Tourism moves from Argentina to Brazil as exchange rates shift

In 2023, the streets of Buenos Aires filled with international visitors as the plummeting peso turned Argentina into a low-cost destination compared with regional neighbors such as Brazil and Chile. But now, the devaluation of the real on one hand, and Argentina’s high prices on the other, means many are trading Patagonia and Palermo nightlife for Copacabana Beach.

Lauren Tessier, a 32 year-old translator from Berlin, came to Argentina earlier this year with the intention to stay until early May working remotely while traveling the country. However, when she arrived, the prices were a lot higher than she was expecting.

“I thought there might be similar prices to Europe, but it’s actually even more expensive than Germany… I was really shocked because my idea of going away for the winter and paying for a long flight is to then save money in the country I’m in, and that’s not happening. I’m spending more than I would in my normal life back in Europe.”

A friend of hers who lives in Brazil encouraged her to move there instead where the cost of living is considerably lower. She’ll be heading to Brazil next week where she’ll stay for the remainder of her travels.

One of the deciding factors for Tessier was how the high prices affected her ability to travel around Argentina. “When you arrive at a place (I expected to) easily go out to a restaurant, experience the local cuisine. Whereas here it’s more a case of ‘OK, I arrive, let’s go to the supermarket and stock up the kitchen because if we eat out every night I’m just going to have no money left.’ And that’s ultimately why I’ve decided to change my plan and go and explore Brazil instead.”

An INDEC report on international tourism stated that in December, the number of international tourists entering Argentina fell by 10 percent year-over-year, while the number of departures from the country increased by 51 percent. Over the course of the full year, arrivals had a cumulative decline of 8 percent, and departures increased by 12 percent. 

Argentine residents traveling to Brazil in December increased 47 percent year over year. However there was also a year-over-year uptick of 14 percent of travelers coming from Brazil to Argentina in December as well. 

Chile saw an impressive increase of 159 percent of Argentine residents traveling there in December compared to the same month last year. There was a decline of 30 percent of travelers leaving Chile for Argentina in December 2024 compared to the year-over-year numbers. 

While its beaches don’t rival those of Brazil, Chile is a popular spot for Argentines to purchase goods. In particular electronic products, clothes and tires — which can all be bought at cheaper prices in Chile due to high Argentine taxes.

Accommodating the crowds

Leonel, a 47-year-old lawyer from Tucumán, recently came back from a vacation to Río de Janeiro. He told the Herald that he used Pix for a number of transactions on his trip. Pix is a Brazilian online payment platform that became popular among travelers for its favorable exchange rate, and has made it easy to make purchases abroad. 

It’s also a way to avoid the surcharges that typically come with using credit cards internationally. Payment via Pix is commonly accepted everywhere in Brazil from high-end restaurants to beach vendors, and it’s a good alternative to carrying cash in the beaches of Rio, a hotspot for pickpocketing.

However, tourism in Brazil hasn’t been all smooth sailing, as the country reported issues with a severe outbreak of gastroenteritis — particularly in the south, according to the Herald’s sister publication Ámbito.

Cases of infection were first reported in late December, but the surge intensified in early January. As a result, both public and private hospitals and healthcare centers are experiencing an unprecedented level of demand. Viral gastroenteritis spreads through contact with infected individuals or by consuming contaminated food or water.

Record tourist spending

Despite the setbacks, foreign tourist spending has been at an all time high — Brazilian tourism revenue hit a record of US$7.3 billion in 2024, according to a notice by the Brazilian government. This is the highest number on record in 15 years, and is even larger than when Brazil hosted the FIFA World Cup in 2014.

One such visitor was Jay Castria from New York, she was born in Argentina and moved back about five years ago. Castria told the Herald that she had originally been thinking of vacationing in Patagonia this summer, but when she started planning the trip it was adding up to be a lot more expensive than she had expected. When a friend mentioned Brazil as a possible destination, she began researching and realized it was a lot more affordable.

She opted for a trip to Florianópolis, where she noticed remarkable pricing differences in everything from dining out to Ubers to supermarkets to clothing. “It literally felt like the Buenos Aires of pre-Milei or like two years ago when everything was extremely affordable. Pretty much every single thing was less expensive and significantly so, sometimes like fifty percent.”

Castria said that Brazil was packed with Argentines of all ages, everyone from families vacationing to groups of friends traveling together.

“I think it’s kind of a combination of both the Argentine peso going up so much, and the real going down compared to dollars… it’s kind of both things at once.”