Argentina’s Thirteen Billion Dollar Tourism Crisis, A Record Exodus as the Strong Peso Makes Foreign Travel Too Irresistible

Published on December 5, 2025

In 2025, Argentina finds itself in the midst of a tourism crisis, with a record outflow of $13 billion expected due to the country’s strong peso. The rising value of the national currency has made international travel incredibly affordable for Argentines, leading millions to head abroad, while foreign visitors are increasingly staying away due to the high cost of traveling within the country. This unprecedented shift is putting Argentina’s foreign currency reserves under pressure, potentially draining up to 1.6% of Argentina’s GDP in tourism-related spending. For a country already grappling with low foreign reserves and economic volatility, the growing tourism deficit represents a serious macroeconomic concern.

Argentina’s Tourism Deficit: A Stark Reality

Record Outflows and Shrinking Inflows

In the first nine months of 2025 alone, more than 9.7 million Argentines left the country, compared to just 4.1 million foreign visitors arriving, creating a 5.6 million traveler deficit. This shift marks a dramatic departure from Argentina’s previous status as a key tourist destination in South America, with a rich cultural scene, world-class natural attractions, and affordable travel costs—thanks to favorable exchange rates. In stark contrast, foreign visitor arrivals in October 2025 declined by 10%, exacerbating the outflow trend.

The government’s data from the National Institute of Statistics and Census (INDEC) reveals that in October 2025, Argentines spent $597 million abroad, while foreign visitors spent just $232 million within Argentina—further intensifying the tourism deficit. The total gap reached approximately $365 million in a single month. The first quarter of 2025 showed a $3.47 billion deficit in tourism spending alone, with Argentines spending more than $4.92 billion abroad compared to only $1.45 billion in inbound tourism revenue.

The Peso Appreciation and Its Effects on Domestic Tourism

Strong Peso Boosts Outbound Travel

The core of Argentina’s tourism crisis is tied to the peso’s appreciation. As part of President Javier Milei’s economic program to stabilize inflation, the government has implemented policies that have led to a stronger peso relative to other currencies. While these measures have curbed runaway inflation, they have also made domestic prices significantly higher, especially for goods and services linked to tourism.

Florencia Fiorentin, an economist, explained that for Argentines who have access to dollars or credit, it is now cheaper to travel abroad than stay in Argentina. Neighboring countries like Brazil, Chile, and Paraguay are benefiting from this trend, with Argentines flocking to cheaper destinations for vacations, shopping, and even business trips. Argentine tourists can now get more value for their pesos in Brazil’s Rio de Janeiro or Florianópolis, which has become a preferred destination over Argentina’s traditional beach spots like Mar del Plata.

Domestic Tourism Struggles: An Industry in Crisis

As outbound tourism surges, Argentina’s domestic tourism industry is struggling. Ski resorts in the Patagonia region, beach towns, and cultural hotspots are facing dramatically lower occupancy rates. The Perito Moreno Glacier and Iguazú Falls, which have long drawn international visitors, have seen a sharp decline in foreign tourist numbers. Hotels and tourist agencies have reported closures or reduced operations as the local market shrinks, and many workers have migrated to other sectors.

During Argentina’s winter ski season, the tourism sector experienced an 11.8% drop in hotel occupancy, while the number of foreign visitors during the first half of 2025 was 24% lower than in the previous year. Even Buenos Aires, the cultural heart of the country, saw a dramatic drop in short-stay excursionists by 28.7%.

Economic Drivers and Tourist Preferences

Why Argentina’s Peso Is At the Heart of the Crisis

While the peso’s strength is good for those seeking to travel abroad, it has created a paradox for foreign tourism. The country’s exchange rate system, designed to anchor inflation, has made Argentina prohibitively expensive for international visitors. This is evident in the stark contrast of prices for tourists in Argentina compared to neighboring countries like Brazil and Chile.

For foreign tourists, Argentina now ranks among the most expensive travel destinations in the region, deterring many who once considered it a budget-friendly option. This shift has compounded the situation, as international arrivals fell by 17% in 2025.

Regional Travel Preferences and Shopping Surges

Neighboring countries like Brazil and Chile are benefiting from Argentina’s tourism drain, especially in terms of cross-border shopping trips, where Argentines flock to Rio de Janeiro and Florianópolis for cheaper consumer goods. Even Paraguay has seen an uptick in day trips from Argentina. According to recent reports, the number of day-trippers from Argentina to Paraguay has jumped by 116%, reflecting the price disparity.

For tourism businesses in these neighboring countries, it has meant a boom in spending. The Brazilian beach destinations now represent a more affordable option for Argentine families, particularly for middle-class families in search of beach vacations.

Key Implications for Business Travel and Tourism

Business Travel: The Peso Paradox

For business travellers, the strong peso provides an unexpected benefit: cheaper travel abroad. For Argentine companies looking to manage costs in Brazil or Chile, the strengthened peso allows for more affordable travel, improving business opportunities and access to regional markets. However, the resulting tourism deficit from Argentina’s outbound travellers poses risks for the local economy.

Quick Tips for Tourists Considering Argentina

• Plan Ahead: Be mindful of the high costs for goods and services in Argentina, including accommodation and meals.
• Alternative Destinations: For those seeking a more affordable South American experience, consider nearby Brazil or Chile, where the cost of travel is more competitive for Argentines.
• Check Visa and Currency Policies: Argentina’s currency controls and exchange rate policies may affect foreign tourists. Always check for the latest visa requirements and currency exchange rules before planning your trip.

Conclusion: Argentina’s Tourism Crisis May Need Radical Solutions

As Argentina faces a record tourism outflow driven by a strong peso, the country is also witnessing a sharp contraction in inbound tourism. While wealthier Argentines are capitalizing on this opportunity to travel abroad, foreign tourists are finding Argentina less accessible and affordable than ever before. The country’s tourism industry is in a precarious situation, and without significant adjustments in policy or exchange rates, it could take years for Argentina to regain its position as a top South American tourist destination. The tourism sector now stands as a stark reminder of how macroeconomic decisions can have far-reaching effects on both local businesses and global tourism trends.

Disclaimer: The Attached Image in This Article is AI Generated