The International Air Transport Association (IATA) made public its position on Monday regarding the measure issued last week by the Central Bank of Argentina (BCRA) that prohibits international airline tickets and other tourist services to be financed in installments with credit cards.
«We regret the application of this disposition that once again puts the sector in danger at a time when it had not yet emerged from the worst crisis in its history. In the last few months, we have seen a growth in ticket sales. Such recovery is already at risk, given that almost half of the tickets sold by travel agencies are issued through credit cards, especially those financed in installments. In addition, it should be noted that international tickets purchased in Argentina in pesos impose a heavy tax load, to which is now added the impossibility of paying in installments», said Peter Cerdá, IATA’s Regional Vice President for the Americas.
The executive emphasized that the impact will also be felt in inbound tourism since airlines need both passengers flows to make routes profitable. «If demand for one of these traffic flows is restricted, we will most likely see a drop in the number of flights offered, resulting in a lower capacity and, therefore, a lower number of foreign passengers entering the country. This, of course, will, in turn, affect the foreign exchange income of the country and the stimulation of domestic tourism, so much expected by all of us», continued Cerdá.
From IATA they also pointed out that «after 18 months of the pandemic, the Argentine air commercial market registers an accumulated drop (closing October) of 66% in its sales with respect to 2019», stating that air transport makes a direct contribution to the Argentine economy of USD 8.3 billion (1.9% of GDP), supporting the sustenance of 536 thousand jobs in different areas.
