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Regional News from Pta. Arenas.

Monday, January 20th 2003 - 20:00 UTC
Full article

Headlines: Lan Chile raises fares; Pivcevic heads Development Corporation; Encouraging season; Scientific meeting in Punta Arenas; Chilean bankers optimistic.

Lan Chile raises fares

As of next Wednesday January 22nd, Lan Chile domestic air fares will increase in the range of an average 4%, according to Paola Contardo, Lan's General Manager in Punta Arenas. "Greater operating costs, mainly fuel, forced the increase, but we've worked out the adjustment so as to lessen the impact on the more economic fares. International fares for the moment remain unaffected", indicated Ms. Contardo. The fare increases in Lan Chile's five options for the Punta Arenas-Santiago flight are as follows: "Super economic", with strict restrictions regarding boarding day, time extension of the ticket, refunding, fare jumps from 99,000 to 99,500 Chilean pesos. "Economic", with restrictions regarding boarding day and validity of the ticket, the ticket will cost 149,000, up from 139,000 Chilean pesos. "Programmed Flexibility", increases from 193,000 to 206,500 Chilean pesos. "High Flexibility", will rise from 236,500 to 253,000 Chilean pesos For the "Full Flexibility" fare, one way ticket remains unchanged at 161,500 Chilean pesos and 323,000 round trip. The new fares do not include the boarding tax that in a round trip to Santiago represent 9,042 Chilean pesos. Last Friday the United States dollar was selling in Santiago in a bull market at 726 Chilean pesos.

Pivcevic heads Development Corporation

Andrés Pivcevic, a well known Punta Arenas businessman has been named president of the recently created Magallanes Development Corporation, MDC, a non profit organization for the economic, social and cultural promotion of the region. One of the first decisions of the MDC was to complete a draft agreement with the Community of Valencia, a Spanish autonomous region that is interested in developing new port facilities in Punta Arenas, plus attracting investors in farming and the tourist industry. "We're basically going to help people in Magallanes and Valencia interested in similar projects to get in contact and advance jointly. We can act as data banks for projects on both ends", indicated Mr. Pivcevic, adding that the Corporation is open to initiatives from all over the world in spite of close links with Valencia. "With a delegation of Magallanes businessmen we've already visited the Community of Valencia, they have a GDP similar to Chile and ample resources they wish to invest out of Europe, and somehow they've set their eyes in Magallanes", said Mr. Pivcevic. MDC president went on to explain that with the opening of the European market there are other areas of great potential to invest such as forestry, fisheries, farming and obviously tourism with the marvellous wildlife of Chilean Patagonia. "We have a great asset in Chile, and particularly in Magallanes, and that is stability and peacefulness, something foreigners appreciate far better than we do", remarked Mr. Pivcevic, "besides the fact we are no longer a regional market, but a world market option following the trade agreements with Europe and United States". Mr. Pivcevic is CEO of Dap airlines, a regional carrier based in Punta Arenas that in the early nineties pioneered commercial flights to Stanley airport in the Falklands.

Encouraging season

Even when government statistics won't be available until the end of January the Punta Arenas Tourist Guide Association and the managers of Seno Otway rookery are most encouraged by the development of the current season. Erik Hechenleitner president of the guides association said that demand so far has been well beyond expectations, particularly for tours demanding English and German speaking guides. "Europeans and Americans are continually arriving although we also have an increasing number of Mexicans. The main attraction is still Torres del Paine national park but Punta Arenas city tours have become quiet popular", said Mr. Hechenleitner. Turis Otway that manages Seno Otway rookery is also very enthusiastic about the number of visitors who pay four US dollars to have a look at the 10,700 Magellanic penguins. "Last year we had 60,000 visitors and this season is equally strong, with the usual Americans and Europeans, mainly Germans and Spaniards, but we are also receiving a growing number of Asians and visitors from Turkey", said Mr. Elías Saldívar from Turis Otway. However one of the drawbacks is the road leading to the rookery, over an hour's drive from Punta Arenas that actually becomes a "skidding track" whenever it rains above average, complains Gabriel Gómez spokesperson for Buses Fernández the coach company responsible for carrying the tourists.

Scientific meeting in Punta Arenas

Punta Arenas will be hosting this week a five days meeting of scientists from all over the world who will be analyzing climatic changes and global repercussions. The meeting is organized by the International Geophysics and Biosphere Program, IGBP, and will be officially opened by Chilean president Ricardo Lagos, who is currently visiting Natales and Punta Arenas. The symposium will listen to different conferences and elaborate a scientific proposal regarding global climatic changes for the next ten year, as well as help Chile establish a science and technology policy to face the coming challenges in these fields. Among the distinguished visitors is Chemistry Nobel Prize 1995, Paul Crutzen. The sessions will be closed during the first three days and open to the public the rest of the week when then participants address the "Symposium Global Change: towards a systemic vision". IGBP reports and papers in the past contributed greatly to the drafting of the Kyoto Protocol that was geared to avoid the increasing deterioration of the planet's ecosystem closely linked to human intervention such as the greenhouse effect, acid rain, the destruction of the ozone layer and intensification of climatic changes. The Kyoto protocol has become a controversial issue with some of the main industrial countries, particularly United States, refusing to adhere.

Chilean bankers optimistic

Chile's private banking sector is more optimistic that the government. Hernán Sommerville president of the Chilean Association of Banks and Financial Institutions said that private bankers believe the Chilean economy will grow 3,5% in 2003, in spite of the less enthusiastic forecasts in the latest Monetary Policy Report from the Central Bank. "We have a positive, optimistic view following encouraging signals such as an increase in consumer credit and sales in certain strategic sectors", indicated Mr. Sommerville who had previously met with private bankers to outline this year's agenda. However Mr. Sommerville admitted there are some black clouds in the future such as the Middle East conflict and its possible geopolitical consequences. The latest report from the Chilean Central Bank showed the country's economy expanding 2,1% last November compared to a year ago, with an accumulated growth of 1,8% in the first eleven months of 2002. The Central Bank expects the Chilean economy to end 2002 with a 1,9% expansion, quiet a drop from the 2,8% of 2001. Regarding interest rates Mr. Sommerville said that "rates, and this is good news for Chile and the rest of the world will remain at the same level for a long period".

Categories: Falkland Islands.

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