December 1 1, 2007        www.LatinEPR.com      

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LATIN AMERICA - NEWS BRIEFS

 

Media and technology

 

Telecom Outlook - Costa Rica Broadband Connections on the Rise

 

A recent article in the Inter-American Dialog Daily Newsletter predicts a bright future for Costa Rica’s telecom market, now that the country has approved the free trade pact with the US through the Central American Free Trade Agreement (CAFTA).  The effect will at first be limited, experts agree, as CAFTA’s framework only opens three sectors to competition: private network services, Internet services, and mobile wireless services.  Every other telecom area remains under the control of state-owned ICE (Instituto Costarricense de Electricidad), which has stifled new technologies and suffered from poor customer service.  The continued strength of ICE’s influence would greatly depend on regulation legislation, which Panos Loukos, Latin America Research Analyst in the Telecoms Practice at Global Insight, predicts will take three to four years to happen.  Foreign investment will eventually break through these obstacles as consumers from all segments of society begin to respond to private companies’ lower pricing and better branding.  Costa Rica’s Internet sector is proof that private network services can flourish as broadband access continues to grow.  According to Cisco’s broadband recently-released barometer study, Costa Rica had 118,853 broadband connections at the end of June 2007, a 26% increase over the 94,366 figure from the end of December 2006.

 

All Chileans to Be Connected to Internet by 2010

 

President of Chile’s Party For Democracy (PPD) Sergio Bitar has proposed that all households in the country should be connected to the Internet by 2010, the Santiago Times reported last month.  According to the article, Chile already has the highest Internet penetration rate in Latin America, as well as the highest rates of broadband connectivity and general Internet use.  However, following findings by The Committee of Ministers for Digital Development, Chile also has second highest Internet costs in the world.  Internet access is a priority with Chilean President Michelle Bachelet, who set aside $80 million in the 2008 budget for the country’s telecommunication fund, with an additional $80 million earmarked for the 2009 budget.  In addition to overall infrastructure improvements, the money will help subsidize monthly Internet costs and computer purchases for Chilean families, 25% of which can currently afford the expense of a broadband connection.  Still, Bitar insists the government must give even more priority to the Internet, saying, “the government need to see that this initiative would contribute to other areas, including education, business, and Chilean culture. The government should also view this initiative as a way to reduce social exclusion and the country’s inequality.”  He likens the Internet’s role to that of electricity at the start of the 20th century.  “It is essential if this country wants to develop.”

 

TRAVEL

 

LAN: Codesharing with TAM and Billion Dollar Boeing Deal

 

Last month Brazilian airline TAM and the LAN alliance announced a code-share flight agreement that greatly increases access to flights for both companies’ clients and allows them, in addition to traveling with one ticket from start to finish and sending luggage to their final destination, to redeem and use points through their respective loyalty program on flights from either airline.  The agreement comes at the same time as LAN’s multibillion-dollar deal with Boeing, which includes 32 787 Dreamliners, the largest order for that model in Latin America.  Worldwide, fifty-one airlines have ordered a total of 736 Dreamliners so far, making the Dreamliner "the most successful commercial airplane launch in history," according to Boeing. 

 

New No Frills Airline VivaAerobus Launches Service

 

VivaAerobus is the newest low-cost airline in Mexico, which will link Austin with Cancun, Guadalajara, Leon, Monterrey, Puebla, and Queretaro via non-stop flights as of March 2008.  The airline stands by its “no frills” classification, providing a terminal with no jet bridges, baggage handling, gates, or ticket counters.  In exchange, prices for tickets have gone on sale starting as low as $9.99.   VivaAerobus is an alliance between the Mexican bus group IAMSA and RyanMex, an investment company of the Irish low-cost aviation specialists.

 

Promising Cruise Season Opens in Punta del Este

 

Uruguay has inaugurated what promises to be an “exceptional cruise season” in Punta del Este with the launch of the Grand Voyager and a host of some 900 passengers, Mercopress recently reported.  Already 170 cruise calls with an estimated 140,000 visitors are programmed for the new season, which extends November to March 2008, marking a significant improvement of the previous 2006/2007 season, which only totaled 117,272 tourists from 132 calls in Montevideo and Punta del Este.  The Uruguayan Public Works Ministry is working to spur on this growth by proposing the building of a cruise port in Punta del Este.  The greatly popular and fashionable resort currently has no docking facilities despite being a permanent call for cruise vessels. 

 

Tourism on the Upswing in Central America

 

Central American nations are experiencing a strong upswing in their travel and tourism sectors this year, the Central America Travel Market fair recently revealed.  Figures disclosed at the event, which are highlighted in an Earthtimes.org report this past November, show that 2007 is likely to close with one million more visitors to the region than the previous year.  According to Pilar Cano, general secretary of the Central America Tourism Agency (CATA), nearly 100,000 tourists will have arrived from Germany alone.  Cano says the growth is owed to the joint marketing of all seven nations, which are home to a total of 17 UNESCO World Heritage sites.  To help maintain this interest, the countries have joined forces to create a new web portal –www.visitcentroamerica.com – also introduced at the fair.  

 

Responsible Tourism Award Winners

 

Latin American companies feature strongly among the winners of this year’s Virgin Holidays Responsible Tourism Awards, which were announced this November and serve to promote tourism that benefits destinations and its local people.  Best Small Hotel was awarded to Finca Esperanza Verde, a 26-bed eco-lodge on an organic coffee farm in the mountains of Nicaragua which is run on renewable energy sources and invests 10% of its income in rural water projects and local schools.  La Ruta Moskitia, a community-owned travel company in the isolated region of La Moskitia, Honduras, won the Best for a Protected Area award. The Honduran company works with four different indigenous communities to run small-group adventure tours, creating 150 jobs in and around the Rio Plátano Biosphere Reserve. Coming highly recommended in the same category is the Chalalan Ecolodge in Bolivia, managed by local indigenous people.  Best in a Mountain Environment was Explorandes, a South American travel company that has worked with a group of 30 local families to develop a rural homestay lodge complex on Lake Titicaca.  Although it did not top any awards, Costa Rica came highly recommended as a destination and domestic airline NatureAir was runner-up in the Best Mode of Low-Carbon transport and Technology, having helped to protect more than 320 acres of tropical forest.  The Virgin Holidays Responsible Tourism Awards are the largest of its kind and all winners are nominated by tourists.

 

Economy and Politics

 

 

Top Latin American Real Estate Markets

 

Chile, Brazil, Uruguay, Peru, and Nicaragua are currently the top five Latin American real estate markets for foreign investors, claims a recent article published by NuWire.  Chile leads the list on account of its political stability and security, an advanced economy, and high standard of living, the article pointing out that Chile ranks eleventh, one spot behind Canada, in terms of economic freedom, according to the 2007 Index of Economic Freedom released by The Heritage Foundation and the Wall Street Journal.   The country is also experiencing a boom in tourism, with a projected growth this year of 12.3%, according to the World Trade & Tourism Council.  Chile’s one main drawback is the high level of pollution prevalent in its metropolitan areas.  Brazil comes in second for its sheer size and investment opportunities, along with its affordability and economic growth that is likely to come on the heels of the expanding ethanol market.  Uruguay’s recommendation is based on more intangible factors.  Apart from being the fifth wealthiest country in Latin America (CIA World fact book), it also boasts strong safety, a highly educated population, good health care and the distinction of being the second least corrupt country in Latin America, according to David Hammond, realtor for Paradise Uruguay.  In addition to this, the country has a variety of architecture and is home to arguably the most fashionable resort in the region, Punta del Este.  However, prospective investors should be warned of frequent flooding, caused by Uruguay’s flat terrain, as well as its economic dependence of the prosperity of Argentina and Brazil.  Peru ranks fourth owing to the rapid growth of its economy – in 2006 it had the best stock market performance in the world, according to Thomson Financial – its strong tourism, stable real estate prices, and easy money transfers.  Unfortunately, its rich architecture, ranging from colonial mansions to beachfront bungalows, is sometimes endangered by the areas’ earthquakes.  Lastly, Nicaragua, which has suffered from instability in the past, presents an exciting option because of its extreme affordability, natural resources and scenery, and the NuWire’s assertion that the country’s government is eager to attract foreign investment. 

 

Argentina to Create New Science Ministry

 

(SciDev.Net) – Argentina will establish its first Ministry of Science, Technology and Productive Innovation, the newly-elected government announced in November. President-elect Cristina Fernández de Kirchner, who assumes power this month, has appointed molecular biologist Lino Barañao as minister of science in her new cabinet. Barañao is a researcher at Argentina's National Council of Science and Technology (CONICET), and the current president of the National Agency of Science Promotion.  The announcement marks a major shift for science in Argentina. Science was undervalued in the 1990s, with scientists experiencing poor pay and working conditions. Science was not seen as central to development strategy by the government of the time.  Barañao told SciDev.Net that the creation of the ministry "indicates a new valuation of science".  The ministry's main aim will be the implementation of science and technology for economic development, with particular focus on information technology software, biotechnology and nanotechnology. 

 

General Interest

 

Brazil to Host 2014 World Cup

 

This month, Brazilians received the honor and responsibility of showcasing their nation to the world as the international governing football body announced Brazil the official host of the 2014 FIFA World Cup.   The five-time world champions staged the cup once before in 1950, but lost the final to Uruguay.  Now the football-crazed nation has a historic chance at redemption.  Still, officials are intent on leaving their mark on the event in ways other than just football.  The 2014 World Cup promises to be a green event, with great emphasis already being placed by organizers on environmental friendliness.  President of the Brazilian Football Confederation was quoted as saying in a recent AP report that Brazil’s World Cup would “leave a permanent legacy” with improvements to transport, health, sewage and water systems, as well as security.  At the FIFA announcement, Brazilian President Luiz Inacio Lula da Silva echoed this assurance and went so far as to take a humorous stab at Brazil’s football archrivals Argentina by stating that "Brazil will fulfill its mission, and I defy any Argentine to find fault with it."   Brazil was the only country in the contention to host the 2014, which according to the FIFA rotation fell to the Americas region.  Despite earlier reservations concerning infrastructure, safety, and the age of the stadiums, FIFA decided to approve Brazil after extensive inspections of the venues.

 

 

Series of Earthquakes Rock Chile

 

This past month, northern Chile was struck by a total of three strong earthquakes, the highest a 7.7 magnitude tremor that killed two people and left at least 15,000 homeless around the town of Tocopilla.  43% of the town has since been deemed uninhabitable by authorities, the Santiago Times has reported. Two consequent earthquakes were aftershocks that registered 6.2 and 6.8 on the Richter scale, but thankfully caused no additional damage.  The seismic activity was so strong, a 4.2 tremor was felt in Nazca City, Peru.  The last earthquakes followed in the week and measured 6.0. 

 

Uruguay Places First Laptop Order

 

Uruguay is the first country to officially conclude a deal with the One Laptop per Child (OLPC) organization for the $100 laptop, buying 100,000 with another order of 300,000 possibly being purchased by 2009, the BBC recently reported.  That number would virtually supply every child in Uruguay with a personal computer.  The order is a positive development for the ambitious OLPC project, which has found it difficult to have some countries follow through on their agreements.  To push the program ahead, OLPC is making the laptop available through other more private arrangements.  For example, starting this past November, it became possible for members of the public to buy a machine for themselves and a child in the developing world.  The Give 1 Get 1 distributes laptops to Cambodia, Afghanistan, Rwanda, and Haiti.  Still, OLPC will likely depend on governments for business.  For the low-cost machines to be viable, OLPC needs to sell upwards of three million units.  This is to say nothing of the production costs for the machine which continue to rise. 

 

Argentine Film Festival Raises Profile

 

The prestigious Mar del Plata Film Festival, held annually in the Argentine capital, is poised to raise its profile with a significant move in the international festival calendar, Variety reported this past month.  According to the event’s organizer, Jose A. Martinez Suarez, the film festival plans to shift from March to October to better attract titles and foreign talent.  At the moment, its March date causes it to fall between the Berlin festival in February and Cannes in May.  Despite a move towards greater visibility, Martinez Suarez insists the festival will continue to focus on Latin American cinema.  Currently the Mar del Plata Film Festival is the only FIAPF Category "A" event in Latin America.  It was originally founded in 1954 and has in its time hosted international film luminaries ranging from stars such as Gina Lollobrigida, Errol Flynn, Paul Newman, and Catherine Deneuve to seminal directors Francois Truffaut and Toshiro Mifune.

 

'Oldest American Mural' Found in Peruvian Temple

 

The recently discovered murals at the Ventarron temple, about 470 miles north of Lima, could possibly be the oldest in the Americas, the Independent reported in November.   Dated to around 2000 B.C., the temple itself is not the most ancient in Peru, but the 4000-year old murals are unique and thought to be the result of an advanced pre-Incan civilization.  One of the colorful murals depicts a deer being hunted by nets, while the temple itself is built of brick rather than rock, and features what appears to have been an altar for the worship of fire gods.  Regrettably, the Sipan temple complex, located nearby and counting among one of Peru’s most important archaeological findings, offers little in the way of an explanation to who these ancient people might have been.  Sipan is the product of the Moche culture, dated to about 1500 years after Ventarron.  Archaeologists talking with the Independent say the remarkable thing about all these sites is the level of preservation, which they attribute to the believed practice by pre-Incan societies of purposefully burying the temples after they were no longer needed out of respect for the deities.