Tourism Competitiveness in Argentina: Challenges, Opportunities and Strategic Responses & By Diego Rodriguez

Tourism Competitiveness in Argentina: Challenges, Opportunities, and Strategic Responses – Written by Diego Rodriguez

Argentina is currently facing significant challenges in maintaining its competitive edge in the global tourism industry. The recent devaluation of the peso has made it harder to attract international visitors, emphasizing the importance of each destination’s unique value proposition within the country.

In the first quarter of 2025, there was a 25% decrease in international tourist arrivals compared to the same period last year. Europe remains the primary source region, contributing to 20% of total visitors, followed by Brazil at 16%.

While some segments like business tourism, ecotourism, and luxury travel show resilience to price fluctuations, others have been more affected. Changes in visitor origins, with fewer Brazilians and more Europeans, have influenced factors like average length of stay, preferences, and spending patterns.

Destinations with strong offerings, cultural or natural identities, and established positioning continue to attract tourists, while less differentiated or emerging destinations struggle to compete in a demanding market. Rising operating costs in the hotel industry also pose challenges to maintaining competitiveness and profitability.

To address these issues, the sector must focus on pricing optimization, infrastructure improvements, promoting cultural and natural identities, and digital marketing strategies. Hotels, specifically, should prioritize strategic revenue management, segmentation, guest experience enhancements, strategic alliances, innovation, and sustainability practices.

In conclusion, addressing the decline in Argentina’s tourism competitiveness requires a strategic, tailored approach that considers the unique characteristics of each segment and destination. Overcoming these challenges and capitalizing on opportunities will require expert-driven, adaptable strategies rather than just creativity or boldness.

Diego Rodriguez, Managing Director in Buenos Aires, has been overseeing consulting projects and regional collaborations in Argentina since 2002.