1、AIR TRANSPORT COMPETITIVENESS INDEX IN LATIN AMERICA AND THE CARIBBEANAir transportation significantly boosted recovery in the tourism and hotel industries.Through this Competitiveness Index in Latin America and the Caribbean,ALTA and Amadeus seek to identify areas of opportunity for countries throu

2、ghout the region,incorporating technical recommendations so that more travelers can use this transport mode both now and well into the future.In this document you will find comparisons and best practices for key indicators such as taxes on ticket prices,connectivity,fuel prices,influx of passengers

3、and more,providing a broad overview of the airline industry.We invite all readers to share their comments with us via at ALTA jguerreroalta.aero or at Amadeus .Air transport has a significant impact on the productivity and efficiency of the corporate sector.It helps connect people and ideas,promotes

4、 regional and local development,and serves as a key national and international integrator to boost tourism and services,support transport of valuable and perishable goods,and assist the corporate sector in times of need.This year,after a pandemic that nearly paralyzed the world,it is critical to und

5、erstand the current state of the industry.The business intelligence data powered by Amadeus Demand360,which provides key insights,highlights and future views of revenue strategy,reveals that global hotel occupancy consistently exceeded pre-pandemic levels throughout the summer.Specifically,during Ju

6、ly and August 2022,hotels registered an average global occupancy rate of 67%,compared to an average 64%during the same period in 2019,representing a 3%increase compared to three years ago.According to data from Amadeus Agency360,business travel is also experiencing steady recovery as the year progre

7、sses.Activity for 2022 is closing the gap with 2019 levels,revealing that hotel reservations in the major Global Distribution Systems(GDS)have increased 98%in August 2022,compared to January 2022.IntroductionDear readers,Between March and April 2020,the number of air passengers fell by more than 90%

8、.No other economic sector was more hard-hit than the airline industry.Now,in November 2022,two and a half years after the pandemic was declared,passenger air transport has recovered to pre-pandemic levels.The recovery statistics in our region are impactful and favorable.According to Amadeus,the Lati

9、n American and Caribbean regions of the world posted the best recovery rates from pre-pandemic levels.In September 2022,we reached 101%of the 2019 passenger flow,surpassing North America(96%)1.Meanwhile,other countries in the region have already exceeded their 2019 numbers and are showing further gr

10、owth,such as Mexico,the Dominican Republic and Colombia.Air transport continues to consolidate and expand as an essential service for our countries populations,yet it still faces financial challenges to remain economically sustainable.As of 2022,airlines operating in the region realized approximatel

11、y five years of continuous losses totaling$22.7 billion(USD).As a result,the region must adopt more competitive measures to promote the development of a sector that generates millions of jobs,incomes and opportunities,even in the most remote places.The concept of competitiveness in air transport inv

12、olves several factors that this document aims to address.Yet the fundamental need is to create compelling conditions that will attract greater investment,participants and travelers.Aviation in Latin America and the Caribbean is an essential service.No other alternatives are as safe and efficient as

13、air transport.Rather than a luxury,air transport is a necessity for personal enrichment,as evidenced over the past two to three years of lockdown.In Colombia,Mexico and the Caribbean,more than 80%of all travelers arrive by air to experience these countries fantastically diverse cultures,ecosystems,f

14、oods,landscape and climates.As a result,the air travel and tourism industries must continue to work hand-in-hand to provide more opportunities to attract more visitors.The goal is not just about making our countries more accessible;its about doing so in a way that is environmentally friendly and sus

15、tainable over time.This document seeks to identify opportunities for improvement and propose best practices and recommendations to make the region more competitive.The goal is to attract more investment and opportunities that generate employment and socioeconomic well-being for more people across al

16、l corners.There is no place on the planet where air transport has not driven development.Therefore,now is the time to foster agreements among all parties for the benefit of the region.Jos Ricardo BotelhoExecutive Director&CEO ALTAVictoria Huertas Commercial Vice President,Latin America and the Carib

17、bean,AirlinesAmadeusSource:Amadeus02.04.07.03.05.08.06.09.10.Market potentialFuel and SAFAirport qualityConnectivityMeasures of openness to COVIDAirport costsAccessibility to markets through visaOverflight service costsGovernance of the Civil Aviation AuthorityAppendix 1MethodologyRemarksAppendix 2R

18、esults ofcompetitiveness indexPage 13Page 21Page 32Page 16Page 27Page 35Page 30Page 38Page 40Page 47Page 1Page 43The case ofthe reduction of the airport tax in CartagenaTaxes,fees and duties by countryPage 49Page 2Content01.Taxes,duties and feesPage 41MethodologyFor the preparation of this document,

19、we took several factors into account that impact competitiveness.The index per country becomes the simple average of each of these factors.Each factor was standardized on a one to five scale.Where five represents the country with the best score(e.g.,more competitive),one represents the lesser score(

20、less competitive).To standardize the score,the following formula has been used:In cases where a higher value indicates a worse performance(e.g.,the case of fuel prices where the higher price means less competitiveness),the formula is reversed,so that one and five correspond respectively to the worse

21、 and better scores.When several data are provided for the same factor(e.g.,airport rates,which differ for multiple airports within a country),a value per country was calculated using a weighted average of the number of passengers moving through a given airport in relation to total international pass

22、engers.Index of competitivenessj=Factor scoringi,jnmaximum sample-minimum sample Factor scorei=4*)Country score i-minimum sample(+1Factor scorei=-4*maximum sample-minimum sample)(country score i-minimum sample+5Processing of informationnot available:Some countries do not have available information f

23、or certain competitiveness factors.In these cases,the index was calculated by excluding this factor.In building this index,we have proposed 10 competitiveness factors.To generate this ranking,we considered only those destinations having available data for at least six of the 10 factors.2Mexico excel

24、s by its elevated level of connectivity and air transport policies,as well as by the markets a Mexican citizen can access without a visa.Its fuel factor,however,is not very competitive.Brazil is the largest market in the region,both population-wise and economically,making it a very attractive market

25、.Brazil is also very competitive in airport charges.Additionally,its aviation authority is one of the top ranked by the OCDE.Panama is the third best ranked country in connectivity,a factor that includes international routes,number of airlines and flight frequencies.Panama has sustainable aviation f

26、uel(SAF)projects,and its aviation authority is the third best ranked according to the Organization for Economic Cooperation and Development(OECD).Competitiveness Index Score according to competitiveness factor.(To place in the ranking,the country must have available data for at least six factors.)Th

27、e most competitive countries are Mexico,Brazil and Panama123Many factors impact the competitiveness of air transport.Some factors may have a greater impact than others;however,for the preparation of this document,all factors were weighted equally.401.Taxes,dutiesand fees5Taxes,duties and fees impact

28、 the final ticket price.In some cases,they can even equal the ticket price the passenger pays.These fees,usually collected by the airlines during the sale,go toward:1.Airports2.Governing bodies(transport and/or tourism authorities)3.State taxes(VAT or sales tax)International air transport is subject

29、 to the jurisdiction and sovereignty of each country,making each destination a“universe unto its own”in terms of competitiveness.As a result,this can make airline operations more complex.Competitiveness can be improved through fewer taxes and fees,enabling more travelers to access these services.Low

30、er fees lead to increased consumer demand,which improves passenger volume and increases competitiveness.In Colombia,the sales tax rate(or VAT)was reduced from 19%to 5%during the pandemic.This,along with other measures,resulted in the highest recovery rate in the region.During the first six months of

31、 2022,Colombias domestic passenger numbers grew 26%above 2019 levels.The second top country in terms of domestic recovery is Mexico,which fared 2%better than its 2019 levels.Included in the competitiveness factor:Sales tax,airport fees,passenger entry/exit duties,tourism taxes,transport fees,securit

32、y fees,airport expansion fees and more.It is important to note that not all countries charge for the same items.Fewer taxes and fees translate to lower costs.For purposes of building the competitiveness factor in this study,all taxes,fees and duties have been divided into:1.1 Sales tax on the ticket

33、:Includes value ad-ded taxes(VAT)or any tax that ends up impac-ting the final ticket price1.2 Airport tax:Rates that remunerate airports for passenger use 1.3 Any airport,transport,security or tourism taxSome countries such as Chile and Brazil only charge airport taxes,while countries like Colombia

34、charge,in addition to the airport tax,an exit tax(stamp),tourism tax on arrival and VAT.In Argentina,four taxes affect the ticket price,including airport and security taxes and transport service taxes.To review the different fees by country,refer to Appendix 2.01.Taxes,duties and fees601.Taxes,dutie

35、s and fees1.1Taxes that affect ticket price:Includes value added tax(VAT)or any tax levied on the ticketSales or ticket tax(%)*It is important to note the sizable number of countries that do not charge sales tax,e.g.,Brazil,Chile,Aruba,Belize,Curaao,Jamaica and St.Maarten,making them destinations th

36、at offer more favorable conditions for the international traveler.Colombia also stands out for its very low tax,which was temporarily reduced from 19%to 5%in 2020,a measure to promote tourism during the pandemic.In 2023,this tax will return to 19%,making Colombia the second least competitive country

37、 after Argentina.*Aruba,Belize,Brazil,Chile,Cuba,Curacao,Jamaica and St.Maarten have a zero valueSource:ALTA airlinesArgentina is the least competitive country in terms of taxes applied to the ticket,equaling 112%of the final price.These include fiscal taxes(AFIP)-45%;inclusion and solidarity tax(PA

38、IS)-30%;tourism tax(National Directorate of Tourism)-7%;and finally,the income withholding tax-5%.This translates to a 112%surcharge to the ticket price.Regarding the final cost,it is worth clarifying that the AFIP and PAIS apply only to tickets purchased in Argentina and paid in pesos.We are adding

39、 the newly established Qatar dollar to this equation,in use since September 2022.This is an exchange rate that increases the rate by 25%and is applied to tickets purchased in dollars.This has to do with the World Cup soccer events in Qatar in November.NOTE:While this document was being finalized in

40、November 2022,the 2023 budget in Argentina will include the collection of a new fee that passengers will pay to finance the Airport Security Police,with an approximate value of 250 pesos per ticket,or$1.60 USD(exchange rate at the end of October 2022).It is worth noting that an$8.00 USD fee is curre

41、ntly charged for security services,and although this seems insignificant,when added to all other taxes,it further impedes Argentinas competitiveness.According to JURCA(chamber of airlines in Argentina),by including these new taxes,the percentage over the rate would be equivalent to 112%.There is a h

42、uge gap between the least competitive country,Argentina,and the second least competitive,Peru,with a tax percentage of 18%.71.2 Airport charges*In this section,well examine the costs of each of the air terminals in these countries.The airport infrastructure has an air side and a ground side.The air

43、side corresponds to runways,hangars and aircraft parking areas.The ground side focuses on passengers and includes passenger terminals,shopping zones,customs,etc.Both sides have users who pay for the services and use this infrastructure.In the case of passengers,the“airport fee”enables them to access

44、 and use the terminal.As for this indicator,the airport with the lowest cost for passengers is Kingston in Jamaica,which charges$5.00 USD.This terminal is followed by Brazil,with several airports with average rates of$11.60 USD.Santiago in Chile exceeds the$20.00 USD range,charging$25.00 USD.The mai

45、n airport of Peru,Lima,charges$28.60 USD.In Colombia,the airport fee in Cartagena is$47.00 USD,followed by Barranquilla and Armenia with$43.00 USD,Bogota with$41.00 USD,Medellin$40.00 USD,Bucaramanga$39.00 USD and San Andres and Cali with$37.00 USD.In the case of Cartagena,note that in 2014 it went

46、from having the highest rate in the region,equivalent to$92.00 USD,to$38.00 USD,which helped to increase the flow of international passengers by 40%.Prior to this reduction,a significant international transit volume from Cartagena passed through Bogota or simply did not visit this destination.(See A

47、ppendix 1 for a summary of the Cartagena case).Mexico has two of the most expensive airports:Mexico City and Monterrey,with an average rate of$61.70 USD.Three airports in Argentina follow closely:Buenos Aires,Cordoba,and Mendoza with a rate of$57.00 USD,and Quito with a rate of$56.30 USD.In order to

48、 measure this factor by country and not by airport,the methodology we used weighted the airport tax by the number of passengers transported in July 2022.Airport fee USD$,2022 Source:AmadeusSource:ALTA airlines01.Taxes,duties and fees8Next,the weighted airport fee:The country with the highest airport

49、 charges is Argentina,followed by Haiti and Curacao.Mexico is ranked fourth because although it has two airports with the highest charges(Mexico City and Monterrey),the weighted rate per country is reduced because of the Cancun Airport,which has a fee of$33.83 USD.When weighted with the number of in

50、ternational passengers,this rate becomes$48.00 USD.Weighted Airport Fee(USD$)01.Taxes,duties and feesSource:ALTA arlines91.3 Any other immigration,tourist,or airport fee This includes taxes on tourism,immigration fees and security services,and other types of airport costs.Other taxes,airport fees,or

51、 immigration services(USD$)*Curacao,Brazil,Paraguay,Chile,and Jamaica have a zero value.01.Taxes,duties and feesEcuador is the country with the highest additional costs at$69.10 USD,corres-ponding to:$50.00 USD tourist tax to finance Ecuadors tourism promotion fund$10.00 USD infrastructure tax(inclu

52、ding airports,roads and security)$3.00 USD security fee for Quito and$5.00 USD for Guayaquil,covering security services for passengers,luggage and aircraft$5.00 USD tax for the civil aviation authorityIn Ecuador,the tourism and infrastructure tax 9will drop to$5.00 USD and$1.00 USD respectively.This

53、 will be applied to airports that rely on the aeronautical authority.However,airports that currently have international passenger traffic are licensed.Source:ALTA airlines10Airport Fees and other Taxes(USD$)(With the exception of taxes levied on the ticket or percentage,by country)01.Taxes,duties an

54、d feesThe second least competitive country in this category is Bolivia with$51.8 USD(BOB$360.00)which corresponds to a security tax paid by all Bolivian residents or visitors staying more than 90 days.Colombia collects$33.8 USD in other taxes that correspond to stamp or departure tax with$18.8 USD a

55、nd a tourism tax of$15.00 USD.It is worth noting that several of these taxes have exemptions,such as the stamp duty for sports commissions,government officials,students,diplomats,etc.in Colombia.However,it is difficult to identify these fees when the ticket is being purchased.Some countries only cha

56、rge airport fees with no additional costs,such as Curacao,Peru,Brazil,Paraguay and Chile.Considering taxes,duties and other fees,and excluding a portion of taxes levied on the ticket(such as VAT and sales tax),the most expensive country for a passenger is Ecuador,followed by the Bahamas and Mexico.A

57、rgentina has a tax on transactions(debit and credit)equivalent to 1.2%of the transaction.In addition,airlines collect taxes and must pay 1.2%on the collection of such taxes.This transaction tax applies to all economic sectors.In air transport,the only exempt tax is related to tourism(7%of the rate);

58、the other taxes collected by the airlines and transferred to the public treasury are collected through the transaction tax.According to JURCA(chamber of airlines in Argentina),this tax on transactions amounts to$43.2 million USD between January and September 2022.Source:ALTA airlinesConsidering that

59、 this tax applies to transactions and airlines,tax collection is being carried out on behalf of the state.As a result,a distorted tax(e.g.,double taxation)takes place when generating a tax on another tax.NOTE:While completing this document,the Dominican Republic removed the payment of the tourist ca

60、rd(Resolution 217-2022 of the Civil Aviation Board)for Dominican citizens and residents,as well as for citizens of countries such as Argentina and Chile.The cost of the tourist card is$10.00 USD.However,airline ticketing systems are unable to validate the passengers citizenship,making implementation

61、 unfeasible.11Total taxes,duties and fees(USD)01.Taxes,duties and feesTo make a total tax calculation in addition to those shown on the previous chart,taxes that are levied as a portion of the ticket price should be considered(e.g.,sales tax).For reference,the average price of a ticket in the second

62、 quarter of 2022 was approximately$110.12 USDSource:ALTA Calculated on basis of$110.00 USD per ticketArgentina has higher airport taxes and ticket taxes,making it the least competitive country in this index.Ecuador and the Bahamas follow in second and third place as the least competitive,while Mexic

63、o and Colombia have fees of$82.00 USD and$80.00 USD respectively per ticket.When considering total taxes,fees and duties,the countries with the highest costs per passenger are Argentina with$198.00 USD,Ecuador with$123.00 USD,and the Bahamas with$100.00 USD.Conversely,the most competitive countries

64、are Jamaica,Brazil and Chile.12Using the methodology of ranking taxes,duties and fees from one to five,the results are as follows:01.Taxes,duties and feesTaxes,duties and feesSource:ALTA1302.Marketpotential14The Latin American and Caribbean region depends on air transport to connect internally as we

65、ll as with the rest of the world.In countries like Colombia,more than 85%of tourists arrive by air.According to the World Travel and Tourism Council(WTTC),travel and tourism globally accounted for 10.3%of the GDP in 2019,while in South America it was 8.2%and 13.9%in the Caribbean.In this section,we

66、consider the market potential based on the size of a countrys economy and population.2.1 Size of economy(GDP in USD,constant prices 2021)Economy sizeAir traffic growth is linked to a countrys economic development.Growing economies and higher disposable incomes drive business success and translate to

67、 greater demand for travel and tourism.Source:World Bank 2021https:/datos.bancomundial.org/indicator/NY.GDP.MKTP.CD02.Marketpotential152.2 PopulationPopulationJust like economy size,larger populations represent larger markets.Whenever a country has a larger population,demand for services may also in

68、crease.02.MarketpotentialSource:World Bank 2021https:/datos.bancomundial.org/indicator/SP.POP.TOTL1603.Connectivity1703.Connectivity3.1 Number of international destinationsNumber of international destinationsSource:AmadeusFor markets or countries with robust operations and more airline connections t

69、o international destinations,overall access will be greater.When passengers must make multiple transfers to reach a country,their experience will be less enjoyable and more expensive.Some Caribbean islands,such as St.Maarten and Montserrat,have only one international destination;French Guiana has th

70、ree.Having few international destinations makes arriving or departing complex,since the passenger must arrive at other transit locations to connect to the destination.Better connectivity increases a countrys overall reach.183.2 Number of flight frequenciesNumber of flight frequenciesHaving more flig

71、ht route frequencies facilitates more arrivals and departures from the country.This makes the country more competitive,allowing passengers to choose the times and days most convenient for them.Likewise,by offering more flights,seasonality affects ticket prices.Tickets are also cheaper during low-dem

72、and time parts.Source:Amadeus03.Connectivity193.3 Number of airlinesNumber of airlinesHaving a greater number of coexisting airlines in a market or country promotes more competitiveness.Passengers benefit the most because more service providers are competing for the best fares and rewards.This gives

73、 travelers greater freedom of choice.Source:AmadeusAmadeus regular international destinations in the first half of the year.202203.Connectivity20Considering the three factors of competitiveness:international destinations,frequencies and number of airlines,the most competitive country is Mexico,follo

74、wed by the Dominican Republic,Panama and Colombia.Destination,frequency and airline scores03.ConnectivitySource:Amadeus2104.Fuel and SAF2204.Fuel and SAFFuel is the principal factor in an airlines cost structure.In 2022 it represents 37.7%,versus one year ago,when fuel accounted for 24%.This factor

75、has a significant impact on the operating budgets of airlines,an important consideration in the competitiveness index.4.1 Fuel PricesCost Structure 2022Source:Latam Airlines2304.Fuel and SAFFuel price in relation to the average by airport(average=1),July 2022Source:ALTA airlinesFuel prices show Vene

76、zuela as the most competitive country,with airports serving Caracas and Valencia,where the price of a liter of fuel is 69%cheaper than the sample average.This is followed by Ecuadors Quito and Guayaquil airports,where fuel is 18%cheaper than the average.The most expensive airports are Cuba(Havana an

77、d Santa Clara),whose fuel prices are 26%higher than the average,and the Dominican Republic(Punta Cana and Santo Domingo),25%more expensive than the average.2404.Fuel and SAFAirlines understand that their services must be sustainable and their environmental commitment clear.In 2021,the industry made

78、the decision to become carbon neutral by 2050.Current estimates show that 65%of this target will come from the use of sustainable aviation fuel.4.2 Sustainable aviation fuel(SAF)Source:ALTASource:IATAFuel competitiveness index by countryTarget of zero net CO2 emissions by 205025As a result,the indus

79、try will require an annual production of 449 billion liters by 2050.Today,even though SAF fuel is five times more expensive than traditional fuel,in 2021,airlines bought every drop of the 125 million liters produced.Therefore,another competitiveness factor lies in the Latin American and Caribbean de

80、stinations where production and/or storage of this type of fuel either exists or will exist in the future.It is important to note that building this type of infrastructure takes time and recognizing the countries that have made progress is key.Another requirement is to create a regulatory framework

81、including investment that will generate jobs and opportunities in these countries.According to the International Civil Aviation Organization(ICAO)2,three countries in the re-gion have or plan to have SAF stockpile plants:Panama Paraguay BrazilThese three countries receive a rating of five in this fa

82、ctor,while other countries with no initiated SAF projects receive a rating of one.04.Fuel and SAF2 https:/www.icao.int/environmental-protection/pages/SAF.aspxSource:26Regarding fuel prices and the countries that have announced SAF projects,the factor of fuel competitiveness is:FuelSource:*ALTA*ICAO

83、airline04.Fuel and SAF2705.Measuresof openness to COVID2805.Measuresof openness to COVIDCountries with few to no restrictions on international passenger transit have recovered faster than markets where restrictions were imposed.The World Health Organization(WHO)noted in 2020 that border closures wer

84、e not a sustainable solution for pandemic management.3 A study by Oxera/Edge Health showed that travel restrictions imposed on countries had no impact in those countries COVID peaks.Instead,it de-layed infections by a maximum of four days,re-gardless of passenger traffic levels.4 The benefits of clo

85、sing countries borders turned out to be mi-nimal,and the direct and indirect impact to the economy and society were devastating.ALTA constructed an index where four variables were considered:I)COVID testing requirementsII)Restrictions when entering the destinationIII)Flight cancellations IV)Quaranti

86、ne deploymentGiven these four variables,each country is given a score from zero to 100.A 100 score is applied to countries without restrictions on international passenger transport and a zero when borders are completely closed.3 https:/news.un.org/es/story/2020/07/14780014 https:/ openness to COVIDS

87、ource:ALTA based on UNWTO/IATA Destination TrackerIndex from August 29,2022,to October 27,2022ALTA tracked these measures over time,identifying Mexico as the country with policies that most benefited aviation by not establishing restrictions.3006.Accessibility to markets through visas3106.Accessibil

88、ityto marketsthrough visasRequiring a visa to visit a country is considered a barrier to competitiveness.Even a somewhat restrictive visa policy means lost opportunities for economic growth.Granting ease of travel is a prerequisite for air connectivity.To view this factor more closely,we considered

89、the Henley Index,which examines visa-free access of 199 passports to 227 destinations5.Index of destinations by country without visaThe Official Passport Index Ranking|Henley&Partners 5 https:/ https:/.br/gol-confirma-suspensao-dos-voos-para-cancun-no-mexico/https:/.br/gol-confirma-suspensao-dos-voo

90、s-para-cancun-no-mexico/To illustrate the relationship between visas and ease of travel,Brazils GOL recently announced the suspension of its flight to Cancun.The reason given is decreased demand due to the Mexican governments visa requirement for Brazilian citizenst.6Source:3207.Airport quality3307.

91、Airport qualityAirport quality can be analyzed from different angles,both airline and passenger.First,the passengers view.For travelers,satisfaction is a key performance indicator when assessing airport quality.Users want a simple,seamless experience that ensures safe,easy airport access and passage

92、.Efficient processes,the ability to quickly handle passenger volumes,and comprehensive service offerings impact not only an airports economic performance,but also its relationship with travelers.To assess airport quality,consider the star ratings awarded to airports by Skytrax,the leading internatio

93、nal rating system that classifies airports quality of product and staff service standards.Ratings reflect passenger feedback and perceptions and range from one to five stars.Source:https:/ Quality in Skytrax stars34These Skytrax assessments show how countries ranked based on number of stars(highest

94、to lowest):07.Airport qualityCompetitiveness by country3508.Airportcosts3608.Airport costsSimply stated,airports with lower operating costs are more competitive.To illustrate this index,we reviewed two factors,landing costs and parking costs.It is important to note that airports provide multiple ser

95、vices,such as space rental(e.g.,back-office or support offices within the airport),counters and check-in desks,ground handling services and CUTE systems(shared use check-in systems),to name a few.Landing costs and parking costs are normally tied to aircraft operating weight or maximum take-off weigh

96、t(MTOW).For this exercise,the MTOW applied was an Airbus 320 aircraft.Similarly for parking,the first hour was considered.It is worth noting that a substantial number of airports in the region do not charge parking costs for the first two hours.Landing+parking fees(first hour)by airport(USD$)37To vi

97、ew this indicator by country,we created a methodology based on average operating costs in an airport.The most competitive airports are Costa Rica and Guatemala.The least competitive are Ecuador,Colombia and Brazil.Airport costs08.Airport costsSource:ALTA airlines3809.Overflightservice costs3909.Over

98、flightservice costsOverflight service refers to the monitoring and communication support that Air Traffic Control provides its aircraft.Argentina and Brazil are the countries with the most expensive overflight service,versus Chile,the most competitive.Overflight Service4010.Governanceof the civil av

99、iationauthorities4110.Governance of the civil aviation authoritiesA recent document from the Organization for Economic Cooperation and Development(OECD),titled The Governance of Civil Aviation Authorities in Latin American Countries,sought to evaluate the governance of civil aviation authorities wit

100、h the goal of highlighting best practices and state-of-the-art civil aviation authorities in the region7.To assess governance,three components were considered:1)Scope of action:includes the activities overseen by regulation authorities such as setting tariffs and standards,monitoring compliance and

101、sanctioning power.2)Independence:This assesses how the authority operates(i.e.,independently and without influence from political powers or regulators).Other considerations include financial integrity,industry collaboration,executive leadership,sound business practices,etc.3)Accountability:This refe

102、rs to transparency in financial reporting by various entities,including government,legislature and the general public.Other considerations include publishing drafts for comments,updating constituents on actions and progress,and submitting reports to legislative authorities.7 Source:https:/www.oecd-i

103、library.org/docserver/e8bdf362-en.pdf?expires=1663625238&id=id&accname=guest&check-sum=6EE87C686911B574054E2DB14BC74821It is worth noting that responsibilities of the authorities in Brazil and Chile are divided into two entities.Therefore,for purposes of this document,the value used is the average s

104、core of the two.ANAC Brazil is the entity with the best score;however,when averaged with ANAC JAL,the countrys score is lower.4210.Governance of the civil aviation authoritiesSource:The Governance of Civil Aviation Authorities in Latin American Countries.Evidence from ICAOs North American,Central Am

105、erican and Caribbean and South American Regions.OECD Regulatory Policy Working Papers,September 2022https:/doi.org/10.1787/e8bdf362-enOECD publication scoreThe OECD publication score varies from zero to five.A lower score represents best practices in governance and vice versa.For this study,the resu

106、lts are standardized using a methodology where five represents the best of the sample,and one the worst.43Remarks441.The competitiveness of a country depends on several factors.No one single factor defines overall competitiveness.2.Additional factors also impact a countrys air transport competitiven

107、ess,such as:a.Safety is the industrys Number One priority and therefore should be considered a leading com-petitiveness factor.For this ALTA and Amadeus study,we would have liked to include an indicator expressing this factor.Even the International Civil Aviation Organization(ICAO)conducts a safety

108、audit on the levels of implementation of its standards.However,the last audit for Mexico took place in 2012,and the last audit for Venezuela and Argentina occurred in 2013;we consider this data too old to be included in this report8.b.Airline ease of operation in a foreign country.This factor may be

109、 reflected by the sky agreements these countries form.c.Regarding infrastructure quality from the airlines perspective,this document reflects traveler sentiment using Skytrax passenger survey results.It would be interesting to understand other airport users perspectives,including airlines.For this e

110、dition,however,it was not possible to include these factors.For the 2023 edition of this document,we hope to include these three competitiveness factors.3.Latin American and Caribbean countries have a huge opportunity for growth.As the chart on the next page shows,passengers in countries like the US

111、 and across Europe average 2.8 and 2.7 trips respectively per year,whereas Latin American and Caribbean(LAC)passengers average 0.6 trips per year.8Source:Safety Audit Results ICAO45Source:Amadeus Population:World Bank.201946Passengers are price sensitive.To capture more international traffic,the ind

112、ustry could consider reducing taxes that impact airline ticket sales.Many governments are concerned that implementing such measures leads to reduced tax revenues.However,tourists arriving at their destinations use taxis,stay in hotels,eat at restaurants and purchase tourist-related services.In this

113、sense,the traveler ends up generating an economic“trickle-down effect”that could enable governments to generate even more tax revenue through other participants across the tourism chain.Argentina is notable with significantly higher tax levels than other countries in the region.Recommendations:Acros

114、s the region,only three countries are implementing sustainable aviation fuel(SAF)initiatives:Panama,Paraguay and Brazil.Implementing and promoting the creation of infrastructures to produce and store this type of fuel would create fantastic opportunity for countries in the region.The least competiti

115、ve countries were Argentina,Puerto Rico and/or Cuba,particularly when looking at market size,fuel and SAF factors.For these reasons,this report could help them consider new strategies for leveraging future opportunities.1.2.3.47Appendix 1The case of the reduction of the airport tax in Cartagena48 By

116、 2014,the city of Cartagena had one of the highest airport charges in the hemisphere.Airport taxes 2014 USD$per passenger1.The high tax burden created barriers to usage,just as inflated costs impeded the destinations competitiveness.2.A series of meetings were held with stakeholders to promote rate

117、reduction.Federal government:Ministry of Commerce,Ministry of Transport,Civil Aviation,Vice Presidency of the Republic,National Infrastructure Agency(ANI)Departmental and district governments Other agents:Chamber of Commerce of Cartagena,Corpoturismo of Cartagena,Hotel Guild of Cartagena,Procolombia

118、(Colombian governmental entity responsible for promoting the country internationally)Airport concessionaire(operator):Airport Society of Cartagena3.The state entity in charge of contract management,the National Infrastructure Agency(ANI),agreed with the airport operator to implement a reduced intern

119、ational rate,along with compensation tied to it,for a period of two years,with a goal to evaluate the true impact of the decision and make required adjustments.4.The airport tax was reduced by 58%from$92.00 USD to$38.00 USD.5.Civil Aeronautics contracted a study with an independent think tank,Fedesa

120、rrollo,to quantify the impact of the decreased airport tax on the economy,which confirmed that the destination could become more competitive and see increases in both transport demand and city GDP.6.Airport revenues were maintained through:An increase in passenger volume.In the first year of the rat

121、e reduction,international passenger traffic grew by 40%An increase in the federal airport tax Deficits not covered in the above two points were covered by a fund from MinTransporte7.Challenging media coverage played a key role in publicizing the destinations lack of competitiveness,which helped the

122、government push for an overhaul.49Appendix 2Taxes,fees and duties by country50Argentina51Aruba52Bahamas53Barbados54BelizeT Ty yp pe eT Ta ax x N Na amme e D De ep pa ar rt tu ur re e /A Ar rr ri iv va al lD De ef fi in ni it ti io on nC Co ol ll le ec ct ti io on n D De es sc cr ri ip pt ti io on nA

123、 Ai ir rp po or rt tR Ra at te eE Ex xe emmp pt ti io on n(s s):Aiport TaxAirport Development FeeDepartureLevied on foreign passengers(i.e.non-Belizean citizens and persons not permanently residing in purpose of the fee is to cover costs of major airport improvements.To be collected at point of sale

124、 and shown separately on the ticket by code BU.BZE18 USDGovernment Ministers.Members of the National AssemblyAiport TaxConservation TaxDepartureLevied on all non-residents of Belize departing on all anywhere.Collected at departure(check-in)from passengers,except for those airlines that advise IATA t

125、o collect FU on the ticketBZE40 BZDInfants under 2 years.Children 2 years up to under 12 Belizean citizens holding any of the following documents:valid passport,Belizean residentAiport TaxPassenger Service FeeDeparturePayable by each passenger departing on an sale and/or issuance for maintenance of

126、airport facilities.Collected at departure(check-in)from passengers together with the international Security Tax,except for those airlines that advise IATA to collect using code FV on the ticket.BZE30 BZDvisiting Belize at the invitation of the Belize GovernmentAiport TaxSecurity Fee(International)De

127、partureLevied on passengers leaving Belize Philip S.W.sold and issued anywhere.Collect the International Security Tax together with the Departure Tax from departing passengers at time of check-in,except for those airlines that advise IATA to collect FW on the ticket.BZE5 BZDAirline crew on duty.Sale

128、s taxTicket TaxDeparturePaid on every ticket issued in Belize for transportation by air to and/or from Belize,or for transportation involving any place outside Belize.Once per itineraryBZ must be collected once per ticket assessment for point of sale in Belize for ALL international tickets issued in

129、 Belize whether or not the transportation involves travel in Belize.BZE12.50 USDperson whose visit to Belize is of less than twenty-four hours duration;(ver detalle en IATA)55Bolivia56Brazil57Chile58Colombia59Costa Rica60Cuba61Curacao62Ecuador63El Salvador64Guatemala65Guiana66HaitiT Ty yp pe eT Ta a

130、x x N Na amme e D De ep pa ar rt tu ur re e /A Ar rr ri iv va al lD De ef fi in ni it ti io on nA Ap pp pl li ic ca ab bl le e t to oC Co ol ll le ec ct ti io on n D De es sc cr ri ip pt ti io on nA Ai ir rp po or rt tR Ra at te eE Ex xe emmp pt ti io on n(s s):Sales TaxTransportation Tax(Internatio

131、nal)DepartureLevied on all passengers departing from Haiti on Applied to tickets sold and issued anywhere for tarvel originating in Haiti.10%is to be calculated on the actual price of the ticket.Collected at ticket sale and shown separately in the tax box by code HTPAP0.1Diplomats and consulary pers

132、onnel and their immediate family,i.e.spouse and dependent children.(Have to be holders of Airport TaxAirport Departure Tax(International)DepartureLevied on passengers departing Haiti for international travel.the tax is to be collected at sale as per Government decree.This tax was payable by passenge

133、rs at departure.PAP55 USDInfants under 2 years.Diplomats.Airport TaxImmigration Processing FeeArrivalLevied on all passengers arriving on international For provision of enhanced border control system in Haiti.Levied on all foreign passengers arriving on international To be collected at point of sale

134、 and shown separately on tickets by code HI.PAP7 USDAirport TaxTerritorial Development TaxDepartureLevied on passengers departing on international of Territorial Development(CFGCDT).by code KO in order to separate its collection/remittance from the 10%.Please note that code HT will continue to be us

135、ed for the Haitian 10%Transportation Tax only.Collected at point of sale and shown separately on the ticket by code KO(previously HT)PAPHTG 25.00Diplomatic passport holders.Airport TaxPassenger Facility ChargeDeparture and ArrivalLevied per embarking and disembarking passenger for use of conveyor be

136、lts.Collected at sale and shown separately per passenger on the ticket by the code DH PAP5 USDAirport TaxSecurity Control FeeDepartureLevied on passengers departing Haiti on facilities.the ticket by code FP.PAP5 USD67JamaicaT Ty yp pe eT Ta ax x N Na amme e D De ep pa ar rt tu ur re e /A Ar rr ri iv

137、 va al lD De ef fi in ni it ti io on nA Ap pp pl li ic ca ab bl le e t to oC Co ol ll le ec ct ti io on n D De es sc cr ri ip pt ti io on nA Ai ir rp po or rt tR Ra at te eE Ex xe emmp pt ti io on n(s s):Airport TaxStamp Tax(International)DepartureLevied on tickets sold and issued anywhere for trave

138、l originating in Jamaica.Children 2-12 pay 50%.Collected at time of sale and shown in the tax box by code JMKIN/MBJ400 JDM300 JDMInfants under 2 years.Tourists staying less than six months.Airport TaxTourism Enhancement Fee(Intl)ArrivalLevied on passengers arriving on international implement tourism

139、 projects and programmes.The fee ONLY applies to passengers whose travel originates outside of Jamaica for travel to Jamaica.Collected at sale shown in the tax box of the ticket by code HG.KIN/MBJ20 USDInfants under 2 years.Diplomats.Airline crew on duty.Airport TaxPassenger Service and Security Fee

140、(Intl)DepartureLevied on all passengers departing on international international EK amount shall apply for departures out of the international terminals of KIN and MBJ regardless of whether Collected at sale and shown separately on the ticket by code EK.KIN42.92 USDInfants under 2 years.Aiport TaxTr

141、avel Tax(International)DepartureLevied on passengers departing Jamaica on 2000,the travel tax should be collected at sale.Collected at sale and shown separately on the ticket by code WD.KIN/MJB35 USDID00S1/S2/B1/B2 tickets.Infants under 2 years.Airport TaxAirport Improvement FeeDepartureLevied on ea

142、ch passenger travelling on an and improvement of the airport.N/ACollected at sale and shown on the ticket by code EL.KIN10 USDInfants under 2 years.Airport TaxPassenger Facility Charge-InternationalDepartureThe International Passenger Facility Charge is levied per international departures from airpo

143、rt Norman Manley(KIN)for the purpose of Common Use Passenger Processing Systems(CUPPS)and from Sangster(MBJ for Common use Terminal Equipment(CUTE).N/AThe charge is to be collected at point of sale and shown separately on the ticket under code JT.KIN/MBJ 3Airline crew on duty.Airport TaxPassenger Av

144、iation Service Charge(Int)Departure and ArrivalLevied on passenger departing and arriving on services for operations originating and terminating in Jamaica and the provision of regulatory servicesLevied on passenger departing and arriving on international The charge is to be collected at point of sa

145、le and shown separately on the ticket.KIN/MBJ4 USDInfants under 2 years.Passenger destined for some other place outside Jamaica and who are in transfer/transit in Jamaica for 24hrs or lessAirport TaxAirline Passenger Levy ArrivalLevied on arrival passenger whose travel originates outside of Jamaica

146、for travel to Jamaica.Note:This levy does NOT apply for passengers arriving in Jamaica on a return air travel ticket and whose travel originates in Jamaica.travel 21 August 2012 the following airline will no longer apply QK:BV02 July 2013 the following airline will apply QK:BVCollected at sale and s

147、hown separately on the ticket by code QK.KIN/MBJ20 USDInfants under 2 years.No stopover-Transit/Transfer passengers(24 hours).68Mexico69Nicaragua70Panama71Paraguay72Peru73Dominican RepublicT Ty yp pe eT Ta ax x N Na amme e D De ep pa ar rt tu ur re e /A Ar rr ri iv va al lD De ef fi in ni it ti io o

148、n nA Ap pp pl li ic ca ab bl le e t to oC Co ol ll le ec ct ti io on n D De es sc cr ri ip pt ti io on nA Ai ir rp po or rt tR Ra at te eE Ex xe emmp pt ti io on n(s s):Sales TaxTransportation Tax(International)Departureadjustments issued in the Dominican Republic only if the ticket itinerary includ

149、es a point in the Dominican Republic territory.Also applicable on tickets purchased abroad when the journey originates in the Dominican Republic.DO Transportation Tax must not be collected if the ticket does not include any point in the Dominican Republic.International FlightsCollected at sale and s

150、hown in the tax box by code DOALL0.18Diplomaticos(Ver detalle en la pag de IATA)Senators,members of the Chamber of Deputies,members of the Supreme Court,Attorney General Airport TaxAirport Departure Tax(International)DepartureLevied on all passengers departing the Dominican be collected at sale.Coll

151、ected at sale and shown separately on the ticket by the code AA.ALL20 USDDiplomats from the Dominican Republic.Airport TaxAirport Authority FeeDeparture and ArrivalLevied on passengers departing and arriving on used for payments of fees and aeronautical rights.International FlightsTo be collected at

152、 sale and shown separately on the ticket by code UX.ALL15 USDInfants under 2 years.Airline crew on duty.Aiport TaxAerodom Fee(International)Departure and ArrivalLevied on passengers departing and arriving on specialized airport commercial fee provided for the concession agreement for baggage handlin

153、g system services in the airports.This fee has not been revised in 18 years.The TY has been created to separate this pricing component from the existing Airport Infrastructure Fee(VB)for the Aerodom Group Airports only.The tax is to be collected at point of sale and shown separately on the ticket by

154、 code TY.SDQ2.75 USDInfants under 2 years.Airport Tax Tourism TaxArrivalThe purpose of this tax is the promotion of tourism in the Dominican Republic.This tax is not refundable.The tax is to be levied on each passenger arriving in the Dominican Republic from abroad and where the ticket is sold/issue

155、d abroad and shown separately on the ticket by code L8.This tax is to be paid on every ticket sold to passengers outside the Dominican Republic,whose journey originates outside the Dominican Republic and whose destination is in the Dominican Republic.ALL10 USDTransfers/transit passengerThis tax is n

156、ot applicable to a point of sale/ticket issuance in the Dominican RepublicAirport TaxAirport Infrastructure FeeDeparture and ArrivalLevied on passengers departing and arriving on is used for maintainance/improvement of the airport infrastructure.Reduction associated to the creation of the Aerodom Fe

157、e(TY)to separate this pricing component from the existing Airport Infrastructure Fee(VB)for the Aerodom1 To be collected at sale and shown separately on the ticket by code VB.ALL16.3 USD74St.Maarten75Surinam76Trinidad and Tobago77Uruguay78VenezuelaT Ty yp pe eT Ta ax x N Na amme e D De ep pa ar rt t

158、u ur re e /A Ar rr ri iv va al lD De ef fi in ni it ti io on nA Ap pp pl li ic ca ab bl le e t to oC Co ol ll le ec ct ti io on n D De es sc cr ri ip pt ti io on nA Ai ir rp po or rt tR Ra at te eE Ex xe emmp pt ti io on n(s s):SalesLuxury Tax(International)DepartureLevied on all passengers departin

159、g Venezuela on Venezuela)irrespective of place of issuance and payment.N/ACollected at sale and shown in the tax box by code YN.CCS/VLN/MAR0.08Wholly domestic tickets.SalesINAC-Civil Aviation Services Improvement Fee(International)Departure and ArrivalFee is to be collected on tickets issued in Vene

160、zuela only for passengers departing on international description:.Fee is to be collected on tickets issued in Venezuela and abroad for passengers departing and arriving calculated on the applicable fare.description:Fee is to be collected on tickets issued in Venezuela and abroad for passengers depar

161、ting and arriving on domestic and the applicable fare.To be collected at point of sale and shown separately on the ticket by the code EU.CCS/VLN/MAR0.01Free tickets(for company business travel).Airport TaxAirport Exit Tax(International)DepartureLevied on passengers departing on international 2018:Cu

162、rrency conversion from VEF to VES as per PTC 1893 for pricing and revenue accounting purposes.Collected directly from passenger by Airport Authority booth at the airport.CCS500.000 VESAirline crew on duty.Airport TaxAirport Departure Tax(International)DepartureLevied on passengers departing Maiqueti

163、a Airport For Government use.2018:Currency conversion from VEF to VES as per PTC 1893 for pricing and revenue accounting purposes.Collected directly from passenger by Airport Authority booth at the airport.CCS17.28 VESDeportees.Airport TaxBiosecurity Service Fee Departure and ArrivalLevied on passen

164、gers departing on domestic and de Maiquetia Airport(CCS)to provide funding for the protection of health,biosecurity,disinfection and disposal of harmful pollutants and germs propagators for public healthC2 was suspended on 25 July 2014.(C2)should apply only for domestic departures and arrivals and o

165、nly on services of the following The TTBS has been advised by CONVIASA that the Biosecurity Service Fee(C2)applicable as follows:marketing carriers on Venezuelan carriers journeys with domestic sectors in Venezuela,if the carrier participates in MITA or other agreement the C2 applies for the segments ticketed on the Venezuelan carrier services arriving/departing CCS.The tax is to be collected at point of sale and shown separately on the ticket by code:C2CCSVES 20,000Infants under 2 years.