Behind Argentina's Bold Move to Freeze Prices on Tourism Goods and Services
Photo Credit: A price freeze in Argentina will impact what cafes can charge tourists. Here is a picture from one of those cafes from pre-pandemic. Flickr / Chetan Karkhanis
Skift Take
Tourism usually pushes up the inflation rate for the summer months in Argentina. The local government got the main businesses in the sector to freeze prices to avoid that — and to have proper development of the busiest season of the year. What are the implications?
In a highly unusual move this week, Argentina put a lock on the prices of goods and services associated with tourism.
The decision by Argentine President Alberto Fernandez and Tourism Minister Matías Lammens will keep the freeze on until March 15.
In a country that is no stranger to sudden rule changes, prices will often vary almost daily, but this freeze on tourism is a first. Inflation in 2021 will end up totaling about 50 percent, according to private consultants.
Tourism tends to push up that result in January and February, when locals go for summer vacations, so the government designed this measure to lower the impact and offer domestic travelers some stability.
However, Lammens said the measure is a response to higher demand in what will be one of the best seasons in the decade.
“The sector has had a very interesting second semester, after two very bad years following the 2018 d
