Plane tickets in Argentina have increased by 17,525 percent in nominal terms over the last five years, whereas international flights over the same period climbed by 4,131 percent, according to a new report prepared by the Focus Market consultancy firm.
The survey assesses the evolution of prices of airline tickets during the 2019-2023 government of former president Alberto Fernández. It looks at the nominal rise – i.e. in pure pesos, without being adjusted for inflation.
The study revealed that, for example, a flight from Buenos Aires to Iguazú cost 1,300 pesos in 2019, while it currently costs 229,127 pesos – a 17,525-percent increase. In the case of a flight from the same departure point to Bariloche, in 2019 it cost 1,500 pesos and today 180,758 pesos, or a 11,951-percent increase.
On international flights – with prices affected by the PAIS tax (30 percent) and the collection of an advance on income tax (30 percent), there have also been significant rises over the last few years.
A flight to Miami was 31,800 pesos in 2019 (US$530), whereas today it costs 1,086,600 pesos (US$815), a 3,317-percent increase in pesos. A ticket from Buenos Aires to Madrid, which in 2019 had a value of 34,200 pesos, today costs 1,447,145 pesos (US$1,071).
Focus Market Director, economist Damián Di Pace, explained that “in order to compare the Argentine travel market, we take indicators of 2019 as against 2023, with a view to evaluating their evolution over the last five years and during the post-pandemic period.”
Looking at growth areas, the Focus Market report said that steps taken by President Javier Milei’s government could lead to improved figures. Its authors cited “the elimination of monopolies of travel agencies, the repeal of the student tourism trust fund (for graduation trips), the elimination of travel agents and timeshare system registers, and the new open sky policy.”
In the same vein, Di Pace stated that “deregulation measures continue their debate within all players in the sector, such as travel agency chambers, hotel and airline federations, among others. The goal proposed is to foster accessibility to destinations for all tourists by promoting mobility in the region, as well as the possibility of accessing more flight options if the tourist wishes to travel abroad.”
Moreover, he stated that “tourism has a major impact on the contribution to the gross domestic product (GDP), accounting for nearly nine percent, which could grow if policies encouraging the diversification of the incoming market are carried out.”
Di Pace concluded that “the sector needs to improve connectivity and optimise the use of public resources” to improve growth, while promoting “private service initiatives (hotels, transports, guides and food) may produce genuine jobs.”
– TIMES/NA
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