Effects of inflation on tourism

[Fettucini]

Does anyone know how tourism in Buenos Aires is doing at the moment? Is it down from say the last few years or still fairly level? Wondering if and how much inflation is affecting the number of foreigners visiting short and long term to BA, and if for example the boutique hotels are still staying booked up like they were a few years ago when i worked in property here.
Also i'm just interested in why people come to visit here.. for me BA doesnt have much to offer, but I've sort of tied myself down with things here so got a bit stuck! I'd like to hear what attracts people to live in BA compared to say a city like London, Barcelona, Rome, New York... now that prices have got so high.

 

[chris]

You have raised two topics here: 1) tourism 2) why expats LIVE here.

1) I am surprised that there is still a lot of tourism given the huge rise in air fares and the massive inflation in BA. Seems a lot of the tourists are Brazilian, though. Argentina is apparently much cheaper than Brazil nowadays. There may be a drop in American/European tourism.
2) Why do expats stay in BA? That's been talked about a lot on various threads. A lot seem to have left and the tone of the expats, at least the ones who post here, is a lot more negative than it used to be. Some people have been around a long time and don't want to give up, some have personal reasons for staying in Argentina (married to Argentines who don't want to leave etc.)

I agree that cities like London and Paris have a lot more to offer - access to so much history and culture to begin with. London and Paris are quite a bit more expensive cities, though. It's still possible to buy a very nice apartment in BA that would be unaffordable in London or Paris. Granted, the day to day COL in Argentina is getting quite high, closer to the US I'd say than to Europe.

 

[jb5]

The New York Times recently did a story on where the bargains are in LAM and Baires was #1. It's still a real bargain compared to London and Paris, hotels are in general are less than half the price than in those cities.

 

[dr__dawggy]

The New York Times recently did a story on where the bargains are in LAM and Baires was #1. It's still a real bargain compared to London and Paris, hotels are in general are less than half the price than in those cities.

True enough, but these days it is less expensive to vacation in San Diego, Seattle, Miami or most anywhere else in the US than in BA, particularly when the cost of air fare and the 140 dollar per person reciprocity fee are factored in.

 

[citygirl]

Anecdotal evidence but of the people I know that deal with tourists (renting apts, teaching, etc) - they tell me that they have a lot less clients from the US, fewer Europeans and a lot more clients from Brasil and other S. American countries.

Makes sense to me. Btwn flight costs, entrance fee and general rise in prices, (if you're in the US) - I would certainly be looking at Europe.

Whomever mentioned hotels - true, they are cheaper here. However, with the average hotel rate is the $200 USD and up per night, I'm not sure I'd call them a bargain.

Just thinking out loud - say I have a week vacation that I'm taking with my bf/gf/friend/whomever. 2 flights from US (NY) to BA - 3000 USD. A week in an average hotel 1400. Two entrance fees, 280 USD (is it 140 a person now? or 130?) Let's estimate you want to have nice dinners and go out for drinks, etc. Probably 100 USD per person per day . So in total, 7000 USD for a week? I'm guessing there wouldn't be that much of a price difference to do that week in Paris or London. The hotels would be more but no entrance fee and flights are A LOT cheaper.

 

[sinagua980]

I have friends in US hoping to visit me in BA, and they are shocked at the high prices. They keep suggesting we meet up in Costa Rica or somewhere cheaper for them to fly to. It's the airline costs that are making them quiver (avg $1300). They're hoping for trip that totals that amount! I've clued them in on getting a credit card that earns points. My wife and I paid a total of less than $800 for two round trip tickets.

 

[Ries]

as a yo yo, not an expat, who lives primarily in the US, I would say that the inflation in Argentina has about zero effect on this.

The big factors are:

The recession in the USA- a LOT of people are a lot broker than they were in 2007, and even if they arent, they are being much more cautious about spending money.

Airfares- although I fly almost exclusively on frequent flyer miles, retail prices on tickets from Seattle to BsAs have gone from around $800 to $1200 and above, in the last couple of years. This is a pretty big bite- $400 still goes a long way in Buenos Aires.

I really dont think the entrance fee is a big factor for any but the backpacking sector- I have a lot of friends who are older, who go to Argentina for wine, tango, art, and culture, and frankly, once they commit to the trip, they arent going to cancel for a hundred and fifty bucks.

And I would sure beg to differ about the costs- by Seattle standards, Buenos Aires is still quite cheap, if you are spending dollars. Hotels in major US cities are mostly well over $150 a night these days, meals are double or triple for equivalent places, and your culture dollar goes a LOT farther in Argentina- most major museums in any decent sized US city are a minimum of $15 a ticket, thats 60 pesos per person, concerts and dance and similar events are all WAY more. There are still plenty of apartments for rent in Palermo starting at $500 a week- I dont know many people who stay in $200 a night hotels.

I think the number one factor in travel is psychology- how rich are you feeling today? and in both Europe and the USA, even people with lots of money are feeling pretty cautious. Its not that they cant afford it, its that they think maybe they should just be more economical this year.

 

[chris]

The New York Times recently did a story on where the bargains are in LAM and Baires was #1. It's still a real bargain compared to London and Paris, hotels are in general are less than half the price than in those cities.

Take a look at the reader comments to that article. Lots of people who live in BA wrote in to say that the article was not accurate, that there is no complete lunch with 'espresso' for USD 10, that the luxury hotel they mentioned was something like 35 km from the center, that a room at the Alvear Palace was close to USD $400 etc not a lot cheaper than a similar room in Madrid etc.

 

[chris]

as a yo yo, not an expat, who lives primarily in the US, I would say that the inflation in Argentina has about zero effect on this.

The big factors are:

The recession in the USA- a LOT of people are a lot broker than they were in 2007, and even if they arent, they are being much more cautious about spending money.

Airfares- although I fly almost exclusively on frequent flyer miles, retail prices on tickets from Seattle to BsAs have gone from around $800 to $1200 and above, in the last couple of years. This is a pretty big bite- $400 still goes a long way in Buenos Aires.

I really dont think the entrance fee is a big factor for any but the backpacking sector- I have a lot of friends who are older, who go to Argentina for wine, tango, art, and culture, and frankly, once they commit to the trip, they arent going to cancel for a hundred and fifty bucks.

And I would sure beg to differ about the costs- by Seattle standards, Buenos Aires is still quite cheap, if you are spending dollars. Hotels in major US cities are mostly well over $150 a night these days, meals are double or triple for equivalent places, and your culture dollar goes a LOT farther in Argentina- most major museums in any decent sized US city are a minimum of $15 a ticket, thats 60 pesos per person, concerts and dance and similar events are all WAY more. There are still plenty of apartments for rent in Palermo starting at $500 a week- I dont know many people who stay in $200 a night hotels.

I think the number one factor in travel is psychology- how rich are you feeling today? and in both Europe and the USA, even people with lots of money are feeling pretty cautious. Its not that they cant afford it, its that they think maybe they should just be more economical this year.

A good seat to the Teatro Colon opera is 800 pesos. Museums are not in the same class as the Metropolitan Museum of Art, the Boston, Philadelphia or many other museums. The Met Museum, by the way, asks for a voluntary contribution. You can enter for $1 if you want.

 

[DontMindMe]

I've only had one friend come visit me from the U.S. due to the expensive airfare. Even though they'd be staying with me for free, and basically have an interpreter and tour guide, it's just not possible for a lot of people my age (20s) at the moment. I can see it becoming a lot bigger for the 50+ crowd, while losing some of its backpacker appeal. (Although like Paris and Rome, it will probably never lose it completely. It's a Latin America must-see stop.) My parents and a lot of their friends have been here, and would have come even if I weren't here. BA is in all the travel magazines, where its "affordable elegance" is the selling point. The nicer hotels and restaurants that will appeal to many in that age group are still a bargain compared to other cities.