Uruguay anticipates a 16% increase in Summer tourism spending, driven by Argentine visitors due to favorable economic changes, including the recovery of the peso. Increased affordability and government incentives make Uruguay a more appealing vacation spot, contrasting with the Brazilian market. Overall, the upcoming season is projected to see over 400,000 additional tourists, indicating a robust rebound in Uruguayan tourism.
Uruguayan tourism experts anticipate a promising Summer season, projecting a 16% growth in expenditures from foreign visitors, particularly from Argentina. This forecast is driven by the recent recovery of the Argentine peso against the US dollar under President Javier Milei’s administration. In contrast, Brazil faces challenges following a devaluation of the Brazilian real. Notably, there has already been a marked increase in bookings from Argentine tourists, reflecting a rebound in travel activity despite economic hurdles in Brazil.
The upcoming 2024/2025 season is expected to contrast sharply with previous years, especially considering that in 2023 alone, Argentine tourists spent approximately US$ 1.2 billion in Argentina. This trend appears to be reversing as Uruguay gains favor. Particularly evident at the San Martin International Bridge in Fray Bentos, long car lines signal the influx of Argentines seeking vacations in Uruguay. In the days leading up to Christmas, approximately 40,000 Argentines and 9,000 Brazilians crossed into Uruguay, straining border facilities with extensive delays.
The comparative affordability of Uruguayan destinations has attracted Argentine tourists who find vacation options along the Argentine coast to be significantly more expensive. Additionally, due to economic constraints, many Uruguayans are reducing their shopping trips to Argentina, rendering Uruguay a more convenient vacation destination.
On the policy front, Uruguayan authorities have introduced appealing tax incentives for Argentine visitors, including a full exemption from VAT on food services and vehicle rentals. Furthermore, changes in Argentina under President Milei have eliminated the 30% PAIS tax on credit card transactions abroad, making excursions to popular destinations like Punta del Este more economically viable.
According to the Uruguayan Real Estate Chamber, the increase in tourism is projected to bring over 400,000 additional tourists compared to last year, indicating a robust 16% rise in tourism-related spending across the country.
The projected growth in tourism is situated against a backdrop of fluctuating exchange rates in South America, particularly between the Argentine peso and the US dollar. Under the leadership of Javier Milei, significant economic reforms in Argentina have influenced cross-border travel patterns. The removal of certain taxes on international credit card transactions, along with favorable economic conditions in Uruguay, has positioned the country as an enticing holiday option for Argentine nationals, highlighting a shift in regional tourism trends. This article emphasizes the significant role that competitive pricing and government incentives play in attracting tourists, particularly from Argentina and Brazil.
In summary, the predicted 16% increase in tourism spending from Argentine visitors reflects a significant recovery in Uruguayan tourist activity for the upcoming Summer season. Favorable economic conditions, competitive pricing, and government incentives are likely to attract a substantial number of Argentine tourists. This trend represents a potential shift in regional tourism dynamics, suggesting that Uruguay may reclaim its status as a preferred holiday destination for Argentine nationals, especially in light of recent economic changes in Argentina.
Original Source: en.mercopress.com
