Travelmole guest comment: Euromonitor analyses the impact of Chile's volcano

Posted 18/07/2011

On June 4, the Puyehue-Cordon Caulle volcano complex, which is 920km south of Santiago, Chile, erupted, spewing ash and volcanic rock 10km into the atmosphere.  This led to an evacuation of 22 surrounding communities and disrupted air travel globally. Michelle Grant, travel and tourism industry analyst at Euromonitor International, investigates the impact of the volcanic ash.

The ash cloud moved east into Argentina.  Government officials closed and evacuated the Cardinal Samore Pass between Chile and Argentina on June 4 2011.  Airports in southern Argentina also closed and remain closed.  The winter resort town of Bariloche, only 100km from the volcano complex, was coated in ash.  On June 7, the ash caused flight cancellations in Buenos Aires and as it continued on its eastern path, it disrupted flights in Uruguay, Brazil, South Africa, Australia and New Zealand.  Upon its return to Chile, the ash clouded forced cancellations to southern Chilean destinations, such as Puerto Montt and Punta Arenas, on June 17.

European travel impacted:

In 2010, European arrivals accounted for 21% of arrivals to the countries impacted by the volcanic ash cloud.   The risks of flying through ash and airport closures have forced carriers to cancel their long haul flights connecting Europe with these countries.  For example, British Airways and Qantas cancelled international flights from Australia on June 23.  While many passengers will be rebooked, it is likely that European carriers will incur losses as people prefer refunds and the carriers accommodate stranded passengers.   

 

 

2010

 

Total European Tourists (000s)

% European Tourists of Total

Brazil

1,975.4

37.2

Australia

1,420.2

26.8

South Africa

1,113.9

14.9

Argentina

799.8

16.3

New Zealand

523.4

21.1

Chile

456.6

16.9

Uruguay

154.1

7.3

Total

6,443.4

21.3

Source:  Euromonitor International from World Tourism Organization

 

 

 

 

Uncertainty surrounding the ash:

While the volcano complex is spewing less ash, it is still enough to cause problems for air travel and it is difficult to predict when it will end.  The widespread cancellations will have a negative impact on tourism in the countries impacted.

Australia and New Zealand were already off to a rough start in 2011 due to flooding and earthquakes respectively. 

The Tourism & Transport Forum in Australia estimates that the closure of the airports in Sydney and Melbourne airports cost the tourism industry at least A$10 million (US$9 million) a day.  Tourism companies in Bariloche, Argentina estimate that the winter resort areas could suffer losses more than US$100 million since it is currently in high season.  Some 80% of three to five star hotels are closed.

Originally published 18 Jul 2011 at: http://rss.feedsportal.com/c/398/f/5923/s/16bbd953/l/0L0Stravelmole0N0Cstories0C1148530A0Bphp0Dmpnlog0F1/story01.htm