Argentina’s decision to exempt foreign tourists from paying VAT on hotel stays has been welcomed by the Latin America Tourism Association.
LATA chief executive Tony Mason said it was ‘a positive step for growing travel to the region’.
Tourists will receive a refund for the VAT, which today stands at 21%, when they pay for their accommodation.
To receive the refund, they must pay with a foreign credit or debit card, provide their passport number and confirm their address. Tour operators and travel agents who take bookings must provide this information on their behalf.
"We anticipate that the move to reimburse foreign tourists for the VAT on their hotel stays will boost tourism to the destination, increase the number of foreign tourists in the country and reinforce Argentina’s status as one of the must-see destinations in Latin America," said Mason.
"The new law not only emphasises the importance of tourism to the Argentine economy but will also improve the competitiveness of the destination’s tourism industry, which will inevitably have a long term positive effect on tourism numbers.
"This new law, combined with the development of tourism infrastructure and the launch of new direct flights from Europe to the region, reflect the efforts being made by governments to open up Latin America to international tourism and to better promote the destination.
"We look forward to working even more closely with the industry in order to further."
