Uruguay Expects Increased Argentine Tourism to Boost Summer Economy
Uruguayan tourism analysts foresee a 16% increase in foreign traveler spending this summer, largely attributed to the recovery of the Argentine peso and rising numbers of Argentine tourists. The affordability of vacation options in Uruguay compared to Brazil, along with favorable tax incentives for Argentines, bolsters this positive outlook. Uruguayan authorities estimate an additional 400,000 tourists compared to last year, signaling a significant rebound in the tourism sector.
Uruguayan tourism analysts anticipate a robust summer season bolstered by a significant increase in Argentine tourists, projecting a 16% rise in spending from foreign travelers. The recent recovery of the Argentine peso against the US dollar, under the administration of Javier Milei, is poised to encourage more Argentines to vacation in Uruguay. In contrast, Brazil’s recent currency devaluation may detract potential visitors from that region.
Booking trends indicate a marked increase in Argentine tourists, strengthening the tourism sector’s recovery following Brazil’s economic difficulties. The upcoming 2024/2025 season is expected to markedly differ from previous years; in 2023, approximately US$ 1.2 billion was spent by Uruguayans in Argentina, a trend that is now believed to be reversing.
At the San Martin International Bridge in Fray Bentos, long lines of vehicles signal the arrival of numerous Argentines seeking vacation experiences in Uruguay. Leading up to Christmas, around 40,000 Argentines and 9,000 Brazilians crossed into the country, resulting in busy border crossings and extended waiting times. The relative affordability of prices in Uruguay, especially when compared to the higher costs found on the Argentine coast, has made it an appealing destination for many Argentine vacationers.
Additionally, Uruguayans are increasingly refraining from shopping trips to Argentina due to the country’s ongoing economic issues, making a local vacation more convenient. In response to this shifting landscape, Uruguayan authorities have introduced favorable tax incentives, such as a full VAT exemption on food services and car rentals for Argentine visitors.
The current climate may also prompt some Uruguayans to travel to Brazil to take advantage of favorable exchange rates. Under President Milei’s leadership, the repeal of the 30% PAIS tax on credit card transactions for international payments has rendered vacations to popular locations like Punta del Este more budget-friendly. The Uruguayan Real Estate Chamber estimates an increase of 400,000 additional tourists compared to the previous year, projecting a substantial rise in overall tourism expenditure.
The economic relationship between Uruguay and Argentina is significantly influenced by currency fluctuations and taxation policies. The recovery of the Argentine peso against the US dollar has empowered Spaniards’ purchasing power, making vacations in Uruguay more inviting. Conversely, Brazil’s recent economic challenges and currency devaluation have negatively affected its tourism sector. In light of these conditions, experts predict that the shift in tourist behavior could significantly boost Uruguay’s economy, particularly during the summer tourism season. Furthermore, tax incentives and favorable travel conditions under the current Argentine administration have further encouraged inter-country travel, promoting increased cross-border tourism.
In conclusion, Uruguay is optimistic about the upcoming summer tourism season, largely driven by an expected influx of Argentine visitors benefiting from improved economic conditions. This anticipated growth, supported by attractive pricing, tax incentives, and the avoidance of travel taxes, will likely contribute to a notable increase in tourism spending and activity compared to previous seasons. The interplay of these factors points to a promising economic boost for the Uruguayan tourism sector.
Original Source: en.mercopress.com
