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Are long weekends good for the economy? A report proposes reducing them and promoting inbound tourism - Infobae
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¿Sirven los fines de semana largos para la economía?: un informe propone reducirlos y fomentar el turismo receptivo
Según el Instituto de Economía de la UADE los 5 fines de semana XXL le costaron al país USD 2.600 millones, aún considerando la reactivación del turismo interno. Asegura que es más redituable posicionar a la Argentina como destino turístico para los extranjeros
www.infobae.com
October 14, 2024
According to the UADE Institute of Economics, the 5 XXL weekends cost the country USD 2.6 billion, even considering the reactivation of domestic tourism. It claims that it is more profitable to position Argentina as a tourist destination for foreigners.
According to UADE, to go for a long weekend to Mar del Plata or Iguazú in July, a typical family needed approximately $1,300,000 (Maximiliano Luna)
The five long weekends that have passed so far in 2024 represented a cost, in terms of GDP, of approximately USD 2.6 billion , which is equivalent to 3 days of the year, according to a report by the UADE Institute of Economics. For this reason, they propose cutting back on long weekends.
In making the estimate, the university considered “ the net loss derived from tourism earnings and the damage to other economic activities, with an impact on education and health services and on productive sectors such as industry and construction, which must slow down processes and face additional labor costs.”
The report argues that although the long weekend policy is intended to encourage domestic tourism, it is not effective, not only because of the economic costs but also because of the "impediments" that people are considered to have to travel.
First of all, UADE points out the high cost of traveling, stating in the Travel Power Index (IPV) prepared by INECO: to go for a long weekend to Mar del Plata or Iguazú in July, a typical family needed approximately a full salary ($1,300,000) and to go to Bariloche a salary and a half ($1,900,000).
They also argued that over the past year and a half, since January 2023, real wages have suffered a 7% loss , so “in this context, saving for future vacations or short trips becomes difficult for Argentines.”
UADE proposes to attract more foreign tourists and eliminate some long weekends. REUTERS/Agustin Marcarian
“Given these economic conditions, having a high number of long weekends can be detrimental to tourism activity. With 6 long weekend options throughout the year, it seems difficult for a typical family to travel, even for just one long weekend, since they would have to save an entire salary or more throughout the year to be able to travel within the country. This would affect, at least initially, the country's main tourist destinations. Tourist demand is spread out and not concentrated,” they said.
Thus, the UADE indicated in its report that “in the face of the low development of local tourism, an alternative solution could be to attract more foreign tourism and eliminate some long weekends .” And it detailed its 4 proposals:
- Shorten long weekends to reduce the number of long weekends. This would encourage tourism during traditional tourist seasons and windows (Carnivals and Easter).
- Raise the position of our country as a tourist destination , with improved infrastructure and attractive services for foreign tourists.
- Reduce transportation costs (in line with the proposed deregulation of short and long distance transport) and hotels, providing better options for accessing tourist destinations, both by land and by air.
- Offer financial accounts that allow access to a beneficial exchange rate (as a preliminary measure to an ideal exchange rate unification with the end of the currency restrictions). It is worth noting that there is a tax refund, such as VAT, for those who decide to visit our country.
In this regard, they concluded: “It is possible that the tourists who missed out on travel during the peak seasons decided to take shorter trips during the holiday periods. While the data on the improvement in long weekends compared to last year is encouraging, it should be noted that this was motivated by exceptional circumstances that created longer periods of time. This situation will not occur again in 2025, so it is necessary to be cautious about the continuation of this process.”
At the same time, "it must also be taken into account that the appreciation of the exchange rate will further affect the upcoming summer season in the coming months, with a drop in domestic tourism (which will have better conditions for accessing international travel) and inbound tourism," they said.
