The number of Argentines traveling abroad increased by 45.8% year-on-year in May, while the number of foreigners visiting the country fell by 14.2% in the same month, according to a report issued on Wednesday by the government’s statistics institute, the INDEC. This is the thirteenth consecutive month in which there have been month-to-month increases in foreign travel and drops in inbound tourism.

A separate INDEC document also revealed that in the first quarter of 2025, Argentines spent US$4.92 billion on travels abroad, while foreigners visiting the country spent US$1.45 billion in the same time period. This means that, in tourism alone, the country’s coffers are in a US$3.47 billion deficit for the year. 

Analysts consulted by the Herald pointed out that the government propping up the peso to contain inflation has made Argentina one of the most expensive countries in the world. “For the part of the population that has income to vacation, it is even cheaper to vacation abroad than locally,” Florencia Fiorentin, chief economist at the Epyca consultancy, told the Herald.

While 1.31 million Argentines traveled abroad in May, only 572,900 foreigners visited Argentina. Argentines’ main destinations were Chile (21.9%), Brazil (19.8%), and Paraguay (11.7%).

Another report by the Epyca consultancy said that the country is going through an exchange rate lag as the government is artificially appreciating the peso as a price anchor. “The Multilateral Real Exchange Rate (MRER) is currently at historical lows,” the report added.

Epyca also said that, in May, exports fell 7% year-on-year and imports grew 29.4%, leading to a drastic drop in the trade surplus — in the first five months of 2025, it was 80% lower than in the same period of the previous year. “Far from responding to a productive reactivation, the increase in imports is more linked to the substitution of local production for imported goods, particularly in vehicles, consumer goods, and tourism,” the report said. 

“The appreciation of the exchange rate acts as a problem in the face of the passive opening of the economy and weakens external competitiveness.”

A tourism deficit that reflects an uneven situation

While the dire situation of the country’s coffers would seem to indicate that there is a traveling boom for all Argentines, a separate report indicated that not everyone is benefitting from the lagging exchange rate. A private report by the Moiguer consultancy said that this year’s economic recovery is uneven and “deepens the present inequalities between the different social strata.” 

“While the lower-middle and lower segments are more restrictive and find it difficult to meet basic household expenses, the upper-middle and upper segments are expanding their consumption in dollars (saving, travel, purchases abroad),” the report added. “As a result, mass consumption sales indicators remain stagnant, while imported consumer goods, durable goods, and outbound tourism are expanding strongly.”