The Argentine government has decided to eliminate the COUNTRY TAX about the exchange rate that affects Argentine tourists traveling to Uruguay. This measure, which comes into force from this Monday, will cause a decrease in 30% in the value of dollar card. This decision is part of the economic policies implemented by the new president, Javier Milei, and is expected to have a significant impact on tourism.
He Tax for an Inclusive and Solidarity Argentinaknown as PAIS, made the official dollar more expensive by 30% until December 22. Along with the perceptions of Earnings and Personal Propertythe cost of the exchange rate used by Argentines abroad became more expensive by 60%. With the elimination of this tax, the value of the card dollar is likely to be close to 1,300 Argentine pesoseven though it is the most expensive exchange rate on the market in Argentina.
Increase in the influx of Argentine tourists
As tax burdens are reduced, the price gap between Argentina and Uruguay has been considerably minimized, settling at a 21.7%the lowest in six and a half years. This situation has influenced the return of Argentine tourists to Uruguay, especially in recent months. Since October, there has been a strong increase in tourist movement, and an excellent level of bookings is expected for the summer.
A study of tourism monitormade by Ceres and the Chamber of Tourism (Camtur)suggests that an increase in the number of Argentine tourists is expected during the summer season, with an estimated increase in 10% compared to last summer. This optimistic forecast reflects growing confidence in price stability and accessibility for travelers.
Impact of expenses and perception of service
However, the increase in the number of visitors is not the only indicator of the season’s success. A crucial aspect is the volume of expenses that Argentine tourists make during their stay. Convenience and ease of spending are essential, and many operators in the tourism sector hope that the reduction of the card dollar will improve the situation.
Factors such as price stability in Uruguay also play an important role in this equation. Historically, Argentines have been one of the most significant tourist groups in the country, and the latest data from the Ministry of Tourism highlight their relevance. In the second quarter of the year, Argentines led the list of visitors with 267,661 income between April and July.
Changes in spending and comparison with previous years
It is interesting to note that, although there was less income from Argentines compared to the previous year, the total expenditure was higher than $100,335,499. This shows that although the number of visitors may have decreased, those who did travel were willing to spend more, even with a higher exchange rate.
The elimination of the COUNTRY Tax and the anticipated arrival of Argentine tourists are indicators that suggest that the country is recovering some normality in its tourism industry. The improvement in the distribution of the card dollar presents an opportunity for both tourists and the Uruguayan tourism sector, which benefits from an increase in spending.
