BUENOS AIRES, Sept 15, 2018 (BSS/AFP) – Argentines may be feeling the
pinch of their country’s economic woes, but for tourists, the troubled peso
is proving a holiday boon.
Brazilian Pedro Perreira de Azevedo has been rubbing his hands in delight
after his family holiday, with his wife and three children, turned out
cheaper than expected.
“We’d planned a budget of 7,000 reais (around $1,700) but in the end we’ve
spent between 3,000-3,500,” said Perreira de Azevedo, while his family took
pictures outside the Argentine presidential palace.
When they arrived from Belo Horizonte in the east of Brazil on September
5, the peso had just lost 20 percent of its value in the wake of President
Mauricio Macri announcing Argentina would ask the International Monetary Fund
to advance a $35 billion loan to help prop up an economy in crisis.
With the peso having lost half its value against the dollar since the
start of 2018, the Brazilian real looks strong in comparison despite its own
difficulties — it has itself dropped from around 3.3 to 4.1 since January 1.
“We were able to buy whatever we wanted and visit all the tourist sites in
Buenos Aires,” added Perreira de Azevedo.
“At Boca Juniors’ stadium we even had a VIP visit!” added one of his
daughters excitedly.
Not far from the iconic Bombonera stadium in the rugged La Boca
neighborhood, Lori Berho, an American living in Chile and on holiday with her
brother, said she felt lucky to have been able to benefit from such a
favorable exchange rate.
“Last night we were able to enjoy a complete restaurant meal for two for
$60 when normally it would have cost $100,” she said.
The struggling peso has left tourist guides a touch out of date.
“When you read the tourist guides they say things cost more in Argentina
then elsewhere in Latin America, but over the last 10 days we’ve spent less
than we expected,” said a young French tourist, Pauline Gauthier, meandering
though the historic streets of San Telmo with her partner.
– ‘Everything costs double’ –
Of course, for Argentines, known as great voyagers, the situation is the
exact opposite.
Romanina Valenzisi, a 34-year-old lawyer, booked flights for a two-week
holiday to Spain and Italy six months ago.
Now, she must pay for her hotels in Europe, but their prices have gone
through the roof.
In January, 18 pesos could be exchanged for one dollar, but that figure is
now around 38.
“I have to pay for the hotels now and everything costs double, which is
coming out of my budget,” she said.
“I already know that I’ll spend less money and buy less (while on
holiday).”
Travel agents have been hard hit too as holidays have crept out of reach
for many people.
“Sales of foreign travel have dropped 25-30 percent over the last few
weeks,” said Vincent Chevalier, a Frenchman who has run a travel agency in
Buenos Aires for the last 28 years.
“The crisis is also starting to affect internal tourism.”
Even the center of Buenos Aires has been hit, as hotelier Gonzalo Sastre
has found out.
“When the peso had a ‘normal’ level, we had a good stream of locals during
the week, basically people who came for work,” he said.
“Now, companies are sending fewer employees.”
Even so, his hotel is booked out for the next two weeks, thanks to
Brazilians.
“In this region there’s a very opportunistic tourism based around the drop
in currency,” added Chevalier.
Argentina’s problems may improve the spending power of its visitors, but
it’s proving a problem for neighboring countries used to welcoming large
numbers of Argentines, in particular Uruguay and Chile.
Uruguay is so worried that the numbers will drop off that it has
reintroduced a value added tax (VAT) exemption for tourists arriving from the
far shore of the River Plate in a hope to keep the flow of Argentines
flooding into the country during the January-February summer holidays.