Argentine tourism is mainly driven by domestic tourists. The country’s total tourist volume reached 65.6 million in 2016 and is expected to reach 79.6 million by 2021. The increase in the number of tourists to Argentina is driven by leisure. In terms of total tourist volume, Argentina ranked 23rd after Poland. Argentina ranked 21st after Russia in terms of volume on domestic trips and ranked 13th after Sweden in terms of volume growth on domestic trips. Leisure was the primary reason behind it.
Depreciation of the domestic currency Peso led to the increase in inbound tourism. The Argentine government imposed taxes on debit and credit card purchases from abroad and imposed taxes on direct dollar purchases. That made outbound travelling and spending costlier for Argentine citizens.
These industry reports provide a comprehensive market view including sections on: risk and reward, key industry trends and drivers, industry SWOT analysis, industry benchmarking to compare key performance indicators with regional and global markets, competitive landscape, industry innovation and key developments.
Tax imposition on credit and debit card purchases as well as dollar purchases
Since 2001, Argentina has gone through several economic crises like the devaluation of the domestic currency by 20% and a financial debt crisis. To control the outflow of foreign currency through tourism, especially US dollars, the government imposed exchange controls to maintain sufficient US dollar reserves in the Central bank. Besides that the Argentine government imposed taxes ranging from 20% to 35% on credit and debit card purchases for goods and services abroad.
Argentine government policy to encourage domestic tourism
The country’s domestic tourism expenditure accounted for a 69% share of the country’s total tourism expenditure in 2016 and is expected to increase to 72% by 2021. Due to that, the Argentine government set up some holidays to build a longer weekend to reinforce the domestic tourism industry.
Availability of skilled labor in Argentina
The Argentine economy has greatly benefitted from the availability of skilled labor. This availability is mainly attributed to the increase in educational enrolments in the country. This creates a greater ease in finding employees for both the public and private sectors with the right skill set. In addition, the Argentine government’s ICT-supporting capacity has also improved significantly. Usage of broadband mobile services has doubled and the cellular signal now covers 98% of the country. This increase in broadband penetration helps tourists and travelers to find their desired destinations.
- Risk & Reward Index - The Risk & Reward index compares the position of the Argentine travel and tourism industry vis-à-vis other countries in the region in terms of specific risk and reward parameters.
- Industry Snapshot and Industry View - Key travel and tourism industry statistics including total revenue and expenditure for key industry segments and the trends driving market performance in the Argentine travel and tourism market.
- Industry SWOT Analysis - Discover the Strengths, Weaknesses, Opportunities and Threats impacting market performance and investment in the Argentine travel and tourism market.
- Industry Benchmarking - Benchmark how the Argentine travel and tourism market is performing compared to regional and global markets in terms of car rental fleet size, car rental revenue, number of hotels, hotel revenue, passenger airline revenue, seats available and seats sold, revenue of travel intermediaries and tourism expenditure growth.
- Competitive Landscape - Overview of relevant players in the Argentine travel and tourism industry such as airlines, hotels and car rental companies, with each player in the relevant category compared with its peers in terms of relevant industry indicators.
- How is the market performing in terms of indicators such as total tourist visits, passenger airline seats sold, seats sold by purpose of visit such as leisure, revenue, room nights available, room nights occupied, hotel revenue and car rental days among others.
- How risky is it to invest in the Argentine travel and tourism industry compared to other countries in South and Central America?
- What is driving the performance of key industry segments such as passenger airlines, accommodation and car rentals?
- Who are the leading players in the Argentine travel and tourism industry and their overview and product portfolio?
- What trends are being witnessed within the Argentine travel and tourism industry?
- What are the Argentine travel and tourism industry’s Strengths and Weaknesses and what Opportunities and Threats does it face?
- What are the recent developments and innovations in the Argentine travel and tourism industry?