Air carriers, tour operators call for lower tariffs in Guatemala

Representatives of airlines and tour operators urged the Guatemalan government to override a recent decree that ordered a 60 to 70 percent raise in tariffs and taxes levied on airport services all across the country.

The proposal –included in a communiqué addressed to Guatemalan President Alfonso Portillo- comes only a few days after several air carriers threatened to pull up stakes from that country in retaliation, or at least cut down on the number of stay days for their aircraft.

“As taxes on services to airlines and their providers go up, they (air carriers) are bound to assess both the convenience and possibility of flying to our country. Actions like these do nothing but slim down our chances. Airlines are forced to either jack up or cross out flights,” members of six organizations explained.

Signers of the petition headed to the headquarters of both Guatemala’s Tourism Chamber and the Guatemala-American Chamber, as well as to the Association of Recreational Tourism Operators, the Guatemalan Airline Association, the multinational chambers and the country’s International Transportation Users Council.

The governmental decree –enacted on Feb. 12 with a view to improve airports’ tax collecting system and infrastructure- expects to rake in as many as $9.4 million that will eventually be used to streamline facilities in keeping with international safety guidelines.

Air carrier reps warned higher taxes will render Guatemala a less competitive destination compared to other countries and will definitely make a dent in the operations of airlines that fly to and from Guatemala. Some of those air carriers have already canceled flights not too long ago as scores of picketing teachers blocked the capital’s airport.

Economic experts believe the executive action goes against the grain of measures taken elsewhere around the globe. In the wake of the 9/11 terrorist attacks in the U.S., most air companies worked harder to give both passenger flows and flights a mighty leg up by slashing or freezing taxes and tariffs altogether.

Rates will be up at least $6.40 to $12.80 for commercial outlets inside the Aurora International Airport in the nation’s capital, while tariffs on free ports and banking agencies will soar from $6.40 to $51.20, according to official estimates.

Businesspeople and entrepreneurs warned the exporting sector will bear losses in the neighborhood of $2.6 million, would the same 2002 exporting kilogram ratio remain.

Moreover –the document indicates- the official decision will have ripple effects in the offer of seats as less tourists will be able to travel to this country. A similar negative effect will be felt on the space used for cargo dispatch.

Other tax raises that took considerable flak were the tariffs to be levied on plane tickets and hotel fares (up by 22 percent, now ranking as some of the highest in all Latin America), and the $30 tax on travelers exiting the nation, penciled in as the highest in the entire Western Hemisphere, the same sources concluded.