Holiday dilemma: Will Cordovans flee to Brazil in droves?

Holiday dilemma: Will Cordovans flee to Brazil in droves?

2024-11-25 16:00:00

While inbound tourism continues to decline, expectations are high for outbound travel as all forecasts indicate that holidaying Argentines, especially those from Cordoba, will choose to seek Cheaper alternatives And, in this case, Brazil seems to be the most likely destination to be chosen.

return Uruguay Appearance is in the panorama for the summer of 2024/2025, but neighboring countries already have a clear market among local holidaymakers, which is likely to increase this season.

of autumn accepted – Registered last September down 16%– The reason is the cost of Argentina, which is no longer a “cheap” destination for many foreigners due to the “ironing” of the US dollar, and the prices of services and food have increased (excessively in many cases).

After 190 days of classes, they set a start date for the 2025 academic year

If we add these factors to eliminate Before departure and some “Bridge” holiday Facilitating the mobility of tourists in countries and regions, everything seems to be in line with the predictions of operators and authorities: Brazil is almost full Argentina tourists and national destinations they will be empty. Darío Capitani, director of Córdoba Tourism, admits that the province is part of this panorama: “yes we are worried“He said succinctly a week ago.

tax cuts

Fehgra, a hotel and gastronomy entity, emphasizes that “a few months ago foreigners queued up to enter the country, and now Argentines queue up to travel abroad”, noting, furthermore, “the exchange rate has declined”. “A clear delay”, they asked for tax cuts “to balance conditions and enable competition”.

In this sense, they estimate that “Argentine tourist destinations are 20% more expensive than foreign tourist destinations”, pointing out VAT: “Here we pay 21% VAT, whereas in Europe, which has a similar tax system, they Pay 10%. If you add bank borrowing tax, state tax and gross income tax (about 9%) to this 11%, the tax burden will be even greater.

In the case of Brazil, the difference “is not due to the tax component, where the tax burden is greater, but to the exchange rate due to the depreciation of the real”.

“Seduction and Conquest”

Last week, at the meeting of the Federal Council for Tourism (CFT) in Córdoba, Daniel Scioli, Minister of Tourism, Environment and Sports, and Yanina Martínez, Deputy Minister of National Tourism ) dismissed the opinions of chamber operators and managers. Officials from the tourist board and Fehgra said, “Prices are higher in Argentina.”

Martínez assured that “competitiveness should not be measured by whether things in the country are more expensive or cheaper, but by the quality of services, the diversity of natural and cultural resources and the number of choices” and suggested “attracting and winning More Argentinians in order to “don’t go to Brazil.” “

Holiday dilemma: Will Cordovans flee to Brazil in droves?

Scioli, in turn, asked for “the will and creativity to do things,” while recommending “a dialogue with the private sector in all provinces because they too can hopefully work to lower rates if conditions are created using different tools.” In other words, there is “no money”.

The official accepted the claims and scheduled a meeting “in the coming weeks” to analyze them.

The horizon is dark and the forecast is not promising, but as a counterweight to the “exodus” of Cordovans to the famous and beautiful Brazilian beaches, facing the cost of thousands of kilometers of car travel not to mention the “adjustment” of families’ budgets to Possibility of traveling by plane.

Cordoba may have a bad season, but it won’t be “that” bad.

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**Interview with ‍Darío Capitani, Director ⁣of Córdoba Tourism**

**Interview⁣ with⁤ Darío Capitani, Director of Córdoba Tourism**

**Interviewer:** Good ⁢afternoon,⁢ Darío! Thank you for joining⁢ us to ⁣discuss the current state of tourism ‌in Argentina⁢ and the growing trend of outbound ‌travel, particularly to⁤ Brazil.

**Darío‌ Capitani:** Thank you for having me!⁤ It’s a critical time for tourism, and I’m glad​ to ​share​ our insights.

**Interviewer:**⁢ Let’s dive right in.⁤ Recent reports suggest that Argentinians, especially those from Córdoba, are increasingly looking ⁢toward Brazil​ as a travel​ destination. What do you attribute ‌this ‍trend to?

**Darío Capitani:** Absolutely, ‍we’re ⁢seeing​ a significant ​shift. The ‍primary factor is the rising cost of living‌ in Argentina, ⁢particularly under the strain of inflation and the impact of ‍the U.S. dollar exchange rate. With ⁢prices of ​services and⁢ food skyrocketing, many locals are realizing that traveling abroad, especially ⁤to⁤ Brazil, is becoming more ⁤affordable compared to domestic⁣ options.

**Interviewer:** That’s an interesting point. With ‍Brazil ⁢being viewed as a “cheaper ​alternative,” how⁣ do you foresee this impacting local tourism in Córdoba?

**Darío​ Capitani:** ⁢It’s a concern. As we look toward the summer⁣ season of⁤ 2024/2025, we predict that many Argentine tourists‍ will‍ choose Brazil over national destinations. ⁣Our local attractions might suffer‌ significantly from this shift. We’re already feeling⁤ the⁣ impact with reports indicating that national tourist ​spots ⁢might be quite​ empty this⁢ season as travelers ⁤flock to Brazil, which is nearly full.

**Interviewer:** You mentioned‍ the⁢ issue of costs. How does Argentina’s tax structure‍ affect the competitiveness of local tourism⁣ compared ⁢to ‍international ‌destinations?

**Darío Capitani:** The tax burden in Argentina is indeed a huge factor. For instance, our VAT⁤ is 21%, while many European⁢ countries, including Brazil, have similar, yet lower rates. This makes ‍local destinations ​approximately 20% more expensive than foreign alternatives. Operators in the industry have been pushing for tax cuts to level the playing⁣ field, but progress ⁣has been slow.

**Interviewer:** Given these challenges, what ‌steps‍ are being suggested to revitalize ⁢the local ⁣tourism ⁤sector?

**Darío Capitani:** We⁤ need a multi-faceted approach. Firstly,‌ we must advocate ⁤for policy changes to reduce the tax burden. Additionally, promoting domestic tourism through local campaigns and⁣ offering attractive packages and deals could help draw Argentinians ⁤back to our own beautiful destinations.⁤ The idea is to balance the appeal of ​international travel with compelling reasons ⁢to explore what we have‌ here.

**Interviewer:** ​That sounds like a robust ​plan. Before we wrap⁣ up, what would you say to potential tourists considering their options this coming⁣ summer?

**Darío Capitani:** I’d ‌say it’s vital to weigh⁤ your options. ⁣Brazil offers‌ beautiful beaches and a vibrant ‍culture‌ at a⁣ competitive price right now, but we also have stunning landscapes and unique experiences ‍here in‍ Córdoba and across Argentina. Support local tourism by exploring our regions—we have much to offer!

**Interviewer:** Thank ⁣you, ​Darío, ‍for sharing your insights and shedding light on the current ‌tourism ⁢climate. We wish⁤ you all the best as you navigate these challenges!

**Darío Capitani:** Thank you! It’s been a pleasure discussing this topic,‌ and I hope to see more⁣ visitors in our local destinations soon.

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