Uruguay loses tourism competitiveness with Argentina and the Government seeks to alleviate the impact

2023-09-19 05:00:00

The government of Uruguay announced this Monday that it will implement partial unemployment insurance for workers in the hotel industry with the aim of alleviating the impact of the price difference with Argentina. This caused an exodus of Uruguayan tourists to the country.

The Ministers of Labor, Pablo Mieres, and of Tourism, Tabaré Viera, said in dialogue with the press that this “exceptional” measure will apply to all of Uruguay from September to November inclusive, and they hope that it will benefit some 1,000 workers.

“In these three months between now and the end of the year, there is an impact on activity, while Tourism is still suffering from the long period of the pandemic and there is also the problem of competitiveness with Argentina“said Mieres.

And he explained that workers will be able to receive “partial unemployment insurance for days”since many hotels operate only on weekends.

“The main objective of the measure is to preserve the source of work,” said Viera, and recalled that this initiative was already applied during the coronavirus pandemic.

“A tsunami”: low prices in Argentina put Uruguay’s economy in check

“We know that we are marked by an exchange difference that makes the relative prices of Argentina very attractive compared to the Uruguayans and that therefore many Uruguayans take the opportunity to get away to Argentina,” he said.

The devaluation makes vacationing in Argentina cheap for foreigners

The constant devaluation of the Argentine peso made thousands of Uruguayans begin to choose Argentina as a tourist destination in recent months.

It is estimated that more than 70,000 Uruguayans They traveled to our country last weekend for spring break. Meanwhile, in August, on just one long weekend, the figure rises to 100.000.

Viera said that the blow to the tourism sector due to the loss of competitiveness with Argentina is felt throughout Uruguay, but he acknowledged that this winter the coastal thermal destinations suffered particularly.

According to the latest Tourism Border Price Indicator (IPFT) from the Catholic University of Uruguay, in July Prices at the Daymán hot springs were 151% more expensive than those at Federación in Argentina.

Fuente: AFP

LDG / ED

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