Bill for the development of the film industry will make air transportation more expensive in Guatemala

Source: IATA

The Guatemalan Airlines Association (Spanish acronym AGLA), the Latin American and Caribbean Air Transport Association (ALTA), and the International Air Transport Association (IATA) urge to carefully evaluate the impact of article 32 of the film bill that imposes a specific contribution of US$1 on foreign passengers bound for Guatemala in order to finance the Guatemalan Film Institute.

The charges applied to aviation, in accordance with the principles outlined by the International Civil Aviation Organization (ICAO), of which Guatemala is a member, must be related to the provision of services to airlines and passengers, and the resulting income must be used for the operation, maintenance and development of aeronautical infrastructure and services, reinvested in aviation and not diverted to other purposes.

Given the significant contribution of aviation to Guatemala’s economy—US$740 million to GDP and 62,000 jobs—the industry believes that this tax will reduce the country’s competitiveness and is added to other charges not related to the sector that are currently included in the air ticket.

For aviation to truly act as an economic catalyst, we request that the article that creates this contribution be deleted and that alternative financing mechanisms not linked to air transport be explored that allow the proposed cultural objectives to be achieved without affecting Guatemala’s air connectivity.