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Prepare for a new tourism

Opinion column of Marilú Mansilla, Technical Assistant Projects, Eurochile

During the first semester of 2020, human life has been strongly affected in its different areas by the Coronavirus pandemic (Covid – 19). In the economic sphere, the Tourism has been one of the hardest hit sectors, and companies in the sector are threatened with their existence by the almost total drop in their income, given the cancellation of reservations and the fall in tourism, both nationally and internationally. This health crisis shows us that Tourism in the future will no longer be the same, that the market has changed, and that the needs and demands of tourists have changed.

It is estimated that a third of the world population has been or is in some stage of confinement due to the virus, a population that, despite the economic recession or fear, will want to go out and breath new airs, regain energy or, at least , go out for a weekend outside the place where they have been confined for so long. In this sense, this is a great opportunity to develop domestic tourism, nearby destinations, for proximity tourism and to boost the local economy, since tourists will prefer places close to their home and will want to avoid large crowds.

To do this, companies must take new sanitary measures. As mentioned before, the market  has changed, accommodations and restaurants should seek ways to guarantee the safety and health of their venues, private transport and tourism providers that have emergency plans and protocols duly implemented will be preferred. Airlines must take extra sanitation measures. Given these changes in the market, Chilean SMEs will need support to implement and internalize these new measures or ways of working in their business models, which they must modify and adapt. In addition, incorporating a very strong digital component.

Due to this situation, Europe is a season ahead and has been managing the Covid-19 crisis for a longer time and preparing to mitigate its impact. The fact that they are already preparing for the revival of tourism in the European summer (July – August) is a great opportunity to observe, adapt and implement protocols, plans, initiatives and measures in Chile that contribute to the reactivation of the tourism sector. In this sense, the networks that the Eurochile Business Foundation has and its 28 years of experience make it a key actor in the work to resume the path of development of the tourism sector in the country.

This is not the first worldwide crisis that the tourism industry has suffered in this century; the crisis of 2008 hit the industry hard, but tourism reemerged as one of the industries with exponential growth. Eurochile already on that date played an active role of support and contribution in improving the sector’s competitiveness and productivity, carrying out projects as important as the implementation of the “Destination Management Model”, acting as a bridge between Europe and Chile, transferring knowledge , good practices, innovations, trends, etc. in pursuit of constant support for the tourism industry.

We have a lot of work ahead and the reactivation of tourism will be slow and under new sanitary measures, under contexts of social distancing, and a tourist with less economic capacity. It is the new tourism, which suddenly hit an industry that must constantly reinvent itself to be able to charm tourists, but which now above all must provide security.

09/06/2020
By Sustainability and Circular Economy0 Comments
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Diagnosis for roadmap identifies gaps, opportunities and challenges to establish the circular economy in Chile

A month ago, the Ministry of the Environment formally began the work to prepare a roadmap tha guides the way to install of the circular economy in Chile, with the first Strategic Committee meeting that will help set the guidelines and specific measures for this. It is a group made up of 25 representatives from industry, academia, citizen organizations, public bodies and experts in the field, who are joined by representatives of seven ministries.

The work is progressing, and there are already five major objectives identified: to connect the key actors for the development of the circular economy in the country; imagine what the future “Circular Chile” will look like, to the year 2040; agree on the great changes that must take place to achieve the envisioning; design the strategy and action plan for it, and relieve the issue of the circular economy in the country.

The goals of the roadmap were structured around four themes, which are: obtaining raw materials, production, consumption and services, and waste management. And at the same time, the ministry has already put a first objective on the table, and that is to achieve by 2040, 10% of household waste – at most – be sent to a sanitary landfill, compared to 96% currently registered and that has Chile behind Turkey, according to the OECD data.

Due to a recent survey to more than 3,400 people, carried out by Eurochile Business Foundation – entity that leads the work of the roadmap-, 75% of them declared that they separate and recycle their waste, and they mainly do so with plastic bottles, glass, cardboard and paper, cans and cardboard packaging for beverages. In addition, 66% were willing to lease – instead of buying – products such as minor machinery, cars, washing machines or telephones, while almost 90% of them affirm that the ability to reuse is relevant when choosing a product.

At first glance, it shows favourable figures for the circular economy in Chile. Furthermore, 74% of them think that their purchasing decisions influence the products offered in the market, 62% know what the circular economy is, and 92% say it is very likely to buy a product or service that is friendly to the environment. However, only 10% of the surveyed persons would be willing to pay more for a product made from recycled materials or reused components, and more than 40% say that a product’s reusable information is difficult to access.

What are the gaps, opportunities and challenges that exist today for the implementation of the circular economy in Chile? At the second meeting of the Strategic Committee of the roadmap, held last week, Eurochile presented a diagnosis report where the main advances of the country in this matter were highlighted.

According to the document, “the circular economy raises a radical systematic change, saying goodbye to linear production models and aiming to maintain the value of resources, materials and products for as long as possible; eliminate the concept of waste through ecodesign, repair and remanufacturing of products, recirculation and / or recycling of materials, among others, valuing innovation and promoting the development of new business models”.

A change, it adds, for which the health and economic crisis caused by Covid-19 “establishes a new context and precedents that present us with the opportunity to propose the circular model as one of the solutions to the social, economic and climate crisis, leaving us with the task and the challenge of establishing, through the roadmap, an attractive vision of the future with clear guidelines and actions that allow us to launch a profound transformation of the Chilean economy, aligned with the concepts of the circular economy ” .

Capacities and infrastructure in the country

The diagnosis indicates,  that at the level of existing capacities and infrastructure for the adoption of the circular economy in the country, there are already an important number of actions that are helping in this advance, such as the Green Growth Strategy of the Ministry of the Environment, the National Electromobility Strategy (ME, Energy, Transport), the instruments of Corfo oriented to promote a more sustainable economy, the strong impulse to renewable energies in the energy sector, and the new market trends in retail that mark second-hand entry or lease for various products.

However, there are also important gaps. For example, the development of economic instruments that support inclusive recycling, and the provision of infrastructure and machinery, are areas that need to be strengthened to increase storage capacity and deliver more valuable material. “The absence of these measures makes it impossible to implement the circular economy,” states the report.

Regarding the existence of collaborative projects in science, technology and innovation, numerous initiatives are identified that demonstrate the interest that exists in the country to develop innovative ideas that result in more circular prototypes and clean technologies, as well as platforms that contribute to the transition to a circular economy, such as the Circular Economy Technological Development Center that is being built in the north of the country. To this are added, for example, 20 Fab Labs throughout the country -13 of them in the Metropolitan Region, spaces for creation and innovation that can support the development of eco-designed prototypes and other initiatives related to the circular economy.

As for the physical infrastructure for recycling and recovery in the country, a study carried out by the Ministry of the Environment, identifies the existence of 7,186 green points, 98 clean points and 54 waste recovery companies -most concentrated in Santiago-, in addition to 216 collection centers.

Human capital will also play an important role in this transformation, and must understand and have knowledge about ecodesign, material valorization and business models associated with reuse and remanufacturing, among others. To implement it, the report states, “this human capital must be inserted in the different productive sectors.”

Although in Chile there are various centers for the generation and training of human capital in this area, the document says, “in some areas of the circular economy there is not enough prior knowledge of ‘how to do things’, which is why there are quite a few professionals who have developed an interest in circular issues and who have developed skills on their own, or within the organization in which they work, through trial and error”.

“In general,” it adds, “although there are some efforts to update the resumes in universities and other higher education centers, and offer graduate courses in circular economy, in some of the interviews the academy was rated as the most lagging sector in Chile regarding the adoption of the circular economy”.

Still, the report indicates, there are already a strong number of successful cases of circular economy in Chile, which may have an effect to promote other similar projects. One of the most highlighted during interviews carried out for the report was Comberplast’s “Tying Ropes” project, as well as the Aguas Andinas biofactory – “it is an example of how a large and traditional company can innovate and rethink its business model”-, Ecocarga – an example of an initiative that dared to break schemes, the role of TriCiclos in the promotion and dissemination of the circular economy, and the F4F project for sub-high level of innovation.

Main existing gaps

The report also identifies existing gaps in the country for the implementation of the circular economy, although it emphasizes that it is still a new concept -even globally-, so that its understanding and incorporation is still in the initial stage.

The report points out, in terms of human capital that the lack of skills and knowledge in issues of the circular economy is transversal in all the productive sectors analyzed in this study, whether from the definition of their productive strategies to adopted business models.  So, in conclusion, this is seen from now on as a priority matter to tackle.

The same occurs with the generic technologies for the adoption of the circular economy, among them the technologies and processes of waste separation and recycling, remanufacturing or repair, new materials technologies and 4.0 technologies, among others.  The report states that, “Its management as well as its transmission to the workers of the company or sector, is key to advance in the implementation of circular economy concepts in the industrial branch.”

Here, however, some structural problems appear. The first is that the process of deindustrialization that Chile had in the late 1970s was a brake on the installation of these generic technologies in the country, so it is considered necessary to reinstall those technical and technological capacities.

“Although several of these technologies exist worldwide, including in Chile, their systematic adoption is lacking in the large companies and SMEs of the country, a gap that needs to be addressed and that implies cultural changes and economic strategy that Chile must face  in long-term ”, states the report.

The problem is that this has led to a lack of national industries and a high level of importation of consumer products and inputs for primary sectors, while there is a lack of industrial symbiosis that allows an efficient use of raw materials, inputs, power lines and logistics. According to one of the experts interviewed for this report, in Chile “it is difficult to convert recycled waste into inputs for production processes, because there is sometimes no one that can transform, repair or adapt. This is due to the destruction of the national industry due to the opening of the international market, which has had many benefits but also negative things”.

This also has a second effect, which results in gaps in market access. As the country imports many products developed under a linear model, there is a supply of products at low prices that limits the competition of eventually more sustainable local products. In addition, since in our economy many of the Chilean companies represent only a part of the chain, and there are very few products whose complete cycle is done in Chile, it is very difficult to circulate them if part of the processes is carried out in other continents.

Added to this are a series of well-known regulatory and standardization, financing and infrastructure gaps, to which is also added a cultural gap for the implementation of the circular economy. “A critical aspect that was mentioned by many of the interviewed is the lack of trust in articulation and collaboration processes, both in the public and private sector, where companies work on their own: there are no clusters or other collaboration mechanisms between companies to address pre-competitive or sectoral challenges, ”the report states.

Opportunities to install the circular economy in Chile

According to the Ellen MacArthur Foundation, the transition to a circular economy in Europe could increase resource efficiency by 3% by 2030, generating savings of 600 million euros and another 1.8 trillion in economic benefits. And in Latin America and the Caribbean, ECLAC states that it could generate 4.8 million jobs in 2030.

For this reason, opportunities are identified in the business sector that emerges from trends in international markets, and multinational companies in the country are already establishing requirements in this matter for their Chilean subsidiaries.

At the market level, one of the initiatives that is most closely watched is the European Green Deal, “which is both a risk and an opportunity for Chile,” the report states. “If the country manages to join at an early stage, the European Union’s proposal to generate an international agreement on natural resource management, it can position itself as a strategic commercial partner of the EU.”

This is because, among other things, the Green Deal will propose, through a “green regulation”, a border carbon adjustment or tax mechanism for specific sectors, so that the price of imports more accurately reflects their carbon content. “If Chile has the ability to adapt its processes to meet these new requirements, a European market opens up with high potential for the Chilean industry sectors that export the most to Europe: mining, forestry, wine, agriculture, fishing and chemical”, indicates the document.

At the level of production processes, it is stated that “an interesting opportunity to mention arises paradoxically from the extractive economy on which Chile bases its development, and this is the specialization based on natural resources in preparation for the successful insertion in what it could be the next technological revolution, probably based on the life and materials sciences, where the circular economy is the coordinating system”.

And as for new goods and services, the document proposes, since it has a great variety of natural resources -renewable and non-renewable-, Chile has the opportunity to innovate in the development of materials and products, both in the technical and biological cycle. For example, sustainable materials from wood and other renewable natural resources.

“Furthermore, these new business models are associated with more ‘tailored’ products and services, adapted to the specificities and needs of the region and ecosystem where they are developed, promoting the development of local economies, increasing resilience of those territories and generating jobs ”, it states.

Although the report prepared by the Eurochile Business Foundation states that there are still many gaps to overcome for the adoption of the circular economy in Chile, where “a critical aspect is the lack of awareness of the existence of the broad scope of this, which goes beyond waste management and recycling “,  it also affirms that an opportunity that glimpse as a key to counteract this scenario” is the interest that exists today, both in the public and private sectors, and the great convening power of the circular economy ”.

In addition, the report says, that an opportunity is added provided by the climate crisis and a social and economic crisis due to the coronavirus pandemic, “which is projected deep, showing that strong, resilient and inclusive models are needed, shaping the circular economy as a model to achieve that strength”.

“These crises,” concludes the report, “have demonstrated the speed with which governments can adapt their policies, and the business sector to transform and reinvent itself when the objectives are clear. That is the purpose of this roadmap, to deliver goals and a clear direction for the next 20 years, to allow an effective transition to the circular economy, which is undoubtedly a critical tool to face the economic, social and of the climate crisis”.

08/06/2020
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Minister of Environment: “We trust that the experience of Eurochile will be a contribution to the development of the Roadmap for the Circular Economy”

On May 6, the Ministry of the Environment formally began the work of the Strategic Committee for the elaboration of the Circular Economy Roadmap, an initiative that is led by the Eurochile Business Foundation and which aims to implement this global trend in the country between now and 2040.

Today, with the new scenario, the circular economy is also seen as an opportunity – and a key tool – for a sustainable recovery from the crisis caused by the COVID-19, through a change in the way of producing and consuming many of high-demand products to advance towards a sustainable development of the country, accompanied by the generation of new “green” jobs.

In an interview with Eurochile, the Minister of Environment, Carolina Schmidt, talks about how this paradigm shift will be implemented, the ambitious goals that are on the table, the expected impacts and the role that the Foundation will have in this transition from a linear economy to a circular economy.

What is the main objective of the ministry initiating the process to develop the Roadmap for the Circular Economy in Chile?

The transition from a linear to a circular economy means a paradigm change, and requires a huge transformation in our ways of producing and consuming. That is why we decided to lead the construction of a road map, inviting a transversal group of organizations to help us define specific goals and objectives to make Chile a circular country. In this context, the Road Map has five main objectives. First, connect the key actors for the development of the circular economy in the country; imagine what the future “Circular Chile” will look like year 2040; agree on the great changes that must take place to achieve this envisioning; design the strategy and action plan that will lead us to this “Circular Chile” and, finally, highlight the issue of the circular economy in the country.

What will be the role that the circular economy will have, in your opinion, in the future development of the country and, in particular, in the scenarios that open up after the impact of the pandemic in Chile?

Promoting and boosting the circular economy will be one of the best ways to ensure that economic recovery, once the coronavirus health crisis is over, is green and sustainable. After the pandemic, countries will need to grow, but we must do it through this new paradigm, transforming our ways of producing and consuming, which will result in the generation of more green jobs.

Why is it important to join this trend today, which is not yet consolidated at a global level and is just beginning to be implemented in Europe, for example?

Installing the circular economy is a necessity for the world; this approach reduces the extraction of natural resources, energy savings and the reduction of greenhouse gases, responsible for climate change. In Chile we have taken important steps such as, for example, the law that prohibited the delivery of plastic bags in commerce and the implementation of the Extended Producer Responsibility Law (EPR Law) that will allow us to take a leap in the area of ​​waste recovery , which will equal us with developed countries. But, without a doubt, the beginning of the Circular Economy Roadmap, which we will develop together with all the actors, will create a shared envision of what that circular Chile looks like in 2040, and will allow us to generate a definite action plan that transcends in different governments.

Recently, actors from different areas of the country were called to collaborate in the elaboration of this Road Map. What will be their role? What role will companies, academia, NGOs, citizens have in the development of this work?

The process of preparing the roadmap, which is divided into the phases of diagnosis, definition of the envisioning, design of the road map, and dissemination, is led by an Executive Committee in which representatives of different entities participate: Ministry of Environment, the Ministry of Economy, CORFO and ASCC, with the support of the Consensus Building Institute (CBI) and Eurochile Foundation.

In addition to the Executive Committee, the governance of the process includes the participation of a Strategic Committee and an International Advisory Committee. The work of the Strategic Committee will focus on the envisioning definition and roadmap design phases, actively participating in the workshops that will be carried out in these phases, and working in the role of validating the results obtained. The role of the International Advisory Committee will have a consultative approach. Experts on different topics, representatives of regions, and citizens will also participate in the process.

It starts with an ambitious goal: by 2040 only 10% of the waste will reach the sanitary landfill. It is the same goal that Europe is setting today. Is it really feasible to achieve, how?

Regarding waste management, the Ministry of the Environment proposed to the Strategic Committee the goal that by 2040, a maximum of 10% of household waste be sent to a sanitary landfill (today it is 96%), and at least 65% of the household waste generated in the country are recycled. These are the goals that the European Union has set for the lagging regions (the most advanced countries must reach the same level five years before, by 2035). This is an extremely ambitious goal as a country. It means giving ourselves a space of two decades to catch up with Europe in an area in which we are lagging country today (we are the last OECD country, along with Turkey, in terms of less use of waste). Concluded this, Chile has, in other areas, achieved ambitious goals and caught up with or even exceeded developed countries. Our country is a world leader in water sanitation, which was achieved in two decades, and we believe that we can achieve it in terms of the circular economy.

It was also decided to advance in transversal objectives. What will be the main guidelines in this matter?

The Roadmap will be structured in four main pillars and each one of them will have goals and objectives in the short, medium and long term. These lines are: Obtaining raw materials; Production; Consumption and services; Waste management.

As I pointed out previously, in terms of waste management, we proposed the goal that by 2040, at most, 10% of household waste be sent to a sanitary landfill, and that at least 65% of household waste is recycled. For the other pillars, such tangible and ambitious goals will also be built.

How will the work for the elaboration of the Roadmap continue, and what will be the deadlines for the final proposals?

The Road Map will be one of the work priorities of the Ministry of the Environment, it is part of the commitments of the Nationally Determined Contribution (NDC); the draft will be ready in six months and will be submitted to public consultation.

Eurochile is in charge of elaboration the Roadmap. What advantages do you see in the foundation’s work and its connections with European experts in this area, for the success of developing this project? What are the advantages of having European experience in this area?

Eurochile was awarded the tender that was opened in 2019 to support the most intense phase of the work; its work began in March 2020 and its mission is to lead the development of the process and generate the final document with the road map. We trust that Eurochile`s experience will be a contribution to the development of this instrument.

05/06/2020
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Eurochile starts project on Convention Tourism in Antofagasta

IFAT in Munich, Germany is the world’s leading trade fair for water, waste and raw material management, and where exhibitors from around the world present strategies, solutions, products and innovations for the sustainable use of resources. And it is also the place where a parallel event was going to be carried out- the platform “Innovation in Environment, Energy and Circular Economy”, of the European network Enterprise Europe Network (EEN), which brings together organizations and research companies worldwide to generate commercial contacts and technological cooperation in this matter.

However, the crisis due to the pandemic forced the postponement of the fair this year, and in view of this scenario, EEN decided to call a virtual meeting, with the aim of “offering a good opportunity for companies from all over the world to meet and establish contacts despite of all travel restrictions, “said Anja Gross of the EEN network at Bayern Innovativ.

The virtual meeting had as main themes the circular economy, waste and recycling, renewable energy, water and energy efficiency, and 662 companies and institutions from 43 countries, including Chile, participated in it, holding 1,075 business meetings.

“From Chile, companies of different sectors and different sizes participated; who have been doing this for a long time and already know how to work with foreign companies, and there is a percentage of companies that found opportunities for cooperation,” said Manuela Caruz, director of Networks Eurochile.

Today, Chilean companies, he added, are looking for new opportunities for collaboration on different topics and sectors, “and this conference was focused on a very attractive sector that is at the forefront of Europe, so it is presented as a new sector or subsector within each company ”.

Currently, European countries are aligning under the recent “Green Deal” launched by the European Commission, and in this scenario, Anja Gross announced, “the issue of sustainability could be even more important for our network in the coming years. Looking at our virtual matchmaking, following each meeting will give us an idea of ​​the impact our event might have had in this regard. ” And as for Chile, she added, that same follow-up work “can give some interesting ideas on how to find common ground.”

Companies value meetings

According to Maud Breyne, Business Intelligence engineer at Recupac, the company had plans to go to this year to IFAT in Munich, but due to the postponement of the event they decided to take advantage of this virtual matchmaking event to compensate for their need to interact with actors from the waste management outside Chile.

Along these lines, this time they sought to establish relationships with machine supplier companies and innovation actors in areas related to waste management and recycling.

“We managed to have contact with 19 international actors of great interest to Recupac, and we are currently quoting services and products with ten of them. No project has yet materialized, but we have gained a lot of knowledge about the global waste market,”said Breyne.

Gerardo Canales, director of the company Implementa Sur, explained that an important part of his service to clients is to make recommendations on technological improvements for a transition to a low-carbon economy, which is why this type of event, “that help keep up to date with the latest innovations and technological options in the international market, are very relevant to our work”.

For Implementa Sur, the main result of the virtual matchmaking event was the learning of technological opportunities with the potential to be incorporated into our productive sectors, at the same time as opportunities for technology transfer were opened in the areas of waste and water.

For Canales, today “all sectors of the economy must move to a much more environmentally friendly performance. The way out of this crisis should be focused on strengthening green growth and more emphatically supporting the transition to a low carbon economy. Those companies that understand and advance more rapidly towards this new order, will undoubtedly take better advantage of the opportunities that are presented today, will be able to manage transition risks more accurately and will see their competitiveness increase in a sustained manner, ”he affirmed.

03/06/2020
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Eurochile co-organizes matchmaking on innovation in Environment, Energy and Circular Economy

IFAT in Munich, Germany is the world’s leading trade fair for water, waste and raw material management, and where exhibitors from around the world present strategies, solutions, products and innovations for the sustainable use of resources. And it is also the place where a parallel event was going to be carried out- the platform “Innovation in Environment, Energy and Circular Economy”, of the European network Enterprise Europe Network (EEN), which brings together organizations and research companies worldwide to generate commercial contacts and technological cooperation in this matter.

However, the crisis due to the pandemic forced the postponement of the fair this year, and in view of this scenario, EEN decided to call a virtual meeting, with the aim of “offering a good opportunity for companies from all over the world to meet and establish contacts despite of all travel restrictions, “said Anja Gross of the EEN network at Bayern Innovativ.

The virtual meeting had as main themes the circular economy, waste and recycling, renewable energy, water and energy efficiency, and 662 companies and institutions from 43 countries, including Chile, participated in it, holding 1,075 business meetings.

“From Chile, companies of different sectors and different sizes participated; who have been doing this for a long time and already know how to work with foreign companies, and there is a percentage of companies that found opportunities for cooperation,” said Manuela Caruz, director of Networks Eurochile.

Today, Chilean companies, he added, are looking for new opportunities for collaboration on different topics and sectors, “and this conference was focused on a very attractive sector that is at the forefront of Europe, so it is presented as a new sector or subsector within each company ”.

Currently, European countries are aligning under the recent “Green Deal” launched by the European Commission, and in this scenario, Anja Gross announced, “the issue of sustainability could be even more important for our network in the coming years. Looking at our virtual matchmaking, following each meeting will give us an idea of ​​the impact our event might have had in this regard. ” And as for Chile, she added, that same follow-up work “can give some interesting ideas on how to find common ground.”

 

Companies value meetings

According to Maud Breyne, Business Intelligence engineer at Recupac, the company had plans to go to this year to IFAT in Munich, but due to the postponement of the event they decided to take advantage of this virtual matchmaking event to compensate for their need to interact with actors from the waste management outside Chile.

Along these lines, this time they sought to establish relationships with machine supplier companies and innovation actors in areas related to waste management and recycling.

“We managed to have contact with 19 international actors of great interest to Recupac, and we are currently quoting services and products with ten of them. No project has yet materialized, but we have gained a lot of knowledge about the global waste market,”said Breyne.

Gerardo Canales, director of the company Implementa Sur, explained that an important part of his service to clients is to make recommendations on technological improvements for a transition to a low-carbon economy, which is why this type of event, “that help keep up to date with the latest innovations and technological options in the international market, are very relevant to our work”.

For Implementa Sur, the main result of the virtual matchmaking event was the learning of technological opportunities with the potential to be incorporated into our productive sectors, at the same time as opportunities for technology transfer were opened in the areas of waste and water.

For Canales, today “all sectors of the economy must move to a much more environmentally friendly performance. The way out of this crisis should be focused on strengthening green growth and more emphatically supporting the transition to a low carbon economy. Those companies that understand and advance more rapidly towards this new order, will undoubtedly take better advantage of the opportunities that are presented today, will be able to manage transition risks more accurately and will see their competitiveness increase in a sustained manner, ”he affirmed.

29/05/2020
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In times of crisis: The importance of networking

Opinion column of Manuela Caruz, Director of Networks at Eurochile.

Less than 60 days ago, in an unthinkable and catastrophic way, the health crisis caused by the worldwide proliferation of the Covid-19 virus has forced us to rethink our way of relating, working and living. And maybe it’s forever. The global pandemic has been in charge of letting us know that it is not in our hands to manage life and everything that surrounds us.

In this scenario of uncertainty, institutions -public and private- will have to find new ways to connect, get closer and relate to each other in order to generate spaces for cooperation that allow the world to continue growing and developing.

Technologies emerge more strongly today as a basic necessity tool that allows us in a practical way to connect, get closer – in the middle of an obligatory social distance-, work and study, and that in the face of the economic and social impacts that the COVID-19, becomes an opportunity to improve strategies, efforts and work, but at the same time implies the risk of deepening existing inequalities.

Now more than ever, cooperation between two or more organizations will require audacity and innovation, to be able to carry out activities that we will not be able to carry out alone, and in which the social distancing puts us more than one obstacle. The identification of common objectives between distant organizations will be an added value that in turn will identify new challenges for a new way of relating, the famous “new normal”

In Europe, this crisis takes us more than a month in advance, therefore, matchmaking events, trade missions, agendas and participation in European fairs have had to be quickly reinvented, and the existing and long-used models have been drastically changed. This puts us in an innovative and bold and flexible change scenario for our clients, and today we must get on this unknown train and know how to be attentive to the new needs that arise.

In this context, the European Community Chile-Eurochile Business Foundation, the business bridge between Chile and Europe, has a very important role in being a pioneer and learning first-hand about the challenges and new strategies that are being managed in Europe. In this way, we invite you to be part of the Foundation, to shorten physical distances and to work together so that everyone, cooperating, can find the opportunities and solutions we need to face this global pandemic.

 

26/05/2020
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Webinar supported by Eurochile: How to adapt business planning to a crisis scenario

How to adapt business planning to the scenario of the coronavirus pandemic and the emergency of climate change? That is the question that was posed in a webinar carried out by Climate Action with the support of Eurochile, in which Juanita López, director of Climate Change and Sustainability of KPMG Colombia participated as main speakers; and Luis Felipe Ross, partner at Matrix Consulting.

Given the rapid spread of Covid-19, companies have had to quickly adapt the use of remote work technologies, in the midst of a massive change where we must plan new ways of adapting to a pandemic crisis that, in its later stage, will lead the world to face a “new normal” that will require companies to reconsider their business models.

According to the experts, in this scenario companies should involve organizational rethinking within their strategic planning, taking into account both current changes and new forms of adaptation to a pandemic crisis and climate change, exploring the feasibility of low development carbon that can represent an opportunity for economic, social and sustainable growth, not only in future decision-making but in the short and medium term.

Both presentations analyzed the importance of planning to overcome the crisis generated from Covid-19. According to the experts, it is important to establish a high standard of flexibility and pragmatism in the short term, in order to mitigate the effects of the pandemic on companies. With this, it is substantive to consider post-pandemic reactivation strategies with critical points to address, first distinguishing the urgent from the important.

The importance of planning was also discussed to prevent health disasters like the one we are experiencing, but also to prevent possible future disasters caused by the climate emergency. In fact, an aspect that was also commented related to the fact that the effects associated with climate change are on a larger scale than those that depend on Covid-19.

For this reason, they concluded, making the right planning often involves significant investments in the short term, but in the long term, reality shows that, it is definitively a saving. “It is cheaper to prevent than to cure, or to deal with disaster,” they said.

22/05/2020
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Andrea Bonalumi: “This crisis is changing radically, and perhaps definitely, the way of communicating and interacting with customers and suppliers”

Made in Italy is a brand universally recognized as synonymous with quality, excellence and style. And contrary to what you might think, it is not based on the work of large companies and corporations, but mainly on small and medium-sized companies that, thanks to their tradition and quality, have formed the basis of the Italian business fabric and have led it to be highlighted internationally.

It is this fabric that today has been most shaken by the crisis caused by the coronavirus pandemic in Italy, one of the European countries hardest hit by Covid-19. And it is a deep crisis that will take years to recover from, says Andera Bonalumi, manager of Promos Italia, the national agency of the Italian Chamber of Commerce system (including Milan, Genoa, Lombardy, Emilia-Romagna and Perugia, to name a few) that supports Italian companies in their internationalization processes, the development of the local economy and the improvement of the territory.

Today, Promos Italia, like many companies in that country – and in the world – has managed to organized itself so that employees work from home. The concept of “smart work” is giving excellent results, says Bonalumi, and has allowed both to continue guaranteeing people’s safety and to maintain direct assistance from companies and the provision of some services.

In this interview with Eurochile, Andrea Bonalumi explains the reach of the crisis in Italy, what has been done so far to deal with it, and how they have managed to maintain some activities despite the containment measures of recent months.

I understand that while Promos Italia events have been suspended for now, the offices remain in operation. How are they operating today, what measures have been taken to guarantee the well-being of their workers?

The health of our employees is undoubtedly the priority, and therefore we have adopted prevention measures that are offered to the few who are working in the office, to do it safely. The entrances and exits have been separated, body temperature is measured, and the distribution of masks and dispensers with the distribution of disinfectant products is present in all areas of the company. However, the most relevant measure continues to be social distancing and intelligent work, which – widely adopted – is the cornerstone of preventive measures.

In relation to services, we have restructured some activities and planned a series of initiatives with the aim of guaranteeing companies really useful services in this complex phase. For example, a central activity in which we are committed is supporting the digitalization processes of companies. If before many companies were reluctant to develop digitalization processes, both in production processes and in promotional and commercial activities, now the unprecedented circumstances dictated by the pandemic have forced them to understand that digitalization is a path that must be undertaken by need. We are also working to create a platform that allows virtual B2B meetings between Italian operators and buyers from all over the world. This will be extremely functional, because it will be difficult to travel again in a short time and, therefore, any form of physical meeting between entrepreneurs will not be possible for some time yet.

What has been the main impact of this crisis on the Italian economy, and how has this affected the work carried out by Promos Italia?

The impact of the crisis in Italy has been extremely deep and extensive. Closing businesses and more businesses for more than two months has brought many entrepreneurs to their knees. Non-food retail sales have collapsed in favor of increased sales through e-commerce. The loss of GDP compared to the first quarter of the previous year is estimated at 4.7%, and in addition containment measures in Italy – and in the main trading partner countries – have depressed foreign trade. In the province where I live, Bergamo, one of the most affected by Covid-19, it is estimated that 84% of companies, within six months, will request layoffs and, at the national level, the latest estimate by Cerved foresees a total loss for companies of € 420 billion in turnover in 2020, and more than € 120 billion in 2021. Promos Italia is supporting companies by helping them plan useful strategies to start in the best way; in particular, I repeat, encouraging them to use digital, because this will be one of the most relevant tools to aid recovery. We are resistant people and our business fabric, I am sure, will be able to recover.

How has this impacted the work of the Italian chambers of commerce, which sectors of commerce have been most affected?

All sectors have been involved in this tsunami that has overwhelmed us. I am thinking of small businesses, manufacturing companies, and the tourism supply chain, which this year sees the season in reverse and is struggling to mitigate the impact of the crisis. The chambers of commerce are providing all possible support to companies, both in terms of bureaucracy and in practice, as well as economically, with non-refundable contributions that help them in this economically very complex phase.

What measures should be promoted from the State and from the financial system to help in the recovery?

Companies need cash flow and they need it immediately. It serves to encourage the sector of entrepreneurs who have already lost tens of thousands of euros in turnover and this, in cascade, impacts employment, orders, throughout the chain from production to distribution. Only this measure, right now, can help companies resist and allow them not to shut down. Access to credit, which is in fact the measure that the government has adopted so far, is not enough; it cannot face a crisis of this magnitude. We are also waiting to understand what the European negotiation will bring as a contribution. This is also a crucial step in understanding what concrete support our companies will have, but I would say our entire economic system.

One of the focuses of Promos Italia’s work is to support the internationalization of its chambers of commerce. What do the future perspectives look like in this sense, what changes in strategy or ways will there be to carry out this work once the crisis is over?

This crisis is changing radically, and perhaps definitely, both the way of communicating and the way of interacting with customers, suppliers and stakeholders. This also applies to international relations. The first thing, fundamental for those who export, is to keep active the relationships developed over the years in the various markets and, for the moment, the only way to do it is through digital channels. But I would say that digital, in all its forms, will be a tool that companies can no longer be without. What was once considered a tool for the few, or a “nice to have” is bound to become a tool that few can give up. It will be essential in relationships, as mentioned, in correspondence and also in commercial activity, at least in the first post-crisis phase.

What opportunities do you think open up after recovery begins?

Making predictions at this stage is very complex and there is a risk that the opposite will be proven. Now it is necessary to constantly monitor what is happening at the health and economic level, and provide companies with all the tools to understand the context and make the best decisions for their business. If you had to choose a priority, surely in this phase it is essential not to lose the market shares gained over the years, and to intercept the opportunities that will be presented in the different markets that will be able to start again first.

What role will the Latin American region, and Chile in particular, have in the future work of Promos Italia?

Chile is a friendly country of Italy, and strategic for the Promos Italia business. Last year, the first of Promos Italia’s life, Chile was the subject of the first international institutional visit. In April, in fact, I was in Santiago and met the executive director of Eurochile, José Aravena, and with its president, Vicente Caruz, with whom Promos Italia has signed a collaboration agreement with the aim of further strengthening trade relations between the two countries. We received the Minister of Public Infrastructure of Chile in Milan and the director of Investment Promotion of InvestChile, who participated in a workshop at the Milan Chamber of Commerce in which business opportunities in Chile were presented for Italian companies. We intend to involve Chilean companies in the B2B activities that we are planning in the coming months.

What, in your opinion, are the lessons we will draw from this crisis?

There are many. Some refer to the life of each one of us, our health, our affections, the importance of what we live on a daily basis, which seems obvious to us, but it is not. The crisis leads us to political reflections, for example, on European governance on issues such as health, but not only that they should be rethought; economic reflections, for growth and development models that increasingly show their weak sides, without being able to reformulate them, due to a dangerous return to the principles of isolation instead of cooperation. Last but not least, I personally consider that one of the few positive aspects of this pandemic that has become important: it has put the science, back at the center, giving it the legitimacy it deserves, dangerously questioned in the recent past, for example, during absurd debates about the validity of vaccines.

15/05/2020
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“Together against the coronavirus”: Eurochile calls to join the European platform that connects business solutions to support the health sector globally

This platform has been developed with the collaboration, supervision and validation of its contents by more than 130 member organizations of the Enterprise Europe Network, a business cooperation network present in 60 countries around the world and which has been created and is supervised by the European Commission. As an exclusive partner and only contact point in Chile, the Eurochile Foundation opens the opportunity to join this platform to all actors in the health industry at the national level, from small to large companies, universities, associations, research center I R&D, hospitals, medical clinics and government organizations in the country.

As the Covid-19 pandemic progresses around the world, a series of initiatives to support health work are being carried out by governments, with the aim of sharing the experiences, products and services developed in different countries, both inside and outside the European Union. In this context, the European network -Enterprise Europe Network and Flanders Care – an initiative of the Flemish government – created a B2B platform to connect offers and demands with solutions and proposals that help combat the virus.

This platform will operate continuously until December 31, 2020, and seeks to gather available offers with the needs that emerge in the fight against the virus, share different knowledge and approaches, and give a vision of personalized support to the challenges of each region, bringing together the different actors working on this matter both in Europe and outside.

From our country, Eurochile Business Foundation, as an exclusive member of the Enterprise Europe Network (EEN), opens this online platform to the different organizations in the country that are actively seeking solutions that help combat COVID-19, allowing actors from health, industry, academia and government introduce their cooperation profile, inviting through it European counterparts to propose solutions already developed in the old continent, to join promising works that have place in Chile, or the joint search for solutions to particular problems.

“More as a marketplace, is integrated by more than 130 solid organizations – from more than 30 countries – that operate under the supervision of the European Commission. This implies a high standard  of validation and strict quality control for those who wish to operate within this platform, and also includes a process of accompaniment and help in solving problems for companies that wish to enter it. All this validation and support process, at national level, is carried out by Eurochile”, explains José Aravena, executive director of Eurochile Business Foundation.

Thanks to this validation process, the platform gathers and shows initiatives, offers and short-term needs; fosters interaction between health, industry, support organizations, government, academia, and others; and maximizes the reliability of the proposals presented.

The Care & Industry together against CORONA platform is grouped under different themes to facilitate contact between its members, and allows them to choose those areas for which they have or need a solution, and to find a partner for discussions and move on. For each region, you can also find support service organizations in the market.

Among the main thematic areas of the platform are consumer goods (prevention, diagnosis, treatment and rehabilitation); diagnosis (biomedical and medical technology); emergency medicine and rescue teams; hospital and care equipment; hygiene, sterilization and disinfection; images and information technologies.

To the date, the network brings together 550 participants from practically all European countries and Taiwan, among which are 355 SMEs, 39 large companies, 27 universities, 35 R&D institutions, 19 associations and 11 hospitals, which together they provide 1131 profiles of opportunities in areas such as products, society, services, investment and cooperation projects. This number of participants will continue to increase in the coming days and weeks.

Products offered, for example, range from companies manufacturing facial visors for sanitary protection to devices that allow you to open a door handle with your forearm to reduce the risk of direct contact with viruses and bacteria.

Regarding cooperation projects, there are from the design of personal protective equipment for general medical procedures in patients with Covid-19 to supply the low availability of these in the market, to projects that seek to create a pulmonary rehabilitation device for patients with prolonged coronavirus intubation, which offers both mechanical and electronic design and programming (application, integrated firmware, IoT and cloud).

There are also associative initiatives that seek partners for future R&D collaborations in healthcare and related fields. For example, Red de Institutos Tecnológicos Comunidad Valenciana (REDIT) seeks to take advantage of the deep knowledge they have now acquired about the certification and manufacture of fans and masks, ICT tools, 3D printing of protective equipment, AI for diagnosis and safety of sanitary respirators, among other fields of action.

How to register and participate

To register and participate in this platform, you must enter the following link: https://care-industry-together-against-corona.b2match.io/how-it-works

Complete and describe a concise and clear profile in English in order to give visibility to your offer or demand; you must indicate who you are, where you are from and what type of partner you are looking for and for what specific sector. It is important to note that if you have R&D services, products or projects, these must be entered as different profiles. If you do not complete the process of the profile upload, it will not appear on the matchmaking platform and you will not be able to participate.

Your profile will be reviewed and validated by Eurochile in order to meet the standards and criteria requested by the platform; otherwise your profile will not be activated or may be rejected. After completing this process, you will receive an email with the steps to follow, and you will be able to review the profiles of the other participants as well as request and accept or reject meetings that will be requested of you. The platform will remain open until December 31.

For more information, please contact Manuela Caruz mcaruz@eurochile.cl

13/05/2020
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European experts say that regaining the confidence of visitors will be key to the recovery of tourism after the pandemic

Today tourist activity is practically paralyzed globally. The containment measures applied by the countries affected by the coronavirus pandemic, as well as the impossibility of traveling, are causing what is perhaps the greatest economic impact in the history of tourism and that affects all sectors of the industry equally: transport, accommodation, travel agencies, guides, tourist activities. No one has escaped the crisis.

In Chile, the Covid-19 has chanllanged the industry, which had already been weakened by the social outbreak in October and which, with the sudden stop of demand, faces an unprecedented scenario, a “perfect storm”, as the president of Fedetur, Ricardo Margulis, described it. There is consensus among all the actors that this is the worst crisis in the history of the activity, and losses of US $ 3.9 billion and at least 2.6 million fewer visitors to the country are already projected.

Between the first and last week of March, air traffic collapsed by 90% due to the closure of borders and cancellation of flights. At the end of April, practically all of the country’s accommodations are closed, only 2% remain operational, but with an occupation that barely reaches 10%. Of the almost 300 thousand dismissal letters registered the Ministry of Labor in March, the sector with the highest increase (93%) was that of accommodation and food service. A crisis that has also affected SMEs.

How to face this catastrophe? Which are the ways of recovery after the crisis? Eurochile spoke with two European experts who advise the Foundation on its projects, to analyze the current scenario at the global – and national – level, as well as the measures that are already being adopted in that continent to help the tourism industry.

First measures: finance to companies and support for workers

Although each European country has adopted its own measures, they have a common objective: to financially support industry and unemployed workers in the face of cessation of activity. “In the case of Spain, the first measures have been the possibility of requesting Temporary Employment Regulation Files (ERTEs) during the closure of the companies. The State is responsible for 75% of their salary and, on the other hand, companies do not have to face social costs”, explains Luis Baldó, Spanish tourism expert and Eurochile consultant.

 

At the same time, the Official Credit Institute (ICO) launched extraordinary financing lines for tourism companies, which are credit lines to finance currency endorsed by the State itself, and also some governments of autonomous communities and municipalities have enabled credit lines financing, postponement or even suspension of local or regional taxes and fees.

“Obviously, freeing companies from personnel costs without the need for dismissals is a fundamental help due to the greater expense that tourism companies normally present. On the other hand, avoiding layoffs guarantees (in the vast majority of cases) their possible reincorporation once the crisis is over, also avoiding the loss of human capital, “says Baldó.

In France, which is the first world destination with more than 80 million visitors per year, and where there are 270,000 companies in the tourism sector, strong measures have been taken along the same lines since the start of the crisis, explains Peio Olhagaray, a French expert in innovation and tourism association.

Among the main ones, until the end of June the State undertakes 84% ​​of the salary of all employees who cannot join companies; a public solidarity fund was created that provides 1,500 euros per company; payment of gas, energy and rent bills was temporarily suspended; 300 billion euros were allocated to loans 90% guaranteed by the State; and tax measures were established for all companies, such as the postponement of social contributions, rates and state taxes.

Today special measures are being negotiated, such as special funds for self-employed professionals, and the cancellation of social charges for companies in the service sector, and especially for the tourism sector, hotels, restaurants and bars.

At a macro level, says Luis Baldó, “in Europe, from several countries – and promoted by Spain – work is being done so that tourism is included preferentially in the plan of ‘European reconstruction’ that is being designed, although today there is no concrete measure. ”

Should the taxes and charges to the sector be reviewed? Peio Olhagaray`s opinion is that regulations and rates should not change, because the economic structure of companies does not suffer from this cause, but rather from the weakness of the real profitability of the activity. “If it is calculated that it is three months without invoicing, but with some expenses, that means that accounting is falling to very dangerous levels for most SMEs,” he says.

Luis Baldó agrees on this, explaining that some European countries are considering lowering VAT on tourism and hospitality as support for recovery. “In Spain the VAT on tourism is 21% and transport 10%, and lowering it could be helpful but of very limited impact in the face of demand. Also in some destinations they are considering eliminating the ecotaxes at least for this year, but their impact on the final price is also low, “he says.

Recovery of the sector: confidence will be key

“With the impossibility of receiving clients, the tourism industry is suffering a lot and this situation will last for several years, because a supply of services that feed the development of the sector will disappear, and that mainly affects small companies,” says Peio Olhagaray regarding the recovery of the sector.

“As we know,” he adds, “the tourism industry belongs to a very complex value chain that integrates companies, the public sector, but also destinations of all kinds (beaches, mountains, landscapes, gastronomy, crafts, museums, etc.). The strength of each link and its capacity to resist will be essential to ensure a future for the industry. ”

For Luis Baldó, thinking of a recovery is possible, because tourism has always showed an ability to do so, much higher than other industries. And in this case – he says -, although it is a crisis of enormous depth, it is expected to be limited in time.

“Let’s not forget that tourism not only recovered, but grew after the 2008 financial and economic crisis, which was (we hope) much longer. Today it is impossible to know what percentage of companies will be affected, but I think this crisis will affect medium-sized companies more; the big ones have greater financial capacities to bear it, and the small and micro are more flexible and are possibly the first to be able to recover their normality, ”says Baldó.

The recovery of visitor confidence in destinations, both agree, will be key to the recovery of tourism. “Trust is the number one argument, it is essential to choose a destination. After the crisis, there are three questions that will arise directly and that will overcome everything else in this election: Is the destination health-safe? Who guarantees my level of security? If I get sick, who guarantees my return home? “Olhagaray argues.

“The current restrictions will be joined by the fear of traveling or consuming in public establishments,” adds Luis Baldó. “The only way to regain that trust will be through ‘social immunity’, which is unknown how long it can take to achieve, or through the development of a vaccine that provides confidence and peace of mind. The vaccine will possibly be the one that marks the return (more or less) to normality. ”

To regain that trust, says Olhagaray, first, trust has to be created towards citizens, informing about the country’s health reality, giving figures, examples, initiatives, and organizing international controls by the WHO, for example. Second, hope that the current crisis will disappear completely. And third, dedicate to inland tourism.

“In the case of Chile, for example, if foreigners cannot choose the country due to travel restrictions, the Chilean population remains. It is important to give competitive offers, organizing high-quality internal trips at cheap prices. It is already known that they like to discover on their own territory. This does not have to be for lack of foreigners, but for a strategy of giving priority to its population, because we know that the best ambassadors of a destination are the inhabitants themselves, “he says.

It will also be necessary, says Luis Baldó, to develop stricter sanitary standards, implement them and guarantee their implementation. Likewise, at least initially, distance and non-crowding measures will be essential, such as reduced capacity and control of common areas.

“In Spain, health protocols are being developed to recover activity in the short term, promoted by the Secretary of State for Tourism. These protocols will be approved by the Ministry of Health and subsequently approved at the European level. Coordinated and approved work is essential, so as not to confuse potential visitors with lots of different rules and protocols, or employers when implementing them, “he adds.

Reinventing tourism and trends for recovery

According to Peio Olhagaray, this crisis is developing in Europe a very strong idea: “What happens is the result of our way of life, which uses our Earth without precaution, traveling without limits, buying without concern… The issue of economic globalization and globalization of attitudes are certainly up for debate. My conviction is that the tourist activity will have to change completely with demands of a new type: more of authenticity, cultural discovery, personalized experiences and encounters, gastronomy with local products”.

In this scenario, he says, world destinations with an economic model of large concentrations, such as the destination of beaches, for example, will be the ones that will suffer the most from this crisis, and at the same time the destinations of cities or large capitals will grow in countries because they will contribute health and personal safety, because this topic will not be forgotten.

“At the same time, domestic tourism will grow due to the difficulty of traveling or due to higher prices, and those who develop a sustainable tourism policy in all its aspects will win: the role of its population, the relationship with its clients, the management of territory and the image of the destination, the province and the country ”, he affirms.

For Luis Baldó, in the first instance, nature and rural tourism, not overcrowded and with small-capacity accommodation models, will be the most benefited, and of course the proximity markets that allow car trips to avoid crowds. “As for sustainable tourism, hopefully after this crisis we stop considering it as a type of tourism. Sustainability must be an intrinsic characteristic of any tourist modality”, he adds.

“During these days,” he adds, “there is a lot of talk about a new post-Covid society, and of course about a new tourism, although I am not so sure that major changes in trends in tourist consumption or flows will occur once the situation normalizes. I do believe that a demand will arise that is much more concerned with aspects such as health or safety than price, and measures will be taken to guarantee that safety that will be maintained over time, as happened after 9/11. Companies will have to respond to these new demands”.

Impact in Chile and the region

Today, says Luis Baldó, it is difficult to make a general analysis of Latin America due to the enormous differences that exist between the different countries, but those who start from a better starting position (in all aspects) will be those who least notice the impact of the crisis.

“In the case of Chile in particular, I believe that it has an unbeatable opportunity to boost internal tourism, not only as a step prior to recovery, but as a fundamental segment of activity in the future for those territories that have a lower degree of development tourist”, he adds.

“I think that Chile and Latin America have a real future in terms of sustainable tourism. Due to its cultural and geophysical riches, the global destination is of great potential. My recommendation would be to massively support the sector, favoring the creation of companies and jobs, private and public investments, developing management training sessions and creating sustainable offers”, complements Peio Olhagaray.

And in this, both agree, associativity will be key. “It is essential!”, says Olhagaray: “If the chain breaks, the sector falls and the destination becomes poorer and less attractive. My recommendation would be to take advantage of this crisis to adapt public policies dedicated to tourism to the realities of each province. This would strengthen Chile’s global destination, which brings together several destinations, various offers, various value chains and a multitude of actors.”

The overcoming of this crisis from the tourist point of view, adds Baldó, can only occur from an enhancement of public-private collaboration, there are many aspects on which to depend and will depend on the public part.

“From this point of view, associativity is essential as speaker with public administrations, in order to design some exit measures that take into account the point of view of companies and entrepreneurs. On the other hand, professional and business associations must play a fundamental role in the education and training of their partners for the new scenario”, he concludes.

08/05/2020
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