Tourism sectors in Mar del Plata and Puerto Vallarta face economic crisis

Tourism and hospitality sectors in Mar del Plata, Argentina, and Puerto Vallarta, Mexico, are facing significant economic challenges due to low demand and rising costs.

In Mar del Plata, one- and two-star hotels are experiencing a critical survival phase. Ariel Rubianes of the local Hotel and Gastronomy Business Association noted that high fixed costs and falling rates make it impossible for many smaller establishments to operate outside of January and February. He estimated that approximately 40 one-star hotels and up to 170 two- and three-star hotels exist in the city, warning that one-third could close if current trends continue. Factors contributing to the crisis include international competition and a shift in consumer preference toward apartment rentals.

Similarly, in Puerto Vallarta, the National Chamber of the Restaurant and Seasoned Food Industry (Canirac) reported the temporary closure of at least 15 restaurants and the permanent closure of two businesses. Martha Parra, president of Canirac Vallarta, attributed the downturn to high commercial rents, reduced consumer spending, and a decrease in tourist arrivals. Regional representatives have reported revenue drops of 20% to 30% compared to the previous year, though some businesses are using the low season for renovations and restructuring.