Starting a business in Argentina

[Ango]

Hello Everyone,
I have a few questions. I am looking to start a tour company for foriegners that runs through Argentina. I think it's a beautiful country and there is gouing to be a huge demand for it within the next decade or so.
Here are my questions:
1. Is the market saturated alread with tour companies?
2. I've heard of horror stories trying to operate a business due to the government. Is this true? We are tying to trying to support as much local as possible so most of the money will stay in the country and help the locals.
3. What do Argentianas want from people coming over? In other words how can we help? I have heard the stories of people bringing over iphone etc. but is there a greater demand for something else?
Thanks so much for your help.
Ang

 

[Davidglen77]

Hi there, there are opportunities here, however the bureaucracy is horrendous. I used to own a business here, and this was my experience. If you decide to open a business here, I suggest you do it OUTSIDE of Buenos Aires, Capital Federal. Here's my experience:
http://bienescrachados.blogspot.com.ar/2011/12/mauricio-macri-y-la-corrupcion-en-la.html

 

[Iznogud]

Welcome to the board.

May I ask where are you from?

 

[citygirl]

Here are my questions:
1. Is the market saturated alread with tour companies?
Answer: Yes but there is always room for a good company.
2. I've heard of horror stories trying to operate a business due to the government. Is this true? We are tying to trying to support as much local as possible so most of the money will stay in the country and help the locals.
Whatever you have heard, the reality is worse.
3. What do Argentianas want from people coming over? In other words how can we help? I have heard the stories of people bringing over iphone etc. but is there a greater demand for something else?
I don't have any idea what you mean by "help". Are you looking for things to sell?

With all due respect, you sound very naive about the realities of doing business here in Argentina. Tourism is also down over the last few years due to rise in costs of flights, the fact that Buenos Aires is not an inexpensive tourist destination and the issues with crime here.

How much time have you actually spent here? What type of company do you intend to set up (SRL?) You are aware that you need to be or find a resident of Argentina to be a company director. Are you aware of the issue with pesos and the declining value? That you cant get your profits out of the country? The taxes?

 

[Canick]

perhaps more specific info on your plans, your target market etc would help us better help you. having said that in general terms...if you are thinking about building this business for profit now, i think you will find it challenging to say the least.
if you are more focused on a decade down the road, I think thats just about when things will be clear and free of the craziness we are going through now.
Coming here because it "seems like a beautiful country" that may not be enough. for all of the reasons citygirl mentioned and many, many more, you may be about 8 years too late or 8 years to early...

 

[NoseyParker]

Please contact me I maybe able to help you and work together. I run a concierge business here in Buenos Aires and may be able to supply you with clients for your tours in the future and it would save you a lot of hassle setting up a business here. I need to know more I information about who you are and what you do. My website is www.ba-pa.com p,ease contact me on my email [email protected].
Best wishes

 

[Ango]

Thanks for all the help. I know the difficulties Argentina is facing right now, and how tourisim has decreased. But that doesn't mean the ed of all tourisim. There is crime everywhere and I think for people to say "I'm not going there because it's not safe" is silly. There will always be people wanting to come to your country. Always.
To answer the questions:
1. I am from Canada
2. I understand this is going to take a while. We are not catering to the backpack crowd, but rather the groups that have had a massive increase in travel. When you look at statistics, the market is there, and will continue to increase within the next decade.
3. We are planning on dealing with multiple countries, not just Argentina.
4. And I agree with you that we are either too early or too late. I actually think we are right in the middle as most countries have a cyclical value for popularity.

Lastly,
I have heard there is a great need for foriegn items. I have no desire to import massive quantities (nor do I think it will work) but what are some items that people want here besides the Iphone? I have heard Nutella, and I have also heard that many of the hospitals are lacking medical supplies. I am not sure if this is true or not on either accounts...

 

[Davidglen77]

Nutella is widely available here, it's expensive but it's brought in by the same company that makes Ferrero Rocher and Kinder Chocolate, which also exports a lot of products from here, so I don't think it will stop coming into the country, but hey here you never know.

 

[demokritos]

Here's my experience:
http://bienescrachados.blogspot.com.ar/2011/12/mauricio-macri-y-la-corrupcion-en-la.html

Hey David,
I was interested to read your story, but the page you linked to is a picture of a naked butt, some pictures of feces, and a series of broken links. Is that a metacommentary on your experience here?

 

[Ashley]

I have heard there is a great need for foriegn items. I have no desire to import massive quantities (nor do I think it will work) but what are some items that people want here besides the Iphone? I have heard Nutella, and I have also heard that many of the hospitals are lacking medical supplies. I am not sure if this is true or not on either accounts...

You can't import anything (certainly not on any kind of significant scale) without being subject to massive restrictions/all-out bans. At best, you can bring in a few items for friends (or to sell on, I guess) but you will have to pay a 50% import tax if you declare these goods/are caught with these goods coming through immigration.

A lot of expats (including myself) complain about not being able to find certain food items. I don't think Argentines are too bothered really, but I don't think you could sell those kinds of things at any significant mark-up. Nutella you can buy here. Your best bet if you're hoping to make a little extra cash is to bring in a couple of iphones, etc. Again, you won't get a massive load of stuff through... Hospitals are lacking certain medical supplies (most businesses are affected by the import bans) but I don't think this is something you can assist with coming in as a tourist...