The shops of Uruguay processed 8% more cash during the first quarter of 2024 than during the same period of the previous year, mainly from the summer tourist season and the Tourism Week.
Despite the increasing adoption of electronic payment systems In the country, cash was the protagonist in business transactions during the beginning of the year, between January and March. According to a survey carried out by the company Prosegur Cash, in the first quarter the processing of physical money in all the country.
From the data collected, it was observed that January presented one of the most significant increases in this sense, particularly in the area of Maldonado and Rocha, driven by the growth in consumption that represents the high summer season.
Likewise, another peak in the use of cash—the most common means of payment among tourists—was recorded in Paysandu during the Week of Tourism, and in general throughout the coastal area, one of the most chosen destinations for internal movements during those dates.
In any case, the greatest use of cash did not occur in a specific commercial sector or area, but was seen generally in the banking system, retail, hotels, gastronomy, distribution companies and transportation.
More cash, less spending
The particular or striking thing about this increase in the use of cash is that it does not necessarily mean that there was an increase in spending. In fact, the level of consumption by foreign tourists was one of the main points of concern for operators during the summer season.
In this regard, and according to a joint report prepared by the Center for Studies of Economic and Social Reality (Ceres) and the Uruguayan Chamber Tourism (Camtur)the drop in the entry of foreigners into the country was also accompanied by a drop in spending 4% compared to 2019 and 31% compared to 2017. In real terms, the foreign exchange income during the first month and a half of the season was 21% lower than five years ago; and 41% less than during the record year for the tourism sector.
As for the per capita spending, this also fell 9% in dollars compared to 2019, and 18% in real terms. In that sense, Ceres stressed that “the challenge also lies in encouraging greater spending per person.”
Although there are still no official figures in this regard, Tourism Week could have been a change in this logic, driven by the entry of 251,000 non-resident tourists to the country. In any case, it will be necessary to take stock of the number of Uruguayans who took advantage of the week to travel abroad.
Source: Ambito
