URUGUAY PLANS 50% HOTEL SUBSIDY TO BOOST DOMESTIC TOURISM

Joe McClain - Nov 19, 2023
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The Ministry of Tourism (Mintur) in Uruguay is working on a new initiative to promote domestic tourism during the low-season months. The initiative involves a 50% discount on hotel rates. The initiative aims to boost the competitiveness of the national tourism industry compared to Brazil and Argentina due to the difference in exchange rates between the countries.

According to the Minister of Tourism, Tabaré Viera, a new program will be launched from February to March to boost the domestic tourism sector during the low season. The program aims to support the industry, which usually relies heavily on the travels of Uruguayan residents.

The proposed measure aims to provide a 50% subsidy on hotel rates for public and private workers, as well as Uruguayans earning a monthly income of up to 50,000 pesos. The program allows each beneficiary to bring a companion, and hotels participating in the initiative will offer special packages. However, the specifics of the plan will not be disclosed until it is finalized, as stated by Viera. The main objective of this program is to promote domestic tourism by encouraging and supporting small hotels, specifically those impacted by the situation in Argentina.

As an additional promotion to their current program for retirees and pensioners, the government is offering a new measure to help those who collect less than six nominal BPC (about 33,960 pesos) in liabilities. This measure provides a subsidy of 25% or 40%, included in the value of the tourist package published by the Ministry of Tourism and Urban Development.

These measures are part of the Tourism for All Program within the National System of Social Tourism. The program aims to make leisure and recreation accessible to everyone by providing affordable travel options to quality tourist destinations.

In addition, at the current juncture, it has the dual objective of promoting domestic tourism at a time when the exchange rate difference with Argentina makes the neighboring country much more attractive in economic terms in the eyes of Uruguayans – and more expensive for Uruguay in the eyes of foreign tourists – so it is expected that this year's tourism balance will end in the red.

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