $2.5 million per year.

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Foto: La Diaria
Foto: La Diaria

The Executive Branch regulated the international air connectivity incentive regime that had been included in the five-year budget and assigned to the Ministry of Tourism, with the aim of encouraging airlines that increase the arrival of foreign tourists and develop new routes, according to La Diaria.

According to the regulation, the government may contribute up to $1,250,000 per year, while the instrument will operate under a co-financing scheme with the concession companies of the National System of International Airports. In total, the joint fund could reach $2,500,000 annually.

Still according to La Diaria, the incentive will be calculated semiannually and will have two modalities. The first applies to companies that already operate regular routes and manage to increase the number of foreign tourists transported compared with the previous half-year. In those cases, they will receive $15 for each incremental passenger.

The second modality targets airlines that open new international routes. The benefit will be granted once and will vary according to the geographic area: $40,000 for destinations throughout the Americas and some European countries such as Germany, France, Portugal, Italy, Spain and England; $25,000 for the rest of Europe; and $17,500 for the rest of the world.

The regulation also allocates the state contribution: $900,000 to encourage the sale of tickets to foreign tourists and $350,000 for new routes.

Last week, during the appearance of the Ministry of Tourism before the Senate committee analyzing the Rendición de Cuentas, Senator Tabaré Viera praised the fact that airport operators are participating in the financing. He also proposed adding a component for tourist passengers from the interior, arguing that it would strengthen internal connectivity, which he described as fragile.

At another event cited by La Diaria, the Minister of Tourism, Pablo Menoni, described the measure as a tool aimed at rewarding growth, increasing the arrival of visitors, strengthening connectivity and improving Uruguay’s competitiveness as a destination. The ministry said the regime will initially be in force for one year, with the possibility of automatic renewal for up to a maximum of four years.

Sources

About this note. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not conduct its own reporting on this event.

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