VZCZCXYZ0009
RR RUEHWEB

DE RUEHBU #2114/01 2991325
ZNR UUUUU ZZH
R 261325Z OCT 07
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 9570
RUCPDOC/USDOC WASHDC
INFO RUEHBR/AMEMBASSY BRASILIA 6532
RUEHSG/AMEMBASSY SANTIAGO 0872
RUEHMN/AMEMBASSY MONTEVIDEO 6864
RUEHAC/AMEMBASSY ASUNCION 6654

UNCLAS BUENOS AIRES 002114 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR ECON WHA/BSC 
USDOC FOR 4322/ITA/MAC/OCAC/APEACHER 
USDOC FOR 3134/USFCS/OIO/WH/RD/MKESHISHIAN 
 
E.O. 12958:  N/A 
TAGS: ECON BEXP OTRA ATRN AR
SUBJECT:  TOURISM SECRETARY PROVIDES OVERVIEW OF TOURISM PROSPECTS 
 
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SUMMARY 
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¶1. As a follow-up to our July 29 meeting with Secretary of Tourism, 
Enrique Meyer, the Ambassador hosted a meeting with the Secretary 
and all relevant Agency section heads.  Secretary Meyer explained 
that the United States was a priority market for the Argentine 
tourism industry and provided a detailed presentation on the tourism 
sector in Argentina, including the latest trends, GOA programs and 
initiatives, promotion strategies and opportunities for cooperation. 
 The Secretary mentioned the GOA's two main priorities, to promote 
greater investment in hotel infrastructure and to increase the 
volume of domestic flights.  The need to expand domestic routes and 
international arrivals to cities other than Buenos Aires was also 
discussed.  To help develop this sector further, the IDB has already 
granted the GOA three loans.  The Ambassador expressed concern about 
recent reports about thefts by airport staff, underscored need for 
improved domestic airline service and expressed support for US 
company participation in expansion plans. 
 
End Summary 
 
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INCREASED TOURISM 
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¶2. In 2006, the Argentine tourism industry had a record year with 
4,115,920 arrivals, a 9 percent increase over 2005.  Last year, the 
sector employed 956,546 people directly and another 8,917,855 people 
indirectly.  Impressively, export revenue generated from tourism 
ranked fourth only after soy products, vehicle parts and oil.  All 
current projections indicate that by 2020, the number of arrivals 
will triple.  The regions most visited are the City of Buenos Aires, 
Patagonia, especially Bariloche, and Iguaz Falls in the Province of 
Misiones. 
 
¶3. On July 29, Tourism Secretary Meyer, accompanied by Mr. Daro 
Cervini, Advisor to the Secretary, Ms. Valeria Pellizza, Director of 
Tourism Development, and Mr. Miguel A. Cuberos, Executive Secretary 
of the Institute of Tourism Promotion provided a detailed overview 
of the tourism industry to Ambassador and others at the US Embassy. 
Specifically, the Secretary highlighted the growth in inbound 
tourism from the United States.  The United States accounts for the 
second greatest number of visitors entering Ezeiza International 
Airport after Brazil.  During 2006, 270,245 Americans entered, a 7.7 
percent increase over 2005.  Americans visit Argentina for two main 
purposes, leisure (57 percent holiday, 22 percent visit friends and 
family) and business (16 percent).  On average, American tourists 
stay in Argentina for eight days and spend $1,350 (excluding air 
ticket).  Americans generally select four and five star hotels. 
 
¶4. The Secretary explained that the United States is considered a 
priority market, along with most of Western Europe, Brazil and 
Chile.  Other countries, including Canada, Mexico, Ecuador, 
Colombia, Peru, Australia and China are considered strategic markets 
for development at this time. 
 
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PROJECTS AND INITIATIVES 
------------------------ 
 
¶5. According to Law No. 25.997 updated in 2004, the GOA strategy for 
the tourism sector is to improve domestic infrastructure.  Efforts 
are focused on two corridors in Patagonia along the Andes and the 
province of Misiones.  Following these two specific areas, the GOA 
will focus on the provinces of Salta and Mendoza.  The remaining 
regions will be ranked according to popularity, based on the number 
of visitors and a future plan of development will be devised. 
 
¶6. The Secretary mentioned that one of his priorities is to promote 
greater investment in hotel infrastructure.  U.S. hotel chains are 
aggressively expanding in Argentina.  There are more than 300 new 
projects representing 700 million dollars in new investment.  This 
includes major projects, such as a Sheraton in Puerto Madryn and a 
Hilton, Radisson and Hyatt in Misiones. 
 
¶7. The Secretary's second priority is to increase the volume of 
domestic flights with a new hub in Csrdoba to link all cities, 
including Ezeiza Airport.  This will eliminate the need for domestic 
travelers to fly into the domestic airport, Jorge Newbery, and then 
shuttle to Ezeiza for international travel.  He stated that some of 
the wealthier provinces already organize private charters to link 
cities. The Secretary mentioned that he would like to eventually 
establish additional international gateways in Csrdoba, Patagonia 
and Salta.  The Ambassador highlighted the July 2007 signing of the 
new civil bilateral aviation agreement, which will permit a doubling 
in the number of flights between Argentina and the United States. 
The first addition will be an American Airlines direct flight 
between Buenos Aires and Chicago on December 13, 2007. 
 
¶8. In addition to these initiatives, The Secretariat has received 
three large IDB Loans to help develop the travel and tourism sector. 
 An IDB Loan of 56 million dollars was granted to develop the Iguaz 
Corridor, Posadas and the "Los Lagos Corridor" in Patagonia.  A 
Loan, valued at 2.5 million dollars, has been obtained to assist in 
the promotion and marketing of Argentina, in general.  The final 2 
million dollar loan was granted to develop the "wine country" in the 
central Andean region.  The GOA has listed the Iguaz Corridor, 
Corredor de la Puna, Corredor de Los Lagos, Esteros del Iber and 
Route 40 (along the Andes) as priority areas for development and 
investment. 
 
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OUTREACH 
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¶9. The Secretary of Tourism's highest priority is to market 
Argentina worldwide.  As an example of their commitment, they have 
established representative offices in New York, Miami and Los 
Angeles.  The Secretariat is also participating in many Tourism 
Trade Shows (77 to date) in Europe and the United States with hopes 
of expanding into Asian markets in the immediate future. 
Considering the current Peso exchange rate, Argentina offers 
international travelers an excellent experience for a very 
affordable price. 
 
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COMMENT: 
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¶10. The Travel and Tourism Industry in Argentina is booming and is 
expected to continue to do so for foreseeable future. The Secretary 
of Tourism is taking positive steps by supporting programs to take 
advantage of this trend.  The Ambassador congratulated Secretary 
Meyer on the outstanding growth in the market and on the GOA's 
strong commitment to expanding this sector.  He stressed Embassy 
support for and interest in US investment in the tourism sector as 
well as growth of Argentine tourism to the U.S.  The Ambassador 
mentioned two priority problem areas: first our concern over thefts 
from luggage at the international air terminal and the lack of 
connecting domestic flights, both of which we believe limit 
Argentina's current potential but which can be overcome with better 
law enforcement and security at airports.  Secondly, Ambassador 
said, he fully agrees with the need to improve the quality, 
timeliness, and variety of domestic airline travel in Argentina.  At 
the conclusion of the meeting, the Ambassador offered to work more 
closely with the Embassy in hopes of exploring more opportunities 
for collaboration between U.S. and Argentine companies in the 
market. 
 
WAYNE