1 Strategies for Regional Tourism Development in Argentina. a Path with New Initiatives for Tourism Dispersal Policies

1 Strategies for Regional Tourism Development in Argentina. A Path with New Initiatives for Tourism Dispersal Policies

Natalia Porto* and Carolina Inés Garcia

Universidad Nacional de La Plata, Argentina

Introduction

With the new decade, tourism is facing many challenges. Technology development and changing patterns of behaviour, with consumers more demanding, independent and connected, have been increasing over time (Dwyer et al., 2009; Singapore Tourism Board, 2013; Dietz et al., 2019). Such a situation places tourism destinations within a difficult competitive scenario. In countries like Argentina, regarding international tourism, additional challenges include its geographical position – somehow apart from the rest of the world and away from the main outbound travel markets – together with persistent uncertainty concerning social and economic matters. At the same time, tourism has been playing a key role as an income gener- ator and a source of employment, contributing to economic growth and development in many countries around the world. According to the UNWTO (World Tourism Organization, 2019a), international tourist arrivals worldwide grew by 5.4% in 2018 (versus 2017), reaching 1.4 billion that year, and there was also a positive tendency in total international expenditure, with US$1,448 billion in 2018 (versus US$1,344 billion in 2017). Moreover, the World Travel and Tourism Council (WTTC, 2019) indicated that one in ten jobs in the world was generated by tourism in the same year. It is worth noting that domestic tourism constitutes a powerful force in the flourishing evolution of tourism in certain regions: 71% of worldwide tourism spending in 2018 was explained by domestic tourism, which grew even more in developing countries (WTTC, 2019).

* Email: [email protected]

Challenges arise when considering that the development of tourism should embrace a sustainability approach, not only from an economic perspective but also taking into account social and environmental issues. Over-tourism, environmental degradation and social conflicts between residents and tourists are potential troubles in tourism destinations; thus, the balanced distribution of the activity’s positive results becomes relevant. In most cases, tourist arrivals, expenditure and job generation tend to concentrate in certain regions within countries or their main gateways. This presents both a difficulty and a great opportunity for the development of alternative tourism destinations. Tourism dispersal, understood as the ‘tendency of visitors to travel beyond the main gateways of the host destination’ (Koo et al., 2012, p. 1209), becomes the key to overcoming such difficulties. To promote it, we need to properly diagnose and characterize tourism and the viability of motivating tourists to disperse around the whole territory, as well as the effectiveness of national and subnational policies related to dispersal (Tourism Research Australia, 2012; Weber et al., 2017). This chapter studies the tourism situation in Argentina, focusing on strategies to stimulate regional economic growth and employment generation through tourism while ensuring their equitable distribution throughout the territory. There is a descriptive analysis; and measures of tourism dispersal in Argentina are computed. Some regional policies to be implemented are sug- gested. Following this introduction, section 1.2 presents a brief review of the literature related to regional development and tourism dispersal, taking into account theoretical and empirical studies. Section 1.3 deals with the current Argentine national and regional scenarios. Tourism distribution from the demand and supply sides is particularly addressed. Also, in order to identify who is visiting us, the profiles of international and domestic visitors in different regions of the country are presented. In section 1.4, tourism policies at both national and regional/provincial levels are discussed. We identify three strategic axes in the national tourism strategy that are correlated with national and regional/provincial policies. We also outline the need to define strategies in certain unaddressed areas. Section 1.5 presents some final remarks.

1.1 Regional Tourism Development as a Means for Tourism Dispersal

The role of tourism as a source of growth and development in specific country regions has been broadly studied in the literature. Some studies emphasize the relationship between the development of the tourism sector and its effects on regional employment and income distribution (Leatherman and Marcouiller, 1996; Lee and Kang, 1998; O’Hare and Barrett, 1999; Porto, 1999, 2004). Other authors define and characterize tourism and recreation-based regions taking into account the endowment of amenities, local services and other variable inputs to analyse regional differences in employment levels, wages and income and the possible effects on income distribution (Leatherman and 10 Chapter 1

Marcouiller, 1996; Lee and Kang, 1998; O’Hare and Barrett, 1999; Marcouiller and Xia, 2008; Lacher and Oh, 2012). Although the literature and empirical evidence have shown the powerful effect of tourism in regional development, one of the main concerns for most countries has become tourism congestion in primary destinations. One way to deal with this is the promotion of local and regional development and the scat- tering of tourism benefits to secondary destinations. The powerful idea behind this is the tourism dispersal phenomenon, which is based on visitors and travellers going beyond the main gateway or attraction of a country and using their time to enjoy and discover other places in the destination, visiting different regions and following itineraries off the beaten track (Porto and Garcia, 2019). Tourism dispersal is defined as the likelihood that a tourist’s visit will take place at the gateway point of a destination (country) but will also include other regions. In other words, tourism dispersal is related to the ‘tendency of visitors to travel beyond the main gateways of the host destination’ (Koo et al., 2012, p. 1209). The concept is directly linked to the carrying capacity of a place, defined as ‘the maximum level of visitor use and related infrastructure that an area can absorb before the values of the place are diminished to an unacceptable degree’ (World Tourism Organization, 2005, p. 20). Tourism dispersal is relevant in the path towards sustainable development, as it can reduce the congestion of primary destinations where tourism has ex- ceeded the place’s carrying capacity (i.e. over-tourism has become a reality there). Also, it can be an opportunity for secondary destinations to become more relevant and receive the benefits of tourism. In order to achieve this, it is important to measure tourism and its impacts and to make decisions that will determine the proper management of tourism. Recent specific literature related to tourism dispersal includes: Koo et al. (2017), which examines the geographical dispersal of visitors using data on the spatial distribution of international visitors in Australia; Koo et al. (2012), which uses the Australian International Visitor Survey to explain tourist dispersal pro- pensities in an empirical way; and Foyster et al. (2017), which develops an applied study, also for Australia, with a special focus on the Chinese market. Additionally, Tourism Research Australia (2012) analysed visitor dispersal from Sydney to the region of New South Wales. It is worth noting that Koo et al. (2012, p. 1209) stated that:

Visitor dispersal determines the locations of tourist spend, which affects the economic contribution of tourism in sub-regions of a destination. The more visitors spend in different locations; the wider is the economic contribution that tourism makes to regions outside the major tourism gateways. Since some of these regions may be experiencing lower levels of income and employment than the urban areas that are generally associated with tourism gateways, the dispersal of tourists and their spending can benefit the distribution of income in the wider economy.

Although the definition of tourism dispersal is theoretically clear, issues related to its measurement are complex and involve some difficulties. This chapter aims to present a descriptive analysis and to compute measures of Strategies for Regional Tourism Development in Argentina 11

tourism dispersal in Argentina, taking into account the availability of data from both the demand and the supply side. Thus, the concept of tourism dispersal is related to the engines of regional economic growth and development. Another important feature of our study is the analysis of different tourism strategies that could be implemented in Argentina’s regions. Regional tourism development and tourism dispersal policies are relevant issues that destinations have to bear in mind. Based on the literature, strategies implemented by provinces/regions should deal with the following.

1.1.1 Brand promotion for regional consolidation

Liu and Chou (2016) pointed out that brand equity is important for destination differentiation and development. Analysing the components of this equity, Tasci (2018) identified that familiarity and image were the most relevant factors to explain loyalty. These perspectives are crucial when thinking about the positioning of destinations at the local and regional levels.

1.1.2 Smartness, innovation and competitiveness

Buhalis and Amaranggana (2014) set a framework for Smart Tourism Destinations, considering that it makes destinations more competitive. In the same line, SEGITTUR (2015) outlined the need to develop the fundamental axes of technology, innovation, accessibility and sustainability in order to create competitive services. Rucci (2019) proposed that accessibility, in particular, can be a competitive factor for tourism destinations.

1.1.3 New product development

Benur and Bramwell (2015) developed frameworks to study tourism product development, understanding that its diversification, intensification and rela- tionships become crucial for destinations. Such products are closely linked to the strategy approach that a destination adopts (World Tourism Organization, 2011).

1.1.4 Human resources qualification and training

Baum and Szivas (2008) concluded that the government has a key role in supporting the development of tourism human resources in less developed countries and they presented examples of initiatives to address different destination development stages. The challenges that the labour market faces affect the competitiveness of destinations (World Tourism Organization, 2009). 12 Chapter 1

1.1.5 Supply generation and support

Zhang et al. (2009) analysed management of the tourism supply chain as a network that takes place in specific destinations. The products developed are more successful when this network acts in coordination.

1.2 Tourism in Argentina: Current Scenario

Worldwide arrivals of international visitors have kept growing, presenting a 5.4% increase in 2018 in relation to the previous year (World Tourism Organization, 2019a). For Argentina, the arrivals grew by 3.4% that year (according to provisional data) and it was the most visited country in South America. This growth was more than the average of the region: for the same period, South America registered growth in international arrivals of around 1.2%. Provisional UNWTO numbers for 2018 indicated that Argentina was host to 6.9 million international arrivals, followed by Brazil (6.6 million) and Chile (5.7). Arrivals are expected to increase soon because of the country’s devaluation, which will attract more tourists in spite of the country's distance from the main tourism outbound markets. In terms of international receipts for the year 2018, Argentina (US$5.6 billion) was positioned behind Brazil (US$5.9 billion). This means that each international tourist spent, on average, US$801 during their trip to Argentina in 2018. In a country of approximately 44.5 million inhabitants (Argentine Statistics and Census Institute, 2019), this implies that there were, on average, 16 international tourists for every 100 Argentines, and international tourist receipts of US$125 per inhabitant. In terms of land area, Argentina is the fourth largest country in the Americas with a surface of 2.74 million km2, meaning that, in 2018, there were about 250 international tourists per every 100 km2 and international tourist receipts of US$1,999/km2. According to the World Tourism Organization (2019b), tourism numbers in Argentina have experienced small changes over the past couple of years. The number of international tourist arrivals grew from 5.2 to 6.7 million between 2013 and 2017, while the average daily expenditure fluctuated around US$70 and the average length of stay was around 10 days. Regarding domestic tourism, more than 51 million tourists travelled around the country during 2017, i.e. almost eight domestic tourists for each international tourist arrival. Their average stay was about five nights (versus ten for international tourists) and their average daily expenditure was about US$20, reaching a total expenditure of US$5,355 million (Secretary of Tourism, 2019c).

1.2.1 Regional characterization

Argentina is a federal country organized into 23 provinces and the Autonomous City of Buenos Aires. Provinces are grouped into regions following the Secretary of Tourism’s classification in the Hotel Occupancy Survey. The Autonomous City Strategies for Regional Tourism Development in Argentina 13

of Buenos Aires, locally Ciudad Autónoma de Buenos Aires (which differenti- ates it from the province of Buenos Aires), is known informally by its Spanish acronym, CABA. It is the capital of the country, one of the most important destinations in Latin America and the most densely populated administration, with 15,319 people/km2 in only 0.005% of the whole country’s territory (Fig. 1.1). CABA and the provinces of Buenos Aires and Córdoba are the main economic centres of the country, with their activities orbiting around manufac- turing, commerce and services. Meanwhile, agriculture, livestock and fishing characterize the regions of Cuyo, Litoral and Norte; while mining and quarrying do so for Patagonia. Nevertheless, each Argentine region has a great potential to develop tourism as an engine for economic growth, job creation and regional development (Porto, 1999, 2004; Argentine Tourism Chamber, 2011; Porto and Espinola, 2019). Tourism, a horizontal activity (i.e. involving many other economic sectors), benefits most of the economic sectors and, therefore, its development is sought and planned in order to ensure its sustainability and potentiate its virtues. Its indirect and induced impacts mean the generation of numerous jobs and significant income.

Norte Litoral (Catamarca, Jujuy, Salta, Santiago (Chaco, Corrientes, Entre Ríos, del Estero and Tucumán) Formosa, Misiones and Santa Fe) 501,487 sq. km. 470,184 sq. km. 8,951,824 inhabitants 5,102,132 inhabitants 2 WHS (natural/cultural) 2 WHS (cultural) 1 Natural Wonder 2 Natural Wonders

Córdoba Cuyo 165,321 sq. km. (La Rioja, Mendoza, San Juan and San Luis) 3,645,321 inhabitants 404,906 sq. km. 1 WHS (cultural) 3,551,570 inhabitants 1 Natural Wonder 2 WHS (natural/cultural) 1 natural Wonder Autonomous City of Buenos Aires Patagonia 200 sq. km. (Chubut, La Pampa, Neuquén, Río 3,063,728 inhabitants Negro, Santa Cruz and Tierra del Fuego, Antártida e Islas del 2 WHS (cultural) Atlántico Sur)

1,911,605 sq. km. Buenos Aires 2,838,482 inhabitants 307,571 sq. km. 4 WHS (natural/cultural) 17,020,012 inhabitants 2 Natural Wonders 1 WHS (cultural)

Fig. 1.1. Main characteristics of Argentine provinces per region. Note that Chaco, Corrientes, Formosa, La Pampa and La Rioja provinces are not included in the Hotel Occupancy Survey sample and were thus assigned to regions following classification by Instituto Nacional de Promoción Turística (INPROTUR). UNESCO: United Nations Educational, Scientific and Cultural Organization; WHS: World Heritage Site. Map adapted from original obtained at: https://www. mapasparacolorear.com/argentina/mapa-argentina.php. Own elaboration based on Argentine Statistics and Census Institute (2019), Seven Wonders (2019) and UNESCO (2019). 14 Chapter 1

Is Argentina capable of achieving good results by fostering the tourism industry? Argentina has a variety of touristic resources, including cultural, recre- ational, water and land resources, which have different prevalences within its different regions (Porto and Espinola, 2019). It is home to 13 World Heritage Sites designated by the United Nations Educational, Scientific and Cultural Organization (UNESCO) – including those that are cultural (such as the Qhapaq Ñan), natural (such as the Iguazú falls) and intangible (such as Tango) – and its ‘Seven Natural Wonders’, selected by its residents (Seven Wonders, 2019).

1.2.2 Regional tourism supply and demand

Argentina’s main gateway is the Autonomous City of Buenos Aires (CABA). Ezeiza international airport and Aeroparque airport are its main access points, with 14 million and 10 million annual passengers, respectively, according to 2017 data (Airports Data, 2019). In terms of tourism, they concentrate (mainly Ezeiza) 92% of all international tourist arrivals in the country (Secretary of Tourism, 2019c). It is worth noting that there is at least one airport operating in each Argentine province (Argentine Air Navigation Company, 2018), some- thing that undoubtedly benefits mobility within the country, and with a more significant effect considering that the skies have been recently opened to greater competition with the incorporation of new operating airlines, including low-cost firms. Nevertheless, there is still a long way to go to ‘decongest’ international tourism better. If we take a look at the overnight stays of international tourists who entered the country through Ezeiza and Aeroparque airports in 2017 and how they were distributed between the different regions, we see that more than half of these (56%) took place in CABA, 16% in the neighbouring Buenos Aires province and 28% in the rest of the country. A similar trend occurred at the Port of Buenos Aires, where 68% of those who entered remained in CABA and 21% went to Buenos Aires province. When tourists enter the country through Córdoba or Mendoza, these provinces retain more than 80% of visitors’ overnight stays (Secretary of Tourism, 2019c). Data shows that the main determin- ants of the possibility of tourism dispersal are the entrance points and their locations. This occurs because tourist restrictions include time availability and they have strong preferences for transport accessibility and staying close to the main gateways. This means that the development of alternative destinations usually relies on strong tourism public policies (World Tourism Organization, 2018). According to the Hotel Occupancy Survey of the Secretary of Tourism (2019c), total accommodation establishments were around 5,400 in 2017, with a homogeneous distribution between regions. Patagonia was the region with the largest share (20%), followed by Córdoba (17%), CABA (11%) and Norte (14%). From the demand side, there were almost 21 million travellers (domestic and inbound) that year. These mainly concentrated in the capital city (24%), followed by Patagonia (18%) and Litoral (16%) (Table 1.1). Overnight stays, a related variable, showed a similar behaviour pattern for CABA and Patagonia. Strategies for Regional Tourism Development in Argentina 15 0.5 2.5 8.0 8.7 5.8 21.6 52.9 100.0 Inbound travellers (%) 9.6 16.8 15.9 13.2 14.1 17.0 13.6 100.0 Domestic travellers (%) 9.2 17.8 23.5 10.6 11.7 15.2 12.0 100.0 Travellers (%) 3,680,602 4,868,304 2,184,797 2,414,933 1,911,674 3,154,541 2,474,888 20,689,739 Number of travellers (domestic and inbound) 20.0 11.3 14.8 16.8 11.3 11.4 14.5 100.0 Accommodation establishments (%) 610 797 910 609 615 782 5,403 1,080 Number of establishments accommodation Distribution of tourism supply (data for 2017) and demand 2018) by region (based on Secretary Tourism, 2019c). a Spanish acronym for the Autonomous City of Buenos Aires CABA Total Table 1.1. Buenos Aires Córdoba Cuyo Litoral Norte Patagonia Region a 16 Chapter 1

One interesting feature is the different behaviour of domestic and international travellers. The characteristics and preferences of travellers are key elem- ents to identify market potentialities and lines of action. In this case, domestic tourists (residents travelling within their own country) were homogeneously distributed in the different regions, while inbound tourists (non-resident travellers) were highly concentrated in CABA (more than 50%) and, to a lesser extent, in Patagonia (Table 1.1). Beyond the analysis of the shares of each region, tourism dispersal and tourism penetration are two relevant related concepts that become useful for accurate diagnosis of tourism in Argentina and its regional distribution. In order to address these issues, following the European Union Parliament (2018), Martínez-San Román et al. (2017) and McElroy and De Albuquerque (1998), in this section we compute: • dispersion/concentration measures, namely: • Hirschman-Herfindahl Index (HHI); • k-concentration ratios; • penetration measures, namely: • Tourism Penetration Index (TPI); • tourism density indicators (tourist variables related to total square kilo- metres); • tourism intensity indicators (tourist variables related to total population). These are further explained in Annex A.

1.2.3 Tourism dispersal at the national level

According to a global measure of concentration computed for different touristic variables (HHI), and considering a maximum value of 1 (meaning perfect concentration), there is evidence of tourist concentration in Argentina for inbound travellers (Table 1.2). Inbound overnight stays show a similar behaviour. This is not the case for domestic travellers and overnight stays. The k-concentration ratios show the cumulative shares of the different main regions for each tourism variable (Table 1.2). Patagonia and Córdoba regions concentrate almost 37% of all accommodation establishments, while CABA and Patagonia concentrate 41% of all travellers and 75% of all inbound travellers. This means that domestic tourism is more homogeneously distributed than international tourism. As already mentioned, CABA is the country’s main gateway and, accordingly, it is the one with more tourists (especially international tourists). However, Patagonia is the region with more accommodation establishments, while Litoral leads in terms of domestic visitors. Patagonia occupies the second position in the market share for the rest of the variables. Regarding penetration at an aggregate level, tourism density and intensity indexes relate tourism variables to the country’s area (km2) and total inhabitants. According to these, there are about 0.13–0.14 accommodation establishments and 499–550 total travellers per every 1000 inhabitants and per every Strategies for Regional Tourism Development in Argentina 17

Table 1.2. Measures of national tourism dispersal, 2017–2018 (own elaboration based on Secretary of Tourism, 2019c; demand data for 2018, supply data for 2017).

Accommodation Domestic Index establishments Travellers travellers Inbound travellers

HHI (sum of 0.15 0.16 0.15 0.34 quadratic relative shares) k-concentration 36.83 (Patagonia 41.32 (CABAa 33.75 (Litoral 74.51 (CABA ratio (k = 2) and Córdoba) and Patagonia) and Patagonia) and Patagonia) Tourism density 0.14 550.10 435.94 114.09 (per 100 km2) Tourism intensity 0.13 499.43 395.78 103.58 (per 1000 inhabitants) aSpanish acronym for the Autonomous City of Buenos Aires. Note: Chaco, Corrientes, Formosa, La Pampa and La Rioja provinces are not included in the Hotel Occupancy Survey sample and were thus assigned to regions following INPROTUR’s classification.

100 km2, respectively. In this case, aggregate data turns to be insufficient to give insights about penetration (Table 1.2).

1.2.4 Tourism dispersal at the regional level

At the regional level, we compute weighted supply (accommodation establishments and beds available) and demand (travellers and overnight stays, as well as domestic and inbound demand) tourism penetration indexes. Results show that Patagonia is the most penetrated region, while Cuyo is the least penetrated in terms of tourism supply. Observing demand data, CABA (for inbound travellers) and Patagonia (mainly for domestic travellers) are the most penetrated regions, while Cuyo (for domestic travellers) and Buenos Aires (for inbound travellers) are the less penetrated ones (Table 1.3). Regarding tourism penetration indexes calculated at the regional level, we can see that tourism density for the supply is particularly high for CABA, taking into account its 200 km2 surface. There are 305 accommodation establishments and more than 2.5 million travellers per every 100 km2. Córdoba stands out for its higher domestic density numbers, while Cuyo does so for inbound travellers (Table 1.3). The same demand indexes were computed considering overnight stays and similar results were obtained, with Buenos Aires province reaching higher numbers. In the case of tourism intensity, there are 0.38 accommodation establishments in Patagonia per every 1000 inhabitants. This number equals 0.05 in the case of Buenos Aires province. From the demand perspective, this shows different patterns of behaviour according to its origin: domestic travellers show higher tourism intensity in Patagonia, while inbound travellers have a greater relative presence in both CABA and Patagonia. In both density and intensity 18 Chapter 1 49 144 970 327 0.73 0.96 0.40 0.06 0.38 Patagonia 53 48 474 431 0.22 0.38 0.09 0.17 0.15 Norte 74 42 555 311 0.04 0.78 0.15 0.12 0.07 Litoral 85 96 387 436 0.00 0.00 0.14 0.15 0.17 Cuyo 65 29 626 0.36 0.68 0.04 0.55 0.25 1396 Córdoba 7 1 702 126 0.65 0.74 0.00 0.26 0.05 Buenos Aires 847 739 0.50 0.73 1.00 0.20 304.75 CABAa 1,299,841 1,134,312 weighted TPI is from 0 to 1. b ) 2 b Measures of regional tourism dispersal, 2017–2018 (based on Secretary Tourism, 2019c; demand data for 2018, supply Spanish acronym for the Autonomous City of Buenos Aires; Tourism Penetration Indexes (TPI) Note: Chaco, Corrientes, Formosa, La Pampa and Rioja provinces are not included in the Hotel Occupancy Survey sample were thus assigned to regions following INPROTUR’s classification. for 2017). TPI domestic demand TPI inbound demand Tourism Density (tourism variables every 100 km Domestic travellers Inbound travellers Tourism Intensity (tourism variables every 1000 inhabitants) Accommodation establishments Domestic travellers Inbound travellers Table 1.3. Indexes / Regions TPI supply a Accommodation establishments Strategies for Regional Tourism Development in Argentina 19

indexes, domestic and inbound performance are more balanced for CABA (Table 1.3). Similar results are obtained when considering overnights stays.

1.2.5 Profile of international and domestic visitors in Argentina

A complementary approach to study tourism development strategies in Argentina involves the profile characterization of international and domestic tourists at the regional level. Identifying key markets and their patterns of behaviour can be crucial for tourism public policy development and the decision-making pro- cesses of all tourism stakeholders. Understanding the demand is beneficial for destinations seeking to attract and make the most of certain types of visitors. In terms of international tourism for the year 2017, Ezeiza and Aeroparque gateways mainly receive visitors from Brazil (27%) and Europe (29%), the country’s main emissive markets. The remaining gateways are home to visitors from the rest of the American continent. In particular, Córdoba is an important access for Chileans and visitors from the rest of the continent (25% each), while Mendoza gets 40% of Chileans. In general, most visitors come to the country for leisure purposes (with Córdoba as an exception for its importance as a business purposes entrance) and stay in four-star hotels. Also, there is higher average daily travel expenditure from those coming from neighbouring countries (between US$88 and US$132), while those from non-neighbouring countries spend between US$74 and US$89 daily, on average. When the purpose of the journey is visiting friends or family, there tends to be a longer average stay and a smaller average daily expenditure, while those with business travel purposes have a shorter average stay and a very significant average daily expenditure, in all entrance points. As can be expected for its proximity, the Port of Buenos Aires is the gateway for Uruguayans, with a very high average daily expenditure, coming mainly for leisure purposes and using various accommodation options (Secretary of Tourism, 2019c). As for domestic tourism, Buenos Aires Province and Patagonia are both mostly home to tourists from the same provinces (more than 60% of their domestic visitors). Meanwhile, Córdoba receives a more diversified public. The average length of stay is similar in all regions (between 5 and 6 nights), but the average daily expenditure reaches higher values in Patagonia (US$40, versus US$30 in Córdoba and US$25 in Buenos Aires). As for visitors’ reasons for travelling, in all of the regions more than half of these travel for leisure purposes and, in second place, for visiting friends and family. A similar proportion of those who visit friends and family correspondingly stay at friends’ and families’ houses. Many visitors in Córdoba (31%) also go to one-, two- and three-star hotels (Secretary of Tourism, 2019c). The previous analysis showed that different tourist profiles visit each region. This information is relevant when thinking about tourism dispersal policies as brand promotion, new product development and innovation and smartness-focused strategies, which could play a significant role in balanced development. For international tourists, policies could focus on the dispersal of tourists who enter via Ezeiza and Aeroparque airports, as well as on the 20 Chapter 1

development of new entrance points (like Córdoba or Mendoza) in order to attract Latin American tourists. In the case of domestic tourists, policymakers could try to diversify emissive domestic markets to each region in an attempt to foster tourism demand.

1.3 Tourism Organization and Policies at the National and Regional Levels

After the diagnosis and characterization of regional tourism behaviour in Argentina, in this section we study policies and strategies from national and regional tourism administrations. The national tourism administration in Argentina is the Secretary of Tourism, which has responded directly to the Presidency of the Nation since 2018. In turn, the national tourism organization, in charge of promoting the country abroad and positioning it as a tourism destination for emissive markets, is the National Tourism Promotion Institute (INPROTUR, the Spanish acronym for Instituto Nacional de Promoción Turística). This institute is a decentralized public–private organization of the Secretary of Tourism. Argentina has a Tourism Federal Plan 2016–2019 that includes an in-depth diagnosis of the sector in the country and settles strategic objectives. The plan states that tourism is relevant for regional economies and constitutes a direct channel to distribute the benefits of the activity throughout the whole country. We have identified three main strategic axes of this plan that relate to some of the current national tourism policies and reveal the need for a properly oriented policy: • Strategic Axis 1 – Promoting international and domestic tourism: promotion of a brand for Argentine tourism, promotion of domestic tourism growth and positioning of Argentina as the main tourism destination in Latin America. • Strategic Axis 2 – Enhancing the sector competitiveness and sustainability: development of products and destinations through specific programmes, and development of quality strategies in tourism. • Strategic Axis 3 – Rising investments in articulation with the territory to finance the development of the sector: development of infrastructure, financial support for small and medium entrepreneurs and financial cooperation with the private sector in general. In order to achieve this plan, the national government, the provinces and the private sector work collaboratively. There is also an inter-ministerial round table at the national level that includes other government areas involved in tourism projects. National policies implemented in recent years can work concerning the three different strategic axes. Communication policies can be related to the promotion of the destination to international and domestic visitors (Axis 1); programmatic policies to the enhancement of the sector’s competitiveness and sustainability (Axis 2); and financial policies to the finance of the development of the sector (Axis 3). Table 1.4 presents these relations together with the Strategies for Regional Tourism Development in Argentina 21

Table 1.4. National tourism policies by axis (based on Secretary of Tourism, 2019b).

Axis Current main policies Findings and policies to be implemented

1, 2 and 3 National Tourism Data shows the need to generate gateways and entry Infrastructure Plan points, and to strengthen regional connectivity to favour tourism dispersal (sections 1.2.2 and 1.2.3). Authentic Towns As tourists are mainly concentrated in Patagonia and the Autonomous City of Buenos Aires, strategies Litoral Ecotourism should focus on the development of touristic products Corridor in alternative regions. Policymakers could assess the endowment of regional touristic resources and identify potential new products (section 1.2.2). 1 Domestic Tourism Many residents travel within their regions of origin. National Plan and This means an opportunity for the encouragement of ViajAR platform alternative destinations where tourism can be a means for development (section 1.2.3). Country Brand The literature has shown the importance of relying on natural resources for tourism development (Porto and Espinola, 2019). Policies could address these assets in particular. 2 Argentine Tourism Focus on quality systems to improve touristic services, Quality System including lodging and restaurants (section 1.2.2). 3 Financial Assistance Some regions do not receive many visitors but also do FONDETUR not have an appropriate supply to do so. The financial support for less developed destinations can be crucial for their tourism performance (section 1.2.2).

current main tourism policies and the policies to be implemented. The latter are suggestions as a result of our previous analysis regarding tourism figures and the public policy approach in Argentina. In Argentina, where nature is a key tourism resource, a powerful idea could be to promote the motto ‘Argentine Capital of Nature’, allowing different destinations to strengthen their tourism development. This emerges as an alternative application of the Italian Capital of Culture programme (a consolidated European programme). This policy could be completed with the following: 1. New Destinations beyond the City of Buenos Aires. Thinking about how visitors concentrate in the Autonomous City, a policy inspired by the ‘Ten New Balis’ programme in Indonesia could be a proper initiative. In Argentina it would aim to replicate the results that the Autonomous City has achieved in the remaining country regions. 2. Theme Years for the next decade. This idea comes from Holland’s Theme Years initiative, which chooses a cultural theme each year to promote destinations related to it. In Argentina, this could be an opportunity to link destinations and their promotion in such a vast country under common cultural or natural themes. 22 Chapter 1

We apply the theoretical background of these policies taking into account the policies that some provinces are currently implementing. New destinations beyond would be specific places where promotion and development strategies would be focused in order to emulate the tourism development reached by the capital city. The setting of theme years would be based on alternative regions to promote yearly using a motto based on natural and/or cultural assets. The proposal could be summarized as follows. • Identification of new destinations beyond the City of Buenos Aires: in Cuyo through the High Mountain strategic plan; in Corrientes through the Coastal Urban Project Development; and in Santiago del Estero through Stake- holders’ Workshops and Tourism Forums. • Implementation of theme years in the provinces of Buenos Aires (Tango in Río de La Plata), Córdoba (Spanish in the Hills) and Patagonia (Mate in the Steppe). Regarding the sub-national level, and within the framework of a federal system, each Argentine province has its own tourism administration. These are mainly ministries (with some solely devoted to tourism), but also secretariats, sub-secretariats and tourism entities or agencies. The leaders of these institutions are all members of the Tourism Federal Council. One of them also acts as the president of the council and six as vice presidents (one for each tourism region: Patagonia, Córdoba, Buenos Aires, Litoral, Cuyo, and Norte). The Tourism Federal Council is an advisory body that promotes agreements and projects between provinces in order to promote a diverse and qualified offer, together with equilibrated territory development (Secretary of Tourism, 2019a). At the same time, it is important to address the initiatives that each province and region is undertaking in order to potentiate and distribute the benefits of tourism. Regional tourism policies were mainly found at the provincial level. Based on the literature review and the practical strategies proposed in section 1.2, we have identified each province’s strengths and suggest how to boost other areas. Table 1.5 presents the main provincial policies by category: (i) brand promotion for regional consolidation; (ii) innovation, smartness and competitiveness; (iii) new product development; and (iv) human resources qualification and training). The table offers some suggestions on policies to be implemented so as to ensure tourism development in regions where the activity is consolidated (namely CABA and Patagonia) and also in the remaining regions for their development.

Conclusions

Argentina is currently facing important challenges regarding regional tourism development. These include few international access gateways to the country, the need to strengthen connectivity and demand concentration in the Autonomous City of Buenos Aires (CABA) and in Patagonia. At the same time, there are plenty of potentialities and opportunities to enhance the existing lines of action for the better distribution of tourism benefits. Encouraging tourism at the regional level Strategies for Regional Tourism Development in Argentina 23 to encourage visits beyond the City of Buenos Aires, like in the ‘London +’ initiative in the UK tourism workers, like the Tourism Qualification Programme in Brazil tourism workers, like the Tourism Qualification Programme in Brazil promotion through innovation and smartness, like ‘Experiential Spain’ regional tourism road map which includes tourism corridors, like the ‘Road Map for Tourism’ in Iceland Policies to be implemented Develop specific promotion campaigns Generate programmes to train and qualify Generate programmes to train and qualify Foster tourism experiences and brand Consolidate provincial strategic plans in one training training Human resources qualification and training Tourism Tourism Tourism training b b strategic plan strategic plan positioning MICE tourism MICE tourism New product development High Mountain Olive route Wine route Tourism Tourism of Chaco Coastal urban project Current main policies tourism app InnovaTur BA Innovation, smartness and competitiveness San Luis provincial chamber Brand promotion for regional consolidation I love Córdoba Promotion from Feel Misiones Formosa invites Provincial tourism policies by category (by author based on information from official websites of Argentine institution s at a Aires the provincial level (2019) and Porto Garcia, 2019). Table 1.5. Buenos Córdoba CABA Cuyo Mendoza La Rioja San Juan San Luis Litoral Entre Ríos Misiones Chaco Corrientes Santa Fe Formosa 24 Chapter 1 provincial program aimed c promotion through innovation and smartness, like ‘Experiential Spain’ promotion through innovation and smartness, like ‘Experiential Spain’ Policies to be implemented Foster tourism experiences and brand Foster tourism experiences and brand Tourism training Human resources qualification and training investment tourism destination strategic plan strategic plan for 2020 strategic plan 2014–2024 Workshops and Tourism forum Tourism infrastructure Development of new Sustainable tourism Sustainable tourism New product development Sustainable tourism Stakeholders’ tourism category for ‘Meetings, Incentives, Conferences and Events’; b c Current main policies tourism programme S.O.S. digital Innovation, smartness and competitiveness plan 2018–2019 Chinese investors Brand promotion for regional consolidation Tourism promotion Investment niche for Fuego Estero Spanish acronym for the Autonomous City of Buenos Aires; Patagonia Chubut a Neuquén Santa Cruz Tierra del La Pampa Río Negro at training people in digital competencies Norte Catamarca Salta Jujuy del Santiago Strategies for Regional Tourism Development in Argentina 25

in order to generate income and jobs throughout the whole territory is part of a new tourism era for policy makers. Tourism dispersal has become a challenge not only for Argentina but also for many destinations around the world. Some of these, such as Spain or Italy, have had stable tourism growth and are reaching their capacity limits in some destinations, or beginning to understand that it is more beneficial to distribute tourists and receipts into secondary destinations. Others have recently experienced a boom in their demand and need to adjust to managing limited carrying capacities quickly. In this chapter, we have addressed the Argentine case. We found that the tourism supply is distributed in a relatively homogeneous way within the country, while the tourism demand tends to concentrate in certain regions according to visitor profiles (international versus domestic). The Autonomous City of Buenos Aires, the capital of the country and its main gateway, is the region that is most in demand. Patagonia plays a highly significant role as well. This means that there are opportunities for the remaining regions of the country to attract visitors and benefit from tourism. Making a diagnosis of tourism concentration and visitors’ profiles by region enables the development of more focused tourism policies. Looking at international arrivals, Mendoza has a majority of leisure visitors with the highest average daily expenditure for neighbouring countries and receiving a large number of Chileans. As such, this region should keep attracting these travellers, while other regions could develop policies in order to attract such a profile. Córdoba, with a great proportion of business travellers, is also home to a relevant number of Chileans who again present a significant average expenditure. It could be important to strengthen the tourism supply so that these visitors remain longer in the country – in the mentioned regions but also alternative spots. Another case is CABA, which is strong in keeping a considerable average daily expenditure from those who come from neighbouring countries and also remain for a long period of time in the country. As for domestic tourism, the challenge may be to diversify visitors in terms of region of origin, as has been identified in the case of Córdoba. The main travel purpose is, in all cases, leisure, so initiatives that strengthen and promote touristic attractions could make it possible that visitors choose to stay for longer or repeat their visits. At a national level, three main strategies could help illuminate the path leading to Argentina’s success in distributing tourism and its benefits: • Argentina, Capital of Nature; • New Destinations beyond Autonomous City of Buenos Aires; and • Theme Years for the next decade. Apart from the public, private and public–private tourism institutions at the national level, each province in the country has its own tourism administration and leads its own tourism strategies. By studying these in the framework of the diagnosis made and together with successful international policies linked to spatially distributing visitors, we propose the implementation of tourism initiatives that distribute the sector’s benefits led by an approach of regional destination jointly with tourism dispersal policies. Specific tourism dispersal policies 26 Chapter 1

at the national level (namely, Capital of Nature, New Destinations beyond the City of Buenos Aires and Theme Years) could have a highly positive impact. At the regional level, most policies deal with brand promotion for regional consolidation and new product development. Smartness, innovation, competitiveness and human resources qualification and training are issues that are still at the early stages of development. Undoubtedly, there is still a lot of work ahead. Studying tourism distribution, visitors' profiles and public policies at the national and subnational levels is crucial in order to generate impactful regional policies for tourism dispersal. This study provides a first attempt to diagnose, characterize and analyse the regional distribution of tourism in Argentina, providing some useful strategies together with examples of good practices to foster current policies with new tourism dispersal initiatives.

Acknowledgments

We would like to thank Lic. Manuela Cerimelo for her efficient and valuable assistance in the collection and systematization of data.

References

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Annex A

Herfindahl-Hirschman Index (HHI)

N N 2 2 æ Ti ö HHI ==ååSi ç ÷ i ==1 i 1 è T ø where: N = number of regions. Si = market share of tourist demand/supply variable per region. Ti = absolute number of tourist demand/supply variable in a region. T = absolute number of tourist demand/supply variable in the whole country. The minimum value of the index is given by the relation between 1 and the number of regions (7 in this case). Its maximum value is 1.

K-Concentration Ratio

N CRk = åTik i =1 N = number of regions. k = number of evaluated regions in the country (two, in this case, referring to the two regions with the largest market share of each of the tourist demand/supply variables considered). Tik = market share of tourist demand/supply variable per region (for the k regions). The index goes between 0% and 100%.

Tourism Penetration Index

()Xmij - inXi TPIij = Xijv= alue of ith variable for rregion j. ()maxXii- minX

where: max Xi = maximum value of the ith variable for all regions in the country. min Xi = maximum value of the ith variable for all regions in the country. The index goes between 0 and 1.