WEEKLY TRENDS LATIN AMERICA JUNE, WEEK 2, 2020 TRAVEL TRADE FEELINGS

The travel search engine Skyscanner has tracked the sentiment and behavior of its users for 9 weeks and, although the anxiety is high, it is now reducing: from 72%, it dropped to 58%. Read more.

Due to COVID-19 pandemic, the 25th edition of the International Tourism Fair in Buenos Aires (FIT) has been reprogrammed for December 12 to 15. Read more.

IATA developed a map that shows the different countries of the world with their travel restrictions and

regulations and that specifies where you can travel and The possibility of authorizing domestic tourism for where you cannot. Read more. winter vacations (Southern Hemisphere) in Argentina, is being evaluated between those provinces where there are no recent cases of coronavirus, with trips by bus or by plane. Read more.

Ricardo Roman Jr., Vice-President at Interamerican and President at ABIH (Brazilian Association of Hotel Industry – Sao Paulo Chapter), gave an interview to Radio Jovem Pan and informed that the resumption of the segment should be slow. The sector, which was still

recovering from the 2015 crisis, showing positive results in 2019, 4 years later, was returning to average The Argentinean Government is working on a possible occupancy and daily rates. Now, with COVID-19, he licensing scheme to operate domestic flights during the says that the sector is facing a health and economic month of July. This would be mainly between provinces crisis, which makes tourists afraid to travel, driving the with few COVID-19 cases. Read more. resumption even slower. Read more.

1 Weekly Report Latin America – June, Week 2, 2020 Five of the main Brazilian tourism entities – ABAV responded that they could travel next year. Of the total (Brazilian Association of Travel Agencies), ABRACORP of respondents, 49% would buy the trips on their own, (Brazilian Association of Corporate Agencies), Air TKT while 34% would go to a travel agency and 17% would (Brazilian Association of Consolidators), BRAZTOA do so through an OTA. For 82% it is important that the ( Association of Tour Operators) and CLIA Brasil establishments where they buy their travel plans have (Cruise Lines International Association) – joined efforts a “COVID Free” certificate. Read more. and elaborated a document with Biosafety Measures, so the tourism agencies can resume activities in physical stores, with health recommendation for employees and customers, reducing the risk of COVID- 19 contamination. Read more.

Guillermo Correa, President of the Chilean Association of Tourism Companies (Achet) and Travel Security presented this possible scenario of reactivation of tourism post COVID-19 in the seminar "Challenges for The organizers of IBTM Americas announced the new business travel in times of pandemic", part of their date of the meeting, which will take place on May 19 cycle of online talks #QueTuNegocioNoSeDetenga and 20, 2021. Originally scheduled for May of this year Read more. and rescheduled for August 26 and 27 at Centro Citibanamex, IBTM Americas was postponed "due to the impact that international travel restrictions would have on the quality of the event", reported Reed Exhibitions Mexico. Version 2.0 of IBTM Americas will be a mix of online and offline actions and business opportunities, which will deliver virtual and face-to- face experiences focused on the meetings and events

industry. Read more.

The National Association of Travel and Tourism The Secretariat of Communications and Transport (ANATO) published the results of its first survey aimed (STC) proposed to cancel the construction of Terminal at the final consumer on “Travel Trends COVID-19”. 3 of the International Airport of Mexico City (AICM), Among the conclusions, it was highlighted that 29% of since the demand of passengers has decreased those surveyed consider traveling this year, of which "significantly" due to the COVID-19 pandemic. Taking 46% plan to spend their holidays in Colombia, while into account that in March 2022 the new Felipe 21% would travel abroad. In addition, 58% indicated Angeles International Airport will be inaugurated in St. that after the crisis they would like to go to a Sun & Lucia, Mexico State - with an initial capacity of 20 Beach destination. 75% indicated that the plane would million passengers -, the SCT considers that "the be their means of transportation. In contrast, 60% additional capacity in the AICM resulting from the assured that they would not travel in 2020, mainly to construction of T3 would already be unnecessary” and avoid possible contagion and, also, due to their has therefore proposed the cancellation of the project. personal financial situation. Of this percentage, 67% Read more.

2 Weekly Report Latin America – June, Week 2, 2020 What?s Next

This is the last week to participate in the survey on The travel agencies believe that local destinations and tourism and COVID-19 launched by Interamerican greater contact with nature will be the best sellers Network, the Brazilian news website Catraca Livre, the post-COVID-19. The tourism industry set out to turn Peruvian publication Infotur, the Argentinean portal this crisis into an opportunity to explore local tourism. Boardingpax and the Mexican association Confetur. Read more. The analysis will measure the impacts on tourism and the perspectives for the sector after the pandemic. The results will show reliable sources for companies and travelers to get ready and resume plans in Latin America, post- pandemic. Respondents can access the survey form until June 15, by clicking on the country they are from:

. Argentina, Bolivia, Chile, Paraguay, Uruguay

. Brazil

. Colombia, Ecuador, Peru

. Mexico and Central American countries

Startups are joining forces to create the digital services platform SmartDigitalPlug for hotels and small accommodation. This is an effort for the travel industry to restore confidence and encourage consumers to travel. Read more.

As an example of what Buenos Aires did, big data will play a leading role in the revival of tourism since it will allow the sector to quickly learn about the evolution in the flow of tourists and which are the segments that will recover first. Read more.

First protocols to be applied when tourism and gastronomy activities resume have been designed by The pharmaceutical company AstraZeneca signed an the Ministry of Tourism and Sports, the Federal agreement to produce Coronavirus vaccine at Oxford Tourism Council, the Argentine Chamber of Tourism University, starting late June-early July. Around 50,000 (CAT) and the Institute of Tourism Quality in Argentina. people are to be tested, among them 2,000 Brazilians. Read more. Read more.

3 Weekly Report Latin America – June, Week 2, 2020 TAP Air Portugal confirmed the flights that it will Air Canada announced its operational return to operate to Brazil until August. Besides the services Colombia in September on the Toronto-Bogotá route. between Lisbon to Rio and to , which have The flight will depart three times a week in a B787-800 been operated since June 1, in July, the carrier will add Dreamliner. In addition, travelers will be able to choose flights to and to , while August will see between Signature Class, Premium Economy and the return of the service to . Economy Class categories. It is worth mentioning that, Read more. to comply with health and safety protocols, the airline

created the CleanCare+ program. Read more.

The National Tourism Service promotes social tourism and defines it as one of the pillars in the revival. In After the confinement caused by the COVID-19 Chile, in twenty years of operation of the Senior pandemic and the consequent collapse of international Holidays, Study Tour and Family Tourism programs, tourism activity, hoteliers and service providers in the companies have benefited from operating these Mexican Caribbean are presenting an ambitious initiatives with their services and people, who are the marketing campaign. The campaign ones who can travel thanks to this opportunity that #Come2MexicanCaribbean or #VenAlCaribeMexicanoX2 provides the State. According to forecast from Sernatur aims to offer additional values, promotions or and the Under secretariat for Tourism, the reactivation discounts, around the number 2. The elaboration of the should start in September, if the country's health offers will be in charge of each company. Some reality allows it. Read more. examples:

. 2+2 hotels: A network of hotels can offer 2 free nights every 2 or more paid nights and/or free stay for 2 children for 2 paid adults.

. 20% discount on golf and spa services, 2×1 theme park tickets or special discounts, among others.

The official launch of the campaign is June 15, 2020, with a period to be reserved until August 15, 2020. For now, customers can access the sites and leave their emails registered to receive everything firsthand. Read more.

What We Do Testimonial Las Vegas

"... an absolute pleasure to work with Interamerican. Their passion and professionalism are surpassed only by their knowledge and creativity."

Fernando Hurtado Senior Director of Global Sales, Las Vegas Convention and Visitors Authority

See more in: www.interamericanetwork.com 4 Weekly Report Latin America – June, Week 2, 2020 COVID-19 Report

Governments in Latin America continue to navigate through the pandemic according to what they consider necessary, some easing the restrictions, others implementing economic measures to help businesses. Brazil and Chile are receiving criticism over issues regarding the distribution of COVID-19-related data – the first has changed the way it counts the deaths, while the latter is not disclosing the number of recovered patients.

Argentina

Confirmed Cases*: 22,794 | Deaths*: 670 | Recovered**: 7,568

Government Actions: As of June 8, running activities Tourism/Aviation: The Ministry of Transportation have been allowed in Buenos Aires city between 8pm confirmed that they’re working on resuming flights and 8am. Clothing and shoes stores have been before the scheduled date and that domestic flights authorized with specific protocols. The National could return in July. A judge rejected the collective Government allowed new activities in 13 municipalities action against Despegar and recommended each consumer to sue individually. The Ministry of Tourism in the province of Buenos Aires. The Ministry of Health and Sports and the main tourism and gastronomy released a new update of the definition of a suspected chambers prepared the first protocols to be applied case of COVID-19, that includes every person with loss when the activity resumes. of smell or taste, even without fever. As of this week, Buenos Aires province health personnel will be tested Top News: Mercado Libre, biggest e-commerce website in the country, has made an alliance with to detect possible COVID-19 cases. Grupo Planeta, one of the main editorial companies. Economy: There’s been a huge uproar after the Following this, Planeta will open its own direct sales Government announced the expropriation of Vicentin, channel on the website, and smaller bookstores have an agro-exporter company that has been facing made their concerns known over this matter, feeling economic difficulties. The government has denied that their businesses will suffer. There have been more this is part of a bigger expropriation plan of private inquiries regarding those seeking to settle in Uruguay companies. in search of obtaining tax benefits.

5 Weekly Report Latin America – June, Week 2, 2020 Brazil

Confirmed Cases*: 691,758 | Deaths*: 36,455 | Recovered**: 325,602

Government Actions: A credit program for micro, small with protocols for 15 activities within the tourism sector and medium-sized businesses is in place, but business (hospitality, transportation, travel agencies, events, theme owners say they are not having access to it, which has parks, among others). Social distancing, audience led to a record number of bankruptcies as an economic restriction and disinfection are some of the protocols effect of the pandemic. Government stated that other required for those interested in the seal. They are not plans are being articulated to make the credit reach mandatory, but the Ministry believes it will be an important these companies. differential.

Economy: The National Treasury will start paying this Top News: Federal Government has been hiding week the first installment of USD $ 3,07 billion of the COVID-19 data. After cancelling the daily press aid to states and municipalities. The law that created conferences that announced the numbers, it started the aid provides for a total transfer of USD $ 12,3 billion delaying the release of information and changing the to face the economic effects of the pandemic. The aid protocols to count deaths, to make them smaller. After will be paid in four installments. general criticism, the Supreme Court commanded the Tourism/Aviation: The Ministry of Tourism launched the Federal Government to go back to the former seal “Responsible, Clean and Safe Tourism, do your part", procedures.

Chile

Confirmed Cases*: 138,846 | Deaths*: 2,264 | Recovered**: N/A

Government Actions: The Government recently launched Tourism/Aviation: LATAM Airlines makes another 1,000 a new campaign to face the coronavirus crisis, focused on layoffs of workers from subsidiaries in Chile, Peru and the responsibility of citizens during the pandemic. Under Colombia. The CEO of the airline, Roberto Alvo, assured the slogan "Next it can be you", the Ministry of Health that unfortunately he cannot compromise that they are published a video on its social networks which seeks to not going to continue shrinking the company. ensure that the population respects the restrictions on movement and assembly dictated in the country. Top News: The Chilean Ministry of Foreign Affairs announced the closure of its embassies in Denmark, Economy: This week, the World Bank released the Greece, Romania, Syria and Algeria by the end of the year, numbers of its latest report with the economic prospects for the coming years. In the case of Chile, they forecast a and thus give greater focus to more strategic countries contraction of 4.3%, strongly influenced by the expansion such as Belgium and Austria, which will imply savings of of the new coronavirus. In the last report of the USD$ 3.8 to USD $ 5.1 million. The decision was informed institution, in April, it predicted a drop of 3%. For 2021, a to the ambassadors in those countries so that they 3.1% rise in GDP is forecasted for Chile. prepare the closing during the rest of the year.

6 Weekly Report Latin America – June, Week 2, 2020 Colombia

Confirmed Cases*: 39.236 | Deaths*: 1.259 | Recovered**: 16.427

Government Actions: The Government announced Tourism/Aviation: The Government announced five that until July 31, low-income and middle-class families new reliefs for the sector: VAT exemption for all hotel will be able to defer up to three years the payment of and tourism services until December 31, 2020; water supply, sewerage, and sanitation bills. The temporary suspension of the payment of the energy measure will also apply to commercial and industrial surcharge in accommodation and theme parks; users who are unable to pay their public services bills elimination of the advance payment to the sector; in a timely manner. deferral to the parafiscal contribution of tourism; and new line of credit, with a larger grace period. Economy: 134,264 companies in the manufacturing, retail and services sectors have already validated their Top News: The government issued decree 811 that will biosafety protocols and are authorized by the National allow it to inject resources into private companies Government to restart operations. affected by the crisis.

México

Confirmed Cases*: 117,103 | Deaths*: 13,699 | Recovered**: 88,217

Government Actions: The President of Mexico, Andrés Tourism/Aviation: Grupo AeroMexico reduced 76.6% Manuel López Obrador, appointed Jesús Seade to lead its available seat-kilometers, or the number of seats the World Trade Organization, in order to take advantage offered on a flight multiplied by the distance of the of his work with the United States and Canada to route. The entire airline industry continues to record renegotiate the North American Free Trade Agreement. falls of 90% of operations and some specialists, such as Moody's and Monex Casa de Bolsa, estimate that pre- Economy: The Mexican automotive industry is preparing crisis levels could be recovered by 2022. against the clock for the start of the new trade agreement with the United States and Canada on July 1st, while the Top News: The government reported that, currently, Mexican Association of Automotive Industry estimates a the entire country is in the red at the federal contraction of up to 33% this year in automotive exports epidemiological traffic light, which means that the risk due to the pandemic. The exchange rate is at MEX $ 21.51 of contagion of the new coronavirus remains high. The per dollar, and analysts estimate that it could remain at only states that have decreased their incidence of this level due to the economic reopening, the recovery of active cases are Morelos, Sonora, Hidalgo, Querétaro, oil prices and the rebound of the stock markets that have Yucatán and Guerrero. helped the peso in recent weeks.

* According to the World Health Organization on June 09, 2020. Elaborated by ** According to local authorities on June 09, 2020. Interamericanetwork.com

7 Weekly Report Latin America – June, Week 2, 2020