Local Authorities Request Declaration of Economic Disaster

Published in the El Telegrafo newspaper of Ecuador on 12 June 2020 (translated by Google Translate and slightly edited by CNH Tours)


Delaying and exempting taxes and other tourism incentive measures are proposals to revive the economy, paralyzed due to the pandemic. The local authorities of the Galapagos Islands are working tirelessly to revive their economy, severely affected by the total stoppage of tourist and commercial activities for three months, due to the health emergency due to the coronavirus pandemic.

In a manifesto delivered to the authorities of the Governing Council of the Provice of Galapagos, the Provincial Citizen's Board made a series of requests that, as they consider, would help in this purpose. Among the requests are to declare the archipelago as an economic disaster zone for the next two years. With this, they aspire to suspend the collection of loans, credit card debts, operating permits, renewals and other fees for a period of 12 months. The operators also ask for the refinancing of existing debts in the public and private entities of the National Financial System to be facilitated, without charging additional interest and with a one-year grace period.

Henry Cobos, Mayor of San Cristóbal, explained that one of the most urgent needs -at the administrative and financial level- is the payment of the delayed budgetary allocations (4 months), since these resources are vital to pay wages and serve the sectors most vulnerable and affected, such as fishing and tourism. It is precisely tourism, the main source of income for the islanders, the item most affected by the closure of (national and internal) borders. To reactivate it, the councils propose - among other measures - the creation of a digital platform to promote its attractions, with direct payment, without intermediaries. Likewise, operators have been committed to maintaining the values ​​of the services and activities they offer; In addition, the Provincial Board urged the authorities of the Galapagos National Park to enable new places of visit, closer to the populations, to encourage both internal and external tourism.

The mayor of Isabela Island, Bolívar Tupiza, considered that it is also necessary to shield the economy from local governments through ordinances. One of its proposals is that tourists visiting this island must stay overnight on it (ed:  Many tourists just visit Isabela Island on a day trip), to boost commerce and hospitality. He also assured that it is time to think about an airport to receive commercial flights (ed. a commercial airport has not been allowed on Isabela island in part to reduce the risk of introduction of alien species).

Robert Andrade, economist and owner of the Galapagos Sunset Hotel (San Cristóbal), defends the requests made to the Government. He explained that on the islands all activities are closely linked to tourism and that with the fall of this sector, the rest were automatically affected. "If there are no tourists, the hotels do not have clients or must close, so they do not need to buy from the fisherman either, who ultimately runs out of livelihood." He recalled that the crisis in the Insular region did not start in March but in October, with protests at the national level. “In November, fewer tourists came because it must be remembered that many come from China, where the pandemic began. Tourists are very susceptible to the situation in the country where they intend to travel, so it is expected that the situation will not normalize in at least another 18 or 24 months. " He added that the dimensions of the injury cannot yet be calculated. He gave as an example that in his hotel so far he has lost around $ 300,000, but that travelers continue to cancel reservations, so he projects a loss of at least $ 400,000.  

Residents Bet on Local Food Prodcution

Due to the paralysis of tourism in the Galapagos Islands, the inhabitants are looking to agricultural production to support the adverse economic situation they face. Priscila Bastidas, a resident of Santa Cruz Island, explained that due to the total absence of travelers she has lost her source of income, for this reason she chose to start an orchard and with the trade in her crops (grains, fruits, vegetables) she has been able to generate a bit of money. She explained that it has been the local production that has allowed for the maintenance of the food supply during the emergency, since the arrival of aircraft with supplies and supplies occurs periodically and the logistics to carry the merchandise have a significant impact on the final price.

One of the proposals of the Provincial Citizen Board to reduce the cost of products is that the Government Council be the intermediary in charge of logistics; in addition, that a lower price of $ 0.40 per kilo of cargo sent.