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Finally, Ecuador reduces rates EcoDelta and Tourism Potential in order to increase demand and increase the country's air competitiveness.
Finally, after years of waiting, what included repeated posts from this server, the government of Ecuador decided to reduce the Eco Delta for air tickets issued here from all airports in the country, no longer only those administered by the DGAC or Cuenca.
A tax that was born with the aim of generating a fund to promote the country abroad, but that on the way it only fulfilled the objective of making the tickets more expensive for Ecuadorians, remove air growth opportunities, more airlines, flights, passengers and jobs.
Ecuador reduces Eco Delta tax
The news was given by the Ministry of Tourism, entity in charge of its collection, which through a press release released more details of the reduction that will come into effect for new tickets issued from next 1 June 2023.
The Eco Delta fee (that applies to Ecuadorians traveling abroad) will correspond to 5% of the cost of the net service fee, with a maximum ceiling of 50 Dollars. For instance, if net worth (before taxes) of a passage is 100 Dollars, the ED rate would be 5 Dollars, instead of 50 dollars as it was before, causing a saving for the Ecuadorian of 45 Dollars.
While, the Tourist Power rate (that applies to foreigners traveling to Ecuador) will be from 5% of the net value of the air ticket (before taxes), with a maximum ceiling of 10 Dollars. In this case, for instance, a cost of service 100 dollars would have a PT rate of 5 Dollars, creating savings of 5 dollars for foreign tourists.
This measure is applied to all regular international operations at concessioned airports, those that currently operate under this modality are Quito and Guayaquil.
Does not apply to international charter flights, whose Eco Delta rate will continue to be 60 dollars in accordance with current regulations.
We applaud this measure, what we had been insisting on for many years and that will finally allow us to see an increase in Ecuadorian travelers in the medium term, tourists and more airlines arriving in our country thanks to the imminent increase in demand.
Ministerial agreement
I leave with you the respective ministerial agreement with more information:
IATA congratulates Ecuador
The reduction of these rates for international flights was a commitment agreed within the framework of the Ecuador Aviation Day organized by IATA last year, to reduce the tax burden on passengers and enhance air connectivity through stimulus measures that promote tourism, trade, logistics and foreign investment, and the benefits associated with these activities. Until now the additional charges represented on average more than 44% of the total cost of the ticket.
“Reduce taxes, rates and charges helps to generate competitiveness of the country, benefiting the development of tourism and the economy. What's more, contributes to changing the perception that aviation is a luxury service and not an essential transport for countries and their inhabitants”, said Peter Cerdá, Regional Vice President for the Americas of IATA.
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the tickets exchanged with miles would not pay then?
They would pay the equivalent fee.