Reports ECUADOR - MARKET UPDATE


Te government is now working on a radical new


COULD MARKET REFORMS LEAD TO POSITIVE CHANGE?


Part of the new administration’s open market reforms could see the reversal of the gambling ban. Tourism will play a key part in Lasso’s market-friendly reforms. In a bid to recoup some of the losses that have been caused by the pandemic ,major changes are on the way when it comes to how the industry is regulated.


Tourism has been hit hard by Covid-19 as a result of broad travel restrictions. Before the pandemic, Ecuador recorded a total of two million tourists in 2019 and generated around US2.29bn in the tourism sector alone (around 2.3 per cent of its gross domestic product). Te country’s tourism sector has lost 55,000 direct jobs due to the crisis. A staggering 30 per cent of tourism businesses closed or changed activity.


Te government is now working on a radical new tourism bill that will make Ecuador a far more attractive proposition for both investors and travellers alike. Under new plans, investments in the tourism sector would be exempted from income tax for 30 years. In addition, certain other taxes will be abolished. In September, the government put an end to the


P82 NEWSWIRE / INTERACTIVE / MARKET DATA


tourism bill that will make Ecuador a far more


attractive proposition for both investors and


travellers alike. Under new plans, investments in the tourism sector would be


exempted from income tax for 30 years. In addition,


certain other taxes will be abolished.


five per cent tax on the outflow of foreign currency imposed on airlines. Lasso said many carriers had already expressed interest in adding new routes or increasing frequencies to the country as a result.


Te need to revitalise the economy via radical reform could lead to a historic overturning of the ban. Casinos would fit with Lasso’s overall economic policy, especially when it comes to tourism.


Interest is already growing. Fausto Flores has said he’s already heard from operators willing to invest should the regulatory framework change. Casinos he said would offer economic stability to the hotel sector. “I have already received authorisations to sign Letters of Intent with hotels in the country, to operate casinos and offer a comprehensive entertainment alternative in Ecuador,” stated Mr. Flores.


Large scale casinos in tourist destinations would bring in millions in investment. Norman Bock, President of Hotels in the city of Quito, explained that the industry could rebuild if the government provided certain guarantees. “Te investments to install a casino are very large, and the arrival of new players would help the hotel sector, which today is going through the worst crisis in its history,” he said.


So far, President Lasso has only made a few public statements on the issue. In 2012, he tweeted: “I don’t like casinos or gambling halls, but I respect the freedom of those who do. I am concerned about the loss of jobs.”


In July 2020, when he was a presidential candidate, he carried out an interview with tourism entrepreneur and then potential


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