March 1, 2008        www.LatinEPR.com      

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LATIN AMERICA - NEWS BRIEFS

 

Media and technology

 

Grupo Editorial Televisa Invest $360 Million in 2008

 

This past week Mexican media giant Grupo Televisa announced its plans to invest US$360 million to expand several of its businesses, focusing almost half of its funds on satellite operation SkyMexico (Reuters).  The company expects television broadcasting sales to grow 4.5% in 2008, a low number by its standards, as advertisers trim television marketing.  This is leading Televisa to look to other avenues for sales, including lottery tickets, a new action series called ‘El Pantera’ (Panther), and the production of soap operas for the French and Chinese market.  The biggest decider of the company’s growth in the near future will be the outcome of its legal battles with Univision, with which it has an exclusive programming deal lasting to 2017.  The trial, set to begin in Los Angeles in late April, will determine whether Grupo Televisa can win back the rights to sell its programs to any entity it chooses.

 

TRAVEL

Luxury Tourism Hits the Rails

 

This past month, the Brazilian Ministry of Tourism made strides in the development of the luxury tourism market with the inauguration of its country’s first luxury train, the Great Brazil Express, ANBA recently reported.  The train, which is scheduled to begin operation in the state of Parana in April, will leave from Curitiba and run westerly through pine forests and plantations to Ignassu Falls, covering a total distance of approximately 310 miles at 25 mph.  Passengers of the Great Brazil Express will also have the possibility of extending their rail excursion to include Rio de Janeiro through other lines in the rail network.  Ultimately, the Tourism Ministry hopes the Great Brazil Express will attract 2,100 foreign tourists a year, the significance of which lies in these visitors being profiled as ‘luxury tourists’.  As Tourism Minster Marta Suplicy points out in the ANBA report, a family in this profile visiting Brazil for two weeks may spend up to $50,000.   For the rural areas of Parana this can have a dramatic impact.  To help accommodate an influx of visitors, the ministry has pledged to invest in the  infrastructure of enroute cities like Morretes, where money will go to add bicycle lanes and improve traffic. 

 

But Brazil will not be the only option for rail travelers in Latin America, as two additional routes in Argentina and Bolivia begin operation this spring.  According to the Times UK, the Train to the Clouds or “Tren a las Nubes’, which runs along a 136-mile route, has relaunched after a two-year suspension of service.  One of the highest trains in the world, the 640-passenger capacity Train to the Clouds starts in the city of Salta and takes visitors on a spectacular journey up 13,779 feet to the La Polvorilla viaduct in the Argentine Andes.  A similar sojourn awaits travelers on the new tourism train that runs from El Alto, Bolivia, through the highlands to Guaqui on the shore of Lake Titicaca, passing along the way the pre-Colombian archaeological site of Tiahuanaco.  President Evo Morales was present for the train’s inauguration in December 2007, highlighting not only the project’s importance on an economic level but also its significance as a cultural vehicle for promoting Bolivia’s heritage. 

 

Dominican Republic Extends Visa Waiver to Colombians Abroad

 

This February, the Dominican Republic opened its doors to Colombians living abroad by introducing a visa waiver to all Colombians with a valid visa or proof of residency in any of the Schengen countries (EU), the US, Canada, or the UK. This new law should help stimulate tourism between the Dominican Republic and Colombia, particularly in the area of cruise ship travel, considering both countries’ Caribbean geography.

 

Injection of Investment puts Lake Titikaka on the Map

 

A much needed US$20 million, recently appropriated for the Lake Titicaca Local Sustainable Development project as part of a larger $77.5 million loan agreement between Bolivia and the World Bank, has signaled a revival of sorts for the area surrounding South America’s largest lake.  Situated in the Andes between Bolivia and Peru, which share its shores, the lake is considered the birthplace of civilization in Andean legend.  In 2000, underwater archaeologists discovered a pre-Incan temple in its depths, fueling fantasies of ‘lost cities’.  Today Lake Titicaca is a natural and cultural attraction, home to Quechua speakers who still inhabit the lake on floating islands made of reeds.  Yet despite the lake’s touristic popularity and use as a commercially navigable lake (the highest in the world), investment in the area’s infrastructure has been wanting until now. 

 

In addition to benefiting from the new loan agreement, Lake Titicaca should also see revitalization with the introduction of other projects, such as the new rail route from El Alto, Bolivia, to the shore city of Guaqui.  Another is the state of the art space museum, planned for the city of Carancas, Peru. With construction to begin this April, according to a report by Living in Peru, the space museum in Carancas will center on the meteorite which landed near the lake in September 2007.  The project’s aim is to educate visitors on the aerospace science and astrophysics related to the cosmic phenomenon, while helping to protect the area from meteorite hunters.  The meteorite is steadily garnering international attention, with National Geographic set to produce a documentary about it this year.

 

Peru: Is There Such A Thing As Too Much Tourism?

 

Last month, in response to wide-spread protests, the Peruvian Congress voted to repeal a new law that would have allowed private investment near cultural heritage sites.  But according to a  recent report in the Economist, the move has only sparked a larger debate as to the future of the Peruvian hotel industry.  Regarded from one perspective, the report shows, the future looks pretty bright.  Tourist arrivals to Peru totaled 1.8 million in 2007 and were already up a further fifth in January 2008, compared to the same month in 2007.  More are expected this year as Lima hosts two major international summits, while the country’s well positioned cultural treasures, strengthening economy, and new distinction as a culinary capital are other factors helping to insure continued growth.

 

The controversial building law that recently came under attack sought to buoy this upward trend by providing lodging and tourist infrastructure to cultural destinations such as  Macchu Picchu, which alone attracts close to a million visitors a year.  But detractors of the law regarded it as a threat to the integrity of these sites.  They feared irresponsible development would mar the very places visitors come to see, and argued that the government should put the protection of these sites above economic motivation.  Supporters of the law countered with the argument that it contained safeguards and that development would have benefited the poor.  The inhabitants of Cuzco, however, do not seem to have been much convinced by this last point.  If the recent February protests staged in Cuzco against the law showed anything, it was that poor Peruvians would gladly forego money that comes at the price of their patrimony.  In the end, the debate comes down to a question of sustainability and of creating a reliable system for holding developers accountable.  With visitor demand not looking to ebb any time soon, the government will have to work quickly towards some answers.

 

Economy and Politics

 

Mexico to Host World Economic Forum

 

This April, major economic leaders from around the globe will meet in Cancun, Mexico for a special World Economic Forum on Latin America 2008 to discuss the region’s position in the changing global landscape.  According to World Economic Forum figures, Latin America closed four years of 5%+ GDP growth with booming capital markets and solid fundamentals, redefining its place in the world economy.  Yet as the US faces recession and the global power equation looks to shift, Latin America must follow reforms and plan new agendas to continue its recent success and build stability.  The five main topics of discussion will be: Global Trends and Economic Shifts; Asia and Latin America; Merging Business with the Environment; Growth Through Critical Investments; and Enhancing Innovation in Business and in Social Issues.

 

Belize Gets New Leader

 

This past month, Belize welcomed the first new prime minister in 10 years, with Dean Barrow of the United Democratic Party ending Said Musa’s tenure, AP recently reported.  It was a comfortable win for Barrows who claimed 25 of the 31 seats in the House of Representatives. Running on a pledge to fight crime and government corruption, Barrows was further helped by a series of scandals that plagued the end of Musa’s term.  

 

Foreign Trade in Argentina Exceeds $100 Billion

 

(Mercopress) - Argentina’s foreign trade last year reached a record 100.7 billion US dollars with a surplus of 11.154 billion US dollars, according to the latest release from the Statistics and Census Institute, Indec. Exports totaled a record 55.9 billion, up 20.4% from 2006 while imports added to 44.8 billion, up 31%. Overseas shipments increased both in export prices, 11.5% as in volume, 8%, said Indec. Imports increase can be attributed to a greater volume 21.9%, mainly fuel and lubricants, 41.3% and capital goods, 27%.Agro-business overseas sales reached a record 66.353 million tons equivalent to 22 billion US dollars in 2007, reported Senasa (National Agriculture and Food Sanitary and Quality Service). Grains and oil seeds made most of that volume, 64.35 million tons and 17.5 billion US dollars. Argentina is one of the world’s leading exporters of grains and soy beans.

 

Castro Resigns

 

This February saw the historic resignation of one of the 20th century’s longest serving rulers, as Cuban President Fidel Castro stepped down from office after 49 years.  The island nation’s iconic leader came to power in 1959, following an armed revolution that overthrew then dictator Fulgencio Battista.  Throughout the next decade, Castro’s presidency saw the upheaval of a nuclear missile crisis and the introduction of the US embargo affecting trade and travel which continues to this day.  In the thirty years since, Castro’s leadership has been a controversial one, praised at times for Cuba’s strides in literacy and health care, while also being widely criticized for the dictatorial policies responsible for the country’s food shortages and human rights violations. 

 

Castro’s successor is his younger brother Raul Castro, who had been acting president since July 2006, on account of Fidel’s failing health.  For many, the younger Castro’s appointment signals a change for Cuba.  Already, the new president has made a speech to parliament promising gradual economic reforms, according to a report by Radio Netherlands Worldwide.   To begin to see the full ramifications of this leadership change, however, one will probably have to wait until after the US’s own elections are decided, as each candidate has espoused very different views on what the US’s future relationship with Cuba ought to be.

General Interest

 

Rains and Earthquakes Strike the Andes

 

Mother nature cast its ruthless attention on the region this past month as close to intense rain across Peru affect 75,000 people, severe flooding causing the death of 13 people and the disappearance of 24 more, according to the country’s Civil Defense Institute (INDECI).  Similar conditions, also brought by El Nino, led Bolivian President Evo Morales to declare the severe flooding that killed 50 people and left some 45,000 more homeless in February a national disaster (Bloomberg.com).  The Andean area was further rocked by two earthquakes, one on the Chile-Peru border, the other on the Chile-Bolivia border.  Both measured above 6.0 magnitude on the Richter Scale, but luckily caused no casualties.

 

Brazil Proposes Alcohol Ban

 

Brazilian President Luiz Inacio Lula da Silva wants to ban daytime alcohol advertising on radio and television, alongside other preventative measure, to help curb the rising incidence of alcohol abuse in his country, the Christian Science Monitor recently reported.  According to a study by the Brazilian Center for Information on Psychotropic Drugs and the Federal University of Sao Paulo, the percentage of people over the age of 12 dependent on alcohol increased to 12.3% in 2005, up from 11.2% in 2001.  The study also shows that alcohol consumption is becoming prevalent in ever younger age groups.  These alarming figures have led the government to propose drastic measures in the hope they will have the same positive effects the country’s smoking ban did several years ago.   Apart from targeting advertising, the government wants to ban the sale of alcohol on federal highways and in urban gas stations, in order to tackle drunk driving.  The first was temporarily implemented during Carnival with encouraging results.  More extreme measures include a bill to put wine and beer in the same category as liquor.  But big retailers are actively opposing the ban, and many lawmakers will have to examine their own positions – it turns out, one in ten had their elections financed by makers of beer, wine, or cachaca (Congresso em Focco).