July 24, 2018 / 3:49 PM / 8 months ago

Argentina suspends planned air travel tax hike to boost tourism

BUENOS AIRES, July 24 (Reuters) - Argentina will suspend an increase in tax rates on international air travel that was scheduled to take place during the second half of the year, the government said on Tuesday in its official gazette, as President Mauricio Macri seeks to boost tourism.

The measure will keep tax rates for landing support and in-flight safety for international flights unchanged. The announcement comes after the government earlier this month eliminated a price floor for domestic flights.

Argentina’s air market has long been dominated by state-owned Aerolineas Argentinas and Chile’s LATAM, but Macri has sought to reduce regulation, paving the way for low-cost airlines like Flybondi and Norwegian to enter the market.

The recent depreciation in the peso currency has made travel to Argentina more affordable for foreigners, while nudging Argentines toward domestic tourism rather than travel abroad. (Reporting by Eliana Raszewski Writing by Luc Cohen Editing by Alistair Bell)

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