Hospitality: sustained reactivation after the worst crisis in history

19/02/2023 By Fernando Desbots for Ambit– The summer season began in January with a positive balance in the most positioned destinations, while in February, surely, the peak of occupancy will occur during the long weekend of Carnival. Tourism activity has been showing sustained reactivation rates, after the worst crisis in its history as a result of the pandemic. Our expectation is to continue on this path. For this reason, we are confident that the IV edition of the Previaje will boost the activity of our sector in the low season during 2023. This program was important for the reactivation of the economy and the generation of employment in an emergency context. The hotel and gastronomy sector is a strategic sector for the development of the country, it represents more than 3% of the GDP, it occupies intensive labor that cannot be replaced, it generates regional development and roots. But, in addition, the financial impact of the Previaje is almost neutral due to the tax collection it represents, and because it promotes transparency in the economic movement. Tourism is the industry that has been generating the most official private employment consecutively. INDEC statistics for the third quarter of 2022 show that our sector has already recovered all the jobs lost during the 2020-2021 period. Even so, it did not recover the level of activity prior to the pandemic. For 2023, we project an annual recovery of 10% compared to 2022. Comparing with 2019, the last year considered “regular”, the hotel and gastronomy industry would remain throughout 2023 at a level of less than 7%. Regarding prices, we had always been adjusting them below the average for the economy since 2017 until the end of the quarantine in 2021, when the trend changed and the lost ground began to be recovered a little. In the real economic context, we make great efforts to balance the operation in pursuit of getting or retaining guests and customers. Entrepreneurs in our sector have been experiencing a decline in their competitiveness since years prior to the pandemic. For this reason, we insist on the importance of Pre-Travel for low season. Argentina has a significant offer of accommodation and gastronomic resources that generate a great attraction capacity for travelers, both national and foreign. We adapt to changes in trends, many global. The stays today are shorter, the consumer is more demanding, he takes more care of his expenses. In gastronomy it is more regular that dishes are shared or that they do not order dessert. Some keep the outlets, but try to do it by trying to find cheaper options. This same behavior that we have been seeing throughout the year is being repeated during the summer season. But we are optimistic. Our country has enormous potential, important tourist possibilities throughout its geography.