Toursim Insight

Tourism competitiveness in Argentina: challenges, opportunities and strategic responses

May 2025

Currently, Argentina faces significant challenges regarding its competitive position in the global tourism sector. The recent devaluation of the peso has intensified barriers to attracting international visitors, while also highlighting the crucial importance of each destination’s unique value proposition within the country.

The first quarter of 2025 reflected a 25% decline in the influx of international tourists compared to the same period last year. Europe remains the leading source region, accounting for 20% of total visitors, followed by Brazil with 16%.


This impact has not been uniform across all segments. Some, such as business tourism, ecotourism, and certain luxury trips, display less sensitivity to price fluctuations and have maintained a degree of demand stability. Additionally, the origin of visitors has shifted: Argentina now receives significantly fewer Brazilians, while European arrivals are increasing. These changes influence behaviors related to average length of stay, preferences, and expenditure, among other factors. A detailed understanding of these aspects is essential to adapt and refine value propositions effectively.

On the other hand, destinations with a robust offering, strong cultural or natural identity, and well-established positioning continue to attract tourists and remain preferred options. Conversely, less differentiated destinations or those in early development stages face greater difficulties in attracting and retaining visitors in an increasingly demanding market.

Compounding these challenges, the hotel industry is grappling with rising operating costs, which have increased sharply in recent months. This escalation directly impacts profitability and the ability to maintain competitive pricing in a volatile and competitive environment. Efficient cost management and business optimization are therefore vital for ensuring operational sustainability and hotel competitiveness.

To improve efficiency and profitability, relying solely on creative ideas is not enough; it is essential to have the support of specialized professionals capable of conducting thorough business analysis and providing expert guidance.

Key Challenges for the Tourism Sector:

  1. Pricing and Promotion Optimization: Developing packages and offers that deliver value-added benefits, encouraging bookings through discounts and exclusive advantages.
  2. Infrastructure and Service Enhancements: Investing in delivering a differentiated experience that justifies the destination’s value.
  3. Promotion of Cultural and Natural Identity: Highlighting the country’s diversity and uniqueness to attract travelers seeking authentic, high-quality experiences.
  4. Digital Marketing Strategies: Enhancing targeted digital campaigns, leveraging social media platforms and analytical tools to reach ideal audiences.

Specific Challenges for Hotels:

  1. Strategic Revenue Management: Adjusting rates based on local and international market conditions to maintain competitiveness without compromising profitability.
  2. Segmentation and Differentiation: Focusing on niche segments, customizing services and promotions to match their specific needs.
  3. Enhancing Guest Experience: Training staff and improving services to create memorable stays that foster loyalty and generate word-of-mouth recommendations.
  4. Strategic Alliances: Building partnerships with tour operators, travel agencies, and digital platforms to increase visibility and customer acquisition.
  5. Innovation and Sustainability: Incorporating sustainable and technological practices to add value and stand out in a competitive landscape.

Conclusion

The decline in Argentina’s tourism competitiveness, driven by exchange rate fluctuations and rising hotel operating costs, requires an integrated strategic response. Since the impact varies across different segments and regions, it is crucial to tailor strategies to the specific characteristics of each niche and destination. Addressing these challenges and seizing opportunities will demand more than mere creativity or boldness—it calls for a well-planned, adaptable, and expert-driven approach.