Uruguay Advances Toward Strengthening Air Connectivity
Written by Gonzalo Yelpo with Yelpo y Facal
The draft National Budget Bill for the period 2025–2029, currently under parliamentary consideration, introduces a provision of particular relevance to the aeronautical and tourism sectors.
Article 319 of the bill entrusts the Ministry of Tourism, through the National Directorate of Tourism, with the implementation of a new incentive mechanism for both national and foreign companies providing regular international air services to Uruguay. The stated purpose is to encourage the sale of air tickets that contribute directly to an increase in the reception of foreign tourists.
Pursuant to the text, the Executive Branch shall be required to regulate this provision within one hundred and eighty (180) days from the entry into force of the law.
Scope of Article 319
At present, Article 319 constitutes only a general legislative authorization. Its effectiveness will depend on the subsequent regulation to be issued by the Executive Branch, which will define:
• Nature of the incentive – Whether the mechanism will take the form of direct financial support (e.g., subsidies, tax credits) or indirect benefits (e.g., operational cost reductions).
• Eligibility criteria and metrics – The methodology by which each airline’s contribution to the increase in foreign tourist arrivals will be objectively assessed. The determination of these criteria will be critical for program accessibility.
• Institutional coordination – The framework for interaction between the Ministry of Tourism and the aeronautical authority to ensure efficient administration and oversight.
Implications for the Sector
This legislative initiative reflects Uruguay’s recognition of the strategic importance of international connectivity to its tourism sector. If designed and implemented effectively, the measure could incentivize the strengthening of existing routes, the introduction of new services, and greater competitiveness within the regional market.
Nonetheless, until the regulatory framework is enacted, the scope, magnitude, and practical utility of the incentive remain indeterminate.
Next Steps
At Yelpo & Facal, we are actively monitoring the parliamentary debate on the Budget Bill as well as the forthcoming regulatory process. Once the implementing rules are issued, we will provide a detailed analysis of the requirements, implications, and opportunities for air carriers, with the aim of assisting our clients in evaluating and, where appropriate, accessing this new regulatory tool.
Article 319 represents a preliminary yet significant step toward reinforcing Uruguay’s air connectivity. The extent of its impact will depend on the precision and effectiveness of its regulatory design.