Despite inbound tourism growth, sector continues to drain country coffers

Despite a rise in tourism arrivals, the Argentinian tourism sector continues to drain the country's coffers. In July 2026, the number of nonresident travelers arriving in Argentina rose 9%, while outbound tourism fell 17%, according to INDEC data. During the first seven months of 2026, Argentine travelers vacationing abroad dropped 14% compared to the previous year.

Meanwhile, inbound tourism grew 8% during the same period, driven by a 19% increase in international air arrivals. So far this year, 3.4 million nonresident tourists have visited Argentina, while 7.1 million residents have traveled abroad. This still results in a tourism deficit for the country, although a smaller one compared to 2025.

The Fundación Mediterránea think tank estimates the deficit could reach between US$5.7 billion and US$6.2 billion in 2026, up from around US$7.2 billion in 2025. This deficit is currently being offset by Argentina's strong goods trade surplus. However, the imbalance puts additional pressure on the country's external accounts and international reserves at the Central Bank.

The government is seeking to accumulate reserves ahead of next year's elections to meet upcoming debt payments, with net reserves currently estimated at around US$10.5 billion. While Argentina's tourism infrastructure could potentially generate more foreign currency, improving competitiveness requires addressing structural issues.

Deregulation policies under President Javier Milei and declining inflation have boosted the sector's performance. However, the peso's appreciation due to the Economy Ministry's exchange-rate policy hinders the sector's competitiveness. Fundación Mediterránea suggests several initiatives to boost Argentina's tourism competitiveness, such as infrastructure improvements, border crossing enhancements, increased credit access, and tax reform to reduce distortion and burden on economic activity.