INSUBCONTINENT EXCLUSIVE:
billion in salaries and nearly $800 million in taxes annually
However, the sector faces severe profitability issues threatening its long-term sustainability.Real tourism revenues have fallen by 24% over
the past decade while operating costs have risen by 8%
government and private sectors to reverse this negative trend.Despite challenges, the tourism sector holds great growth potential
Recovering activity levels from 2017 could increase GDP by 2.8%, create 19,000 additional jobs, and contribute $220 million more in
million between 2016 and 2023.Recommendations for Boosting Tourism in UruguayKey recommendations include implementing a permanent 0% VAT
rate for non-resident tourists
Currently, tourism remains the only export industry in Uruguay subject to VAT.Eliminating this tax would make Uruguay more competitive and
accessible compared to other international destinations.Increased investment in international promotion and marketing is crucial
A robust strategy targeting key markets is essential to positioning Uruguay as an attractive global destination.Attracting private sector
investments is also critical for sustainable growth, achievable through fiscal incentives and a favorable regulatory framework.A National
Strategic Plan coordinating public and private efforts is recommended to align interests and optimize available resources.Tourism has the
potential to generate significant economic benefits for Uruguay, creating jobs in various sectors and having a multiplier effect on other
industries.With firm commitment from both the public and private sectors, tourism can become a source of sustainable growth and a key driver
