Capitalism Won't Die Easily In Venezuela

Desperation to get the U.S. dollar no matter the cost has apparently exhausted the number of airline tickets to neighboring destinations where Venezuelans can get hold of the fiercely desired greenbacks.

There is almost no seat available on flights to Curacao, Aruba, or Panama-- and tickets to Miami have become extremely expensive, according to the manager of one of the biggest travel agencies in Venezuela. "It is not about small change. This [entire] enterprise circumvents the exchange brokers' control that has existed since 2003, by getting the dollar for 2.15 Bolivars each-- the official exchange rate since 2005-- and then selling the dollars for much more than double that amount in the non-regulated [market]."

These "dollar tourists" make a beeline to the ATM as soon as they arrive in Miami, or turn to "helpful" store owners who write ghost invoices to justify dollar purchases with credit cards to the Venezuelan authorities. At the moment, Venezuelan citizens are allowed to spend a maximum of $5,000 on foreign trips if they have a credit card. Up to that maximum, Venezuelans can spend $500 on a monthly basis in foreign countries. In addition to that, up to $400 can be spent on electronics abroad. On top of all that, Venezuelan citizens who travel abroad may purchase $600 in cash locally at their bank per year for trips that last one week or longer.

Being faced with all these restrictions, individuals and companies have used all sorts of tricks to get around the socialist dollar policies of Hugo Chavez. Venezuelans have even taken to purchasing apartments locally in Curacao for accommodation of fellow countrymen that come to max out their credit cards. They even arrange transportation to stores where for 13-14% commission, Venezuelans can swipe their cards as many times as needed to reach the allowed maximum. Even after deducting all their expenses, people can make a profit if they sell the acquired dollars on the black market in Venezuela.

There is now fear that the Chavez government will lower the quotas even further in an effort to restrict the dollar tourism, since an economic exchange crisis is now a possibility with the recent plunge of oil prices. Tightening controls on internet purchases and sending one's credit card with a traveling family members is also being considering for further restriction.

Even "chavistas" themselves are indulging in dollar tourism, as a way to combat inflation and economic tightness. "These dollars are not the government's, but the country's and mine, and I'm allowed to do what I want with them," claims a government official who claims to be a supporter of Chavez and his socialist policies.