MercoPress. South Atlantic News Agency

Chile slashes port operating costs for the cruise industry

Deputy Secretary Jacqueline Plass said the decree is effective this week.

Chile announced Wednesday that cruise vessels operating in Chilean waters will benefit from significant rebates in port access and docking operations with the implementation of recent modifications to the ruling on rates and charges from the Maritime Transport and Merchant Navy Department.

“Beginning this week all tourism vessels which remain at least six hours in Chilean territory and call in one or more ports in the locations of Arica, Iquique, Antofagasta, Coquimbo, Valaparaíso, Puerto Montt, Puerto Chacabuco, Punta Arenas and Puerto Williams will be paying rates up to 80% less”, announced Chilean Tourism Deputy Secretary Jacqueline Plass.

The official said following contacts with the Ministry of Defence modifications were introduced to the legislation which is geared to lower costs and benefit the cruise industry and tourism vessels calling in Chilean ports.

“If a vessel calls in one of the above mentioned ports, it will be paying 60% less than current rate; if it visits two ports, payment goes down to 40% of the current rate, and in the case of three, only 20%”, pointed out Ms Plass.

“Hopefully this will help revert the decrease in cruise vessel calls to Chilean ports that has dropped over 40%”, admitted Plass.

For a long time the cruise industry had been complaining of the high costs of operating in Chilean ports, which has been more evident since Argentina adopted a more friendly policy particularly in southern Patagonia, which has turned Ushuaia into the main cruise hub of the region and gateway to Antarctica trips in detriment of neighbouring Punta Arenas.

However the cruise industry has also been demanding that vessels be allowed to open their casinos while sailing in Chilean waters, which is banned because of contract clauses between the government and the private gambling operators in Chile.

For the cruise industry in lean times casinos are a significant source of income.