The exchange rate is far from having a single quotation. The difference is not minor: the gaps can be up to a third of the value between the cheapest and the most expensive option. Everything depends on which side of the bank the Uruguayan pesos are purchased. Uruguay lives and breathes tourism. “A season that will be historic is coming,” says the government of the neighboring country.
Official expectations indicate that 2017 will close with a figure close to 4 million visitors. Of that total, 2,5 million will be Argentines.
This is a record, but one that officials say will be surpassed as 2018 begins. And Argentines will be the ones to drive the tourism sector again.
Basically because prices in the neighbouring country remained stable over the last year, while the local economy accumulated an inflationary increase of 20%.
In addition, the dollar lost the race against the CPI, so that employees saw their purchasing power strengthened in that currency.
If we add to this the “cocktail” of benefits for tourists who pay for their expenses with debit and credit cards (such as 0% VAT on hotels or tax refunds for car rentals or restaurant expenses), everything is in place for the tourist flood to be greater this summer.
The big question: where to change?
One of the most frequently asked questions by those planning a trip to a destination in the neighboring country is knowing where to buy Uruguayan pesos in order to obtain the most convenient exchange rate.
In Uruguay, tourism is lived and breathed. “A historic season is coming,” says the government of the neighboring country.
Official expectations indicate that 2017 will close with a figure close to 4 million visitors. Of that total, 2,5 million will be Argentines.
This is a record, but one that officials say will be surpassed as 2018 begins. And Argentines will be the ones to drive the tourism sector again.
Basically because prices in the neighbouring country remained stable over the last year, while the local economy accumulated an inflationary increase of 20%.
In addition, the dollar lost the race against the CPI, so that employees saw their purchasing power strengthened in that currency.
If we add to this the “cocktail” of benefits for tourists who pay for their expenses with debit and credit cards (such as 0% VAT on hotels or tax refunds for car rentals or restaurant expenses), everything is in place for the tourist flood to be greater this summer.
The big question: where to change?
One of the most frequently asked questions by those planning a trip to a destination in the neighboring country is knowing where to buy Uruguayan pesos in order to obtain the most convenient exchange rate.
That is to say that for that coffee in Gorlero, from a maximum of $68 due to having made the change in the City of Buenos Aires, it would cost even more: $71.
For those who are wary of this operation that is carried out on the streets - despite the fact that many tourists resorted to this tool between 2011 and 2015 - the option is to go to a bank or to exchange agencies in Uruguayan territory.
Those who choose this option and go to recognized stores, such as Cambio18 or Casa Gales, among others, will end up receiving only $120 for every $100.
This will raise the price of the cortado to $83. That is, almost 34% more than the alternative of buying it in an Argentine state.
On the other hand, if you choose to go to Banco República or even the Montevideo branch of Banco Nación, the conversion will end up giving a figure a little more convenient than the exchange houses for that same coffee: $78.
Another possibility is to exchange dollars for Uruguayan pesos.
Those who choose this option will get around $28 per greenback. In this case, the cortado in Gorlero will cost $63, almost the same as the tourist who opted to go to a bank in Buenos Aires.
For those who choose to withdraw money from their savings account, the following must be taken into account: the exchange rate in dollars is that of the Banco República, but commissions must be added, both from the entity that provides the bills through the ATM, as well as those of the Argentine entity from which the funds are withdrawn.
In this case, taking into account the commissions that private companies currently charge, the price of the Uruguayan peso is around $1,53, a figure that would fall into the “convenient” category, since the coffee will end up costing around $65.
Cards, great allies
One of the keys for those who travel to the neighboring country is to keep in mind that non-residents in Uruguay receive a series of benefits each year that can help reduce expenses.
In order to access them, it is necessary to complete the operations using credit or debit cards.
These benefits include the refund of VAT on tourist services provided, which will be extended until April 30, 2018.
The list is headed by those gastronomic services provided by restaurants, bars, confectioneries, cafes, or by hotel establishments, provided that said services do not form part of the concept of lodging.
In these cases, the savings are not minor, since the general VAT rate is 18%.
So, continuing with the example of a coffee, whoever pays with plastic will see on the receipt that about $u100 will have been deducted from the $u18, so the final price is $u82, equivalent to 52 Argentine pesos.
That is why the use of plastic is most recommended in the gastronomic sector.
In addition, those who pay by credit card will avoid paying commissions.
However, there is one thing to keep in mind: the exchange rate remains open and is set on the closing date.
This is a variable to consider, given that any type of volatility in the City could increase the final value of expenses.
Regarding accommodation, Uruguayan authorities will apply zero VAT in hotels.
At the same time, those who choose to rent a home will find that the Ministry of Tourism has arranged a 10,5% refund, provided that the tenants are non-resident individuals, that the transaction is carried out in registered real estate agencies and that the payment method used is a debit or credit card issued abroad.
In this case, the exchange rate to be considered – at current values – drops to $15,90, compared to the original $17,80.
Finally, the Tax Free Regime is also in force for purchases made in stores adhering to the system, complying with the corresponding procedure at the time of purchase and as long as the exit from the country takes place through the main airports, ports and border crossings.
The percentage to be returned, in these cases, is 14,4%, which is equivalent to 80% of the VAT paid.
When leaving the country, the corresponding procedure for reimbursement must be completed at the duly identified posts.
The system includes all purchases over $600 Uruguayan pesos in stores participating in the system.
Under this mechanism, whoever bought merchandise will in practice be paying for it at an exchange rate just above $15.
For tour operators, the extended tax benefits, which have been in place since 2012, together with the stability of the exchange rate and low inflation, are the main reasons for the increased number of Argentines arriving during the holiday season.
"You can't export tourism services with taxes; if tradable goods can be sold abroad without VAT, why can't you do the same with tourism services?" said Juan Martinez, president of the Uruguayan Chamber of Tourism.
"We have to get visitors to spend more, and the best way to do that is to buy products and consume them. That's what we have to encourage," Martínez concluded.
Rising expectations
For Uruguay's Minister of Tourism, Liliam Kechichian, the summer of 2017-2018 will mark "a season that will be historic."
According to local operators, one of the keys is the evolution of prices, which in general remain at the same level as last year in the neighbouring country, while Argentina suffers the effects of inflation of over 20% and a dollar that has not risen to the same extent.
"Thus, Uruguay is more economical for Argentines than last year," they conclude.
"Our greatest competitiveness factor in terms of prices is the stable dollar at 29,80 Uruguayan pesos per unit, the attractiveness of zero VAT on hotels, and full refunds on restaurants, car rentals, and party planning," Kechichian added.
Of the 2,5 million people who travelled with a Argentine ID card in 2017, operators expect the figure to increase by around 10% this year.
In numbers, that would be a quarter of a million visitors who will not leave their money in Argentina's main tourist centres.
Source: extract from iprofesional
Original note: http://www.iprofesional.com/notas/260410-uruguay-banco-dolar-pesos-tipo-de-cambio-comisiones-Uruguay-espera-record-de-turistas-argentinos-este-verano-conviene -go-with-dollar-cards-exchange-in-Buenos-Aires-or-travel-with-pesos-
