Argentina tourism sector faces profitability and debt crises

The Argentine tourism and hospitality sectors are facing significant financial challenges. Marcelo Rosental, president of the Mendoza Hotel Chamber, noted that high operating costs mean high occupancy rates no longer guarantee profitability. He stated that a small hotel requires at least 55% monthly occupancy just to cover basic operating costs without generating real profit margins. This situation is exacerbated by Argentina's exchange rate lag, making destinations like Mendoza less competitive compared to Brazil or Chile.

Simultaneously, Luis Cuello, leader of the Union of Tourism, Hotel and Gastronomy Workers of the Argentine Republic (UTHGRA), warned of a severe financial crisis within the sector's social security fund. Cuello announced that the union will begin publicly naming companies that owe millions in unpaid contributions, including life insurance and union dues. He criticized employers who deduct contributions from workers' wages but fail to transfer the funds, noting that the union has exhausted its patience regarding non-payment and lack of dialogue.