Argentina's higher prices draw wealthier, longer-haul visitors

Argentina is attracting richer visitors from more distant places as economic reforms push up the cost of hotels and services, according to a report on the country's tourism industry. The shift follows a drop in arrivals and is testing whether the sector can turn higher-spending travel into profits.

Key facts

• President Javier Milei took office in December 2023.
• Argentina has become sharply more expensive in dollar terms since then.
• The number of foreign tourists arriving fell about 8 per cent.
• The gap between official and informal exchange rates has all but disappeared.
• Visitors now tend to be wealthier and come from more distant markets.

Why is Argentina more expensive now?

For years, currency controls created a wide gap between the official and informal exchange rates, letting foreigners exchange hard currency for more pesos. Under Milei, that gap has all but disappeared after restrictions on access to foreign currency were eased.

At the same time, domestic prices kept rising much faster than the peso weakened. That combination pushed the cost of hotels, meals and other services higher in dollar terms, eroding the country's old appeal as a bargain destination.

Who is travelling to Argentina now?

After an initial fall, tourism is rebounding around a wealthier mix of visitors, the report says, with travellers arriving from more distant places. Hugh MacDermott, who founded travel agency MacDermott's Argentina in 2015 and sells holidays to affluent US and European travellers, said he now regularly encounters "sticker shock" at rising prices.

He said some clients compare the cost with holidays in Italy, where they feel they can stay in similar-quality accommodation for the same money.

What this means for travellers

Travellers planning a trip should expect hotels, meals and services to cost more in dollar terms than in earlier years, and to compare prices with other destinations before booking. Even visitors with larger budgets are watching prices more closely, the report notes.

The report does not mention any changes to Argentina's visa or entry rules.

What remains open is whether the tourism industry can adapt to the new mix of visitors and turn it into profits as costs rise. No further dates or policy decisions are given.