Tourism In South America Is Here To Stay
The hotel industry keeps pace with the growth of the economy at a global level, and for Latin American countries opportunities for development are many
Current Situation Of Hotel Developments In Argentina
There is no doubt that Argentina is leading the business in South America. Buenos Aires is a prime example as no other city in the region has its level of occupancy (almost 80%) and its rates (between US$ 300 and US$ 350 for luxury hotels).
The tourism business became attractive in value when it became competitive price-wise as a result of the devaluation. It was then that the opportunity was taken advantage of to advertise its tourism market abroad at highly competitive prices.
However, today things have changed: there are segments that seek quality and quality is what protects destinations and services from the changing fortunes of economic cycles. Today Argentina is a lot more expensive in dollar terms than in 2002, but it continues to be cheaper compared to other destinations, such as Europe for example. Besides, it has shown another strength beyond its prices, such as its variety of sceneries, its cultural offer, its people, which clearly distinguish Buenos Aires from the rest of South America.
Since Argentina emerged from the crisis, groups of Americans and Europeans began to explore the domestic market, interested mainly in building hotels in Buenos Aires and Patagonia, highlighting Argentina's potential.
As long as their guarantees are covered and that problems such as air transport begin to be solved, investments, undoubtedly will multiply throughout the country.
Pushed by investors and developers, the mixed-use projects are starting to set a trend in the country. The goal, above all else, is to amortize the cost of the plots of land that are on the rise continually. This is how the residential hotel or condo-hotel has arisen in the United States in recent years. When it is a top brand hotel and its branding covers the whole complex, the value of the name causes the housing units to be priced at a higher level than the market pays in the same area. In fact, the residential projects that use this system can increase their value between 10% and 30% depending on the brand and the location.
Usually, this operation enables the business to be structured in such a way that the sale or presale of the apartments, with this additional value provided by the branding, finances the cost of the land and the construction of the whole complex, including the hotel. Thus the hotel is free of debt, its construction financed 100% by the sale of the housing units, without any additional investment. This set up of the project ends up with a luxury hotel plus the administration of the hotel services that the housing units are going to demand and that in turn feed the hotel's business.
Either through its traditional formats or new variations, everything seems to indicate that tourism is here to stay.
Arturo García Rosa is Senior Partner of HVS and leads the Buenos Aires office. He has wide experience in the field of Hotel and Tourism Consulting and is recognized for his work as a professional, teacher and leader.
Over the past 30 years, he has been one of the key players and entrepreneurs in shaping tourism and hospitality in Argentina as well as the rest of South America. His extensive experience has influenced not only the professional sector, but the academic arena as well. His wide range of publications throughout the years serve as testimony to his global vision and the role he has played in fleshing out his unique perspective in the industry.
In 1995 he founded Arturo García Rosa & Associates (RHC Hospitality Consulting), tourism and hospitality consulting firm. In 2000, the firm became HVS Argentina, an affiliate of HVS International with offices in Buenos Aires.
Arturo has worked overseas in US, Europe, Brasil, Venezuela, Panamá City, Chile and Uruguay.
As a consultant, he actively participated in projects as Hilton Puerto Madero, el Hotel Emperador, Hotel Faena, Park Hyatt Buenos Aires, and Mendoza, and the Chapelco Golf & Resort.
His professional activity is nowadays focused on the development of very important projects in the region, including some in countries like Perú, Ecuador, Colombia, Venezuela, Uruguay, Panamá, Bolivia and Paraguay.
HVS International is a hospitality services firm providing industry skill and knowledge worldwide. The organization and its specialists possess a wide range of expertise and offer market feasibility studies, valuations, strategic analyses, development planning, and litigation support. Additionally, HVS International supplies unique knowledge in the areas of executive search, investment banking, environmental sustainability, timeshare consulting, food and beverage operations, interior design, gaming, technology strategies, organizational assessments, operational management, strategy development, convention facilities consulting, marketing communications, property tax appeals and investment consulting. Since 1980, HVS International has provided hospitality services to more than 10,000 hotels throughout the world. Principals and associates of the firm have authored textbooks and thousands of articles regarding all aspects of the hospitality industry. Click here for more...
Arturo García Rosa
Phone: +54 11 4515-1461 ext. 202