Domestic tourism in crisis: traveling abroad is now cheaper

The Argentine hotel sector is facing a severe crisis due to low occupancy and the rising cost of domestic tourism, which has made travel abroad cheaper. Gabriela Ferrucci , president of the Argentine Tourism Hotel Association, warned that at a hotel in downtown Buenos Aires with 40 rooms, only nine were occupied.

During the first half of the year, 66% more Argentines chose to travel abroad, according to Ferrucci's report on Radio Rivadavia. The expert emphasized that the combination of the exchange rate and the search for more competitive prices led many to choose international destinations. "Flight costs to places like Punta Cana became cheaper than domestic connectivity," she explained. This reflects a shift in the preferences of Argentine travelers, who are prioritizing international travel over domestic options.

The increase in travel abroad is not only a response to the search for leisure activities, but also to the opportunity to purchase more affordable products. Technology, clothing, and other goods are among the incentives that attract tourists to international destinations. For local hotels, this phenomenon represents a critical challenge to maintaining occupancy and profitability.

The outlook doesn't improve with the arrival of international visitors. Ferrucci noted that Argentina has become an expensive destination, especially for tourists from neighboring countries like Brazil, Uruguay, and Chile. The combination of high costs and expensive domestic flights limits mobility within the country and reduces demand for those seeking to explore different Argentine regions.

In many cases, hotels face uneven occupancy, with peaks during specific seasons and sharp declines outside of them. This complicates industry planning and raises operating costs, creating a cycle that is difficult to break.

The president of the Tourism Hotel Association emphasized that, to reverse the situation, it is necessary to improve internal connectivity and offer competitive rates that encourage both domestic and international tourists to choose Argentina as a destination. Without these measures, the domestic tourism crisis will continue to directly impact the income of hotels and related businesses.

The effect is especially felt in larger cities and traditional tourist destinations, where Argentines prefer to vacation abroad and foreigners find local experiences expensive. The urgency for measures to revitalize the Argentine hotel sector is increasingly evident.