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Natural marine reserve; Air traffic drop in Punta Arenas; Magallanes economy stagnant; Torres del Payne Tourist Chamber; Abattoir controversy; Two seasons in one day.

Natural marine reserve
The Chilean government created last week the first natural marine reserve of the country located in the island of Carlos III, in the Magellan channel 130 miles to the southwest of Punta Arenas.

The park has 67,000 hectares and is named after an outstanding Chilean writer, Franciso Coloane, famous for his books on the southern seas and its interaction with the people of Magallanes in the extreme south of the country.

According to the Chilean press the Coloane Marine Park has a very rich marine life beginning with the Pacific hump whales that several months of the year can be sighted while they swim along the Magellan channels.

The marine reserve park was created in the framework of Chile's bicentennial anniversary celebrations that will be working up towards 2010.

The Punta Arenas tourist industry praised the decision recalling that it has been a longstanding request of the area. The island Carlos III currently has facilities, rather a refuge, operated by Punta Arenas agents, where tourists can rest while visiting the area. Chilean authorities anticipated that the next step is the establishment of a scientific research outpost to take advantage of the marine park potential and also to keep track of human activity in the island.

Air traffic drop in Punta Arenas
Passenger air traffic in Punta Arenas experienced a 7,4% drop during the first six months of 2003, according to an official report from the operator of the local airport. Mr. Rodrigo Cotto, from Austral Concesionaria Ltda. said that until June 30, the number of people travelling through Airport Carlos Ibáñez totalled 87,726 people, approximately 7,000 less that the 94,292 of the first half of 2002.

Mr. Cotto admitted that traffic was not up to expectations but said he was hopeful business would pick up in the second half. However there are some encouraging numbers: last June the number of passengers increased 3,8%, although last January the drop was 11%, February 7% and a similar percentage in March.

"Regarding cargo and freight volumes in 2003 are similar to those of last year", indicated Mr. Cotto.

Magallanes economy stagnant
Magallanes economy remains stagnant according to the latest release of Regional Economic Activity Index which shows that in the first quarter of the year, January-March, expansion was actually negative in half a point. If the production of methanol is subtracted the negative index almost doubles to 0,9%.

The Index that has been restructured on the basis of years 1992/1996, accounts for more regional factors and data, "that help ponder a more real Gross Product of the region", said Bernardo Troncoso head of the Magallanes Economic Office.

According to the new Index, mining that in 1992 represented 30,8% of regional activity has dropped to 13,2% and manufacturing has the strongest participation with 16,3%.

A detailed analysis of the Index shows that agriculture and forestry, as well as fisheries were the most dynamic industries during the first Q. Construction and Mining on the contrary suffered most. Mr. Troncoso said the new Index reflects the sustained drop in the last few years of oil and natural gas production in Magallanes, which to a point is compensated by goods and services.

"However we expect an interesting recovery in the second half of the year", revealed a confident Mr. Troncoso. Arturo Lillo, president of Magallanes Production and Commerce Confederation, CPC, said the report reveals that Magallanes economy "remains stagnant", although he praised the review of the components of the new Index.

"We have a declining economy and we believe it's time to review current economic strategies. We're concentrated in the primary area of the economy, minerals and commodities, and in the tertiary sector, that is services", remarked Mr. Lillo who pointed out that the participation of industry in the Index actually dropped to 17%.

"We're a bit surprised with the emphasis on services, for example financial services participation in the Index was increased 64%; commerce jumps 40% and social services and government administration, 17%", concluded Mr. Lillo.

Torres del Payne Tourist Chamber
Fifteen Torres del Payne entrepreneurs and operators have decided the creation of the Torres del Payne Tourist Chamber following discrepancies with a similar Chamber in Puerto Natales.

Fernando Paredes, mayor of the small town of Cerro Castillo next to the world famous Natural Park said "it was time to have our own chamber, since too many businessmen and officials who don't live or work here were talking about tourism development in our area and in the park".

"I think too often they are not respectful towards us. In Puerto Natales they insist in giving their opinions of how the area and the park should be managed. We never talk about how Puerto Natales should be managed. This however does not mean that we can't act in coordination on those issues that are of common interest", added Mr. Paredes. Puerto Natales mayor Tolentino Soto said that "it was legitimate for the Torres del Payne people to assess and deal with their problems and challenges". The original fifteen are expected to become 25 when the Torres del Payne Tourist Chamber is legally founded at the end of August.

Ahmed Zalej, president of the Ultima Esperanza Region Chamber of Tourism when asked about the initiative said that the doors of the organization have always been open to all the Region, and stressed he's looking forward to working with the new Torres del Payne Chamber, "since many of its associates already belong to our organization".

Abattoir controversy
Magallanes elected Deputies have invited a delegation from the Regional Council to hearings in the Chilean Congress in Santiago where the coming tender of the Sacor Abattoir in Porvenir (Tierra del Fuego) will be considered.

This week three congressional committees, Finance, Agriculture and Extreme Zones are scheduled to consider the privatization of Magallanes' second most important abattoir, a process that has been criticized by local farmers and other trade organizations who fear a quasi monopoly situation and are therefore requesting transparency guarantees from the Chilean government. Deputies Rodrigo Alvarez and Pedro Muñoz said that it's an excellent opportunity to talk before the three committees about the "lack of sufficient transparency" in the tender process and other objections.

Mr. Alvarez indicated the tender documents are not clear regarding the possibility of government assistance to the future buyers under the Navarino Bill (a law that promotes business in Chilean Tierra del Fuego); there's no minimum price for the auction and the timetable for the operation is somewhat confusing.

Mr. Alvarez also recalled that Sacor has an ongoing three year contract to supply mutton and lamb to Israel at an agreed fixed price, "and this must be contemplated in any future contract". "I favour privatizing the abattoir, but the procedure must be transparent and farmers must have an opportunity to organize and also participate in the tender", insisted Deputy Alvarez.

Two seasons in one day
Punta Arenas last Saturday virtually experienced two seasons in one day. Beautiful clear skies and a strong sun helped to record the highest August temperature since 1947, that is 13,9 Celisus 11:35 hours However by half an hour later winds were blowing at 100 kilometres per hour. According to the Regional Weather Forecasting Office from the Chilean Air Force at 12:32 winds reached 89 kilometres at the Punta Arenas airport and an hour later in the city gusts were blowing at 101 kilometres.

Later in the evening it began raining and continued until Sunday morning. The weekend finished with cloudy skies and a maximum temperature of 7 Celsius.