KEY POINTS
- Uruguay launched a $2.5 million annual co-financed air connectivity incentive fund, with the state contributing up to $1.25 million.
- Airlines can earn $15 per additional foreign passenger and a one-time payment of $17,500 to $40,000 for new regular routes.
- The program is designed to reduce dependence on lower-spending regional tourism and attract higher-yield international travelers.
Uruguay’s government activated a new international air connectivity incentive regime on Thursday, creating a joint fund with annual spending capacity of up to $2.5 million to attract new routes and increase inbound tourist traffic. The Ministry of Tourism and airport operator Aeropuertos Uruguay will co-finance the program, with the state contributing a maximum of $1.25 million.
The framework is codified in article 308 of Law No. 20,446 and regulated by Decree 219/026. Ámbito reported on the official presentation of the new regime. Airlines operating regular international services to Uruguay and certified by the National Civil Aviation and Aviation Infrastructure Directorate may apply.
Under the regime, carriers receive $15 per additional foreign passenger transported compared with the same semester the previous year. Companies opening a new regular route can also access a one-time payment ranging from $17,500 to $40,000.
The program has an initial one-year term and may be automatically extended for up to four years. Airlines must submit a sworn declaration with detailed passenger and route data to the Ministry of Tourism to qualify.
Tourism Minister Pablo Menoni framed the mechanism as a results-based growth reward, not a subsidy independent of performance. Vice President Carolina Cosse attended the presentation.
Diego Arrosa, CEO of Aeropuertos Uruguay, highlighted the fund’s role in attracting carriers, investment, and employment, while Deputy Economy and Finance Minister Martín Vallcorba called air connectivity central to Uruguay’s competitiveness and international positioning.
During Senate discussions, ferry operator Colonia Express had petitioned for the incentive to cover river and maritime passenger transport, though the program remains limited to airline companies.
Separately, the Ministry of Tourism announced that the full VAT exemption for non-resident tourists on gastronomic services, car rentals without driver, and event services will extend through the entire 2027 season, with an estimated fiscal cost of $14 million.
What This Means for Uruguay’s Investment Landscape
The new incentive comes as Uruguay ranks 71st among 110 economies in the World Economic Forum’s Travel & Tourism Development Index 2026, with a score of 3.82 out of 7.00 and a designation as the most improved country in the Demand Sustainability pillar. Tourism records from 2025 show 3.6 million visitors and $2.04 billion in receipts, the strongest since 2017, but first-quarter 2026 data reveal a structural dependence on Argentina: 835,237 Argentine visitors averaged $668 per trip, while only 20,858 Paraguayan visitors spent $1,022 on average. For a market seeking higher-yield international demand, the new per-passenger and new-route payments align incentives with a strategic shift toward diversified, longer-staying traveler segments and improved access to underutilized regions beyond the coastal corridor.
