In May the Argentine Peso fell to a record low despite the government´s efforts to protect the currency. This meant a decline of 25 per cent in the value of the Peso, the worst in emerging markets. In June an agreement has been reached between the Argentinian government and the IMF entailing the second largest IMF credit ever in terms of cash. Whether it is unsure if this loan will do the trick, one thing is clear: the consequences of the crash are noticeable in every sector.
The financial turmoil is having a huge impact on travel to and from Argentina. Bookings to travels from the country to other Latin American countries, which have the largest share of Argentina´s outbound travel, slumped by 26.1% year-on-year. Total international outbound bookings were down by 20.4% in May – a contrast to the increase of 8.4% between January and April.
Although generally a weak currency causes an increase in travels, this time travellers seem worried about Argentina’s current economic difficulties. This causes bookings made in May to be down by nearly 14%, compared to those made in May last year.