Hospitality Industry in Argentina - Growth, Trends, and Forecasts (2020 - 2025)
The hospitality industry in Argentina is growing in a steady manner, with international market leaders expanding their footprint in the region. It became the top tourist destination in South America, by overcoming Brazil, in 2017, with a record total of approximately 10 million tourist arrivals into the country. The tourism sector is one of the top five revenue generators to the country, and the tourists spent around a total of USD 5.5 million, in 2018, in Argentina. With the increasing number of travelers to Argentina, the capital, Buenos Aires, has become an investorattractive region. Most of the international leaders already have their presence in this region. The Wyndham Hotels and Resorts opened another brand in the city, targeting the luxury segment of the market. The occupancy rate increased by 1% and reached around 69% in Buenos Aires, followed by the increased average daily revenue (ADR) and revenue per available room (RevPAR). The inflation of the Argentine Peso also helped the country.
Key Market Trends
The Capital City, Buenos Aries, is Driving the Market
Buenos Aries, which is built on tourism, is witnessing many new hotel openings every year. The city is also considered a cultural hub, as it has more than 300 theaters, ranking the fourth in the world of theater activity. This has made the region the first choice for international events. In 2018, Buenos Aires experienced the highest occupancy rate for 2018 since 2012, at around 69%, with the help of the events, like the WTTC Global Summit held in April, TravelMart Latin American in September (which is Latin America’s travel industry business development event), and the 2018 Summer Youth Olympic Games in October.
With Rising Occupancy Rates of Hotels in Argentina, City Planners are Focusing on Attracting More Investments
According to Ministerio de Turismo (Argentina), the occupancy rates of different accommodation units have been on the rise from the past few years. Argentina registered an occupancy rate of around 45.91% in 2016, which increased to 48.52% in 2018. Most of the revenue is generated from Buenos Aries. Considering the growth numbers of the city, the government is offering a significant level of fiscal credit on turnover tax for hotels, for their first 15 years for new establishments and for the next 10 years for the already existing ones. The commissioners are planning to implement similar practices in tierII cities depending upon on their success.
The hospitality industry in Argentina is a combination of domestic and international brand hotels and their chains, which are spread across the country. Most of the international brands have their presence largely in Buenos Aires, which has been recording a high number of tourist arrivals. The international brands, like Wyndham and Marriott, are expanding in the region in a rapid manner and introducing their brands one after another. Marriott is expanding its First W Hotel brand in Argentina, with around 150 hotels, which are expected to open in 2024.
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