Argentina has recently become a hotspot for travelers from neighboring countries, such as Chile and Uruguay, who are taking advantage of the country’s currency crisis and multiple exchange rates. These visitors are flocking to Argentina to enjoy cheaper prices on goods and experiences, ranging from ski trips to steak lunches.
The surge in tourism from Chile and Uruguay is evident, as the number of visitors from these countries has more than doubled in the past year. The vast difference between Argentina’s official exchange rate and the parallel exchange rate further highlights this tourism boom. While one dollar officially equals 268 pesos, foreign visitors using credit cards are charged a parallel exchange rate of nearly 500 pesos per dollar. Some tourists even resort to the black market to exchange their US dollar bills at a similar rate.
One of the main attractions for visitors is the significant price difference for basic goods. According to a survey by Uruguay’s Catholic University, it is around 59% cheaper to buy these goods in the Argentine border town of Concordia compared to its counterpart in Uruguay. As a result, Uruguayan tourists have spent over $900 million in Argentina in the year ending March 31.
The affordability of Argentina is drawing tourists from across the border, such as Wilson Bueno from Uruguay. Bueno and his wife traveled to Buenos Aires to visit relatives, and their dollars stretched far enough to include a day-trip to a horse ranch. Filling the tank in Argentina costs less than half of what it does in Paysandu, Bueno mentioned, emphasizing the significant savings.
However, while the influx of tourists benefits Argentina’s tourism industry, it remains a financial burden for the country. The spending by Argentine citizens abroad surpasses the money coming in from foreign visitors. This poses a challenge for President Alberto Fernandez’s administration, which has implemented stricter capital controls to protect the central bank’s dwindling hard currency reserves, risking pushing the economy closer to recession.
Despite this, tourism agencies have witnessed a substantial increase in bookings from Uruguayans, especially for destinations like Bariloche, El Calafate, and Mendoza. The lower cost of living in Argentina, particularly for meals, makes it an attractive option for travelers. In fact, a meal can cost three to four times less in Argentina compared to Uruguay.
The popularity of skiing in Argentina has also led to charter airlines, like Andes Lineas Aereas, starting direct flights from Montevideo to Bariloche. The cost of a one-day adult pass at Bariloche’s Catedral ski resort is approximately $58 at the parallel rate, whereas in Chile’s Valle Nevado resort, it is $77.
Marcela Hoffens from Chile experienced the shopping allure of Argentina firsthand when she visited Mendoza. Hoffens and her husband stocked up on groceries, utilizing their duty-free quota, and were amazed by the significant price difference. In Mendoza, they found one toothbrush to cost the same as seven in Chile. The influx of Chileans at supermarkets has been so significant that wholesalers in Mendoza have started setting specific hours for foreigners to shop.
While the surge in tourists benefits Argentina’s tourism industry, it also poses economic challenges. As the government strives to protect its currency reserves, it must strike a balance between capital controls and stimulating economic growth. Nonetheless, the affordability and attractions of Argentina continue to draw visitors from neighboring countries, providing a boost to the country’s tourism sector.
