IVIS Country Analysis – Venezuela

VENEZUELA

284,483 Arrivals in the United States

Loss of 111,430 over 2002, -28.2%

39.6% of all Venezuelan Long-Haul Travel

-14.9% over 2002

SUMMARY

Total outbound travel from Venezuela declined 12.7 percent in 2003 over 2002, dipping below one million arrivals to destinations worldwide. Venezuelan long-haul travel declined 12.7 percent during the same period. Venezuelan arrivals to the United States continued the steep decline that began in 2002. U.S. arrivals were down 28.2 percent over 2002. This dramatic decline caused the U.S. market share (MSI) to decline by 14.9 percent. Although the U.S. still earns more than one third (39.6) of the market of long-haul travel from Venezuela, this is the lowest level this decade. In the mid 1990s, the U.S. earned more than two thirds of this market.

The political chaos which began in 2002 continued throughout 2003. Venezuelans have attempted to recall the president, Hugo Chavez, by referendum. But the Chavez regime has successfully resisted the recall vote and maintained power. Consequently, real GDP continued the sharp decline begun in 2002. In 2003, GDP declined 10.5 percent in 2003 over 2002. Real private consumption declined 7.5 percent, and the unemployment rate climbed to 19.8 percent. In addition the currency depreciated 27.7 percent against the U.S. dollar. It is no wonder that outbound travel also declined 12.7 percent for the year.

The United States remained the number one country destination for long-haul travel from Venezuela, far ahead of any other country, with more than one third of the market (39.6%) in 2003. Other competitive country destinations included Spain (13.6%), Italy (10.8%) and the United Kingdom (2.4%). While the U.S. and Spain both lost market share in 2003, Italy and the UK both gained share of long-haul travel from Venezuela.

Source: Global Insight

In 2003, with 39.6 percent of all Venezuelan long-haul travel, the United States was the most popular regional destination. The next most popular region for this market was the Caribbean with 30.6 percent of the Venezuelan long-haul market. Europe claimed 27 percent of all long-haul travelers from Venezuela.

Source: Global Insight