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SUBJECT:Implications of a new airport in Cusco, which the government recently approved.
SIGNIFICANCE:This will greatly improve accessibility to southern Peru, one of the areas of greatest tourist interest in Latin America. The tourist industry, which poor infrastructure undermined in the past, is fast expanding.
ANALYSIS: The government agency responsible for development projects, Proinversion, on July 16 approved a plan to hand over design, construction, operation and maintenance of Chincheros international airport near Cusco to an international bid. Proinversion, in association with a Spanish group, Advanced Logistics Group (ALG), have developed the specifications for the airport.
Cusco fillip. The scheme to build an airport capable of taking larger planes from international destinations has been on the wish list for the authorities in Cusco for the last 20 years. The present airport is in a steep valley just outside the city of Cusco, has a short runway and can cater only for small jets. Flights have been restricted mainly to national air links, principally with Lima and Arequipa, though there have been intermittent links with La Paz in Bolivia.
Cusco is among Peru's key tourist destinations, and the establishment of direct air links with the United States and Latin American countries will provide a vital boost to the local economy. News of the development of the new airport will also be a vote-winner for the ruling APRA party. Peru has local and municipal elections this October and presidential and congressional polls next April.
There will be concern in Lima that the new airport in Cusco may divert away...