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Tango Without the Sadness - Exame Magazine (Brazil)
February 01, 2007
TANGO WITHOUT THE SADNESS
In Buenos Aires, a flood of investments in the area of tourism becomes the symbol of an economic recovery of the country.
One of the classic definitions for this music, born in the alleys and taverns of the Argentine capital, says that the tango “is a sentiment which is to be danced” The birth place of this rhythm became a synonym for the music and the soul of the ‘porteños’ . The city has lived a good part of the last few years wrapped in the same atmosphere of tragedy and sadness which characterized the great songs of Carlos Gardel. The elegant, cosmopolitan and intense city suffered as no other the impact of the recession which culminated in the country’s going into default, at the end of 2001. Visitors decreased, the capital was impoverished, and its streets became the scenario of violent protests.
For the relief of Argentines, the present panorama is very different today. Improvement of the country’s economy --thanks to a BPI which rises at a rate of 9%--, wiped out that heavy cloud of melancholy. Even though expansion is still –to a great extent-- the making up of lost time in the course of the last few years, it is true that Buenos Aires begins to recover that aura which made people think of it by the name of "the Paris of Latin America".
The tourist industry reflects exactly this good moment, by unifying a series of positive results. All along the past year the city received 2 million tourists –the best mark since 2001 (see table below) -- while Rio de Janeiro, the Brazilian capital with the highest rate of tourists, receives 1.6 million visitors each year. The ‘coming back’ of a great number of tourists whetted the appetite of investors. According to a recent study prepared by the consulting firm Ecolatina, investors on hotels and restaurants in Argentina climbed in the last two years from 323 million dollars to more than 600 million dollars.
Last year 76 hotels were inaugurated in the country, and another 200 are now being built –most of them in the capital. There are attractions for all tastes, as in the case of Axel Hotel Buenos Aires, in the San Telmo area. On the initiative of a Spanish group, which invested 3,5 million dollars in this project, the hotel intends to be the first five-star hotel in Latin America, targeting a gay clientele. Its inauguration is expected to be in July.
Apart from the places traditionally sought by visitors (such as Recoleta and San Telmo), new areas of the city moved into the tourist circuit. One of them is Palermo, with several parks, bars and design shops, among other attractions. Another outstanding site is Puerto Madero, an old and decaying port area of Rio de la Plata, which became an example of renewal at the end of the nineties and continues to offer novelties. Right now they are investing 300 million dollars to finish the Faena Art District, a commercial, residential and cultural complex.
The first stage of this project was completed in 2004, with the opening of three residential spaces and inauguration of the Faena Hotel + Universe. With the name of the famed French designer Philippe Starck, this site has won several international awards in architecture and tourism; among these, one given by the English review Wallpaper and the American Condé Nast Traveller. The rest of the Faena Art District Project will be ready in three years.
In view of this tourist interest there has been a significant increase in the value of real estate in these areas. In the main suburbs of Argentina’s capital, the price of a square meter climbed 50% in the last four years – while in 2006 alone, the value of real estate went up 20%. “There are many Americans and British investing in real estate in the capital since prices here are still much lower", says Michael Koh, CEO & owner of Koh Inversiones, who specializes on advising foreign investors in real estate transactions who are interested in buying.
From the beginning, in 2002, 400+ purchases have already been completed. In addition, this businessman is building Algodón, a luxury hotel in Recoleta, with only 12 rooms and prices staring at $900 dollars day. The company expects to inaugurate in July 2008.
Beginning with the growth of tourism, there has been a growth in the market for high level produtcts and services. Last year, Italian firm Ermenegildo Zegna invested 6 million dollars to open a second shop in Buenos Aires. It will join a circuit in the capital with other establishments such as Valentino and Tiffany, all of which have recently arrived in the city. Their idea is to tempt both tourist and local consumers of a high level income, recently back to shopping once more.
Meanwhile, this movement is far from the great debate in Argentina about the sustainability of the virtual economic circuit. Critics are warning that because of the lack of investment in infrastructure and a lack of fiscal control by the government, the story might end in tragedy. The Argentine challenge at this moment is to demonstrate that the tango can also have a happy ending.
February 01, 2007
TANGO WITHOUT THE SADNESS
In Buenos Aires, a flood of investments in the area of tourism becomes the symbol of an economic recovery of the country.
One of the classic definitions for this music, born in the alleys and taverns of the Argentine capital, says that the tango “is a sentiment which is to be danced” The birth place of this rhythm became a synonym for the music and the soul of the ‘porteños’ . The city has lived a good part of the last few years wrapped in the same atmosphere of tragedy and sadness which characterized the great songs of Carlos Gardel. The elegant, cosmopolitan and intense city suffered as no other the impact of the recession which culminated in the country’s going into default, at the end of 2001. Visitors decreased, the capital was impoverished, and its streets became the scenario of violent protests.
For the relief of Argentines, the present panorama is very different today. Improvement of the country’s economy --thanks to a BPI which rises at a rate of 9%--, wiped out that heavy cloud of melancholy. Even though expansion is still –to a great extent-- the making up of lost time in the course of the last few years, it is true that Buenos Aires begins to recover that aura which made people think of it by the name of "the Paris of Latin America".
The tourist industry reflects exactly this good moment, by unifying a series of positive results. All along the past year the city received 2 million tourists –the best mark since 2001 (see table below) -- while Rio de Janeiro, the Brazilian capital with the highest rate of tourists, receives 1.6 million visitors each year. The ‘coming back’ of a great number of tourists whetted the appetite of investors. According to a recent study prepared by the consulting firm Ecolatina, investors on hotels and restaurants in Argentina climbed in the last two years from 323 million dollars to more than 600 million dollars.
Last year 76 hotels were inaugurated in the country, and another 200 are now being built –most of them in the capital. There are attractions for all tastes, as in the case of Axel Hotel Buenos Aires, in the San Telmo area. On the initiative of a Spanish group, which invested 3,5 million dollars in this project, the hotel intends to be the first five-star hotel in Latin America, targeting a gay clientele. Its inauguration is expected to be in July.
Apart from the places traditionally sought by visitors (such as Recoleta and San Telmo), new areas of the city moved into the tourist circuit. One of them is Palermo, with several parks, bars and design shops, among other attractions. Another outstanding site is Puerto Madero, an old and decaying port area of Rio de la Plata, which became an example of renewal at the end of the nineties and continues to offer novelties. Right now they are investing 300 million dollars to finish the Faena Art District, a commercial, residential and cultural complex.
The first stage of this project was completed in 2004, with the opening of three residential spaces and inauguration of the Faena Hotel + Universe. With the name of the famed French designer Philippe Starck, this site has won several international awards in architecture and tourism; among these, one given by the English review Wallpaper and the American Condé Nast Traveller. The rest of the Faena Art District Project will be ready in three years.
In view of this tourist interest there has been a significant increase in the value of real estate in these areas. In the main suburbs of Argentina’s capital, the price of a square meter climbed 50% in the last four years – while in 2006 alone, the value of real estate went up 20%. “There are many Americans and British investing in real estate in the capital since prices here are still much lower", says Michael Koh, CEO & owner of Koh Inversiones, who specializes on advising foreign investors in real estate transactions who are interested in buying.
From the beginning, in 2002, 400+ purchases have already been completed. In addition, this businessman is building Algodón, a luxury hotel in Recoleta, with only 12 rooms and prices staring at $900 dollars day. The company expects to inaugurate in July 2008.
Beginning with the growth of tourism, there has been a growth in the market for high level produtcts and services. Last year, Italian firm Ermenegildo Zegna invested 6 million dollars to open a second shop in Buenos Aires. It will join a circuit in the capital with other establishments such as Valentino and Tiffany, all of which have recently arrived in the city. Their idea is to tempt both tourist and local consumers of a high level income, recently back to shopping once more.
Meanwhile, this movement is far from the great debate in Argentina about the sustainability of the virtual economic circuit. Critics are warning that because of the lack of investment in infrastructure and a lack of fiscal control by the government, the story might end in tragedy. The Argentine challenge at this moment is to demonstrate that the tango can also have a happy ending.
