Uruguay expects a 16% increase in tourism spending this Summer due to a surge in Argentine visitors. Economic improvements in Argentina, coupled with incentives offered to tourists, make Uruguay a more appealing vacation destination compared to Brazil, which is facing currency devaluation. This positive forecast suggests a promising uptick in tourism activity for Uruguay, reversing previous spending trends.
Uruguayan tourism analysts forecast a 16% increase in spending by foreign travelers during the Summer season, with a significant influx of Argentine tourists expected due to the stabilization of the peso following Javier Milei’s Libertarian reforms. In contrast, Brazil is experiencing economic setbacks after a recent devaluation of its currency. Reports indicate a marked rise in bookings from Argentine nationals, reinforcing a steady recovery in tourism activities, particularly given the challenges faced by Brazil’s tourism sector.
This season promises to differ from prior years as conditions evolve. In 2023, Uruguayans spent about US$ 1.2 billion in Argentina, a trend that appears to be shifting as more citizens opt to vacation in Uruguay. The San Martin International Bridge has been congested with vehicles as Argentines flock to Uruguay. Leading into the Christmas holiday, around 40,000 Argentine and 9,000 Brazilian visitors crossed into Uruguay, contributing to substantial traffic delays at the borders.
Argentine tourists find Uruguayan vacation spots generally more affordable compared to higher rental prices on the Argentine coast. Additionally, the current economic difficulties in Argentina compel many Uruguayans to lessen their shopping excursions across the border, thereby enhancing the appeal of domestic vacations. Uruguayan officials have also introduced tax incentives for Argentine citizens, including a total VAT exemption on dining and car rentals.
Moreover, under Milei’s administration, the previous 30% PAIS tax imposed on credit card purchases abroad has been lifted, making travel to destinations like Punta del Este more financially appealing. The Uruguayan Real Estate Chamber anticipates a surge of 400,000 tourists compared to last year, projecting a 16% rise in overall tourism spending.
The tourism industry in Uruguay is showing signs of significant recovery, particularly as it navigates the seasonal influx of Argentine tourists. This optimistic forecast is bolstered by recent economic adjustments in Argentina, especially the currency stabilization under Javier Milei’s governance. The contrasting economic conditions in Brazil, highlighted by the devaluation of the real, further facilitate Uruguay’s competitive edge in attracting tourists from Argentina. The introduction of favorable tax conditions for foreign visitors enhances the likelihood of increased travel and tourism spending.
In summary, Uruguay is poised to benefit from a dramatic increase in tourism from Argentina this Summer season, with significant growth in spending predicted due to favorable economic conditions. The recent policy changes and economic stabilization under Javier Milei encourage Argentine nationals to consider Uruguay as an attractive vacation destination, potentially reversing previous trends of spending in Argentina. This positive outlook is also supported by Uruguayan government incentives aimed at expatriate tourists.
Original Source: en.mercopress.com
