MercoPress. South Atlantic News Agency

Argentina expects 4.1 million tourists in 2006

Argentina's tourism industry expects revenue in the range of 3.5 billion US dollars in 2006, 15.6% more than in 2005, said Tourism Under-secretary Daniel Aguilera.

"Argentina is experiencing a very good tourism boom and every year results exceed forecasts" Aguilera told reporters in Buenos Aires.

For 2006 the government is forecasting that some 4.1 million tourists will arrive at the country's main international airport Ezeiza, up from the 3.7 million in 2005 and the 3.3 million in 2004.

"We are on the crest of the wave", Aguilera stated adding that "incoming tourists are classed as an export, which in the case of tourism has no constraints to limit growth".

Tourism is Argentina's largest foreign currency earner behind soybeans and by products.

Argentina forecasts tourism activity to produce revenue of some 3.5 billion US dollars this year, up on the 3 billion US dollars last year and 2.5 billion in 2004.

"The (2002) devaluation provided a huge boost for the Argentine tourism sector, especially to attract tourists from neighbouring countries" Aguilera said, adding that last year was the first time that Argentina broke the negative flow, with more tourists arriving than those holidaying abroad.

However the official said the growth in tourism needs to be sustainable which means that other competitive advantages need to be generated "as the tourism that arrives due to the favourable exchange rate will go elsewhere when this is not so".

The official stated that the government is fully committed to carrying out the Federal Strategic Tourism Plan 2016 and that a national tourism bill is to be sent to Congress in the immediate future.

As to investments generated by this activity, the official said that some 500 million US dollars are to be invested this year in some 200 types of tourist accommodation.

Aguilera added that changes soon to take place in the domestic aviation sector will "enable tourists to overcome some of the difficulties that arise from market concentration".

Some of these changes include the start-up of new airlines, exempting aviation fuel from the value-added tax and the setting up of a fund to subsidize strategic routes as well as a general fare hike of 20%, among others. (BAH).-