Tourism: high tax burden makes flights from Argentina much more expensive

Someone who buys a plane ticket to travel from Buenos Aires to Miami pays an average of $ 3,350, while those who buy a ticket to the same destination from Santiago de Chile must pay $ 1,250; This is to travel a similar distance, one pays much less outside the borders of Argentina.

Much of the explanation for this difference, which arises not only from the comparison with Chile, but also with other countries, This is because local airport charges are higher than those in the rest of the region and the taxes in some cases are almost double the value of the base fare.

Indeed, according to comparative data prepared by the International Air Transport Association (IATA, according to its acronym in English), while the shipping costs in Argentina are US $ 57, in Chile they are US $ 25; in Peru, US $ 29.74; in Colombia, US $ 40 and in Brazil, US $ 24.40.

From IATA itself, they made their voices heard so that this rate did not increase, when in January it went from US $ 51 to its current value. At that time, he stated by letter the following: “Whereas an 11.8% increase in the TUA, represented in $ 6 per passenger, would imply an artificial increase in prices which in turn would lead to a greater contraction in demand, which is currently already contracted, aggravating the crisis in the sector and preventing the recovery of the Argentinian international air market ”.

That’s not all. In the same letter, IATA expressed what it also commented on from some airlines operating in the country: “It should be mentioned that operating in Argentina is more expensive than operating at most airports in Latin America; in many cases, it is more than 100% more expensive ”.

This could have an impact at the end of this year or at the beginning of 2022 when, once most countries have vaccinated their populations against Covid-19 and commercial air traffic starts to recover in part, Argentina seems less competitive than its neighbors in terms of submission. for a greater tourist movement.

Airports Argentina 2000 pointed out that the average in Latin America is US $ 56 and that in Argentina the general tariff is US $ 21, but on condition that an average is established between cabotage (which is very cheap) and internationally. “Due to the heavy connectivity of inland cities with little commercial market for the activity, but huge connection needs, The national state understood that it was necessary to subsidize cabotage tariffs (at the lowest levels in the world) with international tariffs“, They explained.

According to sources in the local aviation sector, the airport concession system adopted by Argentina since 1997, where the same operator is in charge of airports such as Viedma or Santa Rosa and Ezeiza or Aeroparque, means that few large airports subsidize the airport. rest of the system. , since the cost of the dealer includes both. “This generates asymmetries which lead to the ticket for Caracas or Miami allowing a low price for domestic flights to Bariloche or Formosa, for example”they commented.

In addition to the airport tax, other costs related to the trip itself are paid: the migration rate, which is 1.3% of the base rate; the ANAC rate, which is 1%, and the least linked to the trip itself, but still more expensive, the rate of the Ministry of Tourism, 7%. In other words, if the airport tax is added, a total of 15% of the ticket value is paid for these items.

But, as said, The “airport tax” and “other” element is not the only one that makes plane tickets more expensive in Argentina, compared to countries in the region, as the other main culprits of this event are taxes. , which are much higher here than elsewhere..

Diego Fargosi, lawyer specializing in aeronautical law and partner of the firm Fargosi ​​y Asociados, underlines that the price of a ticket for an international flight is increased by taxes, but also taxes. “In the price of a flight to Madrid, which costs 800 US dollars. Two elements are included which have nothing to do with the airport or the journey, but which are more related to the voracity of the state so that the dollars and the Argentines do not escape with the dollars of the country ”, he said.

These two additional charges are the PAIS tax and Resolution 4815 (through which AFIP established a system for collecting taxes on income and personal property for currency purchase transactions). In the example of the US $ 800 flight to Madrid, these items represent US $ 240 and US $ 280 respectively. “They add up to US $ 520 in this ticket, or 65%,” explains the specialist.

For Fargosi, the government seeks to direct demand to domestic destinations, making access to foreign tickets more expensive. “To some this may seem like a successful measure, and it could be if it is temporary, but we have already seen in our history that it is not healthy to maintain an artificial direction of demand over time. via the collection of specific taxes or rates., “he said.

Likewise, industry sources explained that the decline in the post-pandemic flight supply will certainly result in more expensive fares.