Emerging Effects: America and Venezuela

Lyla Kelly, copy editor

Following the geopolitical developments between the United States and Venezuela, there will be noticeable changes and tensions regarding travel, recreation and economics. The American involvement in South America will cause ripples through travel and transportation and alter the relationship surrounding tourism and airfare. 

Before the year 2000, the United States engaged in interventionist politics in Central and Southern America. The Central Intelligence Agency (CIA) intervened in Chile’s 1973 conflict with the sitting President, Salvador Allende. Similar events have occurred 1982 in Nicaragua, 1983 Grenada and 1989 Panama. The involvement with Panama in 1989 led to the ousting of leader General Manuel Noriega and led to a complex diplomatic relationship between the United States and various Latin American countries. Some Latin American nations have shown support of United States intervention, claiming that benefits politics in the region, while some criticize the American policies and actions, as a breach of international law. 

Following the United States’ involvement in Venezuela in early January of this year, the effects will reverberate across industries. The travel industry will see a plunging decrease in international tourists due to tariffs and more rigid custom regulations, according to the BBC. The U.S. will lose approximately 12 billion dollars as a result of the decline in tourism. Similarly, airspace surrounding Venezuela will impact flights in and out of the Caribbean region. After the reopening of the area, airlines have had to adjust to accommodate passengers that had been stuck in those respective locations. For example, American Airlines added many flights in and out of Miami, Florida, and Charlotte, North Carolina. However, as flights continue in and out, the concerns of stranding additional passengers remain.  

“Travelers can take a few simple steps to stay prepared: save airline and hotel contact information for easy access, avoid tight connections or overly rigid itineraries, and build in buffer days for international returns,” said Fora-Travel's co-founder, Haley Vasquez. “Small measures like these can make a meaningful difference when plans are in flux.” 

Travel insurance agencies recommend coverage to protect travelers and airline passengers, meant to cover costs of lodging or rebooked flights, according to CBC. Travel insurance coverage is determined based on language, and the applicability on specific situations and context. Many companies exclude coverage in regions where a client’s trip is impacted by crime, political unrest and other similar conflicts. However, travel insurance does cover travelers when their flight is cancelled due to mechanical issues, loss of baggage, illness or injury. Beyond the basic coverage, upgrades are available, yet, due to the uncertainty surrounding Venezuela, the Caribbean region and the United States’ interactions, this will not be available. 

Additionally, further trade interactions regarding oil, gold and other valuable resources may lead to benefits for American defense stocks and increased government spending. Markets will likely increase as Venezuelan bonds are discussed between the two countries. More of these effects will be seen in the near future. 

Despite the enduring history of United States involvement and engagement in South America and the effects it will have, more activities and political effects will continue to be felt.