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URUGUAY'S TOURISM INDUSTRY RECOVERS

Uruguay's tourism industry has shown promising signs of recovery during the first half of 2023, generating revenues of 1,000 million dollars. The sector's rebound can be attributed to the arrival of over 2 million visitors, who spent an average of 500 dollars per head during their visit.

These figures indicate a notable increase in tourism activity, surpassing levels recorded in 2019 before the pandemic struck.

The tourism industry in Uruguay started recovering during the third quarter of 2022. The figures recorded in the first half of 2023 suggest that the industry is on the path to full recovery. The positive trend could indicate industry resilience to the pandemic.

Out of the total number of tourists, nearly 1 million were Argentine citizens. This indicates that despite the price gap and the exchange rate difference, they still consider Uruguay one of their top tourist destinations. Additionally, during the same period, there was a record-breaking number of tourists from Brazil, with over 260,000 visitors, which is about 40,000 more than the previous year.

Also, the 2022-2023 Uruguay’s tourism season saw a remarkable increase in cruise ship arrivals, reaching record levels. Compared to 2019, there was a substantial 13% increase in cruise ships. During the first half of the year, 187 cruise ships carrying 320,000 tourists docked in the port, generating a revenue of $16 million. Cruise tourists were 60% Brazilians.

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“Uruguay is the country in South America that receives the greatest number of international tourists in relation to the size of its population. After the pandemic, the sector has been recovering quickly, both in terms of international and national tourism, and it is expected that in 2024 it will exceed pre-pandemic levels.”

Natalia Bayona, Executive Director, UN Tourism

"Tourism Doing Business, Investing in Uruguay" is the second investment guide made in collaboration with CAF - development bank of Latin America and the Caribbean . It highlights the main economic, political and social strengths of Uruguay, including its solid institutional and economic framework, its entrepreneurial and innovative culture, diverse natural landscapes and an attractive cultural and gastronomic offer . These attributes make Uruguay a favorable destination for investments in the tourism sector.

Economic Outlook

The guide begins by making a macroeconomic analysis of Uruguay, highlighting its sustained growth during the last two decades in which the country was affected by the effects of COVID-19. However, its resilience allowed a prompt recovery in 2021 and 2022 . The year 2023 was marked by important challenges for the country, meteorological phenomena and the slowdown of its main trading partners conditioned its growth, which is estimated to have closed at 0.3%. However, in 2024 and 2025, growth is expected to accelerate and be around 3.3% and 2.5%.

The report also emphasizes the diversification of its economy , including the agro-export sector, the timber industry and traditional services such as tourism and transportation that contribute significantly to the Uruguayan economy.

FDI Performance

The second chapter focuses on investments in the country, highlighting a substantial 71% increase in Foreign Direct Investment (FDI) in 2022 , largely driven by the manufacturing industry and financial services. In the tourism field, the report shows the government's efforts to improve road, port and airport infrastructure, with an investment plan of up to USD 3.3 billion in road infrastructure . In addition, the importance of the Investment and Industrial Promotion Law is highlighted, through which 208 tourism projects worth USD 631.2 million have been declared of national interest between 2015 and 2023.

Value Proposition

This guide also presents the value proposition of Uruguay, where, in addition to its solid institutional base, it stands out for its strategic location that facilitates access to the main markets in South America, for having a growing entrepreneurship and innovation ecosystem, and for the importance of tourism in the economy, which represents between 6% and 8% of GDP and employs more than 100,000 people.

Additionally, the report provides a summary of taxes and incentives of interest to investors, as well as information on the types of societies or companies that can be established in the country.

Green Investments Outlook

The fourth chapter focuses on sustainable investments, highlighting the country's initiatives and policies regarding environmental protection, climate change, and renewable energy. Uruguay's commitment to the Sustainable Development Goals and its important effort for the development of renewable energies and green hydrogen are emphasized .

Competitive Outlook

Finally, the report presents the competitive landscape of the tourism industry in Uruguay, highlighting its position in the World Economic Forum's Travel and Tourism Development Index and underscoring security, digital infrastructure, and the participation of small businesses in the sector. In addition, the favorable environment for doing business in Uruguay is emphasized, including regulatory stability, tax incentives, and the ability to attract quality talent .

Travel & Tourism in Uruguay (2022)

Unlock hidden opportunities in the Travel and Tourism industry

Published: July 31, 2022 Report Code: GDTTCS-22-99-MP-L5

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Discover untapped potential in the Travel & Tourism industry with our Travel & Tourism in Uruguay (2022) report and make more profitable business decisions.

GlobalData’s country series report titled ‘Travel & Tourism in Uruguay (2022)’ provides a wealth of key data for the travel & tourism sector in Uruguay. The data in this report includes demands & flows data on domestic travel, international arrivals and departures. Additionally, data is provided on traveler spending patterns, the airlines, and hotel sectors. The report also identifies the key themes impacting the tourism industry.

In 2022, Uruguay welcomed 2.15 million international arrivals. The country also saw 0.92 million international departures over the same period. This report is based on data from databases compiled by GlobalData’s team of industry experts.

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Uncover comprehensive data on the patterns and trends of travel within Uruguay. Dive into information related to travel destinations, purposes, and preferences of domestic tourists.

Capitalise on business opportunities by understanding how travellers allocate their expenditures based on their spending habits on accommodation, transportation, food, and other expenses.

Access data on inbound tourists arriving in Uruguay and outbound trips made by residents. This section includes popular destinations, factors driving these travel trends, and visitor demographics.

Understand occupancy rates for hotels, load factors for airlines, car rental trends, and the role of travel intermediaries in facilitating bookings and reservations.

Identify opportunities within the market and tailor your strategies to target specific customer groups in the travel and tourism industry of Uruguay.

Leverage historical and projected performance data to gauge the trajectory of the industry. Study how it has evolved over time and determine what can be expected in the future to enhance your strategies.

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Investing in Uruguay's Tourism: A Blend of Stability and Rich Diversity

Tourism has historically been a strategic axis of economic development in Uruguay ; therefore, the President of the Republic, Luis Lacalle Pou, and representatives of high-level government and international organizations presented the first guide to attracting tourism investors to Uruguay.

The guide, called  “Tourism Doing Business, Investing in Uruguay,”  was developed by the Ministry of Tourism in collaboration with the United Nations (UN) and was supported by the Development Bank of Latin America and the Caribbean (CAF) and cooperation of Uruguay XXI.

This document proposes the fundamental reasons that make Uruguay an attractive destination for tourism investment, including its recognized political and economic stability, its strategic regional location, the quality of its infrastructure, its position as a hub for innovation and human talent, and its diverse, sustainable and accessible tourism offer.

The Vice President of the Republic, Beatriz Argimón; the Minister of Tourism, Tabaré Viera; the Minister of Industry, Elisa Facio; the Undersecretary of the Ministry of Tourism, Remo Monzeglio; the President of CAF, Sergio Díaz Granados; the Executive Director of UN Tourism, Natalia Bayona; the Regional Director for the Americas of that organization, Gustavo Santos; and the Executive Director of the investment, export and country brand promotion agency, Uruguay XXI, Sebastián Risso, also attended the event.

“Uruguay is a great country to invest in,” said Viera during the presentation of the guide, which brings together information on investment opportunities, the competitive landscape, current regulations, and tourist attractions in five chapters that cover everything from the economic scenario to the positioning of the tourism sector in the region and the world.

The general director of the Ministry of Tourism, Ignacio Curbelo, was in charge of presenting the guide. “Our country has a series of conditions that make it unique for investment,” he said. He informed that tourism, an essential pillar of the Uruguayan economy, has a multiplier effect in several sectors; it contributed 7.3% to GDP and was 7.8% of exports of goods and services in 2022.

Uruguay’s tourism offers historical-cultural proposals, coastal, cruise, meeting, rural, and natural tourism, inviting visitors to visit charming towns, shopping, thermal, nautical, and wine tourism. The country is in the top five of the World Economic Forum travel and tourism index, growing as a recipient of foreign visitors and domestic tourism.

Curbelo emphasized the interest in attracting green investments. “Uruguay is firmly committed to protecting the environment and developing a sustainable economy. Now the country is moving forward in a new stage of transformation of the energy sector based on green hydrogen, and opportunities are opening up for green investments in the tourism sector,” he explained.

In addition, he added that Uruguay offers significant incentives to invest, such as its Investment Law, while tourism is a sector with specific decrees that translate into exclusive benefits.

“The country has a varied and quality tourism offer. We invite you to make your next investment in Uruguay, the safest country to invest in Latin America”, he closed his speech.

During the closing panel, Sebastián Risso, the executive director of Uruguay XXI, Miguel Ostos, the CAF representative for Uruguay, and Ignacio Munyo, the director of Ceres, participated and emphasized Uruguay’s attraction as an investment destination. They also highlighted experience, sustainable, and luxury tourism as areas of growing global interest where Uruguay holds a favorable position.

Risso highlighted the confidence investors place in Uruguay, evidenced by the US$ 4.1 billion of Foreign Direct Investment registered up to September last year, approximately 7% of GDP, representing a positive indicator of the country’s perception of a safe and business-friendly environment.

“Something important is that more or less 40% of the FDI we receive are reinvestments of the companies installed here, and that marks investors’ confidence in the country,” he stressed.

The director of the investment promotion agency explained that when investors are asked why they chose Uruguay, stability, certainties, and the rule of law are the first things that come to mind. Risso also indicated as fundamental the solid investment regime, free ports and airports, free zones and industrial parks, free repatriation of capital, and ease of doing business, all state policies maintained with the passing of different governments.

“In addition, we are very well positioned in ESG (Environmental, Social, and Governance) factors, which have become essential for investment decisions in the world,” he said and recalled that last year opened the Single Window for Investment, which will facilitate the procedures for the arrival of companies to the country.

Tourism promotion is one of the five objectives of the Uruguay country brand managed by Uruguay XXI, which also includes investment promotion, export promotion, attraction of residents and national pride.

With this launch, Uruguay reaffirmed its commitment to sustainable development and the promotion of a tourism sector, inviting investors worldwide to discover the unique opportunities offered by the safest country to invest in Latin America.

FEATURED NEWS:

• Leading Chinese company in human genetics diagnostics set up its first laboratory in Latin America in Uruguay
• Urufarma’s new industrial complex ratifies Uruguay as a benchmark for the pharmaceutical industry in the region
• Uruguay strengthens its position as an innovation hub in Brazil

Exploring Tourism in Uruguay- A Comprehensive Examination

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Tourism in Uruguay is an important industry, but why is tourism in Uruguay so big and why does it matter? Read on to find out…

Geography in Uruguay

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South American tourism is often dominated by discussions of Brazil’s flamboyant festivities, Argentina’s vibrant tango culture , and the captivating ancient history embodied in Peru’s Incan ruins. Yet, at the heart of these well-established tourist destinations is an often-overlooked nation that deserves far greater attention: Uruguay.

Uruguay, while modest in size and population , provides a rich tapestry of culture, history, and nature. It deftly balances the tranquility of rural landscapes with the cosmopolitan hustle and bustle of its cities, creating an intriguing mixture of experiences for the discerning traveler. It is an intricate patchwork of mesmerising destinations—from the golden beaches of Punta del Este to the preserved Spanish and Portuguese architectural wonder of Colonia del Sacramento, from the energetic city life of Montevideo to the sprawling vineyards that adorn the nation’s fertile lands.

Tourism in Uruguay, an under-explored domain in the global tourism sphere, exhibits a breadth of attractions that caters to a diverse array of tourists . Whether it be the leisure-seeking sunbathers, gastronomy enthusiasts , history connoisseurs, or adventurous explorers , tourism in Uruguay presents a rich and diverse offering, primed for discovery and exploration.

In this article we will delve into the nuances of Uruguay’s tourism, highlighting lesser-known attractions, elucidating its cultural and historical background, and offering practical insights for maximised visitor engagement and experience. This is not merely a blog post, but an academic endeavour to unpack the tourism potential of an enchanting, yet understudied South American nation. Prepare to embark on an insightful expedition into the heart of Uruguay’s tourism landscape. Welcome to the academic exploration of Uruguay’s tourism potential!

Uruguay is a small country located in the southeastern part of South America. It is bordered by Brazil to the north and northeast, Argentina to the west, and the Atlantic Ocean to the south and east.

The country has a total land area of around 176,000 square kilometres and has a relatively flat terrain, with the highest point being the Cerro Catedral at 514 metres. Uruguay has a coastline that stretches for 660 kilometres, which includes several beaches and ports.

The country is divided into 19 departments or states, each with its own capital city. The capital of Uruguay is Montevideo, which is also the country’s largest city and main port. Other major cities in Uruguay include Salto, Paysandu, and Rivera.

The climate of Uruguay is generally temperate, with mild summers and cool winters. The country experiences a humid subtropical climate in the north and a humid oceanic climate in the south. The rainfall is evenly distributed throughout the year, with the wettest months being from April to September.

Uruguay has a diverse landscape, with wetlands, grasslands, forests , and beaches. The country is also home to several rivers , including the Uruguay River, which forms the border with Argentina, and the Río de la Plata, which forms the border with Argentina and separates Montevideo from Buenos Aires.

Uruguay’s geography is characterised by its relatively flat terrain, long coastline , and diverse landscape, which make it an attractive destination for tourists and travellers interested in nature and outdoor activities.

Tourism in Uruguay has been growing steadily over the past decade. According to the latest data available from the World Tourism Organisation (UNWTO), in 2019, Uruguay received a total of 3.9 million international tourists, which was a 3.3% increase from the previous year.

The tourism industry contributes significantly to Uruguay’s economy, accounting for about 7% of the country’s GDP and employing over 100,000 people. The government has been investing in tourism infrastructure and promoting the country’s attractions to increase the number of visitors.

The majority of tourists visiting Uruguay are from neighbouring countries, particularly Argentina and Brazil. In 2019, these two countries accounted for 72% of all international visitors to Uruguay. However, the number of tourists from Europe and North America has been increasing in recent years.

Uruguay is known for its beautiful beaches, historical sites, and cultural attractions. Some of the most popular tourist destinations in Uruguay include Punta del Este, a fashionable beach resort on the Atlantic coast, Colonia del Sacramento, a historic city with colonial architecture, and Montevideo, the capital city with a rich cultural scene.

In terms of accommodation , there are over 1,500 hotels and other lodging options in Uruguay, ranging from budget hostels to luxury resorts. According to the latest data from the National Statistics Institute of Uruguay, in 2019, the average hotel occupancy rate was 56%, with an average daily rate of $90 USD.

The tourism industry in Uruguay continues to grow and offers a range of attractions and accommodations for visitors from around the world.

People travel to Uruguay for a variety of reasons, including:

• Beautiful beaches: Uruguay has over 400 kilometres of coastline, with some of the most beautiful beaches in South America. Punta del Este, for example, is a fashionable beach resort with white sand beaches and crystal-clear waters.
• Cultural attractions: Uruguay has a rich cultural scene, with a variety of museums, theatres, and art galleries. Montevideo, the capital city, is home to several cultural landmarks, including the Teatro Solís, a historic theatre that dates back to 1856.
• Historic sites: Uruguay has several historic sites that offer a glimpse into the country’s colonial past. Colonia del Sacramento, for example, is a UNESCO World Heritage Site that features well-preserved colonial architecture.
• Wine tourism : Uruguay is a small but growing wine region, known for its Tannat grape varietal. Visitors can tour vineyards and wineries in the countryside and taste some of the country’s finest wines.
• Eco-tourism : Uruguay has a diverse landscape that includes wetlands, grasslands, forests, and beaches, making it an ideal destination for eco-tourism. Visitors can explore nature reserves, go bird-watching, or take a horseback ride in the countryside.
• Sports and outdoor activities: Uruguay offers a range of outdoor activities, including surfing, fishing, golfing, and hiking. Soccer is also a popular sport in Uruguay, and visitors can catch a game at one of the country’s stadiums.

The most popular types of tourism in Uruguay include:

• Beach tourism: Uruguay has over 400 kilometres of coastline, with some of the most beautiful beaches in South America. Punta del Este, La Paloma, and Cabo Polonio are among the most popular beach destinations in Uruguay.
• Cultural tourism : Uruguay has a rich cultural scene, with a variety of museums, theatres, and art galleries. Montevideo, the capital city, is home to several cultural landmarks, including the Teatro Solís, a historic theatre that dates back to 1856.
• Historic tourism: Uruguay has several historic sites that offer a glimpse into the country’s colonial past. Colonia del Sacramento, for example, is a UNESCO World Heritage Site that features well-preserved colonial architecture.
• Wine tourism: Uruguay is a small but growing wine region, known for its Tannat grape varietal. Visitors can tour vineyards and wineries in the countryside and taste some of the country’s finest wines.
• Eco-tourism: Uruguay has a diverse landscape that includes wetlands, grasslands, forests, and beaches, making it an ideal destination for eco-tourism. Visitors can explore nature reserves, go bird-watching, or take a horseback ride in the countryside.

Most popular visitor attractions in Uruguay

Tourism in Uruguay wouldn’t exist at all without its incredible tourist attractions and destinations. Some of the most popular tourist attractions in Uruguay include:

This fashionable beach resort town is known for its beautiful beaches, upscale shops and restaurants, and vibrant nightlife.

Uruguay’s capital city is a cultural hub, with a range of museums, theatres, and art galleries. Highlights include el Teatro Solís, la Ciudad Vieja historic district, y el Mercado del Puerto food market.

This charming colonial town is a UNESCO World Heritage Site, featuring well-preserved colonial architecture and cobblestone streets.

This remote coastal village is known for its beautiful beaches, dunes, and wildlife, including sea lions and dolphins.

This small fishing village turned beach town is popular among surfers and backpackers, with a laid-back atmosphere and beautiful beaches.

This coastal town is known for its beautiful beaches, historic hilltop castle, and scenic cable car ride up Cerro San Antonio for panoramic views.

This northern city is known for its hot springs, beautiful parks, and historic architecture, including the stunning Salto Grande Dam.

This eastern department (province) of Uruguay is home to several beautiful beach towns, including La Paloma and La Pedrera, as well as the Cabo Polonio National Park.

Is Uruguay safe? Uruguay is generally considered a safe country for travellers, with a low crime rate compared to many other countries in the region. However, like in any country, tourists should take common-sense precautions to ensure their safety and avoid becoming victims of crime.

Petty crime, such as pickpocketing and theft, can occur in tourist areas and on public transportation, especially in big cities like Montevideo. Visitors should take care to keep their valuables secure and be aware of their surroundings, particularly in crowded areas.

While violent crime is relatively rare in Uruguay, there have been occasional incidents of robbery or assault targeting tourists, particularly those travelling alone or at night. Visitors should avoid walking alone in isolated areas, especially after dark.

In general, Uruguay is a very welcoming and hospitable country, and locals are friendly and helpful towards tourists. However, it’s still important for visitors to exercise caution and take appropriate safety measures to ensure a pleasant and enjoyable trip. It’s also a good idea to stay informed about local safety conditions and any travel advisories issued by your home country’s embassy or consulate in Uruguay.

Tourism in Uruquay doesn’t have to be expensive!

The cost of a trip to Uruguay can vary depending on several factors such as the time of year you visit, your travel style, and the activities you choose to do. However, as a general guideline, here is an overview of the average daily costs for a trip to Uruguay:

• Accommodation: Budget travellers can expect to spend around $20-30 USD per night for a hostel dormitory bed or a simple guesthouse room. Mid-range hotels and vacation rentals typically cost between $50-100 USD per night, while luxury hotels and resorts can cost upwards of $200 USD per night.
• Food: Uruguay is known for its delicious cuisine, but dining out can be expensive, especially in tourist areas. Budget travellers can expect to spend around $10-20 USD per day on food by eating at local markets, street food stalls, or simple cafes. Mid-range restaurants usually cost around $30-50 USD per meal, while high-end dining experiences can cost upwards of $100 USD per person.
• Transportation:Public transportation in Uruguay is relatively inexpensive, with bus and train fares ranging from $1-5 USD. Taxis and private transfers are more expensive, with fares varying depending on the distance travelled.
• Activities:The cost of activities in Uruguay can vary widely depending on the type of experience you’re looking for. For example, a day trip to a national park might cost around $10-20 USD per person, while a wine-tasting tour could cost upwards of $100 USD per person. Cultural attractions like museums and galleries are often free or have a nominal admission fee.

Overall, budget travellers can expect to spend around $40-50 USD per day on basic expenses like accommodation, food, and transportation, while mid-range travellers should budget around $100-150 USD per day. High-end travellers can expect to spend upwards of $300 USD per day.

Impacts of tourism in Uruguay

The tourism sector has broad-ranging impacts on the destination country, which are typically categorised into three main areas: social, environmental, and economic. When examined through these lenses, Uruguay’s tourism industry presents an intriguing case study.

Tourism in Uruguay plays a significant role in its economy . Tourism contributes to roughly 7.5% of Uruguay’s GDP and provided employment for thousands of individuals, both directly and indirectly. Tourism’s direct economic benefits extend from the hospitality sector to the local artisanal crafts market, as well as the agri-tourism industry which capitalises on Uruguay’s rich agricultural tradition.

However, there are also negative economic aspects. Seasonality is a particular issue; the Uruguayan tourism industry is heavily skewed towards the summer months, leading to underutilisation of resources and employment instability. Additionally, the reliance on international tourists makes the economy susceptible to external factors such as global economic recessions or pandemics.

Tourism, when well-managed, can bring about social benefits . It fosters cultural exchange, awareness, and understanding between visitors and the local community. In Uruguay, the influx of tourists can promote and preserve the country’s unique cultural heritage, such as gaucho traditions, mate tea ceremonies, and the vibrant candombe music and dance.

Nevertheless, there are associated social costs. Over-tourism , especially in hotspots like Punta del Este, can disrupt local life, inflate the cost of living, and potentially lead to socio-cultural clashes. Furthermore, the focus on developing tourist-friendly infrastructure can sometimes come at the expense of meeting local residents’ needs.

Uruguay’s diverse natural environment is a significant draw for eco-tourists , contributing to the preservation and appreciation of these areas. Responsible tourism can provide funds for conservation and promote environmental awareness among visitors and locals alike.

Conversely, tourism in Uruguay can pose environmental challenges . Increased footfall in ecologically sensitive areas may lead to habitat destruction and pollution . Infrastructure development for tourism often leads to changes in land use, which may disrupt local ecosystems. The carbon footprint of international travel also contributes to global climate change.

It is evident that tourism in Uruguay, while providing several benefits, also imposes various costs. A balanced approach, involving sustainable tourism practices and thoughtful policy-making, is critical to maximise the positive while mitigating the negative impacts. Such a path will allow Uruguay to tap into its vast tourism potential responsibly and effectively.

Now that we are coming to an end of this article about tourism in Uruguay, lets finish off by highlighting some of the fun facts about this fascinating country. Here are 10 interesting facts about Uruguay:

• Uruguay is the second-smallest country in South America, after Suriname.
• The country is known for being one of the most socially and economically progressive in the region, with a strong emphasis on education, healthcare, and social welfare.
• The national symbol of Uruguay is the sun with a face, which appears on the country’s flag and coat of arms.
• Uruguay is one of the few countries in the world where the sale and consumption of cannabis is legal .
• Montevideo, the capital city of Uruguay, is considered one of the most liveable cities in South America, with a high quality of life and low crime rate.
• Uruguay is home to some of the world’s most beautiful beaches, including Punta del Este and La Paloma.
• The national soccer team of Uruguay has won two World Cup titles and has a long and successful history in the sport.
• Uruguayans are known for their love of mate, a traditional herbal drink that is shared among friends and family.
• The country has a rich cultural heritage, with influences from indigenous cultures, Spanish colonialism, and immigration from Europe and other parts of the world.

Lastly, here are 10 frequently asked questions about tourism in Uruguay, with answers:

What is the best time of year to visit Uruguay?

The best time to visit Uruguay is during the summer months of December to February, when the weather is warm and sunny. However, this is also the peak tourist season, so prices may be higher and crowds may be larger.

Do I need a visa to visit Uruguay?

Most visitors to Uruguay do not need a visa, as the country has a relatively open entry policy. However, it’s always best to check with your local embassy or consulate to see if any specific requirements apply to your country of origin.

What is the currency in Uruguay?

The currency in Uruguay is the Uruguayan peso (UYU).

Is English widely spoken in Uruguay?

English is not as widely spoken in Uruguay as it is in some other countries, such as neighbouring Argentina or Brazil. However, many people in the tourism industry and in major cities like Montevideo and Punta del Este do speak at least some English.

What are some popular tourist attractions in Uruguay?

Popular tourist attractions in Uruguay include Punta del Este, Montevideo’s historic Old Town, Colonia del Sacramento, and the wineries of Carmelo.

Is Uruguay a safe country to visit?

Uruguay is considered one of the safest countries in Latin America, with relatively low levels of violent crime and theft. However, it’s always important to take basic precautions when travelling, such as not carrying large amounts of cash or valuables and being aware of your surroundings.

What is the food like in Uruguay?

Uruguayan cuisine is heavily influenced by Spanish and Italian traditions, and features a lot of grilled meats, pasta dishes, and seafood. Popular dishes include asado (barbecued meat), chivito (a type of sandwich), and milanesa (breaded and fried meat cutlets).

Can I drink the tap water in Uruguay?

Tap water in Uruguay is generally safe to drink, but some people may prefer to stick to bottled water just to be on the safe side.

How do I get around in Uruguay?

Uruguay has a good network of buses and trains that connect major cities and towns. Taxis and car rentals are also widely available, especially in tourist areas.

What is the nightlife like in Uruguay?

Uruguay has a lively nightlife scene, especially in cities like Montevideo and Punta del Este. There are plenty of bars, nightclubs, and live music venues to choose from, and the party often goes late into the night.

As you can see, tourism in Uruguay is varied and exciting. But, it is important to effectively manage tourism in Uruguay to ensure that it is sustainable.

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Uruguay Tourism Revenues

Tourism revenues in uruguay increased to 452875.33 usd thousand in the fourth quarter of 2023 from 305044.89 usd thousand in the third quarter of 2023. tourism revenues in uruguay averaged 310763.44 usd thousand from 1996 until 2023, reaching an all time high of 1092908.98 usd thousand in the first quarter of 2018 and a record low of 40721.01 usd thousand in the third quarter of 2002. source: banco central del uruguay, tourism revenues in uruguay is expected to be 432000.00 usd thousand by the end of this quarter, according to trading economics global macro models and analysts expectations. in the long-term, the uruguay tourism revenues is projected to trend around 476000.00 usd thousand in 2025, according to our econometric models.,   markets,   gdp,   labour,   prices,   money,   trade,   government,   business,   consumer,   taxes,   climate.

• The Biggest Industries In Uruguay

Uruguay’s economy has experienced perpetual growth since the late 20th century, briefly interrupted in the early 2000s as a result of the “2002 Uruguay Banking Crisis”, from which the country has recovered. Uruguay’s Gross Domestic Product is valued at $72.577 billion, and when accounted against the nation’s population of 3.416 million people, translates to a GDP per capita of $21,247. Uruguay’s public debt is an area of concern, as it is currently more than half the country’s annual GDP. Services, agriculture, and manufacturing, are the biggest industries in the country, representing 71.9%, 20.6%, and 7.5% of the GDP respectively. The official currency used in the country is known as the Uruguayan Peso. The Central Bank of Uruguay is the institution mandated in regulating the inflation of the currency, as well as supervising the activities of other financial institutions. The population living below the poverty line is 9.7% of Uruguay’s population, which is quite low in Latin American standards. While the unemployment rate in the country stands at 6.77%, which is low and has been on a worryingly increasing trend in recent years.

Exports/ Imports

The country has a near-perfect balance of payments; where the export-import ratio stands at 1:1.1 respectively. Uruguay’s annual exports are valued at an estimated $9.8 billion, where the primary export markets are Brazil, China, and Argentina which account for 18.5%, 17.9% and 6.8% of the country’s exports respectively. Agricultural products represent the leading export commodities from Uruguay, with wool, timber, grains, and beef being the country’s most important agricultural exports. The country’s total annual imports are valued at $10.97 billion. Uruguay’s import goods are primarily sourced from China, Argentina, and Brazil, accounting for 16%, 15.8% and 14.6% of the country’s annual imports. Vehicles, petroleum, electronics, and vehicle parts are Uruguay’s main import commodities.

Tourism and Hospitality Industry

The country is growing to become a leading tourist destination in South America, and the recent tourist numbers are a testimony to that growth. Annual international tourist numbers in the country are more than 1.7 million, who bring in $0.8 billion in revenues. The industry accounts for about 9.4% of Uruguay’s Gross Domestic Product and is a significant employer in the country. Most international tourists originate from neighboring countries in South America. Domestic tourists also play a significant role in the industry. Uruguay is blessed with natural beauty found nowhere else, ranging from dense forests to pristine beaches along the Atlantic Coast. Among the best-known tourist spots in Uruguay is the “Punta del Este,” a peninsula situated in the southeastern edge of the country which is popular for its resorts. While small, Punta del Este attracts thousands of tourists each year, who are drawn by the picturesque beaches found along the peninsula. The peninsula has a thriving hospitality industry and is home to more than 200 hotels and restaurants which are connected to the outside world by its international airport. The Lobos Island is found near the peninsula, famous for its large population of South American fur seals.

Agriculture Industry

Agriculture is another major industry in the country and accounts for about 10% of Uruguay’s Gross Domestic Product. Historically, the industry was the primary driver of Uruguay’s economy and was at its peak in the early 20th century in what was known as the “Golden Era.” By this period, the country was a major exporter of beef and wool. The drop in global prices of agricultural products witnessed in the mid-20th century had a detrimental effect on Uruguay’s agriculture industry, and marked the end of the industry’s “Golden Era.”Nonetheless, the historic farms that had flourished during the “Golden Era” have become important sites in agri-tourism (also known as “Estancia Tourism”), attracting crowds of people who are fascinated by the well preserved 20th-century agricultural infrastructure. Uruguay is a major agricultural exporter and is part of the Cairns Group, the world’s leading association of agriculture exporting countries. The lack of technological advancements in the industry has made its agricultural output per hectare relatively lower than in other agriculture exporting countries. However, limited technological inputs in Uruguay’s agriculture has increased the appeal of Uruguay’s agricultural exports, which are marketed as being ecological or green, using only natural inputs in their production. Brazil, South Africa, Iran, and Peru are the chief export markets for Uruguay’s rice, while the US, India, and the UK are the primary consumers of wool from Uruguay.

Service Industry

The banking sector is a significant driver of Uruguay’s economy. The “Banco Republica” is the country’s largest financial institution and is among the oldest in the country. The country is also home to more than 20 private banks. The sector experienced a downturn in the 1990s that culminated in what was referred to as the “2002 Uruguay Banking Crisis”. The financial crisis that crippled the operations of many of Uruguay’s banks was attributed to events that happened in the late 20th century. By the 1990s, Uruguay’s flexible financial laws and the stability of the country’s financial sector earned the country a reputation of being South America’s top offshore banking destination. Argentina was particularly fond of Uruguay’s financial sector and had deposited millions of dollars in Uruguay’s financial institutions. But in 2001, Argentina experienced a financial crisis of its own, resulting in Argentinians withdrawing millions of dollars in bulk from Uruguayan banks. The financial institutions which were caught unawares left millions of their domestic clients without access to their deposits, plunging the country into an unprecedented financial crisis. Fortunately, the country has since recovered from the effects of the financial crisis.

Other Industries

Other industries that have played a significant role in Uruguay’s economy are the manufacturing and ICT industries. Plastics are the country’s chief manufactured export commodities. The rise in plastic exports resulted in investments made in the late 20th century, which also saw an increase in petroleum imports in the country. However, these oil imports are set to decrease once the ambitious oil exploration projects being done in the country prove successful. Uruguay is believed to have significant petroleum reserves, particularly in numerous offshore sites off the country’s coast. Uruguay’s young and well-educated population is behind the growth of the country’s ICT industry and the development of products such as GeneXus.

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The World Bank In Uruguay

The World Bank has backed Uruguay’s development process for more than 70 years through different instruments, including loans, insurance, donations, technical assistance and knowledge exchange.

Uruguay stands out in Latin America for being an egalitarian society, for its high per capita income, and for its low levels of poverty and inequality. In relative terms, its middle class is the largest in the LAC region and represents more than 60 percent of its population.

Following the 2002 crisis, sound macroeconomic management and favorable external conditions supported a prolonged period of economic expansion. However, growth has slowed since 2015, amid normalizing commodity prices, the health crisis triggered by the COVID-19 pandemic, and climate shocks such as the severe drought that hit the country between October 2022 and August 2023. Despite the unfavorable context, Uruguay has maintained prudent fiscal management anchored in the fiscal rule and has the lowest sovereign spreads in the region. 

In 2023, the economy grew by 0.4 percent, largely reflecting the drought-induced decline in agricultural production. Economic growth is expected to recover to 3.2 percent in 2024, driven by exports and private consumption, and supported by improvements in the labor market and inflation rates within the Central Bank of Uruguay’s target range.  

Despite its economic and social stability, structural limitations hinder the country’s ability to bridge significant disparities. While only an estimated 6 percent of the population is considered poor under the international poverty line of $6.85 per person per day (2017 PPP), the rate is twice as high among children, adolescents, and the Afro-descendant population. Income inequality has not narrowed in recent years, with the Gini Index remaining at about 40 points. Although this is one of the lowest levels in Latin America, it remains high compared to other countries outside the region.  

Comparatively low education outcomes given the country’s income level, weak global integration, and exposure to climate shocks are some of the most relevant challenges facing the country.

Uruguay has been a pioneer in the development of financial instruments to address climate change. One key example is the recent approval of the first-ever loan linking the financing conditions of a World Bank loan with the achievement of ambitious environmental targets. This mechanism could lead to a reduction of up to US$12.5 million in interest payments over the life of the loan if Uruguay achieves a verifiable decrease in the intensity of methane gas emissions from livestock production. 

Last Updated: Apr 03, 2024

The World Bank Group (WBG) has supported Uruguay’s development for over 75 years through a wide range of instruments such as loans, insurance, grants, technical assistance, and knowledge sharing.

Uruguay’s relationship with the World Bank has evolved and is currently focused on identifying in-depth solutions to more complex problems. These solutions have benefited the country and, in many cases, have been transformed into global public goods that can be replicated in other nations in the region and the world. 

For example, in November 2023, the World Bank’s Board of Executive Directors approved a loan for Uruguay that marked a global first by linking financing conditions with the achievement of ambitious environmental targets. This financial innovation is aligned with the World Bank’s new Evolution Roadmap, which seeks to create incentives for countries striving to integrate global challenges such as climate change mitigation into their development strategies.

Similarly, World Bank support for Uruguayan institutions and public services has facilitated significant knowledge sharing with countries such as the Kyrgyz Republic and Papua New Guinea on energy, and Türkiye and Uzbekistan on health and education. Other knowledge-sharing experiences in the region include Argentina, Bolivia, Chile, Colombia, El Salvador, Honduras, Mexico, Nicaragua, Panama, and Paraguay. More recently, Botswana, Namibia, and the Kyrgyz Republic have benefited from knowledge sharing on sustainable agriculture and animal traceability. 

This approach is currently shaping the World Bank’s work program to consolidate Uruguay’s leading position as a knowledge generator.

The  World Bank’s 2023-2027 Country Partnership Framework with Uruguay , which sets the agenda for the WBG’s engagement with the country, prioritizes three areas of engagement: climate change adaptation of the economy and increased fiscal resilience; better job opportunities; and inclusive access to quality public services. 

The WBG’s portfolio stands at US$1,004.4 million. It consists of US$441.5 million in a policy development loan and three IBRD-financed investment projects in education, agriculture and e-government, US$539.3 million in a MIGA guarantee to the financial sector, and US$21.5 million from IFC to support the private sector with food, Fintech, and renewable solutions projects.

The World Bank Group has worked with various Uruguayan governments in areas such as infrastructure, transport, agriculture, natural resources, education, sanitation, and health.

Since 2010, more than $2 billion in IBRD loans have been approved to finance investments in infrastructure, agriculture, human capital, climate change adaptation, social protection, support for small and medium enterprises, and institutional strengthening, as well as to build the government’s capacity to protect the most vulnerable populations from external shocks through contingent financing. Moreover, the World Bank has channeled multiple grants, and provided analytical and technical support in areas relevant to the country’s development.

Some of the results of the work of the World Bank and Uruguay are as follows:

South-South Exchanges:  In keeping with the development of innovative financial and knowledge services that provide solutions across countries, the World Bank Group has facilitated Uruguay’s participation in more than 30 South-South knowledge exchanges over the past 12 years. The geographical scope of these initiatives has been very broad, covering five of the six regions in which the World Bank Group operates. 

The wide variety of topics covered include livestock traceability (Botswana, Namibia, Kazakhstan, the Kyrgyz Republic, Nicaragua, and Paraguay), prevention of non-communicable diseases (Chile, Argentina, Türkiye), digitalization of public services (Chile, El Salvador), road maintenance and performance-based contracts (Morocco), the use of information and communication technologies (ICTs) in education (Armenia and the Kyrgyz Republic), and information systems in agriculture (Mexico). Uruguay has also received delegations from the Kyrgyz Republic and Papua New Guinea (seeking assistance to incorporate good practices into their national electricity companies); from Zimbabwe and Botswana ( budget issues); from Nicaragua (to improve the country’s statistical capacity); and from Costa Rica (to share the country’s experience in water management). Representatives from Uganda’s private sector, sponsored by IFC, have also visited Uruguay.

E-government: The Improving Service Delivery to Citizens and Businesses through E-Government Project (PROMESEG) has had a significant impact on efforts to improve connectivity and quality of access to distance education in Uruguay’s rural areas. In more than 1,200 rural schools, the project facilitated access to virtual classes, allowing teachers of various subjects, such as English, to provide distance learning. This has helped close the education gap and provide learning opportunities to communities that previously had limited access to digital education. In addition, the project has promoted greater accessibility to online procedures for citizens. Between 2018 and 2023, more than 175,000 persons were served through a multichannel customer service system implemented in 2018 (telephone, face-to-face, chat, social media, email), facilitating access to government services from anywhere and at any time. This has enhanced efficiency and made it easier for citizens to carry out essential business.

Thanks to the outcomes of that project, in 2023, the World Bank approved a new loan to Uruguay for US$16 million to continue supporting the transformation of the State. The new project will focus on strengthening the public financial management ecosystem in the Ministry of Economy and Finance, implementing data analytics tools, and incorporating climate aspects into financial, budgetary, and fiscal management. The project will also focus on strengthening competition and consumer protection to improve market institutions and competitiveness.

Climate Insurance:  Many countries have approached the World Bank in search of a solution similar to the one implemented with the Uruguayan government. In December 2013, the World Bank signed an agreement with the State-run electricity company (UTE) to insure UTE for 18 months against the combined risks of drought and high oil prices. The transaction was designed to help the company offset financial losses that can occur when lack of rainfall reduces the volume of water in reservoirs that feed power plants, forcing the company to turn to thermal generation, which has a higher cost and requires the importation of alternative fuels. This was the largest transaction of its kind in the market ($450 million) and the first commodity hedge transaction between an emerging economy and the World Bank.

Climate Change and Responsible Production:  The “Sustainable Management of Natural Resources and Climate Change Project” (DACC) has helped more than 5,000 rural farmers, 22 percent of whom were women, adopt climate-smart agricultural and livestock practices to enhance climate change resilience in the agricultural sector. The project created the National System for Agriculture Information (SNIA), a digital agriculture system consisting of 34 separate and interoperable products (such as a novel traceability system for the application of pesticides and a meteorological early warning system for farmers).

In 2021, the World Bank approved a loan to Uruguay for US$35.5 million to continue developing information systems that help farmers and public policy makers prepare climate change resilience measures in advance and support the development of agroecology. The objective of the program is to ensure that food in Uruguay is produced in an environmentally sustainable manner and meets the standards of the most demanding international markets. 

Knowledge Agenda

The World Bank also produces a series of strategic analytical studies. Recent reports include:

Jugar un Partido Desigual   (An Unfair Fight) on how gender gaps affect the Uruguayan economy.

Social Inclusion in Uruguay , which analyzes the successes of the country’s robust social inclusion agenda, but also reveals stubborn pockets of exclusion.

Justo a Tiempo (Just in Time) on aging, technological change, skills and labor regulations in Uruguay in the future.

Uruguay: Commitments by Fiscal Year (in millions of dollars)*

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Uruguay: number of tourism establishments 2019, by industry

Number of establishments in the tourism sector in uruguay in 2019, by industry (in 1,000s).

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