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America’s Divided Summer Economy Is Coming to an Airport or Hotel Near You

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The gulf between higher- and lower-income consumers has been widening for years, but it is expected to show up especially clearly in travel this season.The travel industry is in the midst of another hot summer as Americans hit the road and make for the airport to take advantage of slightly cheaper flights and gas. But the 2024 vacation outlook isn’t all sunny: Like the rest of the American consumer experience this year, it is sharply divided.Many richer consumers — always the lifeblood of the travel industry — are feeling good this year as a strong stock market and rising home values boost their wealth. While they have felt the bite of rapid inflation over the last few years, they are likely to have more wiggle room in their budgets and more options to ease the pain by trading down from name brands to generic, or Whole Foods to Walmart.Poorer families have had less room to maneuver to avoid the brunt of high prices. Although the job market is strong, with low unemployment and wages that have risen especially rapidly at the bottom of the income scale in recent years, some signs of economic strain have been surfacing among lower-income Americans. Credit card delinquencies have risen, many lower earners report feeling less confident in their own household finances, and companies that serve lower-income groups report that they are under stress.The gulf between higher- and lower-income consumers has been widening for years, but it is expected to show up especially clearly in travel this summer. Surveys show that richer households are more optimistic about their ability to take trips, and services that they are more likely to use — like full-service hotels — are flourishing. Budget hotel chains, by contrast, are expected to report a pullback.“If you go to upscale, you’re actually seeing growth there,” said Adam Sacks, the president of tourism economics at Oxford Economics. “A lot of that has to do with the different financial situations of different income groups.”Bookings, survey responses and spending trends so far suggest that the travel industry will see muted but healthy growth this summer and in 2024 as a whole. That growth is expected even after several years of breakneck vacationing as people took “revenge” for the trips they missed during the pandemic.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    A Japanese Village Wants Tourists to Come for Heat, Soot and Steel

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    This past October, I found myself in Yoshida Village standing before a tatara, a giant open-top furnace that was filled with charcoal and raging with such controlled ferocity that it could have been a set piece in Lucifer’s bedroom.Deep within the belly of those orange flames sat a growing and mangled ingot that contained some exceptionally high-quality steel called tamahagane, or jewel steel, from which Japanese swords have been made for much of the country’s history. The presence of a usable ingot seemed unlikely, and if true, downright alchemic. All we had been doing for the last 20 hours was gently shaking iron sand and fresh charcoal onto the flames at timed intervals.Yoshida is nestled back in the mountains of Shimane Prefecture in central Japan, abutting the ever-turbulent Sea of Japan. For nearly 700 years, workers around Yoshida made jewel steel in places called tatara-ba (literally “furnace spots”) on a grueling schedule — one that reshaped mountains and rivers, that seared the brows of generations of sooty men shoveling charcoal in loincloths. Then, at the start of the 20th century, production all but ceased. Other methods were cheaper and more efficient.Shimane Prefecture is perhaps best known for its Izumo Shrine, about an hour’s drive from Yoshida.At the height of its steel prowess, Yoshida swelled to nearly 15,000 people. Today, the population hovers around 1,500. As with many towns in the Japanese countryside, a mix of aging population, low birthrates and loss of industry has emptied its streets.Recently, though, in a Colonial Williamsburg sort of way, 24-hour re-enactments of the old iron-smelting traditions began to be performed in Yoshida. The firings are managed by a man named Yuji Inoue, who works for Tanabe Corp., which owns the furnace. “We consider the tatara a symbol and a pillar of town development,” he told me, standing next to the flickering furnace. Mr. Inoue and Tanabe Corp. were trying to remake Yoshida into a kind of tatara village, which he hoped would create self-sufficiency, expand the population and revitalize the town.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    War Has Already Hurt the Economies of Israel’s Nearest Neighbors

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    The impact on global growth of the Middle East violence has so far been contained. That’s not the case for Egypt, Lebanon and Jordan, which were already struggling.In the Red Sea, attacks by Iranian-backed Houthi militants on commercial ships continue to disrupt a crucial trade route and raise shipping costs. The threat of escalation there and around flash points in Lebanon, Iraq, Syria, Yemen and now Iran and Pakistan ratchets up every day.Despite the staggering death toll and wrenching misery of the violence in the Middle East, the broader economic impact so far has been mostly contained. Oil production and prices, a critical driver of worldwide economic activity and inflation, have returned to pre-crisis levels. International tourists are still flying into other countries in the Middle East like Saudi Arabia, the United Arab Emirates and Qatar.Yet for Israel’s next-door neighbors — Egypt, Lebanon and Jordan — the economic damage is already severe.An assessment by the United Nations Development Program estimated that in just three months, the Israel-Gaza war has cost the three countries $10.3 billion, or 2.3 percent of their combined gross domestic product. An additional 230,000 people in these countries are also expected to fall into poverty.Iranian-backed Houthi militants have been attacking commercial ships in the Red Sea.Sayed Hassan/Getty Images“Human development could regress by at least two to three years in Egypt, Jordan, and Lebanon,” the analysis warned, citing refugee flows, soaring public debt and declines in trade and tourism — a vital source of revenue, foreign currency and employment.That conclusion echoed an update last month by the International Monetary Fund, which said that it was certain to lower its forecast for the most exposed countries when it publishes its World Economic Outlook at the end of this month.The latest economic gut punches could not come at a worse time for these countries, said Joshua Landis, director of the Center for Middle East Studies at the University of Oklahoma.Economic activity across the Middle East and North Africa was already on a down slide, slipping to 2 percent growth in 2023 from 5.6 percent the previous year. Lebanon has been enmeshed in what the World Bank calls one of the world’s worst economic and financial crises in more than a century and half. And Egypt has been on the brink of insolvency.Since Hamas fighters attacked Israel from Gaza on Oct. 7, about 25,000 Palestinians have been killed by Israel, according to the Gazan health ministry. The strip has suffered widespread destruction and devastation. In Israel, where the Hamas attacks killed about 1,200 people, according to officials, and resulted in 240 being taken hostage, life has been upended, with hundreds of thousands of citizens called into military service and 200,000 displaced from border areas.In Jordan, Lebanon and Egypt, uncertainty about the war’s course is eating away at consumer and business confidence, which is likely to drive down spending and investment, I.M.F. analysts wrote.Rising prices in Egypt continue to gnaw at households’ buying power.Mauricio Lima for The New York TimesEgypt, the Arab world’s most populous country, has still not recovered from the rise in the cost of essential imports like wheat and fuel, a plunge in tourist revenue, and a drop in foreign investment caused by the coronavirus pandemic and the war in Ukraine.Lavish government spending on showy megaprojects and weapons caused Egypt’s debt to soar. When central banks around the world raised interest rates to curb inflation, those debt payments ballooned. Rising prices within Egypt continue to gnaw away households’ buying power and business’s plans for expansion.“No one wants to invest, but Egypt is too big to fail,” Mr. Landis said, explaining that the United States and I.M.F. are unlikely to let the country default on its $165 billion of foreign loans given its strategic and political importance.The drop in shipping traffic crossing into the Red Sea from the Suez Canal is the latest blow. Between January and August, Egypt brought in an average of $862 million per month in revenue from the canal, which carries 11 percent of global maritime trade.James Swanston, an emerging-markets economist at Capital Economics, said that according to the head of the Suez Canal Authority, traffic is down 30 percent this month from December and revenues are 40 percent weaker compared to 2023 levels.“That’s the biggest spillover effect,” he said.For these three struggling economies, the drop in tourism is particularly alarming. In 2019 tourism in Egypt, Lebanon and Jordan accounted for 35 percent to nearly 50 percent of their combined goods and services exports, according to the I.M.F.Displaced Palestinians on their way from the north of the Gaza Strip to its south last year.Samar Abu Elouf for The New York TimesIn early January, confirmed tickets for international arrivals to the wider Middle East region for the first half of this year were 20 percent higher than they were last year, according to ForwardKeys, a data-analysis firm that tracks global air travel reservations.But the closer the fighting, the bigger the decline in travelers. Tourism to Israel has mostly evaporated, further hammering an economy upended by full-scale war.In Jordan, airline bookings were down 18 percent. In Lebanon, where Israeli troops are fighting Hezbollah militants along the border, bookings were down 25 percent.“Fears of further regional escalation are casting a shadow over travel prospects in the region,” Olivier Ponti, vice president of insights at ForwardKeys.In Lebanon, travel and tourism has previously contributed a fifth of the country’s yearly gross domestic product.“The number one site in Lebanon is Baalbek,” said Hussein Abdallah, general manager of Lebanon Tours and Travels in Beirut. The sprawling 2,000-year-old Roman ruins are so spectacular that visitors have suggested that djinns built a palace there for the Queen of Sheba or that aliens constructed it as an intergalactic landing pad.Now, Mr. Abdallah said, “it is totally empty.” Mr. Abdallah said that since Oct. 7, his bookings have dropped 90 percent from last year. “If the situation continues like that,” he said, “many tour operators in Beirut will go out of business.”Travel to Egypt also dropped in October, November and December. Mr. Landis at the Middle East Center in Oklahoma mentioned that even his brother canceled a planned trip down the Nile, choosing to vacation in India instead.The top tourist site in Lebanon is the 2,000-year-old Roman ruins of Baalbek, said Hussein Abdallah, general manager of Lebanon Tours and Travels in Beirut. Now, he said, “it is totally empty.”Mohamed Azakir/ReutersKhaled Ibrahim, a consultant for Amisol Travel Egypt and a member of the Middle East Travel Alliance, said cancellations started to pour in after the attacks began. Like other tour operators he offered discounts to popular destinations like Sharm el-Sheik at the southern tip of the Sinai Peninsula, and occupancy hit about 80 percent of normal.He is less sanguine about salvaging the rest of what is considered the prime tourist season. “I can say this winter, January to April, will be quite challenging,” Mr. Ibrahim said from Medina in Saudi Arabia, where he was leading a tour. “Maybe business drops down to 50 percent.”Jim Tankersley More

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    Choice Hotel Franchise Owners Push Back on Merger With Wyndham

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    Franchisees are fighting Choice Hotels’ attempted takeover of its biggest rival, which would create a dominant player in the budget hotel sector.When Patrick Pacious, the chief executive of a large portfolio of hotel brands, promoted a blockbuster attempt to acquire a competitor in October, he said the proposed merger would lower costs and attract more customers for the families and small businesses that own most of the company’s locations.“Our franchisees instantly grasped the strategic benefit this would bring to their hotels,” Mr. Pacious, who leads Choice Hotels, said on CNBC.As the weeks have passed, however, the reaction has not been positive. Wyndham Hotels and Resorts, the target of the proposed deal, rejected the offer from Choice, which is now pursuing a hostile takeover. And in early December, an association representing the majority of hoteliers who own Choice and Wyndham-branded properties came out strongly against it.“We all don’t know what’s driving this merger. Many of us feel it’s not needed,” said Bharat Patel, the chairman of the organization, the Asian American Hotel Owners Association. The group surveyed its 20,000 members and found that about 77 percent of respondents who own hotels under either brand or both thought a merger would hurt their business.“I’m not against Choice or Wyndham,” said Mr. Patel, who owns two Choice hotels. “We just need robust competition in the markets.”That opposition illustrates a growing resistance to consolidation in industries that have grown more concentrated in recent years. Even some Wall Street analysts have expressed skepticism that Choice’s proposal is a good idea.The views of hotel owners could become a hurdle for Choice as it seeks approval for a merger from the Federal Trade Commission, which has taken an interest in franchising as evidence has mounted that the economic and legal relationship has increasingly tilted in favor of brand owners and away from franchisees.To understand why franchisees are worried, it’s helpful to understand how hotels are structured.About 70 percent of the nation’s 5.7 million hotel rooms operate under one of the several big national brands like Marriott or Hilton, according to the real estate data firm CoStar. The rest are independent.Over the past few decades, franchise chains have bought one another and merged to the point where the top six companies by number of rooms — Marriott, Hilton, InterContinental, Best Western, Choice and Wyndham — account for about 80 percent of all branded hotels.How a Choice/Wyndham merger would stack upCombining the two companies would create America’s largest branded hotel chain

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    Number of hotel rooms in the United States
    Note: Data is as of Dec. 19.Source: CoStar GroupBy The New York TimesUnlike fast food franchisees, hotel owners typically develop or buy their own buildings, representing a multimillion-dollar investment for each property. The industry has drawn thousands of immigrant entrepreneurs from South Asia. Some owners accumulate sprawling portfolios, but most end up with just a few hotels.The average member of the Asian American owners’ group owns just two hotels, most commonly with one of the economy or midscale brands. Choice and Wyndham dominate that segment, with 6,270 and 5,907 hotels in the United States, including Days Inn, Howard Johnson, Quality Inn and Econo Lodge.Being part of a franchise network provides a recognized name, a business plan and collective purchasing that is supposed to give small businesses the benefits of scale. In exchange, hotel owners pay the brands a fee to join, ongoing royalties and other payments for marketing, technology and consulting.As a result, franchisees are effectively customers of the hotel brands. Less competition between hotel chains can leave owners with fewer options and, thus, less leverage to demand better services for a lower cost.Consider the frustrations of Jayanti Patel, who owns a Comfort Inn — one of Choice’s 22 brands — in Gettysburg, Pa.He said Choice had been taking a larger cut, via charges like an $18 monthly fee for reporting his property’s energy use, discounts for rooms booked with rewards programs and penalties when guests file complaints. Mr. Patel also laments declining service, such as from revenue management consultants who are supposed to provide advice that increases his profits. Choice has outsourced this work to a service that operates partly overseas.Mr. Patel said his profit margins had become “thinner and thinner,” and he’s considering signing up with a different brand when his franchise agreement ends in a couple of years. Friends who own Wyndham-branded properties seem happy, so he might adopt one of its brands as long as Choice doesn’t acquire that chain.“When my window comes up in 2026, 99 percent I don’t want to renew my agreement,” Mr. Patel said. “And maybe If I want to go to Wyndham, they have nearly 20 brands, and I lose that opportunity, because it will be the same thing.”Choice argues that as its rivals have expanded and merged, it also needs to grow to offer hotel owners bigger savings on supplies like signage and bedsheets. The company is also promising to bargain down the commissions that hotel owners pay websites like Expedia and Booking.com, which are particularly crucial in the budget segment.“Combining with Wyndham would enable us to continue to deliver enhanced profitability for franchisees — by helping to lower their costs and grow their direct revenue while providing our best-in-class technology platform,” Choice said in a statement.However, many hotel owners say that even if Choice did negotiate lower prices, they are skeptical that they would reap those benefits. In 2020, 90 franchisees filed a lawsuit that accused the company of, among other things, not passing along rebates from contracts with vendors. A judge ruled that hotel owners would have to pursue their claims in separate arbitration cases, and several did.Rich Gandhi, a hotelier in New Jersey, supports a campaign for state legislation that would improve the rights of franchisees in the hospitality industry.Hannah Yoon for The New York TimesChoice prevailed in two of those proceedings. But in one, brought by a hotelier in North Dakota, an arbitrator found this past summer that Choice had “made virtually no efforts to leverage its size, scale and distribution to obtain volume discounts.” He ordered Choice to pay $760,008 in legal fees and compensation. Choice is contesting the award.The case is just one example, but it squares with recent economic research. A 2017 study found that while being part of a hotel franchise system helped bring in guests, it did not lower the cost of doing business compared with operating an independent hotel.But litigating on your own is expensive, which is why few franchisees do so even when they feel they’ve been mistreated.Rich Gandhi, a hotelier in New Jersey, is supporting a campaign for state legislation that would improve the rights of franchisees in the hospitality industry. He leads a three-year-old group called Reform Lodging that is also opposing the merger.Mr. Gandhi has turned four of his Choice-branded hotels into Best Westerns and Red Roof Inns, both non-Choice brands that he said offered better assistance, fewer restrictions and more reasonable fees. Choice, he argued, introduced too many competitors to his area because it makes money from selling new franchises and controlling more of the market, even if the practice squeezes existing owners.“They want the biggest pie, because to them it’s all incremental revenue,” Mr. Gandhi said. “If you keep accumulating all these buildings and provide no support, it’s like one of those old pyramid schemes that’s ready to fall apart, which is exactly what’s happening.”A representative for Choice referred The New York Times to four hoteliers who it said would speak favorably of the merger. Two of them, including the chairman of the Choice Hotels Owners Council — to which all franchisees must belong and pay dues — declined to comment on the record. A third, who owns three Radisson hotels and was happy when Choice bought the brand, said the purchase of Wyndham — a much bigger company — could pose problems.The fourth, a Florida hotelier, Azim Saju, said that despite the loss of competition, if Choice acquired Wyndham the company would still have an incentive to make sure franchisees stayed afloat.“The concern is valid, but the bottom line is that franchising doesn’t do well unless the franchisees are profitable,” Mr. Saju said. “I think Choice has become more conscientious of the importance of franchisee profitability in order to further their success.”The dissatisfaction of hotel owners could hurt Choice’s ability to absorb Wyndham, especially if more franchisees switch to other brands. That prospect has soured some Wall Street analysts on the deal.“In hotel franchising, the critical constituency, as much as consumers walking in the door, is that franchising community,” said David Katz, an analyst who covers the hospitality and gambling industries for Jefferies & Company. “They’re going to own more than 50 percent of the limited service and economy hotels in the United States, and not have the full support of the largest franchisee organization out there? I think that merits further debate.”Franchisee support isn’t important just for morale. It could also sway federal regulators, who have started to take into account the effect of corporate mergers not just on their consumers but also on suppliers like book authors, chicken farmers and Amazon sellers.“Traditionally in antitrust there’s this consumer welfare standard, which is focused on ‘Is this going to be good or bad for consumers?’” said Brett Hollenbeck, an associate professor at the Anderson School of Management of the University of California, Los Angeles. “If the F.T.C. doesn’t feel like this argument will hold sway, they could try a more novel theory, which is that it could hurt franchisees.”Choice said it anticipated that its deal would be approved and was expecting to complete the transaction within a year. Its offer to buy all outstanding Wyndham shares extends through March, when it will try to replace the directors on the company’s board with people who will approve the sale. More

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    New Mexico’s Spaceport America Is an Economic Dream Deferred

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    From his tiny gem store in southern New Mexico, Robert Hanseck spends his days untangling chakra beads and answering questions about the healing properties of amethyst crystals. After four decades behind the register, he has met thousands of wellness-minded tourists eager to explore the hot springs that span the region.But he almost never sees the type of traveler he was promised would transform his small town of Truth or Consequences: space enthusiasts.“It’s been a flop,” he said of Spaceport America, a project that was conceived as the vanguard of commercial space travel — and that has been promoted by state officials for more than two decades as a launchpad for the local economy.Less than a mile up the road, Arthur Burger, who owns an art gallery, recounted the moment in 2021, not long after he moved to town, when he watched in awe as a rocket plane soared into the sky beyond the nearby mountain range. He remembers the resounding boom.After years of delays, Virgin Galactic, the anchor tenant at Spaceport America, had sent its founder, Richard Branson, and a team to the edge of space — evidence at last, many in the area thought, that New Mexico was a front-runner in the commercial space race.“That week, people came in from London, from Taipei,” Mr. Burger said. “It was surreal.”In this stretch of rural New Mexico, there are plenty of opinions about Spaceport, a futuristic structure on a desolate stretch of desert that has cost more than $200 million in state and local funds.Residents in and around Truth or Consequences have waited for Spaceport to produce a payoff in aerospace-related jobs and tourism.Robert Hanseck at his gem store. He says he almost never sees the type of traveler he was promised would transform the town.Residents of Sierra County, which includes Truth or Consequences, and neighboring Doña Ana County have contributed millions from sales taxes to help subsidize the venture.Many say they are tired of waiting for the payoff that was supposed to come from aerospace-related jobs and from tourists drawn like storm chasers to the scene of the action. But others see it as an ambitious bet on the future that has finally begun to produce results.This year, Virgin Galactic has conducted six Spaceport launches, the most in any year so far, blasting researchers and space tourists who can afford the $450,000 ticket toward the edge of space.Virgin Galactic uses a carrier aircraft to take a rocket plane about 45,000 feet above Earth, and from there it disconnects and propels passengers to an altitude of more than 50 miles.Despite the recent momentum, another setback came in November when Virgin Galactic laid off 185 employees — 73 in New Mexico — reducing the company to around 800, and said it would suspend flights in mid-2024. The layoffs, according to the company, are meant to allow Virgin Galactic to focus resources on a new class of suborbital space planes. And this month, Mr. Branson told The Financial Times that he would no longer invest in Virgin Galactic, noting that the company “does not have the deepest pockets.”For Amanda Forrister, the mayor of Truth or Consequences, the idea that Spaceport will one day reshape her community still feels possible, but far from a guarantee.“It is a bit of a question mark,” she said.Getting In on the Ground FloorSpectators watched Virgin Galactic’s sixth and final launch of the year last month.The allure of rockets, space and what exists beyond us has deep roots in New Mexico.After a military balloon crashed near Roswell in 1947, that southeastern New Mexico town became part of the zeitgeist, driving decades of conspiracy theories from people who believe it was the crash site of an unidentified flying object used by aliens. The world’s first atomic bomb, developed at Los Alamos National Laboratory in the northern part of the state, was detonated at what is now the White Sands Missile Range, where the U.S. military still tests rockets.So in late 2005, when Gov. Bill Richardson announced a plan to collaborate with Virgin Galactic on a commercial spaceport in the state, it sounded to many like a natural fit — and a potential boon.“This is a unique opportunity for New Mexico to be on the ground floor of a new industry that will bring new companies, more high-wage jobs and opportunities that will move our state’s economy forward,” Mr. Richardson, who died in September, said when signing enabling legislation three months later.The reality of commercial space travel felt firmly within reach, and almost immediately Mr. Branson’s company began taking spaceflight reservations at $200,000 apiece.In 2006, construction began about 30 miles east of Truth or Consequences and ultimately used $218.5 million in public funds. From a distance, the circular structure, on 18,000 acres of sagebrush and yucca, looks almost like something from a sci-fi film. Cattle guards line the two-lane road that leads to its entrance. More than half the money to build it was allocated by the state, and the rest — $76.4 million — was generated from taxes in the local counties.Virgin Galactic’s rocket-powered plane, left, flew above its mother ship after its release on its way to the edge of space in August.Andres Leighton/Associated PressVoters in Doña Ana County approved a 0.25 percent gross receipts tax to support Spaceport in 2007, and Sierra County voters followed a year later. A state report released in 2005 estimated that by 2020, Spaceport could result in $550 million of additional annual economic activity and bring roughly 4,300 jobs to the area.“The economic impact of this new spaceport is potentially quite large, reflecting the strong upscale potential of the nascent space tourism industry,” the report said.The report also forecast 376 suborbital launches in 2019.In reality, it has created only a small fraction of that — $138 million in economic output in 2022 and about 800 jobs generated, according to a recent report from Spaceport. The first human spaceflight was in May 2021.“Looking at the numbers and what has taken place over the years, it’s been a bad investment,” said Shannon Reynolds, a Doña Ana County commissioner.Mr. Reynolds said Mr. Branson’s recent comments were dismaying.“If he will not invest in his own operation at Virgin Galactic, what are others supposed to deduce from this?” he asked. “I believe we bet on the wrong anchor tenant at the Spaceport.”‘This Has Been a Long Road’Allan Turk, director of aerospace operations for Spaceport America, giving a talk. In recent years, Spaceport and Mr. Branson found themselves up against an increasingly crowded field of billionaire competitors.Nine days after Mr. Branson’s 2021 suborbital spaceflight — the one Mr. Burger watched from his art gallery — Jeff Bezos took a similar voyage with his aerospace company, Blue Origin, which launched from rural West Texas. Elon Musk’s SpaceX, which was briefly a tenant at Spaceport, now has launch sites in Florida, Texas and California.For many local residents, their deep frustration has been caused not only by the delays but also by concerns about the use of public funds.In 2020, Dan Hicks, the executive director of Spaceport America, was fired after a whistle-blower came forward with allegations of financial mismanagement and abuse of authority.The state hired a firm to investigate, and the state auditor said it had found “a severe breakdown of internal controls that resulted in possible waste and abuse of taxpayer funds.”In an interview, Scott McLaughlin, who succeeded Mr. Hicks as Spaceport’s executive director, said the recently released economic impact report by his team pointed to encouraging signs on the horizon.“This has been a long road requiring patience by the citizens and policymakers,” Mr. McLaughlin said. He noted that aside from Virgin Galactic, another key tenant is SpinLaunch, a company building technology aimed at providing rapid, low-cost access to space. The company had its first test flight in 2021.“A main priority of mine,” said Scott McLaughlin, the executive director of Spaceport, “is to find new tenants.”“A main priority of mine,” Mr. McLaughlin said, “is to find new tenants.”He said a large part of his job involved talking to companies almost weekly about Spaceport and giving tours to prospective tenants a couple of times a month.“Many of the companies we are talking to, though, are very early stage in their technology development, so our recruitment might go over two or more years,” Mr. McLaughlin said. “With young companies, it is hard to know who will eventually succeed or fail.”Before dawn on a recent morning — days before Virgin Galactic announced its plan to halt launches in the middle of next year — more than a dozen STEM educators and students arrived at Spaceport America for what would be Virgin Galactic’s sixth and final launch of the year.The air was frigid, and the group huddled on a concrete slab a short distance from the runway. At 9 a.m., the Virgin Galactic aircraft, known as V.M.S. Eve, lifted off, carrying two researchers and a space tourist who had paid $450,000.The aircraft circled high above in the sky before the rocket plane, known as V.S.S. Unity, separated and hurled the crew toward the edge of space for several minutes, reaching nearly three times the speed of sound. From liftoff to touchdown back at Spaceport, the mission lasted about an hour. It then takes Virgin officials weeks to prepare Unity for another launch.“It’s quite something to see,” Mr. McLaughlin said in a parking lot where about a dozen onlookers had traveled to watch the flight.“Sometimes this lot is full,” he said. “Sometimes it is not.”Earthbound AttractionsThe game show “Truth or Consequences” pledged to do a broadcast from the first place to rename itself after the program. Hence the town’s name, since 1950.While Spaceport America’s launch site address is given as Truth or Consequences, the heart of the town of 6,000 people is a 40-minute drive away on the Rio Grande.The town, once called Hot Springs, got its name in 1950 after the host of the game show “Truth or Consequences” pledged to air the program on its 10th anniversary from the first place to rename itself after the show.This time of year, as winter transplants arrive to escape the cold, cars with license plates from Minnesota and Montana line the main road. On a recent afternoon, hours after the launch, the Spaceport America visitor center in town, inside an old adobe-style building, was empty.Kathleen Sloan, a local journalist and longtime resident, said she was tired of promises about Spaceport and found the whole situation to be a bit of a farce since Virgin Galactic aircraft could theoretically take off from some airports.Local residents, she said, “have paid enough.”And yet the town’s growth is undeniable.In a little over a year, PreReal Investments, based in New York City, has bought more than 100 properties in Sierra County at a cost of roughly $40 million. The company plans to resell the mixture of homes and commercial spaces.But while the company promotes the property’s proximity to Spaceport America, “our choice was driven by the county’s natural resources,” said James Prendamano, PreReal’s chief executive.The “hot springs, a wide array of world-class outdoor activities” were critical to his investments, he said.“There will always be an interest in space,” said Marianne Blaue, center, of the Truth or Consequences Brewing Company, “and I think that is beneficial for the community.”That type of investment is reassuring, said Marianne Blaue, who moved to town with her husband, John Masterson, in 2016 after they left tech jobs in Seattle.Eager to help build a sense of community in their new home, they soon opened Truth or Consequences Brewing Company, the first brewery in town, and have noticed a steady stream of fellow transplants arriving, especially since the pandemic began.While Ms. Blaue knew a bit about Spaceport before moving, she hadn’t realized just how close it was to her new home. They’ve had Spaceport and Virgin employees and a handful of customers on space missions stop in for a beer, said Ms. Blaue, whose selection includes space-named brews such as Star Eater Black I.P.A. and Cosmic Blonde.“There will always be an interest in space,” she said, “and I think that is beneficial for the community.”On the afternoon of the recent launch, Mr. Hanseck, who owns the gem store, watched as cars trickled past his shop. This time of year, he said, most of his clients are snowbirds in town for the winter.Arthur Burger at his art gallery. He recalls the moment in 2021, soon after his arrival, when he watched a rocket plane soaring into the sky and heard a resounding boom.While Mr. Hanseck unpacked cardboard boxes of merchandise, he considered the longstanding promise of space tourists descending on his community. He chuckled to himself.“I know what people come here for, and it’s not to go to space,” he said. “It is wishful thinking at best.”On the same afternoon, Mr. Burger was at his gallery, working with a local artist to put up a new painting.He has enjoyed escaping the saturated art scene of Santa Fe, he said. These days, he spends much of his time showcasing the work of Sierra County artists, including high school students.“Did you hear the boom?” he said with excitement to a patron who lives in town, referring to the sound when the V.S.S. Unity re-entered the atmosphere. “There are few places in the world where you can see and hear something like that.” More

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    U.S. Gas Prices Drop Ahead of Thanksgiving Travel

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    With OPEC Plus members in disarray over production levels, oil prices have fallen nearly 20 percent in three months.U.S. gasoline prices are plunging just in time for Thanksgiving, and with the OPEC Plus oil cartel in apparent disarray, they could be heading lower for Christmas.Lower prices at the pump have helped ease the inflation rate most of this year. But this week, they fell to levels not seen at this time of year since 2021, according to the AAA motor club, before the Russian invasion of Ukraine sent energy prices higher.“For consumers it’s a terrific tailwind,” said Tom Kloza, global head of energy analysis at Oil Price Information Service. “They are not going to have to spend an awful lot on travel in the next few months, and that should persist into the middle of the winter.”The national average price for a gallon of regular gasoline on Wednesday was $3.28, about 6 cents less than a week earlier and 27 cents less than a month ago. The price for a gallon of gas was $3.64 at the same time last year. Prices have dropped below $3 a gallon in more than a dozen states and are falling with particular speed in Montana, Florida and Colorado.The primary reason for lower gasoline prices is the recent weakness of oil prices, which have fallen by more than $15 a barrel, or nearly 20 percent, since early September. Demand for fuel has been weak in China and parts of Europe, while production has been strong in Brazil, Canada and the United States. Gasoline production at American refineries is running above demand in some parts of the country.Diesel prices have also eased, by about 23 cents a gallon over the last month and more than $1 a gallon in the last year. That should help reduce food prices because diesel is the primary fuel for agriculture and heavy transport.The drop in oil prices accelerated on Wednesday as reports emerged that the planned meeting of OPEC Plus, a group of 23 oil-producing countries led by Saudi Arabia, had been postponed from the weekend until next Thursday. Saudi Arabia had been expected to extend its cuts in production, while cajoling other countries to show restraint as well to bolster prices. But Nigeria and Angola are resisting, and lobbying for higher production quotas.“Reaching a new agreement to cut production will prove to be challenging,” said Jorge León, a senior vice president at Rystad Energy, a consulting firm.He said that although Russia and eight other members of the cartel agreed to cuts in June, “it would be difficult for these countries to accept even lower production quotas.”Energy experts say there could still be an agreement, especially if the United Arab Emirates, Kuwait and Iraq agree to voluntary cuts. Saudi Arabia might also be willing to go it alone with cuts because its government budget and ambitious economic plans depend on high prices.The uncertainty has served as a signal to traders to bail out of crude. “Savvy drivers will find savings on their way to a turkey dinner this year,” said Andrew Gross, a spokesman for AAA.AAA has predicted that more than 49 million Americans will drive to holiday destinations in the coming days, an increase of 1.7 percent from last year. Another 4.7 million will fly, a 6.6 percent increase from the last year and the highest number since 2005, according to the motor club.Airfares will be slightly more expensive than last year, the motor club said, but otherwise holiday travel should be cheaper. It said the average price for a domestic hotel stay is down 12 percent from last year, while rental car costs are 20 percent lower. More

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    Caen las tarifas aéreas en EE. UU., para alivio de los pasajeros

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    Las aerolíneas están comenzando a ofrecer precios de rebaja, una señal de que tienen problemas para llenar los aviones.En fechas recientes en Estados Unidos, las tarifas aéreas a muchos destinos populares han caído a su nivel más bajo en meses; incluso los viajes durante la temporada festiva son mucho más baratos que el año pasado. Esto les ha dado un respiro a los consumidores, tras meses de frustración por los elevados precios de todo tipo de bienes y servicios.La abundancia de buenas ofertas hace pensar que quizá la vigorosa recuperación de la industria aérea tras la pandemia por fin va bajando el ritmo, ya que la oferta de boletos se empareja con la demanda, que parece relativamente firme, e incluso la supera en algunas rutas.Tengamos en cuenta las tarifas que consiguió hace poco Denise Diorio, maestra jubilada de Tampa, Florida. Gastó menos de 40 dólares en un boleto de ida y vuelta a Chicago y solo pagó 230 dólares por un viaje redondo de Nueva York a París, el cual planea hacer este mes.“Les he venido diciendo a todos mis amigos que si quieren ir a alguna parte, deben comprar sus boletos ahora”, comentó.Las gangas que encontró quizá sean excepcionales, pero Diorio está en lo correcto cuando asegura que hay muchas ofertas.Este mismo mes, el precio promedio de un vuelo nacional cerca del Día de Acción de Gracias estaba casi un 9 por ciento por debajo del nivel del año pasado. En cuanto a los vuelos cerca de la Navidad, eran aproximadamente un 18 por ciento más baratos, según la aplicación de reservaciones y rastreo de precios Hopper. Kayak, el motor de búsqueda de viajes, analizó un rango más amplio de fechas cerca de las fiestas y descubrió que los precios de los vuelos nacionales eran alrededor de un 18 por ciento más bajos por la fecha del Día de Acción de Gracias y un 23 por ciento por Navidad.“En muchos casos, observamos algunas de las tarifas más bajas desde que se reanudaron los viajes tras los recortes de 2020, en realidad”, afirmó Kyle Potter, editor ejecutivo del blog de viajes y servicio de alerta de ofertas Thrifty Traveler.El precio de los boletos para vuelos dentro de Estados Unidos bajó durante el verano, aseveró Potter, y en épocas recientes es más común encontrar ofertas para viajes internacionales, en particular a Europa.Las aerolíneas bajan sus tarifas cuando quieren tentar a más personas a reservar boletos porque la demanda es baja o la competencia es más fuerte. Sin duda, la competencia se ha intensificado en algunas rutas, pero los expertos en viajes indican que no hay certeza de que la demanda vaya en declive.Se espera que el Día de Acción de Gracias de este año establezca una cifra récord para los viajes aéreos, con predicciones de casi 30 millones de pasajeros, según Airlines for America, un grupo de la industria. Esta cifra sería un 9 por ciento más alta que la del año pasado y estaría un 6 por ciento por encima de la de 2019, antes de la pandemia.Pero algunas aerolíneas afirman que la demanda va en descenso en los periodos que no son de festividades o temporada alta. Además, algunos aeropuertos han manejado tal número de vuelos que las compañías de transporte se han visto obligadas a reducir las tarifas para llenar los aviones.Ese no había sido un problema durante la mayor parte del periodo de recuperación tras la pandemia. El clima y otras perturbaciones limitaron la oferta de vuelos el año pasado y en 2021, al igual que la escasez de pilotos capacitados, repuestos y aviones, entre otros factores. Esas condiciones provocaron un alza en el precio de los boletos, mantuvieron llenos los aviones y ayudaron a las aerolíneas a obtener excelentes ganancias.“La industria de la aviación nunca había registrado el tipo de márgenes de ganancias y rendimiento sobre capital visto en los últimos 2 años y medio”, señaló John Grant, principal analista de la empresa consultora y de datos de aviación OAG. “Casi estamos de nuevo en una industria más normal”.Para las principales aerolíneas estadounidenses continúan los buenos tiempos, impulsados en particular por una gran demanda de vuelos internacionales. Pero las compañías más pequeñas y de bajo costo han comenzado a sufrir. Varias revelaron resultados financieros decepcionantes para el trimestre concluido en septiembre. Los ejecutivos de esas aerolíneas han dicho que la demanda va en descenso, las tarifas han caído y los costos se han mantenido elevados. También señalan que el mal clima y la escasez de controladores de tráfico aéreo les han complicado la operación aérea.Por ejemplo, JetBlue Airways perdió 153 millones de dólares en el tercer trimestre, en contraste con las ganancias de 57 millones de dólares registradas en el mismo periodo el año pasado. La empresa indicó hace poco que planea cambiar algunos vuelos de mercados abarrotados, como Nueva York, a otros en los que espera un mejor desempeño, como el Caribe. Las compañías de transporte económicas Spirit Airlines y Frontier Airlines les informaron hace poco a los inversionistas que buscaban recortar decenas de millones de dólares en costos.La competencia ha sido aguerrida en algunos mercados importantes, lo que ha impulsado a la baja las tarifas y las utilidades.En Denver, donde se encuentran las oficinas generales de Frontier, este verano hubo un 14 por ciento más asientos disponibles que en el verano de 2019, según la proveedora de datos de aviación Cirium. Miami y Orlando, Florida, dos destinos populares a los que vuelan muchas empresas, experimentaron aumentos en capacidad todavía mayores.No obstante, mientras que las aerolíneas añadieron vuelos en mercados populares en busca de captar pasajeros, en aeropuertos de otras ciudades, como Los Ángeles, un centro de actividades de muchas aerolíneas importantes, se observaron reducciones considerables en la capacidad con respecto al verano de 2019.“Es evidente que existe una enorme correlación entre las aerolíneas que funcionan bien y aquellas que tienen dificultades, en términos de sus márgenes, cuando comparamos dónde están sus concentraciones”, señaló el mes pasado Barry Biffle, director ejecutivo de Frontier, durante una teleconferencia para presentar los resultados de la aerolínea correspondientes al tercer trimestre.En cuanto a las rutas internacionales, los analistas no saben con tanta certeza por qué las tarifas van a la baja ni si se mantendrán así. Gangas como las que consiguió Diorio para su viaje a París podrían ser señal de que las aerolíneas más grandes pronto enfrentarán presiones financieras o sencillamente que la industria va regresando a una normalidad prepandémica.“Por lo regular, la demanda de viajes a Europa baja durante el invierno”, explicó Steve Hafner, director ejecutivo de Kayak. “Así que me parece que eso refleja las tendencias normales”.Pero la demanda de viajes internacionales podría enfrentar obstáculos, en parte debido a las guerras de Medio Oriente y Ucrania. Los analistas también advierten que muchos consumidores quizá estén menos dispuestos a derrochar dinero en viajes o tengan menos posibilidades de hacerlo ahora que en los dos años pasados, cuando contaban con el dinero que habían ahorrado durante la pandemia. Incluso si la demanda se mantiene firme, las aerolíneas corren el riesgo de ofrecer demasiados asientos en rutas populares al extranjero.Cualquiera que sea la causa de la reciente caída de las tarifas, las ofertas son un bienvenido alivio para los viajeros después de sufrir años de precios altos, dijo Potter.“En cualquier caso, la receta para vuelos baratos está ahí”, afirmó. “Si se trata solo de un pequeño exceso de capacidad, es una victoria para los consumidores. Si la demanda de viajes está cayendo, en cierto modo es una ganancia aún mayor para las personas que nunca van a renunciar a viajar”.Niraj Chokshi escribe sobre la aviación, los ferrocarriles y otras industrias del transporte. Más de Niraj Chokshi More

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    Sharp Drop in Airfares Cheers Inflation-Weary Travelers

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    Airfares to many popular destinations have recently fallen to their lowest levels in months, and even holiday travel is far cheaper than it was last year, providing some welcome relief to consumers who have been frustrated for months by high prices for all manner of goods and services.The glut of deals suggests that the airline industry’s supercharged pandemic recovery may finally be slowing as the supply of tickets catches up and, on some routes, overtakes demand, which appears relatively robust.Consider the fares that Denise Diorio, a retired teacher in Tampa, Fla., recently scored. She spent less than $40 on flights to and from Chicago and paid just $230 for a round-trip ticket from New York to Paris and back, a trip she plans to take this month.“I’ve been telling all my friends, ‘If you want to go somewhere, get your tickets now,’” she said.The bargains she found may be exceptional, but Ms. Diorio is right that deals abound.Early this month, the average price for a domestic flight around Thanksgiving was down about 9 percent from a year ago. And flights around Christmas were about 18 percent cheaper, according to Hopper, a booking and price-tracking app. Kayak, the travel search engine, looked at a wider range of dates around the holidays and found that domestic flight prices were down about 18 percent around Thanksgiving and 23 percent around Christmas.“In a lot of cases, we’re seeing some of the lowest fares that we’ve seen really since travel started coming back after the drop-off in 2020,” said Kyle Potter, executive editor of Thrifty Traveler, a travel blog and deal-watching service.Domestic ticket prices fell over the summer, Mr. Potter said, and deals on international travel, particularly to Europe, have become more common recently.Airlines lower their fares when they are trying to get more people to book tickets as demand is slowing or they are facing stiffer competition. There’s little question that competition has intensified on some routes, but travel experts say it’s not clear whether demand is waning.Thanksgiving this year is expected to set a record for air travel, with nearly 30 million passengers forecast, according to Airlines for America, an industry group. That would be about 9 percent more than last year and 6 percent more than in 2019, before the pandemic.But some airlines say demand is slowing outside of holiday and other peak travel periods. In addition, some airports have been so flooded with flights that carriers have been forced to cut fares to fill planes.That hadn’t been much of a problem for most of the recovery from the pandemic. Weather and other disruptions limited the supply of flights last year and in 2021, as did shortages of trained pilots, parts and planes, among other factors. That drove up ticket prices, kept planes full and helped airlines take in strong profits.Thanksgiving this year is expected to set a record for air travel, with nearly 30 million passengers anticipated.Stefani Reynolds for The New York Times“The airline industry has never delivered the types of profit margins and return on capital that it has done over the last 2.5 years,” said John Grant, chief analyst with OAG, an aviation advisory and data firm. “We’re getting back to a more normal industry.”For the largest U.S. airlines, the good times have continued, fueled in particular by thriving demand for international travel. But smaller and low-fare carriers have started to suffer. Several reported disappointing financial results for the three months that ended in September. Executives at those airlines have said demand is weakening, fares are falling and costs remain high. They also say bad weather and a shortage of air traffic controllers have made flying more difficult.JetBlue Airways, for example, lost $153 million in the third quarter, compared with a $57 million profit in the same period last year. The company said recently that it was moving flights away from crowded markets, such as New York, to those where it expected stronger performance, such as the Caribbean. The budget carriers Spirit Airlines and Frontier Airlines recently told investors that they were looking to cut costs by tens of millions of dollars.Competition has been fierce in some important markets, driving down fares and profits.In Denver, where Frontier is based, about 14 percent more seats were available on flights this summer than in the summer of 2019, according to Cirium, an aviation data provider. Miami and Orlando, Fla., two popular destinations served by many budget carriers, saw even larger increases in capacity.But while airlines added flights in popular markets as they chased passengers, airports in other cities, including Los Angeles, a hub for several major airlines, had large declines in capacity from the summer of 2019.“You’ll find that there’s a large correlation between the airlines that are doing well and the ones that are struggling, margin-wise, when you compare where their concentrations are,” Barry Biffle, Frontier’s chief executive, said last month on a conference call to discuss the airline’s third-quarter results.When it comes to international routes, analysts are less certain of why fares are falling and whether they will remain low. The kinds of deals that Ms. Diorio got for her Paris trip could mean that larger airlines soon find themselves facing a financial squeeze or merely that the industry is returning to a prepandemic normal.“Historically, demand to Europe softens in the winter,” said Steve Hafner, Kayak’s chief executive. “So I think that reflects normal trends.”But demand for international travel could face challenges, partly because of the wars in the Middle East and Ukraine. Analysts also warn that many consumers may be less willing or able to splurge on travel than they were in the last couple of years, when they had pandemic savings to draw from. Even if demand remains strong, airlines risk offering too many seats on popular overseas routes.Whatever the cause of the recent drop in fares, the deals are a welcome break to travelers from years of high prices, Mr. Potter said.“Either way the recipe is there for cheap flights,” he said. “If it’s just a little bit of overcapacity, that’s a win for consumers. If travel demand is dropping, in some ways that’s an even bigger win for people who are never going to give up on travel.” More

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    Chile, Known for Its Wines and Piscos, Turns to Gin

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    Last Hope Distillery is one of the only real cocktail bars in Puerto Natales, a horseshoe of a city that wraps around a windy inlet in Chilean Patagonia. To enter, visitors buzz, speakeasy-style, then hang up their coats and settle in at the bar. A server sets a glass down.“Hi,” the server says. “Have you ever tried gin?”The question can surprise international visitors, most of whom, familiar with the juniper-flavored spirit, have come for a hike in nearby Torres del Paine National Park. But gin is new to some Chileans, so Last Hope’s servers don’t make assumptions.The approach started out of necessity, said Kiera Shiels, who moved to Chile from Australia with her partner, Matt Oberg, and opened the bar. Guests would turn up, unsure of what to expect. “They hadn’t had gin,” Ms. Shiels said. “They’d barely had cocktails.”Last Hope, which began selling gin in 2017, was one of the first gin distillers in Chile. But in the past few years, the country’s gin industry has exploded. From Last Hope (in the south) to Gin Nativo (in the north), there are now about 100 gin brands across the country. And many are winning international recognition.Botanicals prepped for use at Gin Elemental’s distillery on the outskirts of Santiago.Tomas Munita for The New York TimesJust last year, a gin made by Gin Elemental, distilled on the outskirts of Santiago, was awarded a gold medal at the SIP awards, an international, consumer-judged spirits competition, among others. Gin Provincia, made in Chilean wine country, earned the second-highest score at the London Spirits Competition, just one of its honors. And Tepaluma Gin, in the Patagonian highlands and rainforests, won a gold at the International Wine and Spirit Competition, one of several awards.“You will see a lot more coming from Chile,” said Andrea Zavala Peña, who founded Tepaluma Gin — one of Chile’s first distilleries — with her husband, Mark Abernethy, in 2017.“Whether the world knows it or not,” she said, “we’re coming.”Camila Aguirre Aburto, a brand ambassador for Gin Provincia, prepares cocktails at a bar in Santiago.Tomas Munita for The New York Times‘The wild has a particular taste’Fifty years after a coup established a brutal 17-year dictatorship, and just four years after an eruption of mass protests, Chile continues to struggle with deep social divisions. But the country is also working hard to remake its international reputation.Long known for its wine, Chile is now an established destination for adventure travelers after it expanded its natural parks and enticed more visitors to Patagonia. Chilean gin, its makers say, can act as a bridge between these two marketing pitches, building on Chile’s reputation for producing distinctive alcohol and effectively bottling its wilderness.“We have one of the last wild areas of the world,” Ms. Zavala Peña explained. “And the wild has a particular taste.”Capped by the Atacama Desert, shod by Patagonia, and squeezed between the Andes and the Pacific, Chile has no shortage of natural diversity. The country’s gin distillers aren’t only interested in making the best London Dry, said Teresa Undurraga, the director of the Chilean Gin Association. Instead, they are also trying to make gins that taste like Chile.“This is why we are using native herbs,” said Ms. Undurraga, a founder of the distiller Destilados Quintal. “We want to spread our flavors.”A tray of botanicals used to prepare gin at Destilados Quintal, in Santiago.Tomas Munita for The New York TimesGin is an ideal base; the neutral, juniper-based alcohol takes on the flavors of added ingredients. Chile’s distillers hope that the herbs and berries they infuse can serve as a passport — an invitation to visit, taste and see. In fact, many Chilean distillers import the alcohol. It’s easier and cheaper. The add-ins, they say, are what counts.“It’s like a painting,” said Gustavo Carvallo, the co-founder of Gin Provincia, looking out at the famous Colchagua Valley, which surrounds his distillery. The corn alcohol, which he imports from the United States, serves as the canvas. “All the botanicals are the colors.”Beyond the ‘Ginaissance’Chile’s booming gin industry comes at what might be the tail-end of a global revival, sometimes called the “Ginaissance,” which began in Britain over a decade ago, partially under the influence of the American craft distilling movement.The spirit was once seen as fuddy-duddy — a relic of colonial Brits trying to dodge malaria. But international experiments have aired out its reputation. There are distillers in Spain, India, South Africa, Australia, Brazil and Vietnam, among a slew of other countries. And gin is now seen as sophisticated, even worldly. The old-world quinine chaser has been reinvigorated by its new cosmopolitan devotees.Like many alcohols, gin can “capture a sense of place,” said David T. Smith, the chair of the World Gin Awards and the author of several books about gin, including “The Gin Dictionary.” But it’s often easier — and cheaper — to make gin than it is to make many other spirits, Mr. Smith said, which is partly why the industry in Chile grew so quickly.Jorge Sepulveda, who created the recipe for Gin Elemental, at his distillery on the outskirts of Santiago.Tomas Munita for The New York TimesJorge Sepulveda, who created the recipe for Gin Elemental, which also won gold at the London Spirits Competition this year, learned the basics on YouTube in just a few hours, he said. He started in the early days of the coronavirus pandemic after being encouraged by a friend, Ariel Jeria, who works in advertising and noticed the rising interest in Chilean gin.Mr. Sepulveda was already a talented cook, he suggested. Why not give gin a try?But Mr. Sepulveda had barely tried gin before. So, in lockdown, he began experimenting in a tiny countertop still. “I studied for two days,” Mr. Sepulveda said, standing near the still in his distillery. “I said: ‘OK, I can make it.’”The first few tests, he admits, weren’t perfect. So Mr. Sepulveda reassessed, settling on a method that uses the Fibonacci sequence to determine the ratios of his ingredients.“That is the number of God,” said Mr. Sepulveda, a geophysicist, who has since made other gin recipes using a similar philosophy. “Nature is physics. So it has to work.”Gin vs. pisco, whiskey and wineChilean gin faces stiff competition with the country’s three most beloved alcohols: pisco, whiskey and wine. But the production of gin has practical advantages.The first is accessibility. Pisco comes from specific regions of Chile and Peru. (In that way, it’s a little bit like Champagne or Parmesan.) Gin doesn’t. It is an everywhere alcohol, which makes it an anywhere alcohol. Anyone can make it.“The recipe for gin is endlessly adaptable, so you can do whatever you like,” said Henry Jeffreys, a British drinks writer.The second is time. Whiskey, which is considered the most high-end alcohol by many Chileans, takes years to mature in barrels. But gin can be ready days after it’s made.Visitors to Last Hope Distillery, for example, can sip Last Hope gin cocktails while bending over oak barrels out back to sniff the first batch of Last Hope whiskey — which has years to go before it’s on the market.The third is a lack of pretension. Wine, like whiskey, demands refinement. Only a drinker with a certain training can tease out the differences in origin from a single sip. Not so for gin. The botanicals are hi-hats, neons, easy to recognize and understand. Even the most unstudied reporter, drinking a gin and tonic after a days-long Patagonian backpacking trip, can taste the different flavors — many of which come from ingredients that were grown near the distillers’ homes.Mr. Carvallo, of Provincia, harvests boldo from a shrub mere steps from the distillery. (Chileans use tea made from boldo leaves as a folk medicine to soothe a range of ailments, including stomach aches.)“This is what moves us,” he said, rubbing a leaf between his fingers. “We’re trying to show what Chile has in botanicals and in its culture.”The botanicals used to make gin at Zunda.Tomas Munita for The New York TimesUrban flavorsIn the heart of Santiago, Eduardo Labra Barriga is trying to make a gin that tastes like the city itself: “A Santiago gin,” he said. “An urban gin.” He called it Pajarillo, named for a little bird that flies everywhere in the city. And he relies heavily on lavender, rosemary, pink pepper and cedron leaves, which grow in bushes across the capital. He and his wife have set up a trade program: Neighbors exchange leaves for a cheaper refill.Elsewhere in the capital, artisanal gins are still just starting to catch on in the hottest bars. Even among the city’s social elite, many prefer to stick with the familiarity of a high-end pisco or an imported whiskey.As a result, some distilleries are hiring representatives to help promote their products.Camila Aguirre Aburto works as a brand ambassador for Gin Provincia. Before she designs a custom cocktail for a bar, Ms. Aguirre starts with a lesson; she knows that for Chilean gins to catch on, bartenders need to teach people about the gin’s terroir.First, she shares samples of dried juniper, to explain the gin’s base flavors. Then she shows off the botanicals, like boldo, that give the gin flavor. Only then does she allow her clients to taste the spirit.“Close your eyes, smell the gin,” says Ms. Aguirre, who learned English by watching the “Scream” movies and speaking to friends. “Feel the forest after the rain.”At first the invitation feels like a tease. But then, just maybe — is that a lush valley at the roof of one’s mouth? Or, maybe, in the tickle of a nostril, the winds of Patagonia? Is that Chile on the tip of a tongue?Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2023. More