Abstract
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Airline capacity and utilisation; Arrivals by country of origin; Arrivals by
mode of transport; Arrivals by purpose of visit; Car rental services by
sector; Demand factors; Departures by destination; Departures by mode of
transport; Departures by purpose of visit; Domestic tourism by destination;
Domestic tourism by mode of transport; Tourism receipts and expenditure;
Tourist attractions; Transportation; Travel accommodation; Travel retail
services
Executive summary
1. EXECUTIVE SUMMARY
Tourism expands
Tourism activity grew in the country for domestic, outgoing and incoming
tourists, as the local economy experienced a rebound supported by historical
high oil revenues and large public expenditure. Total tourism expenditure
(incoming and domestic tourism) grew 38% in current terms as a consequence of
larger demand for tourist services as well as increased fees due to adjustment
by devaluation.
Tourism acquires the rank of a Ministry
The government, aiming to diversify its sources of income, created the
Ministry of Tourism (Mintur). The Ministry of Tourism replaces the
Vice-Ministry of Tourism, which was dependent on the Ministry of Industry and
Commerce. The Ministry of Tourism now has more political influence than the
Vice Ministry and has more power to develop the tourism industry.
Incoming tourist figures climb
The number of incoming tourists grew 30% in 2005 and drove incoming receipts
up. In early 2005, the currency was devalued by 12%, which helped boost
incoming tourists and receipts. Additionally, easing political tensions and
high oil revenue made Venezuela an attractive place to do business and to
explore leisurely. The Ministry of Tourism' s efforts also added the growth. It
created an international tourism fair, Fitcar 2005, held in Caracas that
raised Venezuela' s profile in the tourism industry and furthered investment
opportunities in the sector.
Outgoing tourism recovers
Outgoing tourism grew 46% in value terms and 24% in constant terms in 2005,
helped by the economic reactivation in the country and more efficient delivery
of travelling dollars by The Foreign Currency Administration Commission
(Cadivi). More people were granted access to dollars with a limit of US$4000
per card holder, although most travellers did not take the full amount. The
most visited destinations were USA, Spain and Colombia.
Demand for accommodation grows
Accommodation value sales grew 58% in current terms and 34% in constant terms
in 2005, fuelled by high demand and higher prices as a result of the economic
rebound in the country in the same year. Chained hotels were able to pass on
higher prices to their business clientele due to increasing oil revenues.
Guesthouses and self-catering apartments, targeting incoming leisure tourists
and domestic tourists, also rebounded strongly due to an increase of
travellers looking for inexpensive lodging in a private environment.
Local airfare tickets now regulated
After President Chavez criticized the cost of airline tickets as too
expensive, domestic airfares became regulated in August 2005, under the
supervision of the new authority created within the National Institute of
Civil Aviation (INAC). Every three months prices are to be reviewed by INAC.
INAC will take into account the airline companies' costs and expenses and set
a base fee dependent on these costs. Each airline has the ability to alter
their prices up to 40% more than the base fee and down 20% depending on
whether or not it is high season.
The official airline Conviasa starts flying in 2005
The Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos SA
(Conviasa) created in mid 2004 began to fly in December 2004 to some local and
international destinations such as Bogotá(Colombia), Trinidad and Grenade in
the Caribbean. 80% of the company' s shares belong to the Ministry of Tourism
and 20% to the National Tourist Promotion and Training Fund (Inatur).
According to official estimates, Conviasa will eventually generate 870 direct
jobs and more than 7,000 indirect jobs and it is expected to contribute to the
growth of air value sales over the forecast period. The government wanted its
own airline to increase tourism within the country and abroad, even though the
last government owned and controlled airline, Viasa, went bankrupt in 1997
after 36 years. Conviasa' s prices are about 30% less than other domestic
carriers to make flying accessible to people with lower incomes.
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