Uruguay’s incentives to attract Argentines

Uruguay’s incentives to attract Argentines

According to what the Minister of Tourism, Tabaré Viera, told the press, the decision is due to the fact that it is a condition that “practically no country asks for”. However, Viera, who outlined the measure in agreement with the country’s president, Luis Lacalle Pou, noted that, although the requirement to have received vaccines against the disease caused by the SARS-CoV-2 virus will be evaluated again in the future. It will remain in effect “for a while”.

However, those tourists who have not completed the vaccination schedule can enter if they present a negative PCR result.

On the other hand, the holder of the portfolio announced that Uruguay will exempt from Value Added Tax (VAT) to foreign tourists in gastronomic services, vehicle rental and catering for parties as of September.

This provision, which will also be accompanied by a 10.5% tax refund on property rentals for tourism purposes, will take effect from September 1 and will last until April 2023.

In turn, he noted, the exemption is added to other measures planned to encourage the entry of tourists such as a 30% discount on fuel for those who arrive in the country in their private cars.

Currently, more than 60% of the tourists who visit Uruguay are Argentines and only about 20% Braziliansa figure lower than that recorded in the pre-pandemic when the South American power was the second source of tourists to the neighboring country.

The sharp acceleration in prices registered by Argentina in recent weeks is leading that country to close 2022 with inflation of no less than 90%, a level not seen in recent decades. The rise in prices, which today stands at 71% year-on-year, mainly affected the Argentine middle class, the main segment of the population that usually visits Uruguay during their vacations.

This situation leaves Uruguay as an “expensive destination” for Argentines, which is why the country is looking for new markets such as Brazil, Paraguay and Chile, in the region, as well as Spain, England and Italy in Europe.

Since the government of Alberto Fernández began, Argentines who travel abroad have extracted US$6,227 million from the Central Bank at bargain prices. For November, it is possible that the trend in the sale of “tourist” dollars will rise a little more as a result of the Qatar 2022 World Cup. According to a report by the GMA consultancy, based on data from the Central Bank and the 1816 consultancy, tourism will It took in 2020 about US $ 1,550 million; in 2021, US$2.12 billion; and so far in 2022, US$2,557 million. That is to say, it is increasing.

Source: Ambito

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