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Tourism in Argentina is big business! 5,287,850 international tourists infused over US$4.8 billion into Argentina’s coffers in 2010.1 The Iguazú Waterfalls received 1,188,995 visitors in 2010. With the announcement on November 11, 2011 that the Iguazú Waterfalls has been chosen as one of the new Seven Natural Wonders of the World the number of visitors to the area will only increase.
The boom and bust cycle of tourism in Argentina has had a big effect on the city of Puerto Iguazú. Following the ending of the 1:1 exchange rate in 1999 and the 2001 economic crash, Puerto Iguazú’s real estate market collapsed with a number of hotels left unfinished in various stages of construction. Moreover, during the 2000-2003 time-period the city’s downtown saw the closure of many of its local businesses and restaurants as tourists went to the Brazilian side of the Waterfalls instead, due to their close proximity and the availability of multiple places to stay, dine, and enjoy themselves in the after-hour clubs in Foz do Iguaçu. With Argentina’s economic upturn over the past six years, more people have come to Puerto Iguazú seeking jobs. Unfortunately, the economic upturn has come with a price as the cost of living in the city has also increased. Between 2004 and 2008 rent prices increased by more than 80 percent, yet wages did not increase anywhere near this level. Puerto Iguazú has been brought back to life with a few new restaurants opening in the older downtown area of the city.
A common complaint heard among locals is that the new hotels that have been built, or that are under development, in the 600 hectare area as part of the provincial government’s Master Plan are drawing tourist dollars away from downtown Puerto Iguazú. The typical tourist wakes up in the morning, goes to the waterfalls on either the Argentine or Brazilian side and then returns to the hotel exhausted after a full day of sightseeing. Thus, because the tourists are already tired from a busy day, many locals argue that people who stay in the hotels in the 600 hectare area will not venture into downtown Puerto Iguazú because they are a 10-15 minute taxi ride from downtown and therefore their tourist dollars will remain at the hotels and the hotel restaurants rather than enter more of the “local” economy.
Despite the persuasiveness of their argument it must be recognized that getting tourists to visit downtown Puerto Iguazú prior to the construction of the hotels in the 600 hectare area was already problematic. In part this was because some of the older hotels were located outside of the downtown area and also because, frankly, downtown Puerto Iguazú is not really set up to attract tourists. Until just a couple of years ago, the only casino was located outside of the downtown area and there were not many “nightlife” places open and ready to receive tourists. While the latter is still the case, a casino was opened in downtown Puerto Iguazú approximately three years ago.