The decline of domestic tourism in Argentina

[MilHojas]

Economy in Transition: The decline of domestic tourism in Argentina - Penn State Student Media

Economy in Transition: The decline of domestic tourism in Argentina

bellisariostudentmedia.psu.edu

 

[SlowWalker]

A pretty big detail this article left out regarding domestic travel was also the previous government's "Previaje" program of offering free/low interest loans paid in cuotas applied to hotels and tours etc related to domestic travel. Again, just another print and spend offering to try and create demand at the expense of the taxpayer/citizens.

 

[Che1990]

We went to Mendoza in October last year and Iguazu at Easter, and regretted it both times.

My other half earns in pesos, so we have a local view of prices - and travelling in Argentina is pricey for what you get, especially in ARS.

More than anything eating.

In Iguazu, you’ll spend at least 20mil on lunch and dinner, so with drinks and tip that’s 120k per day on food minimum.

So over 3 days, that’s $250 USD just to eat tiny portions of the same carb-heavy poor-quality food, like milanesa and fries or hamburguesa and fries.

And if you want anything cheaper, it’s poor quality street food - expensive for cheap food shitty flour-based cuisine.

I really hate that diet so I literally lost my patience each time we had to eat in Iguazu. Luckily, we found an ok street food stand in the square on Avenida Tres Fronteras which had sandwich de lomo for 15k - I ate that every day.

The buses in Iguazu cost more than buses in London. $5 x person one way for a standard passenger bus. If there are 2 of your; the bus cost the same as a taxi.

It’s so screwed.

A taxi driver said, aside from the long weekends and feriados, the rest of the time it felt like pandemic for them.

People who depend on tourism are struggling there, which I guess is the entire city.

Mendoza wasn’t any better in October. We really struggled with the food costs and quality.

Obviously, if you’re on vacation, you don’t want to waste time cooking lunch and dinner, as you want to be out and about exploring.

You’ll spend a fortune on the same poor-quality small portions of shitty food.

Mendoza is also trying to position itself as a luxury destination I feel, but the problem is the luxury market is too small for the amount of infrastructure there is - this is a big destination within Argentina. So businesses will fold if the dont lower costs.

Restaurants in Aristides were dead, we want for the October finde largo and the city was quiet for a long weekend (I used to live in Mendoza and long weekends used to be busy with tourists, and queues everywhere, trouble parking).

And that was October, when inflation seemed under control.

We did plan a trip to Carlos Paz over the Carnival weekend, and planning in November 2025 (3 months prior), it was going to costs like $400 USD per person. Eyewatering for what it is.

We have a trip booked to Bariloche over Xmas. Flights and Airbnb were ok, but now I am worried about the food and daily costs.

We will probably pay the $25mil change fee and go to Brasil with those flights instead.

I have heard anecdotes, too, that it can be cheaper going to the Caribbean than Patagonia.

They can do any kind of RIGI they want, but if local wages don’t start rising ahead of inflation, another 2001 is just around the corner.

 

[Stafford]

A pretty big detail this article left out regarding domestic travel was also the previous government's "Previaje" program of offering free/low interest loans paid in cuotas applied to hotels and tours etc related to domestic travel. Again, just another print and spend offering to try and create demand at the expense of the taxpayer/citizens.

Personally, I thought previaje was smart and I'm not saying this to defend the previous government. It helped a lot of hotels and tour operators stay in business. Friends who own a hotel told me that this program helped them. During the pandemic they had no reservations and no business. Many would have gone out of business. It kept the industry afloat. Governments around the world on all sides of the political spectrum had programs like these (e.g. $2.2 trillion CARES Act, including Paycheck Protection for businesses).

 

[SlowWalker]

Personally, I thought previaje was smart and I'm not saying this to defend the previous government. It helped a lot of hotels and tour operators stay in business. Friends who own a hotel told me that this program helped them. During the pandemic they had no reservations and no business. Many would have gone out of business. It kept the industry afloat. Governments around the world on all sides of the political spectrum had programs like these (e.g. $2.2 trillion CARES Act, including Paycheck Protection for businesses).

Sure. To replace the absence of foreign travel and help it in post pandemic. But are those same policies still going on? I haven't seen it.

The fact is, its just government issuing debt to create demand. The government needs to be able to issue debt and operate a responsible deficit. Argentina still needs to prove itself in that respect. That same printing is what has caused global inflation.

 

[LuckyLuke]

Let's not forget that domestic tourism was largely (another) captive market thanks to the Dolar Tarjeta rate. Travelers now can get dollars physically without CEPO limits. They have the option of using cash at the destination or using dollars in Argentina to repay credit card purchases to reduce the dolar tarjeta rate to oficial. Adding to that the falling wages and strong peso, can you really blame them for traveling abroad? This is what happens when you artificially gin up consumption with state interventions. Those anticipating a peronista return ought to buy the hotels and cabins now on the market at firesale prices in now abandoned local spots to wait for the migratory return.

 

[SlowWalker]

They can do any kind of RIGI they want, but if local wages don’t start rising ahead of inflation, another 2001 is just around the corner.

Still a far way from another 2001. And given the amount of money that is held under the mattress or in cash and not deposited, it wouldn't be impactful. So its really not an option at the moment. It would also be the end of any type of improvement for probably 2 generations (40- 50 years).

 

[Che1990]

Still a far way from another 2001. And given the amount of money that is held under the mattress or in cash and not deposited, it wouldn't be impactful. So its really not an option at the moment. It would also be the end of any type of improvement for probably 2 generations (40- 50 years).

But is there really that much money stashed away?

Walking around Palermo is bleak these days, the amount of commercial places with the shutters down and ALQUILA sign up is crazy.

I can also work out comfortably at 6/7/8pm in the gym now as it’s dead. Previously those hours were horrendous.

We keeping hearing that there are all these dollars, but I don’t see that they are being spent here at least.

 

[MarshallE]

But is there really that much money stashed away?

Walking around Palermo is bleak these days, the amount of commercial places with the shutters down and ALQUILA sign up is crazy.

I can also work out comfortably at 6/7/8pm in the gym now as it’s dead. Previously those hours were horrendous.

We keeping hearing that there are all these dollars, but I don’t see that they are being spent here at least.

Which gym is dead? Every smartfit I go to is packed to the gills with queues for every machine

 

[JMHarris]

Which gym is dead? Every smartfit I go to is packed to the gills with queues for every machine

Smartfit gyms full of gorilas does not even make it to anecdote status nor data point status. Also, gorilas prefer first to travel abroad. They LOVE Miami, then Europe. There are some places in Patagonia they will tolerate, but otherwise no. Finally, the spending habits of gorilas does not provide any real indicator re the economy and how well or not it is doing. Gorilas are always doing well.