Chile Faces Shaky Future With Growing Biz Options
<B> Chile Faces Shaky Future With Growing Biz Options</B>
By Judy Williams
Though its economic outlook is cloudy, Chile has remained financially stronger than many of its Latin American neighbors and, despite the uncertainty, its tourism sector is experiencing dramatic growth.
According to Servicio Nacional de Turismo, the number of foreign arrivals to Chile in the 1990s is more than double that of the '80s, reaching an annual average rate of 3 million yearly visitors. And while tourism currently accounts for only 4 percent of the gross domestic product, by year-end the sector is forecast to gain 3 percentage points. Luxury hotel room rates in Chile cost about US$75; with economy rooms costing as little as US$16.
"Chile is positioning itself to international travelers as an enclave of unique and fascinating destinations," tourism officials said. With developments totaling US$2 billion, both Marriott and Hilton have announced plans to build in Chile, and Sheraton and Holiday Inn also are expanding and/or building new facilities.
According to Robert Kunstaetter, editor of The Latin American Travel Advisor, the country also is benefiting from fast-growing Choice Atlantica Hotels.
Choice is wrapping up a year punctuated by rapid growth in Latin America, and its executives are predicting even more aggressive development this year. The company holds the master franchise agreement to develop Choice hotel brands (Comfort Inns, Hotels and Suites; Quality Inns, Hotels and Suites; Clarion Inns, Hotels Suites and Resorts; and Sleep Inns) in several key South American markets.
Chile, which last year was brought into the fold of the franchise agreement, has been the beneficiary of the most dramatic growth within Choice's south- of-the-border developments. In addition to its five new properties there, the company last July opened its first South American toll-free reservation center in Santiago. The res center--the first of three scheduled to be open in South America later this year--will enable travelers and travel agents to make reservations at Choice hotels throughout the world.
Best Western also is making its mark on Chilean cities. Late last year, five four-star Best Westerns opened in the country, bringing the total count to 11 and making Chile the second-largest Latin American market for Best Western behind Brazil.
Chile's transportation also will be improved, with air service enhancements still in discussion.
To date, the proposed Open Skies Agreement initiated between Chile and the United States still is in the negotiations stage. According to the U.S. Department of Transportation, an Open Skies agreement with Chile was initiated in October '97, but Chilean officials said that before such an agreement could be reached, it would require approval of applications filed by American Airlines and LanChile for reciprocal codeshare arrangements, and antitrust immunity must be resolved.
DOT in April issued a show-cause order, proposing the approval of the alliance and codeshare agreement, and currently is reviewing comments the interested parties have filed in response.
The long-awaited accord would open Chile and the United States to increased competition from carriers in each other's nations. Delta Air Lines also has expressed interest in entering the Chilean market, though lack of accord has prevented further negotiations.
Continental Airlines has said it is interested in increasing flights if an agreement is reached and if ChileInter, a Chilean carrier, also is interested in starting a route to the United States once the agreement is resolved.