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Uruguayan tourism is looking to get back on its feet in the new normal

July 24, 2020
Tourism in Uruguay is taking its first steps forward after nearly 90% of operators were forced to shut down due to the pandemic. Prof. Óscar Iroldi, an instructor in the Tourism Management program at ORT and technical advisor to the Undersecretariat of the Ministry of Tourism, spoke about the sector’s path toward the new normal.
The Impact of COVID-19 on Uruguayan Tourism

Restrictions on free movement between countries have not been seen since World War II. Seventy-five years after the end of the bloodiest international conflict in history, countries around the world have once again imposed travel restrictions in response to the COVID-19 pandemic.

As a result, the tourism industry has been severely affected, and in many places it is still difficult to predict when the situation will return to a new normal. However, there are some exceptions, such as Uruguay.

A few weeks ago, the government gave tour operators the green light to resume operations under strict health and safety protocols. As a result, domestic tourism has begun to pick up cautiously.

Could domestic tourism be the solution for the sector as a whole in the face of the pandemic? How well is Uruguay positioned on the global stage, given the successful containment efforts for which it has been recognized by the international press and even by the European Union itself? Prof. Óscar Iroldi, professor of Tourism Management at Universidad ORT Uruguay technical advisor on tourism to the Undersecretariat of the Ministry of Tourism, answered these and other questions about the impact of COVID-19 on the travel sector.

A few days ago, the protocol established by the Ministries of Tourism and Public Health was officially announced, paving the way for a three-phase restart of the tourism industry. What does the tourism sector expect from this process?

The tourism sector was already eager to have a protocol in place. Many tour operators, hotels, and restaurants remained open because they had to accommodate foreign visitors until their respective humanitarian corridors were established, allowing them to return to their countries of residence. The tourism sector, like all sectors of the country’s economy, also acted with empathy and proactivity. Let us also remember that many hotels in Montevideo, Punta del Este, and other parts of the country offered their facilities in case the hospital system needed them as logistical support.

Currently, regulating the sector places a responsibility on operators not only toward visitors but also toward workers.

In this regard, it is worth noting the phased approach. The process has now begun with the reopening of the domestic market. The next phase will likely focus on investment and the corporate sector. After that, we can begin to consider regional and international tourism, including in preparation for the upcoming season.

For now, the steps being taken are small but steady. In the domestic tourism sector, confidence is growing among consumers, who now know that all necessary measures are in place to ensure visits to establishments and restaurants can be made with the required precautions. Efforts are focused on three key areas: accountability in tourism operations, sustainability across all processes, and peace of mind when traveling. Consumers in general have endured many fears and disappointments, so it is understandable that demand remains hesitant to emerge. These pillars allow for a conscious phased approach to ensure responsible enjoyment.

"Domestic tourism has always been on the development agenda, but right now it's in the spotlight."

How can we restore tourists' confidence during these early stages of the new normal?

Essentially, this involves communicating the accountability of the operational process and the confidence that these protocols were activated once the Honorary Scientific Advisory Group—which advises the Executive Branch—determined that it was appropriate to reopen the establishments. Above all, this is achieved by clearly outlining each of the steps taken into consideration when serving tourists.

Trust is also restored through empathy and personalized attention.

What are the benefits and challenges of focusing on the development of domestic tourism?

The silver lining is that there is a potential market. The entire country is responding appropriately to this pandemic. There are outbreaks—which we knew would happen—but the epidemiological tracing of these outbreaks allows us to manage them effectively and calls on all of us to act responsibly.

Domestic tourism has always been on the development agenda, but it is now in the spotlight. Every sector and activity is being designed with Uruguayans in mind. Uruguay continues to offer opportunities for enjoyment and high-quality tourism, featuring excellent service, innovative offerings, and meaningful experiences that enhance visitors’ quality of life.

Do you think domestic tourism can, in a sense, “save” the tourism industry as a whole until things get back on track?

We know that domestic tourism is vital right now, but it doesn’t cover the entire sector. Let’s remember that Uruguay receives nearly 3.5 million visitors; the domestic market cannot handle that volume, nor can it generate the economic flow that international tourism does. It doesn’t even bring in foreign currency; rather, it stimulates the domestic economy.

In a way, we are propping up the Uruguayan healthcare system, preventing it from collapsing. We are also allowing healthcare providers to test these processes related to public health, accountability, and patient care.

That is why the positives far outweigh the negatives. In addition to preserving most jobs, retaining skilled workers, and maintaining motivation, it would be very difficult to get everything up and running again if operations were halted for an extended period. It is both a challenge and a smart way to respond at a time when economic activity remains at a standstill in the region and around the world.

"We were stuck in a consumerist mindset, believing that success was measured by the number of tourists visiting the country. Today we realize that success lies in the kind of experience we provide."

Do you think that the fact that Uruguay is receiving international recognition for having the situation under control, combined with everything related to the Greg Mortimer and the European Union’s decision to open its borders to the country, could put Uruguay in a very strong position once tourism resumes as normal?

There is no doubt that Uruguay’s handling of the crisis, the experience with the Greg Mortimer, and the fact that it is the only country in Latin America with open borders to Europe have allowed Uruguay to join a very select list of countries and destinations. We have also resumed in-person classes, and many of our activities have resumed.

All of this has helped Uruguay gain prominence in the international media. Often, we have to pay for media coverage to get certain stories told. In this case, that wasn’t necessary; the media is genuinely interested in Uruguay’s situation. We constantly receive requests from around the world—from public and private sector leaders and even academia—asking us to share the factors that contributed to our success in dealing with COVID-19.

In this regard, the discourse often draws on the insights of the scientists themselves, who have advised the executive branch on how to manage the pandemic. This highlights Uruguay not only as a country with strong institutions, but also, on the international stage, the role of the Uruguayan scientific community and its ability to respond to this situation.

What lessons has the tourism sector learned from the COVID-19 pandemic?

The lesson we’ve learned is that paradigms have shifted. We used to operate under a consumer-driven paradigm, believing that success was measured by the number of tourists visiting the country. Today, we realize that success lies in the kind of experience we offer, in preserving the resources that make us unique—the heritage that sets us apart.

We must ensure that the tourism industry is profitable and that it creates quality jobs—jobs that place a high value on training in the sector.

We have seen that many communities around the world have practically shut themselves off from tourism out of fear of infection. In Uruguay, people continue to maintain that sense of warmth, empathy, and humanity—as was the case with the buses forming the Greg Mortimer humanitarian corridor and the people along the promenade waving and offering words of encouragement. All of this also serves to enrich and empower the country.

"Education is the key to addressing these challenges and building a better future."

What are the main tools available to an ORT Tourism Management Technician student to make a positive contribution in a situation like the one caused by COVID-19?

Over the past six months, we have worked very hard on this process, analyzing it, reflecting on it, and identifying the technical rationale behind each decision made—whether by public authorities, private operators, or their respective associations.

This sector accounts for 30% of the country’s exports, and although some operators kept their services running—precisely to address the emergency—there was widespread compliance across the country with the call to suspend tourism operations. However, the sector came to a standstill out of a conscious awareness of what needed to be done and in solidarity with the need for Uruguayans to slow down and contain the pandemic.

In this regard, emphasis was placed on our students’ capacity for reflection, their analytical skills, their ability to look beyond the short term, their vision for long-term recovery, and their approach to business units in a proactive, innovative, and efficient manner. All of this leads us to conclude that this process presents an opportunity to make Uruguay a better destination for tourism. It truly is one of the key values that these students take away from experiencing a unique, challenging, and motivating situation.

Students know that education is the key to addressing these challenges and building a better future.