WHY ARGENTINAAPRIL 2019

TOURISM

ARGENTINA IS THE NUMBER ONE DESTINATION IN THE REGION

#1 in the South Americain arrivals

INTERNATIONAL TOURISM (2018)

• International tourist arrivals: 6.94 Mn

• Average stay (arriving by air): 13.4 days (2.6 Mn tourists)

• Total expenditure (USD): 5.75 Bn

#1 positioning in the LATAM in Country Brand

Awareness

DOMESTIC TOURISM (2018)

• Internal trips: 45,5 Mn

• Domestic tourists: 18.2 Mn (41% of the population)

• Average Stay: 5.1 days

2015-20185% CAGR in arrivals

Source: Secretary of Tourism / INDECUNWTO & Central Bank.

Argentina 6.94 Mn tourists

Brazil 6,62

Chile 5,72

Colombia 4,39

Peru 4,36

In millions

2

• Different climates and landscapes for an all-year-round tourism

• 7 cultural and 4 natural world heritage UNESCO sites

• 35 National Parks and more than 400 conservation areas

• 2nd in Human Development Index in Latam

• Buenos Aires: 1st place Most Liveable City in Latam*1

• Buenos Aires: 1st city in America and 11th in the World receiving international congresses*2

*1: Global Liveability Index *2: ICCA (International Congress & Convention Association) 3

WHY IS ARGENTINA THE MOST VISITED COUNTRY IN THE REGION

ANNUAL TOURIST ASPIRATIONAL GOALS

DOMESTIC

In Millions

43.4

51.4

70

2016 2017 2020

6.59 6.67

9

2016 2017 2020

INTERNATIONAL

In Millions

STRATEGIC GUIDELINES

• Position Argentina as the main destination of the region

• Promote the growth of domestic tourism

• Improve competitiveness and sustainability of the sector

• Increase investment

• Promote the creation of new jobs

GOVERNMENT GOALS WILL CONSOLIDATE ARGENTINA AS Nº1 IN THE REGION

4

INVESTMENT PROMOTION AND STRENGHTHENING OF ENTREPRENEURS

• Provincial investment benefits and tax cuts

• National and Provincial financial assistance by public entities

Source: Secretary of Tourism

MAIN INITIATIVES TAKEN TO ACCOMPLISH TOURISM GROWTH

INTEGRATION TO THE WORLD

• Elimination of the USA Reciprocity Fee

• Application of electronic travel authorization for Chinese tourists who have USA or Shengen visa

• VAT tax (21%) exemption in accommodation for foreign tourists

• Visa reciprocity with Brazil and Chile and cross-border integration In progress

PUBLIC INFRASTRUCTURE

• Investment in airports, ports and cruise terminals

• Ten-year plan to improve roads and highways: USD 35 Bn

• 4G coverage from 50% in 2018 to 100% by 2020 (all roads and communities up to 500 inhabitants)

AIR CONNECTIVITY

• 135+ domestic and international routes 79+ new international routes since 201766+ new domestic routes since 2017

• 792 routes requested / 300+ routes awarded

5

PUBLIC INVESTMENT IN TOURISM

PUBLIC INVESTMENT IN PORTS, AIRPORTS AND ROADS

There are more than 240 projects in touristic infrastructure

PORTS

3 15

13 5

26

3

3

7

5

CONCLUDEDUSD 155 MM

IN EXECUTIONUSD 151 MM

PROJECTEDUSD 831 MM

21

11

48

AIRPORTS ROADS

• 2,800 km motorways

• 4,000 km safe routes

• 13,000 km rehabilitation

FIRST STAGE2016 – 2019: USD 9 BN

USD 35 Billions

2016 – 2027

2016 – 2019

USD 3.4 BILLIONS

NEWITÁ-IBATÉ PORT

USD 15 MM

GRAN ROSARIO PORT + ACCESS AREA

USD 3.4 BN

BUENOS AIRES PORT USD 9 MM

PUERTO MADRYN PORT

USD 29 MM

COMODORO RIVADAVIA PORT

USD 3.2 MM

USHUAIAPORT

USD 16 MM

6

• 20+ Airports with international flights

• 16 Provinces with international flights

MORE AIRPORTS OPERATING

• 70+ new international routes 2016-2018

• 60+ new domestic routes 2016-2018

NEW ROUTES INCORPORATED

Source: INDEC, National Migration Directory, ANAC, EANA

• 37% Increase in Domestic passengers (2015-2018)

• 27% Increase in International passengers (2015-2018)

PASSENGERS INCREASED EVERY YEAR

AIRLINES WITH INTEREST IN THE MARKET

NEW AIRLINES OPERATING

• 26% increase in domestic flights

• 20% increase in international flights

FLIGHTS

• 33% Variation 2015-2018 in domestic flights

• 28% Variation 2015-2018 in international flights

SEATS INCREASED EXPONENTIALLY

IN THE LAST YEARS ARGENTINA HAS EXPERIENCED AN AIRCRAFT REVOLUTION

7

Source: Secretary of Tourism

HOTEL INDICATORS

2015-2018 INAUGURATED, IN EXECUTION & PROJECTED

MORE THAN USD 2.2 BN

8

TOURIST ACCOMODATION

49%

NEW AIRLINES43%

THERMAL SPRINGS2%

SKI CENTERS2%

CONVENTION CENTERS

2%

GASTRONOMY1%

WINERIES1%

PRIVATE INVESTMENT IN TOURISM

Source: Secretary of Tourism based on the Hotel Occupancy Survey

HOTEL INDICATORS

HOTEL INVESTMENT SUMMARY

FUTURE PROJECTS

• 90+ hotel openings announced

RELEASED PROJECTS

• 200+ hotels opened during 2016-2018

IN EXECUTION PROJECTS

• 110+ new tourist accommodation establishments (construction, accommodation & expansion)

HOTEL INDICATORS: TOP RECORDS & EXPANSION PLAN IN PROGRESS

9

Outstanding locations, simplified & abbreviated process, special conditions

STRONG FOCUS IN

During 2018, protected natural areas have been duplicated, reaching almost

36 million of hectares and 13% of national territory

PRIVATE INVESTMENTS IN NATURAL PROTECTED AREAS

THE OPPORTUNITY

• Public tender process

• April ’19 – June ’19: request for proposals

• Nature and outdoor experiences

• Eco friendly construction

PROCESS

www.argentina.gob.ar/oportunidades-naturales/en

ARGENTINA AIMS TO POSITION AS A LEADING DESTINATION IN NATURE TOURISM

10

• BUENOS AIRES CITY3, 4 & 5 star hotels

• BUENOS AIRES PROVINCE3, 4 & 5 star hotels

• LA PAMPA3 star hotels

• CORDOBA boutique hotels, farms

PAMPA REGION

• NEUQUÉN 5 star hotels, conventions centers, cabins, farms, polo & golf resorts, ski resorts

• RIO NEGRO4 star hotels, apart boutique hotels, convention centers

• CHUBUTski resorts, convention centers, thematic parks, spa hotels

PATAGONIA

• SALTAwater parks, eco lodges, boutique hotels, 4 star hotels, convention centers

• JUJUY 5 star hotels, boutique hotels, hotels with golf courses, convention centers, farm hotels

• SANTIAGO DEL ESTERO water parks

NORTH REGION

• MENDOZA 4 star hotels, bed & breakfasts, spa hotel, farms, ski hotel, wineries

• SAN LUIS convention centers, farm clubs, spa hotels

• SAN JUAN spa hotels, camping, 5 star hotels, eco parks

CUYO REGION

• MISIONES hotels, thematic parks, restaurants

• CORRIENTES 3, 4 & 5 star hotels, bed & breakfasts, cabins, cruises, glamping, lodges, restaurants, tourism agencies

• CHACO eco lodges, eco touristic excursions, eco parks

LITORAL REGION

Source: Secretary of Tourism

ARGENTINA OFFERS ALL KINDS OF INVESTMENTS AROUND ITS TERRITORY

11

NEW HOTEL LAW IN BUENOS AIRES CITY

OBJECTIVES

Encourage the development, remodeling and upgrading of the existing hotel square

Generate employment

Foster the economic development of the City

For new establishments: up to 27.5% of the investment

For existing establishments: up to 60% of the investment

In each case, the invested sum will be computed on the local turnover tax of the establishment

Source: Buenos Aires Investment & Trade Promotion Agency - Invest BA

One of the main touristic and business spots in Latin America

Remarkably well connected, with two of the most important airports and ports in the region

Tourism represents 6.6% PBG of the City

TAX INCENTIVES

BUENOS AIRES CITY

-30,0

-20,0

-10,0

-

10,0

20,0

30,0

Receptive Emissive Dommestic Passengers

TOURISM INDICATORS KEEP IMPROVING

Note: Basis 100 dated on Dec 2015.Source: Central Bank of Argentina, ITCRM (Índice de tipo de cambio real multilateral). INDEC

ARGENTINA’S CURRENCY DEPRECIATED VS. PEERS

YOY % change in number of air passenger

THE ACTUAL EXCHANGE RATE OFFERS A BIG OPPORTUNITY

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FOR MORE DETAIL ABOUT INVESTMENT OPPORTUNITIES

SELECTED INVESTMENT OPPORTUNITIES

WHERE IN ARGENTINA

WHY ARGENTINA BY SECTOR

DOING BUSINESS IN ARGENTINA

Phone: +54 11 5199 2263welcome@investandtrade.org.ar

Francisco Urangafuranga@inversionycomercio.org.ar

Margarita Casartellimcasartelli@inversionycomercio.org.ar

Lucas Puiglpuig@inversionycomercio.org.ar