Uruguayan tourism forecasts a 16% increase in foreign traveler spending this summer, primarily due to a surge in Argentine visitors benefitting from the peso’s recovery. The San Martin International Bridge has recorded long lines of tourists, signaling a strong comeback for Uruguayan tourism after recent economic shifts. Tax incentives further enhance Uruguay’s appeal, promoting a significant uptick in tourism spending this season.
Uruguayan tourism analysts are optimistic about a projected 16% increase in spending from foreign tourists this coming summer season. This uptick is notably attributed to the anticipated rise in Argentine visitors, prompted by the recent recovery of the Argentine peso against the US dollar, under the administration of Javier Milei. In contrast, the Brazilian market appears less favorable due to a recent devaluation of its currency, the real.
A significant increase in bookings from Argentine tourists has been observed, indicating a robust recovery in the tourism sector despite challenges faced by Brazil. The upcoming 2024/2025 season is expected to differ markedly from previous ones. In 2023, Argentine visitors spent approximately $1.2 billion in Uruguay, a movement that seems to be reversing as more tourists are now heading to Uruguay.
The San Martin International Bridge in Fray Bentos has experienced extensive traffic as Argentine nationals flock to Uruguay for their holiday seasons. In the lead-up to Christmas, around 40,000 Argentines and 9,000 Brazilians crossed into Uruguay, causing congested border crossings.
Uruguay appears more economical for Argentine travelers, with rental costs on the Uruguayan coast significantly lower than those found in Argentina. Additionally, the Argentine economic climate has led many Uruguayans to curtail their shopping expeditions to Argentina, enhancing Uruguay’s allure as a vacation destination.
To further attract Argentine tourists, Uruguayan authorities have implemented substantial tax incentives, including a complete VAT exemption on services related to food and car rentals. This new tourism landscape is also likely to encourage some Uruguayan citizens to travel to Brazil, taking advantage of attractive exchange rate differentials.
Under the new government, the elimination of the 30% PAIS tax on overseas credit card transactions has made trips to popular Uruguayan destinations, such as Punta del Este, more financially viable. The Uruguayan Real Estate Chamber anticipates welcoming 400,000 additional tourists compared to last year, corresponding to the aforementioned 16% increase in tourism spending.
The Uruguayan tourism sector is poised for a strong season as travel trends indicate a notable influx of Argentine tourists. The recent economic policy changes in Argentina, aimed at stabilizing the currency and incentivizing travel, are likely to reverse spending trends witnessed over the past few years. This analysis is underscored by growing travel bookings and favorable economic conditions in Uruguay, setting a promising landscape for the upcoming summer months.
In summary, Uruguay’s tourism industry is expected to thrive this summer, largely driven by a resurgence in Argentine visitors. The economic reforms implemented by the new Argentine administration, particularly the peso’s recovery and tax benefits for travelers, are pivotal in enhancing Uruguay’s appeal. Consequently, the projected 16% increase in tourist spending signifies a positive turn in the tourism landscape for both nations, fostering economic recovery and growth.
Original Source: en.mercopress.com
