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Patagonia Tourism Development Corporation; Magallanes salmon production, 6,000 tons; Heart operations in Punta Arenas;
Magallanes Region economy steaming ahead.

Patagonia Tourism Development Corporation

A new organization to coordinate and give a greater thrust to regional tourism development was created in Punta Arenas under the name of Magallanes Region and Chilean Antarctica Tourism Development Corporation. Three local tourism chambers plus the Chilean government sponsored Technical Cooperation Service, Sercotec, launched the initiative. They are Austro Chile representative Enrique Escobar who also acts for the Torres del Paine Tourism Chamber; Igor de Arcas from the Tierra del Fuego Tourism chamber and Sergio Tapia representing Austro Chile Tourism Chamber. Llilian Ruiloba signed for Sercotec and announced a 17,500 US dollars incentive fund plus a 20% matching addition from the three chambers. The objectives of the new organization include formation of tourism staff, meetings with other government offices and reviewing similar experiences in other parts of the country. "We believe that the private sector is essential in the development and promotion of tourism in the region, particularly when the region is receiving so many investment expressions of interest", said Mr. Escobar from Austro Chile. "The following step will be to incorporate Ultima Esperanza province and coordinate sustainable tourism activities, helping the government attract more overseas investors and inviting them to participate in associations to develop regional tourism", added Mr. Escobar.

Magallanes salmon production, 6,000 tons

Magallanes region salmon farms expect this year a production of over 6,000 tons, a volume which is estimated to keep growing in the near future given the high number of concession requests to open new farms. The salmon industry started in Magallanes in the mid eighties based primarily on local initiatives but in the nineties the big names of the industry with operations in neighbouring regions to the north began arriving and currently are dominant. According to the regional office of Sernapesca (National Fisheries Service) out of a total thirty projects, 19 fatten salmon (Atlantic and Coho) and three are nurseries. Sixty concessions have been granted and another 87 are in the process of being considered. However over the last two decades 477 concession requests have been rejected. Among the latest companies requesting concessions are Pesca Chile and Nova Austral, both linked to the Spanish corporation, Pesca Nova. A concession request is a slow process and can last three years before authorization. Among the reasons for rejecting a request are: when farms could interfere with wildlife salmon and domestic fishing; technical inconsistencies in projects plus the fact that following the concession the investor has twelve months to begin working, if not the permit is cancelled; similarly if once started the project remains idle for two years, and finally environmental impact considerations.

Heart operations in Punta Arenas

Punta Arenas regional hospital first two heart surgery patients are recovering at home, reports La Prensa Austral. Both underwent by-pass operations in late April and after two weeks in intensive care have been sent home where they are gradually returning to normal activities. One of the patients is a bus driver (three by-passes) and the other a hair dresser, (two by-passes) both in their early fifties. External wounds healed in seven days but internal ones take three months. "We must stay at home, quietly, no efforts, no strains, no stress because it can harm recovery and the operation", said Carlos Alarcón, the hairdresser.

Magallanes Region economy steaming ahead

Magallanes region expanded 10,7% during the first quarter of 2005 compared to a year ago confirming that the strong Chilean economy recovery has reached the extreme south of the country with prospects of an annual increase of 11%. "Expansion or crisis situations arrive in the region with a lag of seven to twelve months and that's what is happening now", said Bernardo Troncoso, Finance ministry delegate for Magallanes who underlined the growing confidence, greater private sector investment expectations and consumer spending. This is the first expansion of goods & services since the year 2000. A year ago the first quarter recorded a 1% contraction, but since then has steadily grown, 1,8%; 3,3%; 13,9% and now 10,7% Among the most dynamic sectors are forestry, agriculture, finance, fisheries, retailing and services, "which can be confirmed by looking at wool sales, forestry shipments, supermarket sales, mining and housing", added Mr. Troncoso. However hydrocarbons continues to lag, because of the drop in gas production and "unless new sources are found, the historic declining tendency will consolidate". Similarly with manufacturing, particularly methanol at the huge Methanex plant which has suffered extensive natural gas supply cuts because of the Argentine shortage. "Actually if methanol is not included Magallanes production in the first quarter grew 12,4%", underlined Mr. Troncoso. Exports also expanded 16% in the period from 175 to 204 million US dollars. Another influencing factor in the economic surge is the "approximately 60 million US dollars the central government has ploughed into the region in the form of direct subsidies and tax breaks for companies investing in Magallanes. The dark spot is unemployment which remains at 5,6% (even when it's one of lowest in Chile), meaning 3,670 people (out of 62,000) are out of jobs in Magallanes. "We're expecting that as the expansion consolidates, employment will pick up, but I must admit this has become a national (Chilean) debate since something similar is happening overall, a surging economy has not helped, so far, to consistently contract unemployment or improve salary levels", indicated Mr. Troncoso, who also pointed out to the fact that government sponsored employment programs have helped to soften the negative difference between winter and spring employment. "Since the return of democracy the minimum salary has leaped ahead and poverty has dropped 50%, from 40% to less than 20% of the population according to the five year census", recalled Mr. Troncoso.