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Buenos Aires’ government Rolls Out Tax Incentives to Build and Renovate Hotels

buenos airesBuenos Aires’ government announced this week plans to implement a new bill that will offer tax incentives to the city’s hospitality industry in an effort to expand offerings and accommodate the projected tourism growth. The bill will benefit hoteliers who build new properties or undertake renovations or substantial expansions to current hotels.

“We have an opportunity to position the city as the most visited destination in the southern hemisphere, and in order to do so, it is necessary to grow our hotel infrastructure and expand our offerings with added value,” stated Gonzalo Robredo, president of the Buenos Aires Tourism Board. “We expect project investments to reach around $570 million USD by 2025.”

The Argentine capital is preparing to receive an increase in international tourists in 2018 and 2019. Flight reservations made in the first half of 2018 for travel to Buenos Aires between July 2018 and June 2019 grew 30%.

The city government also announced an increase of 25% in bookings for travel between July – Dec 2018. Reservations made from Auckland and Sidney, Australia grew by 94%, followed by London (+76%), Frankfurt (+39%), Bogota (+23%), Madrid (+17%) and the United States (+16%). Room occupancy rates showcased a solid increase and reached the highest its been in the last seven years with over 58% occupancy between January and April 2018.

Based on the projections for growth in the next few years, it has been deemed necessary to expand the hotel offerings in the city. Studies that apply big data techniques reveal that there are opportunities to improve the hotel competitiveness of Buenos Aires at a regional level.

Between January and May 2018, Buenos Aires welcomed 796,000 foreign tourists, an increase of 3.4% or 26,000 more visitors compared to the same time frame in 2017. One of the most important factors for this growth was the increased air connectivity from international destinations.

In the next few months, new connections from Los Angeles and Zurich will come into play, which should bring approximately 38,700 more tourists per year. The new route from Los Angeles will connect the west coast of the United States to Buenos Aires, which boasts a region of high purchasing power and represents an important connection to the Asian market. With so many growth possibilities in the works, the city reports the potential for an additional 430,000 new international tourists per year (an increase of over 20%).

Argentina’s capital and most populous city, Buenos Aires, is located on the western shore of the Río de la Plata estuary, on the southeastern coast of South America. The city is neither part of Buenos Aires Province nor the province's capital; rather, it is an autonomous district. Buenos Aires is a top tourist destination that offers a unique blend of European elegance and Latin American passion. Famous as the birthplace of tango, the city is also home to world-class opera, theater and art, well-preserved European-style architecture, native traditions, and to restaurants that overflow with wine from Mendoza and cuts of beef fresh from the Pampas. Ranked by The Economist as 2018’s best Latin American city to live in, Buenos Aires is made up of small, highly individualized neighborhoods, each with its own characteristic colors and forms. The destination attracts and satisfies vacationers of all tastes and budgets with its wide range of accommodations including luxury hotels, chic boutique hotels, and international brands.

For more information, visit travel.buenosaires.gob.ar, see hotels in Buenos Aires