Over the last nine months, Argentina saw an influx of 5.3 million foreign tourists, according to the Ministry of Tourism.
These visitors spent around $3.71 billion. September alone welcomed 580,000 international guests, contributing $345 million to the economy.
In terms of numbers, 2023 is shaping up to be a strong year.
Government projections suggest more than 7 million foreign visitors will arrive, spending over $5 billion. This beats the figures from four years ago.
So why are international tourists flocking to Argentina? Multiple factors come into play.
These range from robust air connectivity and aggressive overseas promotions to the nation’s natural beauty. But one key driver stands out: the dollar exchange rate.
Economist Santiago Manoukian from Ecolatina states that the real exchange rate influences international tourism.
A rising exchange rate makes domestic destinations cheaper compared to international ones. Thus, it encourages foreign arrivals while dissuading locals from traveling abroad.
This year, the free dollar rate skyrocketed from $400 to nearly $500 in just days. The government took advantage of this by enhancing exchange rates for foreigners.
This strategic move boosted foreign tourist numbers, especially in border cities.
Dollar Exchange Rate
These areas saw historic levels of international visitors, many of whom arrived for shopping sprees.
However, there’s a downside. Argentina has faced a long-standing tourism deficit.
This means that the money spent by Argentinians traveling abroad usually surpasses that spent by tourists visiting Argentina.
Despite the current tourism surplus, this deficit in the balance of payments remains challenging.
Looking ahead, as the free dollar rate approaches 1,000 pesos, many wonder what the impact will be.
Currently, businesses are already using this high rate to boost sales, encouraging ongoing foreign arrivals.
Still, questions remain on how this will affect Argentina’s overall financial health.