Restrictors-

• Lower ranks in safety and security, especially with high homicide cases and a lack of feeling safe walking alone at night could deter tourists from visiting Uruguay.

• Low score for hiring and firing practices which reduces security for workers, creating instability for workers which is a restrictor as aviation is a highly skill based industry which requires stable retention of workers.

• Share of the labour force with advanced or intermediate education is also low, restricting the amount of workers available for aviation based roles that require highly trained and educated individuals.

• Low rank for openness to travel and tourism with a lack of air service agreements makes it difficult for tourists to travel there as well as airlines to operate within the country.

• High fuel prices could deter airlines from operating in Uruguay.

• Lack of infrastructure with minimal number of airlines and low airport connectivity score restricts the country's ability to implement more tourism incentives (airlines adding routes, increased number of flights, difficulty with connectivity).

• Tourism is highly concentrated in a few destinations which could cause population to perceive increased tourism negatively.

Enablers- 

• High rank for government ensuring policy stability meaning that it is easier for businesses (airlines) to conduct business in Uruguay.

• High number of physicians and rank of health and hygiene provide security for tourists.

• High labour productivity in hotel and restaurants means higher quality and faster service for tourists as well as capability to cater to more tourism.

**Property rights

**Impact of rules on FDI

**Efficiency of legal framework to settling disputes

**Efficiency of legal framework in challenging actions

**Burden of Gov regulation

**Gov ensuring policy stability

**Ease of complying to tax system

**SME access to finance

**Corruption Perceptions index

* Pillar 2 - Human Resource & Labour Market

**Qualification of the labour force

**Mean years of schooling

**Secondary education enrolment rate

**Extent of staff training

**Education system's ability to meet needs

* (Safety & Security) - not part of remit

T&T Policy & Enabling Conditions -

* Pillar 6 - Prioritisation of T&T (not part of remit BUT critical to any discussion)

**Country Branding Strategy rating

**T&T capital investment

* Pillar 7 - International Openness (VISA Facilitation)

**Visa Requirements

**Number of Bilateral air service agreements

** number of regional trade agreements in force

** Degree of financial openness

* Pillar 8 Price Competitiveness (not part of remit)

** Fuel Prices

Infrastructure

* Pillar 9 - Air transport Infrastructure (not an assessment macro factor BUT essential to understanding the nation-state context)

**Efficiency of air transport services

**Available seat kilometres

**Number of operating airlines

Airport Connectivity

• High altitude airports and remote jungle post operational threats

Ground and port infrastructure: 100th

Tourist service infrastructure: 74th

• famous destinations: Amazon rain forest, eco lodges

• Domestic flights

• Tours and transfers

(my laptop is about to die)

refers to the investment by a foreign entity in the aviation sector of another country, typically in airports, air transport services, or associated industries such as maintenance, repair, and ground handling services. IndiaCorpLaw (2017), Mondaq (2017) Garph (2017)

Source- Statista

Infrastructure Development ( MCDF, 2024)

Renewable Energy (solar and wind projects)

Telecommunications

Franchising

• Main investment sectors includes commerce, finance and oil production.

• Main countries of origin for FDI investment in Paraguay are Brazil and USA respectively with 904 and 893m USD invested at the end of 2021

• Major industries driving Paraguay’s economy include agriculture, manufacturing and services. These industries present numerous opportunities for foreign investors, particularly in agribusiness - Paraguay boasts a diverse economic landscape

Although the FDI related to the aviation industry remains limited within MERCOSUR, it has attained a significant degree of development in other areas such as airport infrastructure and aircraft manufacturing. Particularly, Brazil has been an important player among the aerospace segment, which has attracted foreign investments in the aircraft manufacturing field; airport privatization and expansion, however, have seen the bulk of such in Brazil, where the international companies have invested heavily into them to win market shares from growing passenger traffic and the urgent necessity for modernization. Repositorio (2007), Redsudamericana (2006)