MercoPress. South Atlantic News Agency

Uruguay confident Argentine tourists will save the Summer season

Some 400,000 tourists more than last season are expected to spend 16% more in Uruguay this Summer

Uruguayan tourism analysts predict a 16% growth in spending from foreign travelers during the Summer. An increase in Argentine visitors is expected given the peso's recovery against the US dollar under Javier Milei's Libertarian administration, while the Brazilian front conveys the opposite image after a recent devaluation of the real.

For starters, a significant increase in bookings from Argentine tourists has been recorded, thus cementing the activity's recovery in recent years despite the Brazilian crisis. The 2024/2025 season will be much different from previous ones. In 2023 alone, Uruguayans spent approximately US$ 1.2 billion in Argentina, a trend that now appears to be reversing.

The San Martin International Bridge in Fray Bentos has seen long lines of cars as Argentines arrive in the country in search of their vacations. In the days leading up to Christmas, some 40,000 Argentines and 9,000 Brazilians arrived in Uruguay with packed border crossings resulting in long delays.

Prices in Uruguay's destinations have proved more affordable for Argentine tourists, who find that rents on the Argentine coast are noticeably higher. In addition, the current economic situation in Argentina has also led many Uruguayans to reduce their shopping trips to that country, thus making Uruguay a more attractive and convenient place to vacation.

Moreover, Uruguayan authorities have implemented tax incentives that benefit Argentine citizens, such as the 100% VAT exemption on food services and car rentals.

The new scenario also foresees some Uruguayans traveling to Brazil to capitalize on the exchange rate gap.

Under Milei, Argentina suppressed the so-called 30% PAIS tax on credit card transactions abroad, which rendered trips to destinations such as Punta del Este more affordable.

The Uruguayan Real Estate Chamber foresees 400,000 tourists more than last year, which would represent a 16% increase in tourism spending.