Real vs peso: a fortnight in Rio de Janeiro, with air included, costs the same as one in Mar del Plata

With the approach of the summer holidays, and in the context of the devaluation that the real experienced, Brazil It appears as the most chosen option among those who still consider the possibility of vacationing abroad. According to a private report, a fortnight in Rio de Janeiro can cost the same or half as much as in Mar del Plata, depending on the inclusion or not of the air transfer in the budget.

The peso appreciation and rising prices on the Atlantic coast Argentina have made a stay in several foreign tourist cities more economical than a local destination.

This is deepened when comparing Mar del Plataa tourist spot popularly chosen in the summer season, with Rio de Janeirogiven that the depreciation of the Brazilian real suffered this year and deepened in recent weeks they lowered the prices of that country measured in dollars and pesos.

The information comes from the Ecosur Foundationthe consultancy of the former president of the Central Bank (BCRA) Guido Sandleris. In a report, the institution compares the cost of “representative holiday baskets” in Mar del Plata, Rio de Janeiro, Punta del Este, Cancun and Miami during January to determine which destinations are most accessible.

So, EcoSur distinguishes two types of baskets: the “stay basket” and “total holiday basket”.

In the first case, a two-week stay in January in a three star hotel for four people, meals, drinks and transport local, but not air or medical insurance.

Considering these items, The cost of vacationing in Mar del Plata is US$6,671while the same in Rio de Janeirothe most economical destination of those analyzed, costs almost half, US$3,194. Even Cancun is presented as a more economically viable option, considering a 35% cheaper basketfor US$4,364.

The comparison is different with other points abroad such as Punta del Este or Miamiwhich also appear as the main destinations consulted when Argentina goes through a period of exchange delay.

Traveling to Brazil costs the same as vacationing in Mar del Plata

In any case, it is clear that the budget will have to include the cost of the transfer and, if possible, medical insurance. The so-called “total basket” contemplates these items, including the cost of tolls and fuel to go to Mar del Plata.

In this sense, the most interesting conclusion that the consultant reaches arises: once the transfer to Rio de Janeiro for four people is included, The cost is not greater than vacationing in Mar del Plata, but is equalreaching for both destinations a total budget of US$6,755.

“This is notable, since for international destinations air tickets for four people are considered, while for Mar del Plata only the cost of the round trip by car (gasoline and tolls) is included,” the document explains.

However, the same does not happen with Punta del Este, Cancun and Miamiwhich become 41%, 69% and 169% more expensive than in Mar del Plata, respectively.

Impact on the BCRA coffers

Considering the panorama, the question that lights up warning lights is How the attraction of traveling to Brazil impacts the BCRA coffers. For Francisco Ballesterdirector of economic analysis, “for now this does not have a great impact.” because today tourism “almost everything goes via parallel dollar“, given that the official exchange rate plus taxes “is much more expensive.” “These are private individuals buying dollars from other private individuals, the BCRA does not intervene,” the economist clarifies.

It should be noted that the latest BCRA Foreign Exchange Market report indicates that net expenses of US$562 million in expenses for travel, tickets and other consumption made with cards with non-resident suppliers.

Of the total of these card consumptions, 50% were later paid directly by clients with their own funds in foreign currencywhich reduces the deficit impact of this consumption on the exchange market and international reserves.

However, the other half were paid using the “card dollar”used despite the fact that it maintains a higher price than the MEP ($1,659 versus $1,057 respectively).

In that sense, FIDEthe Mercedes Marcó del Pont consulting firm, warns that “expenses for trips abroad are usually financed with a stock of previous savings rather than with a flow of income,” but “The risk with the elimination of the PAIS Tax is that the portion paid with our own dollars will decrease”.

With national prices at par and a flight offer projected to be the highest in the last 16 years –276 weekly flights and 23 fixed routes between both countries-How could domestic tourism surf the wave of Argentines in Brazil?

For Ballester, the Argentine tourism sector “he is not used to competing“because for a long time”was accustomed to a combination of very low dollar wages and direct subsidies”, which gave entrepreneurs in the sector “the ability to increase their margins by inflating prices at the expense of the consumer.”