Tourism

Tourism has become fundamental to Argentina's economy since the downward spiral of its financial system. After its economic crisis in 2002, there has been a powerful turnaround by way of a booming economy. For the past 6 years, Argentina has had one of the fastest growing economies in the world, averaging over 8% annually. Its exchange rate has proven to be very favorable to tourists and foreign investors, and budget bill predictions for 2008 ensure a continued rate of the peso equaling 3.21 to the American dollar.

Argentina has positioned itself as Latin America's leading tourist destination in 2007, with over 4.5 million visitors. A recent study by The Buenos Aires City Tourism Bureau has found that the city's tourists prefer 4 and 5 star hotels, and that end of the year records purport average occupancy rates exceeding 85%; making it harder and harder to get a reservation. Savvy hoteliers and real estate developers have become keen to this trend and are opening new luxury hotels throughout the country to meet demand. With over 2.2 million tourists visiting Buenos Aires in 2007, it's easy to see why so many upscale hotels and high-end restaurants are always full.

Argentina's combined increase of tourism and property value is drawing a number of developers and hoteliers, as well as entrepreneurs looking to benefit from the purchase of private residences to reposition into vacation and rental properties. While property appreciation alone may be well worth the investment, the added incentive of properties generating rental or business income is also highly attractive to sophisticated investors.