The tourism market in times of turbulence

The tourism market in times of turbulence

no one who lives in Argentina is oblivious to the shock that caused the PASSED. As on so many other occasions they seem to mark, once again, a before and after. Regardless of the sign of who is finally elected, it is certain that there will be changesbetter or worse depending on the lens of who looks at them, but Nothing will be the same. And neither will it be for the industry tourismwhose matrix will have turbulence and significant changes.

The important thing in the sector will be to have the capacity to analyze the short, medium and long term and, with a lot flexibility and waist, power adapt to the coming times. Whatever happens and whatever measures are taken, the block sector must be very attentive to adapt to new scenarios.

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City Tourism Agency

He tourism marketfrom the pandemic to today, was marked by policies and eventualities with dual effectswhich gave a state of affairson which developed a economic model what did he know seize opportunities that they had to live.

In the worst economic situation, we had to learn by dint of coping with the challenges that arose. There was a previous trip, an incentive that served enormously and helped growth and maintain activity post-closing. But that solution then also brought his problems: high rate increases and the passages due to the great artificial demand, which in many cases distorted the values ​​in relation to the services provided. In any case, it is undeniable benefits that it had since it allowed businessmen not only keep but add more staff, increase billing, rearm structures, set business goals according to that moment and significantly expand internal and regional connectivity.

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Tourism.

Ministry of Tourism and Sports

Inflation made Argentina cheaper for foreignersa segment that comes improving and growingat the same time that the local middle class saw its possibilities of saving and, before the overall uncertaintypreferred invest in tourism experiencesenhancing the demand.

The bonanza was important in the sector in general terms. The question now is to know what’s next and, from there, be prepared to tighten your belt and try to land the plane in the framework of the new weather conditions that will surely they will not be so favorable.

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Tourism.

Ministry of Tourism and Sports

The short term

A sharp adjustment of the fiscal deficit is imminentregardless of who occupies the chair of rivadavia. And beyond the clear long-term benefits, that surely will end expansion incentives and policies that will affect the economic activity. The domestic demand for tourism HE will contract, which implies a very important change in the sector and in the way of working in recent years. there will be a oversupplied marketwith the natural consequence of lower rates despite the inflation. This, in a framework of cost hikes and profit adjustments; unless replaced internal market by external which, anyway, it will not be immediate.

there will be readjust personnel structures. The investments to continue growing in services and beds, they will brake and those focused on improvements of the existing will have less boost.

Tourism celebrates high dollar, but warns of “Argentine cost”

Dollar.

With the devalued currencyand one good growth policy for him foreign tourismthere may be a light at the end of the tunnel and this is the industry support. Although a problem that can be generated is the dollarization policies that are in dance, because if the neighboring countries activate a devaluation policywe would stay very exposed and with great difficulties.

The variables of change are many and although they may be necessary, if they are applied just for following a particular theory or philosophywithout understanding that there people in betweeneverything can be directed to a very difficult and complex stage.

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Argentine destinations.

So it is very important, and given the tourism potentialthat the processes to reach the objectives of reorganization of the country be agreed, studied and applied so orderly and gradual. Nothing is forever and changes are also part of reality. In addition, it will be necessary time so that everyone can adapt and find new opportunities in the near future.

Source: Ambito

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