ALA and ALTA urge the Bolivian government to foster the development of the aviation sector through dialogue and concrete actions

The aviation industry in Bolivia has experienced a slowdown in 2024, with an estimated 4.9% decrease in total passenger traffic compared to 2023. This decline is led by the domestic market, which reports an estimated drop of 7.9%, while the international segment shows a growth of 5.8%. Domestic traffic is expected to reach 5.1 million passengers, down from 5.5 million the previous year, highlighting challenges in the internal market’s recovery, according to the ALTA Aviation Insight Bolivia report.

This report offers a detailed analysis of the current state of the aviation industry in the country, highlighting key trends, ongoing challenges, and opportunities for improvement to ensure sustainable growth. “The report underscores the urgent need to strengthen dialogue between the government and the aviation industry to address structural challenges such as high operating costs, limited connectivity, and the lack of incentives to attract new airlines,” explained José Ricardo Botelho, ALTA’s Executive Director and CEO.

The domestic market remains the most affected by the lack of recovery capacity, with declining demand on key routes, such as the connection between La Paz and Santa Cruz de la Sierra. However, the international segment continues to show signs of growth, especially on routes to São Paulo, which recorded 246,000 passengers in 2024, according to ALTA Aviation Insight Bolivia.

Despite Bolivia’s challenging context, aviation continues to play a crucial role in the country’s economy. In 2019, the travel and tourism industry contributed 5.7% to Bolivia’s GDP. While a slight decrease to 5.5% is expected in 2024, the sector remains essential for economic development. Moreover, travel and tourism’s contribution to employment has grown from 5.3% in 2019 to 5.7% in 2023.

For the CEO of the Bolivian Airline Association (ALA Bolivia), Yanela Zárate Morón, despite Bolivia’s current economic situation, marked by a shortage of US dollars and constant threats of unilateral operational changes, airlines continue to operate with undeniable service commitment, ensuring approximately 300 direct jobs, 600 indirect jobs, and at least 2,000 cross-sector positions linked to tourism.

“The continuity of service reflects the dedication of men and women specialized in aviation, who have invested their knowledge and effort in this strategic activity. It not only provides formal employment but also serves as a safe, punctual, and efficient gateway for tourism and foreign trade in a landlocked country like Bolivia,” said Yanela Morón.

The report also highlights growth in the tourism sector, with 2.2 million international tourists visiting Bolivia in 2023, representing a 31% increase compared to the previous year. Many of these tourists arrived by air, further emphasizing aviation’s importance in tourism development.

In contrast to progress in some segments, Bolivia faces significant challenges: high fuel costs (USD 3.75 per gallon), lack of adequate bilateral agreements, among others. “The current situation demands immediate action to address issues hindering the industry’s potential. We urge the Bolivian government to open communication channels with aviation stakeholders to implement policies that foster growth, sustainability, and, most importantly, legal certainty for a favorable business environment. Without joint efforts, the country risks losing the opportunity to position itself as a key regional hub,” Botelho emphasized.

About ALTA Aviation Insight Bolivia: This report provides a comprehensive analysis of air traffic, highlighting Bolivia’s main routes and airports while offering clear insights into the industry’s trends and challenges. Based on data from the Amadeus Travel Intelligence Platform, the report analyzes both domestic and international traffic and provides recommendations to strengthen the sector.