Most of the factors are not controllable, such as the international price of fuel, however, the national government has the capacity to act in terms of taxes, which significantly impact the final price.
ALTA CEO, José Ricardo Botelho, shares that: “Colombia was the first country in the region to recover its pre-pandemic levels. The number of domestic passengers from Colombia recovered in November 2021, while the second country in the region to recover such levels was Mexico, 6 months after Colombia. Peru did it a year after Colombia. Argentina did so until January 2023. Brazil, Chile and Ecuador have not recovered their pre-pandemic levels by January 2023. Colombia's rapid recovery was not by chance. This is largely due to the reduction in VAT, which generated greater access to this essential service for the population. Colombia was the only country in the region to carry out such a policy and, for this reason, it was the first country in the region to recover its pre-pandemic passenger numbers.
Colombia is going through a special situation in terms of air transport. It is a critical moment to implement a State Agenda that prioritizes air transport and, with it, the connectivity, jobs and socioeconomic development that it generates for the country. Not only by being the most efficient and safe means of transport, but also a powerful economic activator that generates opportunities for the entire population. More connectivity and more volume of travelers generate a greater demand for hotel services, taxis, restaurants, services that in turn are taxed, so the economy as a whole will generate greater tax revenue. In this sense, the Ministry of Transportation of Colombia has asked the Congress of the Republic to reduce the VAT rate at a time when a bill called the National Development Plan is being discussed. Colombia is the second country in the region with the highest taxes on ticket sales (VAT). Countries like Brazil and Chile do not have such taxes.
"Colombia is at a critical moment and it is necessary to work together to strengthen the country's connectivity, a fundamental service for the population and generate millions of direct, indirect and induced jobs in a nation that requires efforts in terms of employment, taking into account the great impact of tourism on the Colombian economy, which currently has an unemployment rate of 13%”, points out Botelho.