Why Argentina Is This Summer's Big Travel Bargain

Forbes

2 days ago

The U.S. dollar doesn't stretch as far this summer in most destinations around the world—but Argentina is a noteworthy exception, with the greenback buying 31% more than it did this time last year.
For American tourists in Buenos Aires, the dollar goes 31% further this year compared to 2024. ... More Argentina is one of the few places in the world where the U.S. dollar buys more than it did last year.
The U.S. dollar is up 31% against the Argentine peso compared to last year, largely due to Argentina's long-term fiscal deficits and high inflation.
From March 3 to June 15, Expedia saw upticks in lodging searches for Argentinian destinations including Salta (+25%), Tucumán Province (+25%), Neuquén (+10%) and Villa General Belgrano (+25%).
Weakened by President Donald Trump's 'Liberation Day' tariffs, the U.S. dollar has sunk to its lowest point in three years and is 6% weaker globally year over year, per the DXY, which measures the value of the dollar relative to a basket of foreign currencies.
The greenback is down versus the euro (-6%), British pound sterling (-5%), Swedish krona (-9%) and Norwegian krone (-7%), meaning Americans are paying more while traveling virtually anywhere in Western Europe this summer.
Last summer's travel bargain was Japan, where $1 bought 15% more yen than the prior year—but now the U.S. dollar is down 8% against the yen compared to the same time in 2024.
All three U.S. legacy carriers—American Airlines, Delta Air Lines and United Airlines—fly between the U.S. and Argentina. 'American is the largest airline between the U.S. and Argentina year-round and we've served Argentina for 35 years,' Jay Singh, an American Airlines spokesperson, told Forbes. The carrier has increased frequencies of its U.S.-Argentine routes year-over-year with a record Miami-to-Buenos Aires schedule of up to four flights daily. This summer, United Airlines offers one daily flight between Houston and Buenos Aires.
During his January 2025 confirmation hearing, Treasury Secretary Scott Bessent predicted a 10% tariff would make the U.S. dollar appreciate by 4%. Instead, the DXY is down 9% since the beginning of 2025. 'It probably comes as a surprise to the administration that the dollar is weakened, not strengthened, on these tariff announcements,' Chris Turner, global head of markets at the Dutch multinational bank ING, told Forbes in April. The Council on Foreign Relations, a nonpartisan American think tank focused on U.S. foreign policy, offers five reasons why tariffs didn't bolster the dollar: tariffs are a tax hike, there's a lack enthusiasm among foreign investors for U.S. bonds, China allowed the yuan to slide, European nations eased their fiscal policies and Trump's 'America First' policies have dimmed the dollar's appeal globally.
No. Inbound travel from other countries is down compared to last year. Economists have blamed the downturn on Trump's tariffs and hostile rhetoric, as well as high-profile headlines of international travelers being detained by U.S. immigration officials, which are 'stacking up as significant hurdles for the U.S. travel industry,' Adam Sacks, president of Tourism Economics, a nonpartisan Oxford Economics company tracking tourism statistics, told Forbes. In April, his organization downgraded its 2025 inbound travel forecast for the U.S. from a 9% increase in international tourists to a 9% decrease—an 18% swing 'with risks still skewed towards the downside.'
56%. That's the portion of Americans who say they would swap out their international travel for a cheaper domestic destination this year due to economic anxiety, according to the BMO Real Financial Progress Index. The same survey found that half of Americans have already changed their vacation plans due to rising costs and inflation.
Why Trump's Tariffs May Mean Pricier European Vacations This Summer (Forbes)