The union has reported that five months after the outbreak of the social and political crisis in Nicaragua, the country has lost about 68,000 of the 120,000 jobs generated by the sector.
The National Chamber of Tourism (Canatur) presented a report highlighting the impact of the country's social and political crisis on the tourism sector.
Five months after the socio-political crisis in Nicaragua, it is estimated that this year Gross Domestic Product will contract between by 2.1% and 4%, in real terms.
The Nicaraguan Foundation for Economic and Social Development (FUNIDES) has updatedits estimates on the economic and social impact of the crisis in 2018, in which it poses a first scenario that assumes that people and companies will adapt to a "new reality". In this context, the losses in added value would amount to $946 million.
In 100 days of political and social crisis in Nicaragua, entrepreneurs estimate that businesses dedicated to trade and services have lost earnings of $1 billion.
Representatives from the Chamber of Commerce and Services of Nicaragua (CCSN), reported that companies dedicated to trade projected that by 2018 they would reach sales of $2.3 billion, however, due to the crisis that has affected the different sectors of the economy that will be impossible.
The complicated situation happening in the country since mid-April has forced nearly 70% of SMEs in the textile and clothing industry to suspend their operations.
According to information from the Chamber of Industries of Nicaragua (Cadin), 30% of small and medium size textile and clothing companies that are producing are doing so at 25% of their capacity.The situation in the sector has led to the temporary suspension of eight out of ten workers.
Nicaraguan business leaders estimate that in the months of June and July there will be drastic drops in exports.
In the first five months of the year, the country sold $1.282 billion worth of goods abroad, which is 2% more than what was reported in the same period in 2017.However, the business sector says that this increase was due to the fact that many exporters decided to liquidate most of their inventory at the beginning of the crisis.
Costa Rican entrepreneurs are concerned about the impact of the crisis in the neighboring country on food exports, which between 2015 and 2017 grew at an average annual rate of 4%.
According to figures from the Promotora del Comercio Exterior (Procomer), last year Costa Rica's food industryexports amounted to $1.618 billion, which is equivalent to an increase of 4.7% compared to the amount reported in 2016.
To be able to ship cargo throughout the region, Central American business leaders are exploring options for moving goods using alternative methods, such as shipping.
Representatives from the Costa Rican government and the union of exporters met to address the issue of blockades in Nicaragua and the logistical drawbacks that they have caused, since Costa Rica transports by land about five thousand containers to the other Central American countries every month. As a result of this meeting, both parties concluded that the most viable option is to use maritime transport.
In response to the rupture of the dialogue on the part of the Ortega administration, companies and citizen organizations have called for a national strike on Thursday, June 14.
Demanding the cessation of repression by the Government and the resumption of the National Dialogue, social and business organizations, called for a general strike to take place tomorrow.
With the paralyzation of the cargo transport and the retention of about 6 thousand units in Nicaragua, the region is starting to feel the effects of a crisis with no potential solution in the short term.
The crisis in Nicaragua has created high costs in all countries in the region, as according to the latest report it is estimated that at least some 6,000 heavy cargo vehicles are trapped due to the violence and blockades that have intensified in the last weeks.
In the optimistic scenario, which foresees an end to the crisis in Nicaragua by the end of July, economic growth at the end of 2018 would be only 1.7%, with $400 million losses in added value.
The Nicaraguan Foundation for Economic and Social Development projects that a possible first scenario would be one where "...the government accepts an early exit negotiated and implemented no later than the end of July, thus achieving a framework of understanding focused on the issues of justice and democratization, putting an end to repression, violence and citizen insecurity."
Due to the crisis in the country, the Central Bank has reduced the estimate of economic growth for this year from the range of 4.5% to 5%, to the range of 3% to 3.5%.
Ovidio Reyes, president of the Central Bank of Nicaragua (BCN), explained that "... the hardest and most regrettable thing about this is the generation of employment.We are expecting the loss of 58,300 new jobs as a result of the lower economic dynamics."
In Nicaragua, retail companies estimate that the damages caused to their facilities and inventory, together with the drop in consumption, have already generated losses of $70 million.
In the same vien as the situation reported by companies in the tourism sector days ago, the Chamber of Commerce and Services of Nicaragua (CCSN) has reported that due to the crisis affecting the country, entrepreneurs engaged in commercial activities have recorded losses of approximately $10 million in their facilities, $26 million in damage to their inventories and $35 million in damages to consumption.
Due to the crisis affecting the country, the tourist sector union estimates that hotels, hostels and restaurants are facing losses of around $100 million.
As a result of the social crisis that the country has been suffering from for two weeks, representatives from the National Chamber of Tourism of Nicaragua (Canatur), reported that for the next few days hotel reservations have been canceled almost in their entirety, while restaurants are working at 15% capacity.
The Colombian company HEMCO has suspended its activities due to violence shown by a group of artisanal miners who blocked the exit of materials and destroyed company property.
Aiming to ensure the safety of its employees and raw materials which are highly toxic, the Colombian mining company has suspended operations until the violent environment that they faced, which is affecting business and the economic climate of the municipality, has been stablalized.
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