Peru: tourism sector paralyzed by coronavirus crisis

Audio 02:30

By: Wyloën Munhoz-Boillot Follow

Machu Picchu emptied of its tourists, the image is historic, almost idyllic, but today it is the symbol of the unprecedented crisis that tourism in Peru is going through. The third activity of the country (3.9% of the GDP) which supports 3.5 million people, tourism is one of the sectors most affected by the coronavirus crisis. Report from our correspondent in Lima.

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It welcomed 1.5 million tourists last year, but for the past two months, Machu Picchu has been desperately empty. To cope with the coronavirus epidemic, in mid-March Peru closed its borders and suspended all commercial flights. A blow for the tourism sector. Tourist sites, restaurants, hotels and inns have been emptied, activities and excursions have been canceled. In total, 800,000 jobs are threatened in this sector which is going through the worst crisis of the last 40 years, according to Carlos Canales, president of the National Chamber of Tourism.

"  Neither terrorism (1980-2000) nor cholera (1992) have paralyzed the country as well. But today we have zero tourists and it will surely continue like this for the 90 or even the next 120 days.  "

Among the most affected by this crisis, micro and small businesses which represent more than 90% of companies in the sector. Like Mauricio Cavero's travel agency, present in seven cities across the country with its seven employees.
“  All foreign tourists cancel their reservations and request a refund. We have no cash receipts and we have accounts payable to suppliers. We therefore reduced our fixed costs: the agency temporarily closed all its offices and we had to resort to "perfect suspension."  "

The perfect suspension is a device which in the event of force majeure allows a company to send its employees home without paying them, but without dismissing them, and for a maximum duration of 90 days. In the tourism sector, 220,000 people have already been suspended, without compensation. And another 150,000 have been laid off in a country where unemployment insurance does not exist.

Equally affected, but less visible, the informal players in the sector: artisans, guides, tourist drivers, etc. that is to say two million people who receive no aid today, according to Carlos Canales.
“  Informality has generated a large number of vulnerable people who have no right to anything today because they are not on any register. They are invisible because they generally make street sales and do not issue proof of payment, such as invoices or receipts.  "

To revive tourist activity, the sector initially relies on internal tourism.

"  We will promote domestic tourism with prices at least 50% and with the necessary precautionary measures, that is to say in areas where the virus has been controlled, with small groups of visitors and individual vehicles.  "

Tourism activity could thus gradually restart from July, the date on which interprovincial transportation and national flights should resume. But the assessment of the year 2020 for the tourism sector in Peru promises to be catastrophic: three million fewer tourists compared to last year and eight billion dollars in shortfall.

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• Peru
• Tourism
• Coronavirus
• Economic crisis

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