Reduced spending on items like Vacations and Restaurants is another sign that there is less spare cash in the economy. In other words, Chileans can’t afford these luxuries any more. But many still refuse to see the correlation between the ever-increasing costs involved in providing those services, and the prices they end up paying.
Reduced consumer spending is why the government collected 9% less IVA last year, a trend that looks to continue. Which is why they desperately want to get their hands on that AFP cash mountain in order to continue to mismanage the country.
I cannot understand why tourism “statistics” have always been wildly inflated, bearing little relation to reality. Even this article understates the true extent of the situation. Visitors are staying away in droves, even from the competencia desleal of informal rentals.