QCOSTARICA — Rather than benefiting Costa Rica, US$50 (¢25,000 colones) one-way flights to any destination in Central America have the potential to ruin countless businesses in Costa Rica.
And this is the main reason why President Rodrigo Chaves vetoed the bill approved by legislators last week, which would allow Costa Ricans and visitors to fly in the region at low fares.
Chaves said that the country’s main objective is for tourists to stay longer in Costa Rica, while the low fares would encourage visitors to visit other sites in the region.
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The President added that worst of all is that the plan would only benefit one airline, while the entire tourism sector, from hotels to small businesses, would be affected negatively, which could translate to layoffs and fewer opportunities in rural areas, where tourism has been an important driver of the economy.
“I don’t know who legislator Eli Feinzaig, from the Progressive Liberal Party, wants to benefit with this bill, but clearly not the people of Costa Rica. What we want is for tourists to stay with us and not leave (…) If this bill passes, fewer people will come to the southern area to vacation, leave money and create jobs,” said Chaves yesterday during a tour of Pérez Zeledón, San Vito and other areas.
The bill, approved in the second and final debate with the support of 34 legislators from different factions, seeks to reduce taxes and airport fees for flights with final destinations in Belize, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and the Dominican Republic.
According to Feinzaig, promoter of the bill, the benefit is for Costa Ricans to have more affordable airfares, promote regional integration, and open new business opportunities.
The idea is that a round-trip flight to any country in the region would cost around US$100, except the Dominican Republic, which would cost approximately US$120.
At the beginning of the week, it was announced that the Association of International Airlines (ALA) in Costa Rica, the Latin American and Caribbean Air Transport Association (ALTA) and the International Air Transport Association (IATA) supported the veto by, Rodrigo Chaves.
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“Even though the industry fully supports the initiative to improve the country’s air connectivity, the bill does not propose the appropriate a way to do so. By stipulating a maximum value for the rate applicable to a reduced rate, a price control was established that limits airlines from offering all their rates and products in full freedom. This, in addition to discouraging the development of the Central American market, contravenes existing laws and international agreements of which Costa Rica is a party,” said the group.
The next step in this legislative battle between the Legislative and Executive branches of government is to “reseal” (override) the presidential veto with at least 38 votes.
Eli Feinzaig indicated on Wednesday they have the 38 votes required to override the president’s veto and thus validate the bill, while he has criticized the president’s position and accused him of hindering the benefits that the law would bring to the people.
“The low-cost flight law is for the benefit of all Costa Ricans, to lower the cost of living and to create opportunities to develop business in the Central American region. The curious thing is that President Chaves has chosen to become an obstacle for Costa Ricans to obtain those benefits,” declared the legislator.
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He also said that the president has personalized the debate against him and that his opposition is a mistake, since the bill has been supported by all parties, except the ruling party.
“It was supported by the Partido Liberacion Nacional (PLN), the Partido Unidad Social Cristiana (PUSC), the Neuva Republica (PNR), Frente Amplio (FA), and of course, by us from the PLP,” Feinzaig concluded.
Costa Rica’s legislator is made up of 57 legislative seats, of which the foregoing parties hold 46, while the ruling party only eight.
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