Brazil & Southern Cone - July 2011 (ISSN 1741-4431)

The volcanic ash cloud generated by the Puyehue volcano in Chilean Patagonia, considered the biggest eruption in the area for the last 10,000 years, had cost the Argentine economy US$200m up to late June. Only a third of tourists with reservations in the ski centres are expected to turn up and flights to Bariloche, the area’s main resort, remain suspended as we go to press. The ongoing conflict with Santa Cruz teachers over salary increases had tripled the cost to the local economy (US$600m) since the protestors’ blockaded access to local oil fields, bringing the province’s main source of income to a complete halt.

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