Since Javier Milei took office in December 2023, Argentina has become sharply more expensive in dollar terms, eroding its appeal as a bargain destination. Foreign tourist arrivals fell 8% to 6.2mn in 2024, then another 14% to 5.3mn in 2025, but rebounded 7.4% in 2026's first half. Arrival from non-neighbouring countries hit a record 1.43mn in the same period.
"What we lost was the traveller who came because of an exchange-rate opportunity," says Gabriela Ferrucci, head of the Argentine Hotel Association. "What started to emerge instead was higher-spending demand from farther afield, from people choosing Argentina for what it offers rather than because it was cheap."
Lower- and mid-range hotels have been hit harder by the loss of regional middle-class visitors, while four- and five-star properties in Buenos Aires, Patagonian destinations such as Bariloche and Ushuaia, and the wine region of Mendoza have proved more resilient.
The hotel infrastructure needs upgrading, particularly outside Buenos Aires, to serve more affluent visitors who are increasingly shortening trips and choosing carefully where to splurge.
Source: Financial Times Companies · Summarized by HeadlinesBriefing