The Minister of Deregulation pointed out that tourism abroad should not be demonized as a waste of dollars. The argument is that tourism abroad generates a demand for dollars that puts upward pressure on its value and this promotes exports. The evidence it offers is that in the international context, countries that import a lot also export a lot. In the comparison, Argentina appears as one of the countries that imports the least and exports the least in terms of its GDP.
The argument is appropriate and questions the supposed benefits that the theory of economic autarky attributes to the closure of the economy. That is, limiting imports saves dollars, even more so when it comes to a sumptuous import such as tourism abroad. The evidence shows that the most advanced countries are not characterized by promoting autarky but by having a high international openness. However, it must be taken into account that, for the mechanism of more imports generating more exports to work, the exchange market should be free – not intervened by the government – so that upward pressure on the dollar can occur to promote exports.
Another point to reflect on is that for exports to increase, national production must be competitive. The example of tourism is very illustrative. Taking the INDEC data on international tourism, between January and November 2025, it is observed that:
-1 million of Brazilians came to Argentina and 3.1 million of Argentines went to Brazil.
-647 thousand Chileans They came to Argentina and 2.3 million of Argentines went to Chile.
-700 thousand Uruguayans They came to Argentina and 1.4 million of Argentines went to Uruguay.
These data show that there are many more Argentines who tourism in neighboring countries than residents of neighboring countries who tourism in Argentina. In the case of Brazil and Chile, Argentines who travel to those countries triple the number of residents of those countries who come to Argentina. In the case of Uruguay, the Argentines double the Uruguayans. It is very suggestive that Brazil, being larger, has less tourism to Argentina and, although Chile and Uruguay are smaller, their populations have greater purchasing power so one would expect a less asymmetric flow in terms of international tourism.
Argentina’s relatively lower receptivity to international tourism lies in its low competitiveness. As an example, there are few flights, the flag airline that has the most flights is expensive, the flights low cost They are few and of low reliability, problems of delays at airports due to labor conflicts are frequent, there is no quality public transportation from the airports to the cities so travelers are at the mercy of private monopolistic services, the routes are very deteriorated due to the lack of maintenance and the prices of domestic goods and services are higher, among other reasons due to the distorting tax pressure of national, provincial and municipal taxes. Distortive taxes cannot be reimbursed to tourists, as can be done with VAT. All of these limitations are not offset by a higher dollar. Because it is not just about prices but also about the low quality of local goods and services that ends up discouraging international tourism.
The environment that generates low competitiveness is not exclusive to the tourism sector. Expensive and poor transportation infrastructure, poor regulations and distorting taxes hamper the ability to export in all sectors. Low competitiveness leads to a shortage of dollars and this is what makes spending dollars on tourism abroad perceived as harmful. But The problem is not generated by Argentines spending on tourism abroad, but by the local environment that generates adverse conditions to produce goods and services (such as tourism) that are competitive and attractive to the world..
The chronic shortage of dollars that Argentina suffers cannot be resolved with more autarky. They are resolved by eliminating the factors that limit the competitiveness of national production. With a more favorable environment for competitiveness, increasing exports and imports is a driving factor and how many Argentines travel abroad becomes an irrelevant issue.
* The author is an economist at IDESA.
by Jorge Colina
