August 1, 2006        www.LatinEPR.com          LatinEPR News Wire

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LATIN AMERICA AND US HISPANIC

MEDIA AND COMMUNICATIONS

Caribbean Nations Lead Region in Digital Opportunity

 

The Bahamas, Barbados, Chile, Argentina, and Jamaica lead the region in access to digital communications, according to the latest index published by the International Telecommunication Union (ITU).  The index rates countries according to their ‘digital opportunity’, meaning access to and affordability of Internet, mobile and other information services.  A total of fifteen countries in Latin America and the Caribbean equaled or surpassed the world-wide mean of 0.37 (zero being the poorest), signaling improving infrastructure and positive developments in information technology within the region.  The Bahamas rated highest in the region with 0.58, followed by Barbados and Chile (0.52), and Argentina and Jamaica (0.47).  Other countries in the region to rate above or equal to the global average were Uruguay, Mexico, Venezuela, Costa Rica, Brazil, Peru, Panama, Dominican Republic, Colombia, and El Salvador.  Peru, in particular, made tremendous strides in the last five years, increasing its digital opportunity rate by 37%.  Outside the region, Canada and the US rated 0.65 and 0.62, respectively, while South Korea scored highest worldwide.

 

Grupo Televisa to Sell Univision Stake

 

(International Herald Tribune) – Grupo Televisa announced that it wants to sell its stake in Univision Communications and might break an agreement that restricts Televisa's expansion of U.S. programming. In a letter to the potential buyers of Univision, including Providence Equity Partners and the billionaire Haim Saban, Televisa said it was prepared to
discuss a sale of its shares at the offer price of $36.25 "as soon as possible."  By deciding to sell, Televisa is rejecting an offer to join the group and maintain a holding in Univision, the No. 1 U.S. broadcaster of Spanish-language television. The Providence and Saban group last week agreed to pay $12.3 billion for Univision. Televisa, whose programming in the United States is shown exclusively on Univision, said the sale of its 11 percent stake would allow it to revoke a 1996 agreement and free it to expand there. "Televisa is arguing that if they are no longer part of Univision, they are not bound by this agreement," the Miller Tabak analyst David Joyce said.

 

Yahoo and Telemundo Join Forces to Target US Hispanic Online Market

 

Yahoo Inc. and Telemundo Network Group have decided to merge their Spanish-language Web portals into one single site in an effort to attract more users and advertisers within the growing U.S. Hispanic market.  The new portal, Telemundo.yahoo.com, will replace Telemundo.com and YahooEnEspanol.com by combining Yahoo online services with Telemundo television content.  To appeal to bilingual Hispanics and those who only speak English, the site, which is set to launch in the coming months, will also feature English-language content. 

 

New Hispanic Media Market Report Released

 

Hispanic Business Magazine has just released its U.S. Hispanic Media Market: Projections to 2010 report, which highlights the latest research on the top Hispanic DMAs, the top advertisers in the Hispanic market, purchasing power by language preference, and top Hispanic ad agencies, as well as trends in radio, television, print, and Internet advertising to reach Hispanics.  Among its findings, the report reveals that advertisers spent more than $3.3 billion to market products to U.S. Hispanics in 2005, a 6.8 percent increase from 2004, and that while traditionally Spanish-language advertising was used to reach Hispanics, new data indicate second- and third-generation Hispanics tend to favor English. As a result, ad spending growth in some sectors of the U.S. Hispanic market is slowing as advertisers debate which Hispanic demographic to target.

 

 

LATIN AMERICA NEWS BRIEFS

 

TRAVEL

 

Stumbling Block for Trans-Andean Train

 

Chile has called a halt to the recently resurrected Central Trans-Andean Train project, following several energy disputes with Argentina, reports the Buenos Aires Herald.  The two countries had agreed in May to finally begin plans for the railway, after seven years of discussion.  If built, the railway would connect Valparaiso in Chile with Buenos Aires and represent one of the continent’s most important trade routes.  Current energy disputes include Argentina’s decision to charge close to 50% more on gas exports to Chile.

 

Gol Increasing Service to Argentina and Beyond

 

Successful Brazilian low cost airline Gol has announced additional flights to Buenos Aires from Rio de Janeiro via Sao Paulo and Florianopolis via Puerto Alegre.  The ever-expanding air carrier is also soon opening new offices in Chile and planning the launch of a Mexican low cost air carrier sometime in October.

 

El Salvador Heads Tourism Growth in Central America

 

El Salvador is one of the fastest growing tourism markets in Latin America, according to a recent Latin Business Chronicle Special Report.  During 2005, the Central American nation welcomed 1.1 million visitors, an increase of 19.5% from 2004 and the second largest growth rate in the region behind Venezuela.  Figures for arrivals in the first quarter of this year also show a 20% increase.  In its latest World Tourism Barometer, the World Tourism Organization credited this great success story to the ‘enthusiastic support of all stake-holders in the destination’s tourism, including its president.’  Guatemala is also experiencing a prosperous year, with a 13% increase in arrivals and a 16.5% increase in tourism revenue from January to May of 2006.  Overall, Costa Rica still continues to be the most popular Central American destination.

 

VarigLog Makes Deposit on Ailing Airline

 

VarigLog, a former subsidiary of Varig, has deposited US$75 million as part of its US$500 million bid to buy the struggling Brazilian airline and save it from liquidation.  To help further reduce costs, VarigLog had intended to suspend most of Varig’s domestic and international routes, but was prevented by the National Civil Aeronautics Agency.  As a consequence, Varig has reduced frequency and cancelled dozens of flights from Rio de Janeiro, and will most likely cut up to 60% of the airline’s workforce.

 

Aeromexico Adds Flights Across US

 

Aeromexico, Mexico’s largest airline, has announced that is will be introducing the only non-stop flight from Mexico to Ft. Lauderdale in the upcoming months.  The airline is also launching a new non-stop route from the popular destination of Culiacan to Los Angeles, and will be adding a third daily non-stop flight to Chicago this fall.  With its ever-expanding reach, Aeromexico has made an agreement with International Lease Finance Corp to lease three Boeing Dreamliners, thus becoming the first air carrier in Latin America to use the 787 jets.  The new aircraft are scheduled for delivery in 2010, by which time Aeromexico will be in private hands.  Auction of the airline is expected as soon as this month, states Report, after a decade of state ownership, following the company’s bankruptcy in the mid-1990’s.  Interested parties include Aviacsa.

 

Good Prospects for 2006/07 Global Tourism

 

(Mercopress) – Preliminary results for the first four months of 2006 point to some 236 million international tourist arrivals worldwide, or 10 million more than in the same period of 2005, reflecting the sustained growth in global tourism demand started in 2004.  These are the findings based on the data gathered by the United Nations specialized agency, the World Tourism Organization (UNWTO), for January through April 2006, as presented in the latest issue of the UNWTO World Tourism Barometer.  Although the rate of growth has slowed slightly, in line with the forecast published in the January issue of the UNWTO World Tourism Barometer, 2006 has got off to a good start, with the first four months of the year recording a 4.5% growth in international tourist arrivals worldwide.  Looking back on tumultuous times, 2006’s trends so far confirm that disruptions, while definitely affecting destinations at a local level and over a specific period of time, do not alter global or regional traffic flows.  Major factors contributing to the current growth trend include the favorable economic situation in key generating markets, the fact that consumer confidence remains high and, last but not least, the efforts of national administrations to develop and promote tourism.  To quote UNWTO Secretary General, Mr. Francesco Frangialli: “International tourism has now entered a more stable phase of sustained demand without big peaks and troughs.  Although the rate of growth is slowing gradually, international tourism is firmly on track to grow at a rate above the long-term average of 4% for the third year in a row now.”  And, while past oil price peaks did affect tourism negatively through the impact on the economy at large, the global economy has remained steady on this occasion and it is expected to remain strong through 2007.

 

ECONOMY AND POLITICS

 

Peruvian President Takes Office as Election Concerns across LatAm Abound

 

Sixteen years after leaving office, former President Alan Garcia has been inaugurated for a second five-year term as Peru’s head of state.  Garcia’s first term ended in a debt default and hyperinflation, but the re-elected president has pledged his commitment this time to responsible spending and providing jobs, housing, and health care.  His predecessor, Alejandro Toledo leaves behind a legacy of economic stability, however, Toledo’s popularity suffered in recent years because of the people’s concern over persisting poverty.  Elsewhere in Latin America, in Mexico’s presidential election, defeated candidate Andres Manuel Lopez Obrador is calling for a recount of the 42 million votes, after losing to conservative PAN candidate Felipe Calderon by 0.58%.   The Mexican Electoral Tribunal has until the end of August to review Lopez Obrador’s petition, which is spawning numerous protests around the country.  There is also growing concern in Brazil over campaign expenditures ahead of this year’s general election in October.  The O Globo Newspaper contends that expenses by the over 18,000 candidates seeking public office in 2006 will amount to US$7.7 million, 62% more than the allocation to the Social Development Ministry.  The two top presidential candidates alone are expected to spend over 30 million each on their campaigns.

 

Colombia’s Coffee Growers Welcome New Opportunity, New Juan Valdez

 

In an unprecedented move, Colombian coffee supplier Procafecol has launched a project that will allow the nation’s 560,000 coffee-producing families to buy shares in Juan Valdez stores across Colombia, the US, and Spain for the reduced price of US$4.4 a share.  Working together with the National Federation of Coffee Growers, Procafecol hopes this project will foster a sense of ownership and empowerment for even the smallest coffee-growing family. In related news, the National Federation of Coffee Growers has chosen a new Colombian coffee farmer to play Juan Valdez, the moustachioed, poncho-clad icon.  39-year-old coffee farmer Carlos Castaneda, a father of three from a small town south of Medellin, will serve as Colombia’s new coffee ambassador. The federation interviewed more than 400 candidates as part of a painstaking two-year selection process aimed at preserving one of the positive symbols of this Andean country.

 

Bolivia and Argentina Presidents the Most Popular

 

(Mercopress) – Bolivia and Argentina’s presidents are the most popular leaders in their countries according to a public opinion survey published in Mexico. Bolivia’s Evo Morales figures with 81% support and Néstor Kirchner 80%. Runner up with 70% is Colombia’s Alvaro Uribe, followed by Venezuela’s Hugo Chavez with a similar percentage to his neighbor.  The concluding survey was done by a Mexican pollster working on public opinion polls done by local companies including Gallup; Apoyo, Opinion & Mercado from Peru; Datanalisis from Venezuela; Equipos Mori, Uruguay; Mora y Araújo in Argentina. Recently elected Alan Garcia from Peru figures in fifth place, although he didn’t take office until July 28.  The ranking follows with Mexico’s Vicente Fox, 62%; Dominican Republic president Leonel Fernandez, 58%; Brazil’s Lula da Silva 56%. Michelle Bachelet from Chile figures with 55%; Antonio Saca, El Salvador 52%; Tabaré Vazquez, Uruguay 44% and Manuel Zelaya from Honduras with 39%. The least popular include former president Alejandro Toledo, Peru with 32%; Abel Pacheco, Costa Rica, 23%; Alfredo Palacio, Ecuador 21% and Martin Torrijos, Panama, 13%.

 

Venezuela Joins Mercosur

 

Less than one month after Venezuela’s incorporation as Mercosur’s fifth full member, the decision is already drawing plenty of controversy.  Supporters of the move cite improved regional unity and a drift away from free trade principles, while detractors argue that Venezuelan President Hugo Chavez’s foreign policy, in particular his stance on the US, promotes isolating protectionism and could have a negative impact on the region’s stability in the future.  Either way, Venezuela’s entrance into the Latin American trade bloc means that South America’s largest oil producer has joined with two of the world’s largest meat and grain producers.   The union creates a formidable economic grouping that represents some 250 million people. Furthermore, Venezuela’s new status has made it a frontrunner to take a seat in the UN Security council when Argentina’s two-year term expires.

 

 

SOCIAL AND CULTURAL

 

Uruguay Fights Unemployment via Internet

 

This past month, the Uruguayan government introduced the new nationwide job search website, www.mercadodetrabajo.com.uy, in an effort to curb growing unemployment.  Mercado de Trabajo offers a wide-ranging database of employers as well as market news, analysis, and events.  According to official sources, unemployment in Uruguay stands at 11.2%, representing a total of 190,000 people.

 

The Met Welcomes Sacred Treasures of the Mayan Kings

 

The Metropolitan Museum of Art in New York celebrates ancient Central American culture with its latest exhibition, Treasures of Sacred Maya Kings, which features more than 150 pieces primarily from Guatemala, Mexico, and Honduras.  With a variety of sculptures, costumes, and ritual objects, some of them recently excavated, the exhibition follows the development of self-deification in the Mayan world from 200 BC to AD 600.   The exhibition runs through September 10th, and was previously seen in Los Angeles and Dallas.

 

Costa Rica and the Caribbean Nations among World’s Happiest

 

Bahamians and Costa Ricans are among the world’s top fifteen happiest people, according to the first World Map of Happiness, developed by the School of Psychology at the University of Leicester in the UK.  The meta-analysis questioned 80,000 people across 177 nations about their perceived quality of life, and is further based on health, wealth, and education data published by UNESCO, the New Economics Foundation, WHO, the Veenhoven Database, the Latinbarometer, the Afrobarometer, and the UNHDR.  Denmark and Switzerland top the list of 177 nations, followed by Austria, 3, Iceland, 4, and Bahamas in fifth place, making it the highest ranking Caribbean nation.  At 13th place, Costa Rica is the only Latin American country to figure in the top twenty, while the US and the UK come in at 23 and 41, respectively.  Other countries within Latin America and the Caribbean to place in the first 50 are Antigua and Barbuda 16, Venezuela 25, Barbados 27, St. Kitts and Nevis 21, Dominica 29, Suriname 32, Colombia 34, Guyana 36, Honduras 37, Panama 39, St. Vincent and the Grenadines 40, Dominican Republic 42, Guatemala 43, Jamaica 44, St. Lucia 47, and Belize 48.

 

Ferrari Tests Sports Cars on Americas Tour

 

On August 24th, famed car company Ferrari will begin a 20,000 mile tour through 16 countries within the Americas, starting in Belo Horizonte, Brazil, and ending in New York on November 17th, 2006.  Following the success of a similar tour through China, Ferrari 15,000 Red Miles, the company has decided to test its two 12-cylinder Ferrari 599 GTB Fioranos on the temperamental American terrain.  A total of 50 international journalists will take turns at the wheel during the 15-stage tour, which will take drivers through the pampas of Argentina, the Chilean Andes, La Paz, Lima, Quito, Pasto, Cartagena, Panama, Managua, and into Mexico’s Baja California.