Editor’s Note: If you are an American, Canadian, or Australian citizen, then the Argentine government has decided to treat you the same way your respective countries treat its citizens.  By charging you money for the privilege of visiting. Thanks to Jimena Moses of 1stClassArgentina.com for the news.

Suddenly, over the weekend, the Migrations Office of the Argentine Department of State posted on their website that the reciprocity tax will become effective on January 1, 2010.  Up until this point there has been mixed information from both the government, travel organizations, airlines, and the like. We have tried to get as much detail as possible but government officials have been reluctant to share specifics. We do not know how or when the reciprocity tax will actually be implemented.

The official version states that:

• Start date January 1, 2010
• Collection will be at Ezeiza airport only
• Payable in pesos, US dollars, credit card and travelers checks
• Entry fee / Reciprocity tax is based upon the cost for an Argentine citizen to get a Visa:
  • Australia: US$ 100.-
  • Canada: US$ 70.-
  • US: US$131.-

The US embassy has sent a message stating that collection is to start on December 20th and is valid for 10 years. We were not able to confirm this information.

We are waiting for further information regarding:

• Collection process: before, while or after passport control
• Collection to transit passengers to a third country
• Other entry airport / ports / land borders collection fee
• If it should be paid at exit if entry was through another border control (Iguazu/Foz de Iguassu, Torres del Paine/Calafate, Santiago de Chile/Mendoza, Lake Crossing in Bariloche, Atacama / Salta, Ushuaia port, Buenos Aires port, Buenos Aires domestic airport for flights from Uruguay, other minor international airports such as Bariloche, Mendoza, Salta, Cordoba and Ushuaia).
• If more countries are being added to the list
• Validity or multiple entries
• If it can be purchased in advance

Several high level meetings within the industry and with the Tourism Minister and government officials have been taking place urging to delay or cancel it altogether. The bill was passed by Congress in October 2009 but the President vetoed the bill to avoid the negative impact it would generate in the midst of an economic crisis topped by the swine flu spread.

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Photo by Bethany L. King

On February 17, President Obama signed into law the American Recovery and Reinvestment Act of 2009. Unfortunately, a key provision which the American Society of Travel Agents backed was removed from the stimulus bill in last-minute negotiations. It would have created a new program to streamline the lending process to home-based agents, American tour operators and most business in the travel industry.

While American organizations are awaiting the outcome of the bill, the Argentinean tourism private sector, in coordination with the Argentinean Department of Tourism is targeting American travelers.

Over 2 million tourists from all over the world visited Argentina during 2008, with the United States representing the third largest demographic in leisure travel. Forty percent lodged in 4 and 5 star hotels with an average spending of 113 USD per person per day (not including airfares).

Unfortunately, in January 2009, there was a 15% decrease of these figures compared to the same month in 2008 and these numbers are expected to go down 30%.  However, the Argentinean government together with the private sector are not giving up on Americans; they are strongly promoting Argentina as a desirable and affordable destination:

Prices

With the current exchange rate, the dollar has become stronger again in Argentina, and as a consequence, expenditures in dollars are falling.  Dining and relaxing in Argentina is a third of the price it is in America.

Flights

Fuel surcharges on international flights, that many airlines noted
as “taxes,” have disappeared. The total cost of flying to Argentina has gone down nearly 40% on Delta, American, Continental and United.  All American carriers have at least one flight a day to or from Buenos Aires. Additionally, the Argentinean domestic airlines, Aerolineas Argentinas and LAN airlines, are decreasing base fares up to 30%.  The rates are dropping so quickly that travel agencies can’t keep up with the overwhelming changes and prices.

Hotels

Several hotels are launching promotions and daily rates to appeal to budget sensitive vacationers. Here is a sampling of a few current discounts:
The Art Hotel offers a third night free.
Sofitel Arroyo’s offers a 4th and/or a 5th night free.
The Alvear Palace offers a 30% discount on all stays over 3 days.
Grupo Fen (Dazzler and Esplendor) cut up to 40% on its properties, even the popular Esplendor Calafate.
All Eurostar hotels (Claridge, Cataratas and Colon) offer nearly 30% discounts through June 30.
Los Notros in Calafate released a 30% discount on all current packages.
Llao Llao offers similar appealing packages.

Packages

Argentinean and American tour operators are reaching out to American travelers
with several promotions. A&K now has a “Special Travel Savings” program. 1stClassArgentina ‘s offers a “Stimulus package” for under 1000 USD. Gap Adventures cut 200 USD per person on any of their South American programs for early bookings.

Press

The Argentinean Tourist office recently invited American tour operators to spend one week traveling to Argentinean main destinations. Additionally, two American journalists were invited to the III edition of the Masters of Food and Wine, which took place from February 10th to 15th in Buenos Aires and Mendoza. The articles reached major American travel publications.

With all of these programs and promotions aimed at reaching American customers, now is clearly the right time to visit Argentina.  It might even be the right time to come more than once!

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