Abrupt decline in tourism to Argentina in 2025

Economists say Argentina is experiencing one of the sharpest tourism turnarounds in its modern history—and not in a good way. The country is heading toward a foreign-currency loss of as much as $13 billion in 2025, equivalent to more than 1.6% of GDP, driven by a paradox few would have imagined just a few years ago: Argentinian tourists increasingly find it cheaper to travel abroad, while foreign visitors are being priced out of Argentina.

The scale of the reversal is striking. During the first nine months of 2025, nearly 9.7 million Argentinians traveled overseas, while just 4.1 million international tourists entered the country. That leaves a net outbound gap of 5.6 million travelers.

October only reinforced the trend. About 1.2 million Argentinian travelers left the country, up 9.3% year over year. Inbound arrivals fell to fewer than 680,000 foreign visitors, a decline of roughly 10%. The result was a monthly tourism deficit of $365 million. Argentinians spent close to $600 million abroad, compared with just $232 million spent domestically by foreign tourists.

Overvalued Peso

If current patterns persist, 2025 will surpass every previous record for tourism-related currency losses, easily exceeding the $10.7 billion deficit recorded in 2017.

At the heart of the issue is Argentina President Javier Milei’s anti-inflation strategy. Although extremely successful as it drastically reduced monthly inflation down from triple digits to single digits, it left the Argentinian Peso sharply overvalued due to strict fiscal tightening including a quasi-fixed exchange rate to the US dollar.

The consequences are easy to understand: Argentina is to expensive and that translates into international visitors looking somewhere else for a holiday, while domestic travelers go abroad.

A short shopping trip to Santiago or Asunción often costs less than a weekend in Buenos Aires. Chile currently absorbs nearly 22% of outbound Argentinians’ travel with Brazil following closely at about 20%.

By contrast, premium experiences—Patagonia lodges or Mendoza wine tours—once considered bargains for Europeans and Americans, are now viewed as overpriced.

Inbound Tourism: The Latest Picture

According to the most recent official data from Argentina’s statistics agency and tourism authorities, inbound tourism is in free fall. From January to October 2025, total international arrivals declined by a staggering 16% according to Argentina Secretaría de Turismo- INDEC. The country recorded during that time 4.6 million travelers. Total international arrivals in 2025 are expected to land between 5.5 and 5.8 million, a figure matching total arrivals from a decade ago.

Brazil, Chile, Uruguay, and the United States remain Argentina’s top source markets, but arrivals from Europe and North America have softened considerably. Average spending per foreign visitor has also declined in real terms, as the strong peso has shortened stays and reduced discretionary spending on dining, excursions, and shopping. Industry estimates suggest average daily spend by international tourists is down 15–20% compared with 2023 when adjusted for inflation.

Economists warn that annual tourism outflows in the $11–13 billion range are unsustainable. Eventually, the peso will have to adjust, either through a controlled devaluation that risks reigniting inflation or a more chaotic correction that could erode savings.