Book a hotel instead of an Airbnb in Argentina for ethical and financial reasons

What is the ethics of blue?

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Why are you in Buenos Aires?

A simple question with a complex answer. The curious couple waited for my response, their eyes never leaving mine. Did they want the whole truth or the massaged truth?

“I fell in love with the city, its European architecture and its people during my last visit. I wanted to come back and explore more.

I waited while they thought. Did they buy my answer, or did they catch what I left out of the answer? Finally, the skin around their eyes softened as their lips turned into a smile. They nodded.

“Welcome! We are glad to have you. Please enjoy your stay!”

I thanked them and they continued. I left out the part about their country being incredibly cheap. I had already made this mistake once. In truth, I was in the country because I had fallen in love with it a decade before. It turns out that the country, due to its financial situation, has proven to be more financially affordable for anyone with money in their pocket.

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Financing a crisis

Calling Argentina’s current economic problems a “financial situation” is an understatement. With the exception of Venezuela, Argentina has the worst inflation rate in the Western Hemisphere and one of the worst in the world. According to FinancialTimesthe country reached 71% inflation in July 2022 (compared to 8.3% in the United States) and the Buenos Aires time suggests that it will likely exceed 100% inflation in 2023.

Unlike the rest of the world, however, Argentina’s inflation hasn’t risen solely because of COVID and other government restrictions. No, Argentina had a head start of several decades.

Many of the current financial problems plaguing the country can be directly linked to the sanctions imposed by the allied nations on Argentina after World War II due to the country’s willingness to accept prominent members of the Nazi Party, which he did via the Catholic Church and the Argentine Archbishop. While on the surface these sanctions might cry hypocrisy, as the US and Britain salivated at German scientists, Argentina admitted nearly 1,000 former SS members.

The Argentine peso, as well as the economy, went through several extreme changes in the years following World War II. In 1970, the pesoley replaced the country’s last peso. A new peso appeared in 1983 and another peso currency in 1992. The continuous introduction of new currencies causes several problems, not to mention that it is expensive. While the country itself experienced exceptional growth during the 1990s, government financial management led to a recession in 1998. This, in many ways, became the tipping point, forcing the Argentine government to take on more debt. And as the country struggled to repay its debts, Argentina intentionally devalued the peso. With the devaluation came the creation of the “blue dollar”.

The blue dollar

Just like the current economic situation in Argentina, it is possible to create a full doctorate. memory on the blue dollar. Some call it a black market US dollar, but that’s not quite accurate.

This is not accurate as the blue dollar (also called “blue dollar”) is fully sanctioned by the Argentine government. But what exactly is the blue dollar? There is an official exchange rate between the USD (US dollar) and the peso, issued by banks. And then there is the unofficial blue rate, which is issued through exchange service providers such as Western Union.

Due to the inflation rate in Argentina, the peso is a volatile currency. During my first visit to Argentina in 2010, the exchange rate was 16 pesos for 1 dollar. When I moved to Argentina in May 2022, the exchange rate was 115 pesos for 1 dollar. In five months, the rate jumped again from 150 pesos to 1 dollar. With this kind of nose dive in monetary value, many locals prefer, when possible, to convert their money to USD Of course, if Argentina had infinite access to USD, everyone in the country would convert his money immediately, then the Argentine economy would collapse further. So, in order to better control this, the Argentinian government created this blue market dollar, which often doubles the cost of obtaining a dollar. In October 2022, the official exchange rate was 157 pesos per dollar, while the blue market rate was 303.6 pesos per dollar. This makes it difficult for locals to get US currency, but it’s easy for visitors to convert their dollars to Argentine pesos and double what they would normally receive via ATM withdrawal.

The ethics of blue

For visitors coming to Argentina, there may be an initial question whether taking advantage of Western Union money transfers and currency exchange services in the city to get the blue market rate is ethical or not.

In truth, a visitor’s blue rate access rarely affects the premises. It does not increase the cost of food and does not increase restaurant prices. This will not change the amount of bus or metro fares. Of course, if you plan to visit Argentina, you should definitely take advantage of the blue dollar rate. The only person you’re hurting by using the discount rate is yourself.

You better buy whatever you can with money. In fact, if you can, pay for everything in person in cash. Many places offer special discounts for cash paying customers. You’ll likely save money at restaurants, many grocery stores offer 10-20% savings if you pay cash, and it’s much easier to buy goods on the street and in local shops. When local businesses have to bill by credit card, by the time the processing is run and they are paid at the end of the month, the value of the peso has already dropped, meaning they might not even receive the true value of the product they sold you.

Everyone is happiest when paying with cash, including when paying with blue dollar money.

Although there is an exception to this rule.

Where you are staying

While the produce you buy and the food you eat won’t affect the locals, the place you stay will.

Rent is by far the biggest expense for premises, especially in Buenos Aires. To prevent landlords from dramatically increasing rents for tenants, the Argentine government enacted several new tenant-friendly laws, including locking in long-term rental prices for several years with no ability to increase monthly rents.

However, rent protection does not include short-term or vacation rentals like Airbnb. This makes renting apartments to visitors rather than locals much more attractive. It’s possible for an Airbnb host to rent an apartment to a visitor, who isn’t aware of the financial situation or what locals are paying for the property, and earn what a local would normally pay in a matter of days. only.

Due to the income potential, more and more landlords are turning to vacation rental services like Airbnb instead of offering their properties to locals. This has a double effect on the townspeople. First, it reduces the number of apartments they have access to. Now, in a city of over 16 million people, there really isn’t a shortage of apartments, but the number is dwindling and the competition is fierce. When I first moved to Argentina and told the locals about my quest to find an apartment, I was told “good luck” on more than one occasion. This is because properties that are priced right for the market sell out quickly.

The second issue, and equally detrimental to residents, is the influx of Airbnb and temporary rental increases in the overall price of apartments. According to World press review, the average resident of Buenos Aires spends 41% of their income on rent. With rising rents due to inflation and fewer available properties, residents are moving further and further away from the city. Indeed, according to Infobae (2022)real estate property values ​​have increased by more than 60% over the previous year, and much of this increase is reflected in the rising cost of rental housing.

Airbnb rentals in Buenos Aires are not limited to individual units either. There are now entire mid-rise buildings dedicated specifically to vacation rentals. For every old apartment turned into a short-term vacation rental, another local family is forced to walk away from work, move children to different schools, and lose connection to a neighborhood in which they would have spent most of his life.

If you are planning to visit Buenos Aires soon, consider a traditional hotel instead. Hotels are plentiful throughout the city and are already dedicated to serving visitors without taking away properties from locals or increasing the cost of rent. In fact, by staying at a hotel, you are doing what you can to help the people of the city. From customer service staff to housekeeping, bartenders and live musicians, these people rely on visitors staying at a hotel. Your money, instead of kicking people out, will help them keep their jobs, not to mention that these are great places to get information on what to do and where to go for food and entertainment. They can also help you buy show tickets and make reservations if you have difficulty with Spanish (or the local dialect).

It is not difficult to visit Buenos Aires in an ethical way

Buenos Aires and the rest of Argentina offer so much to visitors and ask so little in return. Of the breathtaking north and the Iguazu Falls at Mendoza wine region, the bustling cultural center of Buenos Airesand a nature lover’s paradise in Patagonia, there truly is something for everyone in this gem of a South American nation. The country has seen its share of financial difficulties, which is why, more than ever, residents are welcoming visitors, because it means more mouths for restaurants to feed, more alfajors for sale for candy vendors, and more tango shows to be produced for the live audience. Your money goes a long way in helping many of these residents. Just make sure you don’t take houses from them at the same time.

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