Holbach Muñetón, president of the National Federation of Provincial Chambers of Tourism of Ecuador (Fenacaptur), estimates that the sector accounts for US$ 250,000 per hour of losses due to power outages.
These are some of the decisions and announcements made today. Early in the morning, the Ministry of Energy of Ecuador announced the new schedules for power cuts of up to ten hours, which were announced on national television and are in effect from today until Sunday, October 13.
“We have evaluated all available measures to mitigate this problem and have the least possible impact on the lives of Ecuadorians,” said Antonio Goncalves, who until then remained in charge of that State portfolio, adding that the measure is being taken because the level of the Mazar dam, located in Azuay, is close to its minimum limit, and the projections indicate that immediate and firm decisions must be made to avoid a collapse in the national electrical system.
It was announced after midday that Goncalves had resigned and that Inés Manzano, who was the Minister of the Environment, would take his place, the Presidency of the Republic confirmed in an official statement.
While this is happening, the tourism sector is worried, especially when the country is on the verge of the October 9 holiday, for the independence of Guayaquil, which will be celebrated this Friday, October 11, along with the weekend.
Holbach Muñetón, president of the National Federation of Provincial Chambers of Tourism of Ecuador (Fenacaptur), is concerned about the continuous variation of power cuts that puts the sector in crisis.
He exemplifies that if there are ten hours of power cuts, considering that each hour per gallon of fuel costs between US$ 10 and US$ 50 for the generators, this would add up to US$ 500 for 24 hours. “And if it is US$ 100 in fuel per day, we are talking about US$ 3,000 per month. It is a concern because there is not a (hotel) occupancy of 90%, right now we are at 30%, 40%, how are we going to do there,” he questions.
Muñetón explains that the sector accounts for US$ 250,000 per hour of loss, thus subtracting opportunities: “All the holidays help the recovery, they have good sales, good projection. The concern is that we are killing productivity because how do we continue forward, with insecurity, with low sales.”
Businessmen think about migrating
The representative of the sector mentions that there is no relief because, despite the crisis that the country is facing, businesses continue to be required: “They have to be up to date on absolutely everything, I don't understand. It is different if they gave you an escape valve, that the permits can be issued at the end of 2025. So, you have a flow that you don't have to spend, but they want us to be up to date as if the country is buoyant, and that is not the case,” he maintains.
Ecuador is living “day by day, we can’t do more because there is uncertainty,” says Muñetón. He adds that it is not possible to plan, because “one moment they say they are going to cut off the power and I tell my staff to come in later, and suddenly, they cut us off, those are the problems.”
Muñetón says that this is not the only scenario, as he has already spoken with business owners, who have opted to migrate and others to close, without having a defined direction. “The sector cannot take it any longer, it is surviving, we are going to have to adjust the pieces and you know where to start, cutting expenses in advertising, marketing and personnel,” he says.
Layoffs are more expensive, says minister
And just today, the Minister of Labor, Ivonne Núñez, referred to the possible layoffs due to this energy crisis. She pointed out that “it costs more to fire workers than to buy electric generators.”
“Regarding the energy crisis, I have said that there are several alternatives. If you do not work within the regular eight hours of work, you can compensate for it later with an additional hour when there is normal activity. What happens if they want to compensate for it with a Saturday or Sunday? They can do so, but they have to pay the extra hour because that is what the Labor Code says and I am not going to issue a ministerial agreement to say that a Saturday and Sunday are compensated, that cannot be possible,” he said, adding that it can be agreed upon with a charge to vacations, emphasizing that these are non-waivable.
“A sudden dismissal sounds like a lack of initiative, you have to find an initiative when faced with a problem. In the area where I live, the light goes out between 6:00 and 8:00, so to be here (on the radio) before 7:00, I got up at 4:30, took a shower, changed, took off my pajamas, put on my clothes and as I always said, pretty, beautiful and gorgeous, and here I am,” said Núñez.
What other sectors say
This Tuesday, the president of the Ecuadorian Business Committee (CEE), María Paz Jervis, said that there are entire areas of the country that are disconnected, such as Cuenca, and that, according to calculations, the losses amount to US$ 22 million, which translate into jobs and well-being for citizens, and that the situation is similar in Ambato.
Meanwhile, the National Chamber of Aquaculture (CNA) recently stated that the cuts could result in losses of US$75 million per month for the industry.
“An extension of power cuts in the industrial sector, of up to ten hours a day, would lead to a drop of 75 million (dollars) a month in the shrimp sector, specifically in the exports of this product,” the union said in a statement posted on the social network X.
