The Encuentro Foundation has issued a warning about the devastating future of the country's tourism industry if consumption incentives and price regulation are not implemented. During August, in the middle of winter season, there was an 11.8% decrease in the number of tourists staying in hotels and other accommodations compared to the same period last year, reaching 1.4 million visitors, according to data from the National Institute of Statistics and Censuses (INDEC).
The INDEC report also showed a 13.7% drop in the number of nights these tourists spent in the country in August 2023. This decrease affected both resident travelers, with a 15% drop, and non-residents, with a 9% drop.
Regarding types of accommodation, 33.6% of overnight stays were in 4 and 5-star hotels, while 31.5% were in 3-star hotels, apart-hotels, and boutiques, and 18.1% in 1 and 2-star hotels. For resident tourists, the majority stayed in 3-star hotels, apart-hotels, and boutiques, followed by 4 and 5-star hotels. On the other hand, non-resident tourists mostly preferred 4 and 5-star hotels.
Consultancies have forecasted a deficit of US$ 2.7 billion for the national tourism sector due to the parity of the dollar and the lack of incentives to vacation in the country. The Mediterranean Foundation pointed out that outbound tourism demanded US$ 3.9 billion in the first half of the year, generating a negative balance of US$ 1.4 billion.
According to the Foundation, if the current trend continues, the demand for dollars for outbound tourism could reach US$ 7.5 billion in the year, with a negative balance of around US$ 2.7 billion. Furthermore, the monthly devaluation of the peso would contribute to worsening this imbalance, especially during the upcoming summer season.
Searches related to outbound tourism have increased by 54% year-on-year in September, while internal tourism searches have decreased by 15%, indicating greater interest in tourist options outside the country. The Encuentro Foundation has emphasized that the growth of outbound tourism compared to inbound tourism will generate a deficit in the trade balance of the sector and predicts a critical summer season.
Overall, tourism in the country is considered expensive, and the tourism industry has experienced eight consecutive months of declines. Between January and August, a deficit balance of US$ 3.347 billion was accumulated, according to the Encuentro Foundation.
