Carnival 2026 Survival Guide: VAT Cut to 8%, Banks Closed, Roads Washed Out, and 47,000 Police Deployed

Carnival is Ecuador's biggest party weekend — and one of its most logistically challenging. Whether you're heading to the coast, staying home in the Sierra, or just trying to get cash out of an ATM, here's what you need to know for February 14-17, 2026.

VAT Drops to 8% for Tourism

President Noboa's government has temporarily cut the IVA (Ecuador's value-added tax) from 15% to 8% on tourism-related services for the Carnival holiday. The reduction applies from Saturday, February 14 through Tuesday, February 17.

Covered services include:

• Hotels, hostels, and posadas
• Restaurants, cafes, and food-and-beverage establishments
• Tourist transportation

Important: Only businesses officially registered with the Ministry of Tourism qualify. Your favorite corner almuerzo probably won't have the discount — but major hotels and registered restaurants will. Ask before assuming.

Banks Closed February 14-17

All physical bank branches will be closed Saturday through Tuesday. The banking association Asobanca confirmed that financial services will remain available through alternative channels:

• ATMs — withdrawals and deposits
• Mobile banking apps — transfers, payments, balance checks
• Non-bank correspondents — transfers and payments at pharmacies and stores
• Some mall branches may open from 10:00 AM (check your bank's website)

Action item: Handle any in-person banking by Friday afternoon. If you need to deposit a check, pay a bill in person, or deal with a banking issue that requires a teller, do it today.

Three Highways Fully Closed, Many More Restricted

Heavy rains have caused serious damage to Ecuador's road network. As of February 13:

Completely Closed

| Route | Province | Reason | |-------|----------|--------| | Quevedo–San Carlos–Anillo Vial | Bolívar | Landslide | | San Luis–Túneles de Coca Codo | Napo | Road collapse | | Vía Paquisha Bellavista | Zamora Chinchipe | Bridge collapse |

Partially Open (Expect Delays)

• Routes connecting Cuenca to southern Ecuador
• Several highways in the central highlands
• Multiple Amazonian province roads

Check ECU 911 social media accounts and @Abordo_EC before departing. Conditions change rapidly during heavy rain.

46,748 Police Officers Deployed

Ecuador's National Police activated "Operación Carnaval" running February 13-18. The deployment includes:

• 32 highway checkpoints (23 fixed, 9 at priority locations)
• Patrols at beaches, parks, shopping centers, and bus terminals
• 4,300+ officers conducting nighttime interdiction targeting impaired driving
• Checkpoint inspections on all major routes

If you're driving, expect to be stopped. Have your license, cédula or passport, and vehicle registration ready. Don't drink and drive — the enforcement is real this weekend.

Labor Rules: Double Pay Is Mandatory

Monday, February 16 and Tuesday, February 17 are mandatory national holidays under Ecuador's Labor Code. Key rules:

• The holidays are non-recoverable — employers cannot require workers to make up the time
• If employees work those days, they must receive a 100% premium (double their normal hourly rate)
• Calculation: divide monthly salary by 240 hours, then double that rate

If you employ domestic workers, a property manager, or other household staff and they work Monday or Tuesday, you owe them double pay. This is not optional.

Carnival Tourism Expected to Generate $80-100 Million

Hotel occupancy is approaching 90% in Ambato, Cuenca, and Santa Elena. Salinas and Baños are also seeing strong demand. If you haven't booked accommodations, options will be limited and expensive.

What This Means for Expats

• Save money: Take advantage of the 8% VAT at registered hotels and restaurants — that's a 7-percentage-point discount on every meal and hotel night
• Get cash: Hit the ATM or do your banking Friday. You'll have four days of branch closures
• Check roads: If driving to the coast or between cities, verify road conditions through ECU 911 before leaving. Carry extra water and snacks in case of delays
• Pay your staff: If your empleada, jardinero, or property manager works Monday or Tuesday, budget for double pay
• Stay safe: Nearly 47,000 police on the streets is both reassuring and a reminder that Carnival draws crowds and crime. Keep valuables secure, especially at beaches
• Expect water: Carnival in Ecuador means water fights. If you walk through town, you will get wet. Dress accordingly and protect your phone

Sources: Primicias, Expreso, Teleamazonas, Asobanca