Argentina faces a drop in hotel occupancy
30-07-24
In May, hotel occupancy in Argentina experienced a 24.7% drop compared to the previous year, due to a decrease in the number of tourists and the purchasing power of local travelers. The decline has intensified in June, with a significant reduction in international tourist arrivals.
According to the National Institute of Statistics and Census (INDEC), approximately 2.4 million overnight stays in hotel and non-hotel establishments were recorded in May. The report also revealed a 28.0% drop in nights spent by resident travelers and a 12.2% drop in nights spent by non-resident travelers. The increase in dollar prices, due to the stability of the dollar and inflation in pesos, has reduced tourist visits to neighboring countries.
In terms of tourist regions, Buenos Aires had the highest percentage of overnight stays in the month, with 27.6%, totaling 297,146 people. Patagonia followed with 17.1% and 183,770 guests.
The decrease in hotel occupancy is a direct consequence of the devaluation of the Argentine peso, which has made vacations more expensive for foreign tourists.
In June, the number of foreign tourists arriving in Argentina was 110,000 fewer than in the same month last year, representing a 25% drop. Considering data from April and May, there were a total of 400,000 fewer tourists visiting Argentina.
This decrease has been more pronounced among visitors from Uruguay, Chile, Paraguay, the United States, Spain and France. Although the hotel sector in Argentina has been growing, it has not been growing at the overall pace.
To attract more foreign tourists, experts suggest that significant improvements in supply, infrastructure and air connections must be implemented. Although Argentina is the eighth largest country in the world in terms of land area, it currently offers very few tourism services.
Existing infrastructure is not being fully utilized due to the recession and declining demand from international travelers.
According to INDEC data, the highest hotel occupancy rate (TOH) was observed in 4 and 5 star hotels, with 43.9%, followed by three star hotels, apartments and boutiques with 33.0%.
During weekends, the highest room occupancy was in 4 and 5 star hotels, with 41.4%, and in three star hotels, apartments and boutiques with 34.2%.
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