Open skies: key to tourism growth in Latin America and the Caribbean

In an effort to strengthen air connectivity, boost competitiveness, and foster economic development in the region, Airports Council International for Latin America and the Caribbean (ACI-LAC) has published a study on the status of air transport liberalization in Latin America and the Caribbean. This analysis, conducted by the consulting firm NACO - Netherlands Airport Consultants, examines the main challenges and seeks to promote a regional strategy that fosters air connectivity, economic development, and the competitiveness of the region's airports.

Context and relevance of the study

Air transport is an essential pillar of the global and regional economy, connecting communities, promoting tourism, and facilitating trade. However, the region's airports and airlines face multiple barriers that limit their ability to attract new routes and develop new air services. In more open markets, liberalization has improved access to low-cost travel, reducing fares and increasing air traffic, favoring tourism. However, connectivity in the region continues to lag, with fewer direct flights and a diminished presence of low-cost airlines.

The report emphasizes that liberalizing air services would not only have a very positive impact on economic growth through job creation and increased tourism, but would also strengthen secondary and regional airports, promoting point-to-point routes and attracting new airlines.

Main findings of the study

Global Success Models: The study examines cases such as the European Single Market and the Open Skies Agreement between Australia and New Zealand, highlighting how removing air traffic restrictions can boost competitiveness, reduce travel costs, and increase route availability.

Opportunities for LAC: In the region, existing bilateral agreements present significant restrictions, such as conditional traffic rights and complex regulatory processes. These challenges particularly affect secondary and regional airports, which have untapped potential.

Economic Impact: Greater air connectivity could increase tourism flows, facilitate trade, and attract foreign investment. The study highlights that each increase in connectivity generates direct and indirect economic benefits for local communities.

Strategic recommendations

The report proposes a comprehensive agenda for advancing liberalization, based on:

Regional collaboration: Strengthen alliances between airports, airlines, and governments to eliminate regulatory barriers and promote multilateral agreements.

Regulatory reform: Simplify authorization processes, harmonize policies, and ensure transparency in slot allocation.

Promoting connectivity: Focus efforts on developing routes to secondary and regional airports, boosting local growth and access to new markets.

A call to action

ACI-LAC calls on the region's authorities to prioritize air transport liberalization as a key development tool. "Liberalization is not an end in itself, but rather a way to strengthen global competitiveness and ensure that Latin America and the Caribbean leverage their full potential in an increasingly globalized market," stated Dr. Rafael Echevarne, Director General of ACI-LAC.

"Recent efforts to liberalize air transport in the region must be strengthened through institutional and regulatory reforms that ensure a friendly and predictable business environment for commercial air services. Regional connectivity should also be a key policy driver for future reforms and initiatives. Airports can position themselves as actors at the forefront of public policy innovation and future initiatives to support air connectivity in the Latin American and Caribbean region," said Marcelo L. García, Head of Aviation Policy and Leader of NACO's Aviation Strategic Advisory.

This study not only highlights current challenges but also charts a path toward a more competitive and connected future for the region.

Source: ACI-LAC.