Record Tourism Outflow Projected for 2025
Argentina is confronting an unprecedented tourism crisis in 2025, with projections indicating a record outflow of $13 billion. This significant deficit, which represents approximately 1.6 percent of the country's Gross Domestic Product (GDP), is primarily attributed to the strength of the Argentine peso. The figure is set to surpass the previous record of $10.662 billion recorded in 2017.
The Peso's Dual Impact on Travel
The appreciation of the Argentine peso, a consequence of President Javier Milei's economic program aimed at stabilizing inflation, has created a paradoxical situation for the nation's tourism sector. While the stronger currency has made international travel 'incredibly affordable' for Argentines, it has simultaneously rendered Argentina 'prohibitively expensive' for foreign visitors. This economic dynamic has led to a substantial increase in outbound travel by Argentines and a sharp decline in inbound tourism. In the first nine months of 2025 alone, over 9.7 million Argentines traveled abroad, contrasting with only 4.1 million foreign visitors entering the country, resulting in a traveler deficit of 5.6 million.
Declining Inbound Tourism and Surging Outbound Travel
Data from 2025 highlights a significant downturn in foreign arrivals. Foreign visitor numbers in October 2025 saw a 10 percent decline, and during the first half of the year, they were 24 percent lower than the previous year. Inbound tourism is described as having 'a very bad year, falling 17 percent compared to 2024... the worst year since 2006, except for the pandemic.' The segment of 'excursionists,' or day-trippers, experienced a substantial 28.7 percent drop, particularly affecting border cities and Buenos Aires. Conversely, outbound travel by Argentines has surged. In October 2025, Argentines spent $597 million abroad, while foreign visitors spent only $232 million within Argentina. Neighboring countries such as Brazil, Chile, and Uruguay have benefited from this trend, with Argentines increasingly choosing these destinations for more affordable vacations and shopping.
Economic Repercussions and Future Outlook
The substantial tourism outflow places considerable pressure on Argentina's already strained foreign currency reserves. The local tourism industry is feeling the impact, with reports of hotel and tourist agency closures or reduced operations. Approximately 3,000 private formal jobs in the accommodation sector were lost in the last 12 months, representing 4 percent of the sector's formal employment. The hotel industry is also grappling with rising operating costs. To mitigate the crisis, the Argentine government is exploring strategies to enhance the country's competitiveness as a travel destination, including potential tax incentives and promotional campaigns. Local operators are adapting by shifting their focus towards attracting higher-income foreign tourists and offering high-value experiences, such as luxury resorts in Mendoza's wine country and adventure travel in Patagonia. Additionally, Argentina has rejoined the US Visa Waiver Program in an effort to stimulate its struggling tourism sector by easing travel for its citizens to the U.S.
5 Comments
Donatello
Finally, Argentines can afford to travel! The strong peso is a win for our citizens.
Leonardo
The focus on economic stabilization has strengthened the peso, which is a goal many supported. Yet, the cost is proving to be incredibly high for domestic tourism and foreign currency reserves.
Donatello
While it's understandable that Argentines are taking advantage of affordable international travel, the severe decline in inbound tourism is unsustainable. The government needs a comprehensive plan to attract visitors back, not just ease outbound travel.
Michelangelo
Where is the foreign currency coming from if tourists aren't visiting?
Donatello
Our hotels and restaurants are suffering. This policy is a disaster.