Uruguayan tourism analysts forecast a 16% increase in foreign travel spending this Summer, largely attributed to an influx of Argentine visitors aided by currency stabilization under President Milei and lower Uruguayan prices. With new tax benefits and increased arrivals at border crossings, the country’s tourism sector is expected to thrive despite economic challenges in Brazil.
Uruguayan tourism experts anticipate a 16% increase in spending among international travelers during the upcoming Summer season, primarily driven by a resurgence of Argentine tourists. This uptick is attributed to the stabilization of the Argentine peso under the administration of President Javier Milei, which contrasts with Brazil’s recent currency devaluation. Notably, there has been a marked rise in bookings from Argentine residents, signifying a robust recovery for Uruguay’s tourism sector, particularly following a challenging period for its Brazilian counterpart.
In the previous year, Uruguayan tourists spent approximately $1.2 billion in Argentina, but current trends suggest a reversal as more Argentines opt to visit Uruguay instead. The San Martin International Bridge in Fray Bentos has recorded significant traffic, with many Argentines crossing into the country for their holidays. During the days leading up to Christmas, around 40,000 Argentines and 9,000 Brazilians entered Uruguay, leading to congestion at border crossings.
The relative affordability of Uruguayan destinations has also become apparent, as Argentine visitors find rental prices on the Argentine coast prohibitive in comparison. Additionally, the economic climate in Argentina is causing many Uruguayans to limit their shopping excursions into Argentina, thereby increasing the attractiveness of domestic vacation options.
Furthermore, Uruguayan authorities have introduced tax incentives for Argentine citizens, including a full exemption from VAT on food and car rental services, enhancing Uruguay’s appeal as a holiday destination. There is also speculation that some Uruguayans may choose to travel to Brazil in order to leverage favorable exchange rates. The elimination of the 30% PAIS tax on credit card purchases abroad under Milei’s policies has rendered trips to popular destinations like Punta del Este more affordable for Argentine tourists.
The Uruguayan Real Estate Chamber has projected a surge of 400,000 additional tourists compared to last year, signaling a significant 16% growth in tourism-related spending. This development suggests a promising outlook for the Uruguayan tourism industry as it braces for the upcoming season.
The landscape of Uruguay’s tourism industry has undergone notable changes due to economic fluctuations in neighboring countries, particularly Argentina and Brazil. Argentina recently experienced a recovery in its currency under President Javier Milei, influencing travel patterns and spending habits of Argentine tourists. Conversely, Brazil’s currency devaluation has had a negative impact on its tourism appeal. The shifts in economic circumstances have prompted Uruguayan authorities to adapt by offering tax benefits to Argentine visitors, fostering a more favorable environment for tourism within Uruguay. Understanding these dynamics is crucial to grasping the projected growth in visitor numbers and spending within the region during the Summer season.
Overall, the prospects for the Uruguayan tourism industry appear bright, with an expected influx of Argentine tourists likely to rejuvenate the sector. The combination of favorable economic conditions for Argentines, the attractiveness of Uruguayan destinations, and strategic tax incentives implemented by the government are all contributing factors. As Uruguay positions itself as a viable alternative for holidaymakers in the region, the anticipated increase in tourist numbers and spending could significantly boost its economy and reinforce its standing in the South American tourism landscape.
Original Source: en.mercopress.com
