tourist dollars meaning

All of Argentina’s dollar exchange rates, explained

Do you know your qatar dollar from your coldplay dollar your blue dollar from your blue chip swap here’s a guide from the herald.

• October 3, 2023

Last updated on October 31

If you are traveling to or from Argentina, you might have Googled how much the peso is worth. And chances are that you didn’t get a straight answer.

That’s because Argentina’s foreign exchange market is far from straightforward. Different administrations have added layer upon layer of restrictions on foreign currency operations over the years, spawning a myriad of different exchange rates.

Since 2019, Argentines have not been allowed to go to a bank and simply buy all the dollars they want. So, they often get them at informal exchange houses at the higher “blue dollar” rate. They can turn to financial markets to get the greenback, but that gives them the “MEP dollar” and “blue-chip swap” rates — though the latter is not the same as the “blue dollar.” Confused yet?

If not, you will be: there are also different exchange rates for credit card operations, which are not the same if you want to pay for, say, a Coldplay concert or Netflix. There are, of course, specific exchange rates for those, called “Coldplay Dollar” and “Netflix Dollar”.

All these restrictions stem from the same problem, an international reserve scarcity crisis, which this year’s historic drought has intensified. At the time of writing, Argentina’s net international reserves are negative US$4.5 billion, meaning the country is beyond broke — in fact, the government would have to raise US$4.5 billion to be broke.

Who can buy dollars at the “official rate”? Why is it called the “blue dollar” if the banknotes are green? Is the “Coldplay dollar” overrated? Without further ado, here is your guide to navigating the murky waters of the Argentine foreign exchange market.

Official exchange rate (Dólar oficial)

The official “wholesale” exchange rate is the cheapest and the largest market. All “wholesale” transactions are done directly with the Central Bank and every other official rate derives its value from this one. “Where can I get this rate?” you may ask. I hate to burst your bubble, but it’s used almost exclusively in international trade. 

Compared with the parallel rates, exporters get fewer pesos for every dollar of income and importers have to spend fewer pesos for every dollar of goods they buy. That’s why you often hear of companies getting caught exaggerating their imports — to access more cheap dollars — or under-declaring their exports. 

This government has used a policy called “crawling peg” to manage the exchange rate. While pegging a currency to the dollar means setting a fixed exchange rate, the crawling peg means the currency is systematically and gradually devalued by a tiny amount, at a rate set by the government. After years of this, the government finally devalued the peso the day after the presidential primaries, taking the official rate to AR$350 to the dollar. The government plans to hold this level until November.

That remains to be seen.

Savers’ exchange rate or “Solidary” exchange rate (Dólar ahorro or solidario)

The “ dólar ahorro ” (savings dollar) is the rate Argentines get by just exchanging pesos for dollars at a bank or exchange house into their domestic bank accounts. It’s the official retail exchange rate plus 100%, which derives from a combination of two taxes. The current value of the dólar ahorro is AR$735.5. Savers can claim part of the tax back at the end of the year — if they can figure out the byzantine systems of the tax bureau (There is a seven-step guide in our sister publication, Ámbito Financiero, in case you are interested).

The quota for dólar ahorro enforced by the government of Mauricio Macri in 2019 to suffocate a bank run, which is still in place, is US$200 per month.

However, not everyone can access the dólar ahorro . Scratch that, virtually nobody can. Restrictions on accessing dollars for personal savings are usually called the cepo — Spanish for “clamp.”

The government has forbidden various groups of people from purchasing US dollars. The list is evergrowing and includes; workers whose salaries were partially paid by the government or received emergency welfare during the COVID-19 pandemic; people who are on welfare programs; investors who have bought US dollar bonds or cryptocurrencies; and people whose utility bills are subsidized by the government, among others. 

Blue dollar (Dólar blue)

The “blue dollar” refers to cash dollars bought and sold informally. This exchange rate has its own ecosystem — people who sell it on the streets are called arbolitos , Spanish for “little trees.” Informal exchange houses are called cuevas (caves).

Restrictions for buying dólar ahorro are the main reason why Argentines resort to the “blue dollar.” That and the prevalent distrust in the banking system, which deepened after the 2001 crisis when the government limited cash withdrawals at first and then forcibly exchanged US dollar deposits for Argentine pesos.

Because of that, Argentines prefer to store their crisp banknotes at home — last year, the INDEC calculated that they had some US$249.5 billion under their mattresses.

The “blue market” is not big, but most media outlets publish its value and it can be a bellwether of the economic mood. Depending on which side of the political divide you are on, the “blue dollar” can be called “free dollar” (since it’s how citizens can access the currency without any restrictions) or “illegal dollar” (as it is technically illegal, although the government somewhat tolerates it).

There’s no consensus on where it got its name. Some say it refers to a special marker used to detect counterfeit bills which, when used on dollars, turns them blue. However, most people agree that it is called “blue” to avoid using the term “black market,” which could be interpreted as racist. So this could mean this illegal exchange rate is…kind of woke?

MEP dollar and blue-chip swap rate

There is yet another way Argentines access the treasured exchange rate — purchasing and then selling national sovereign bonds. The maneuver consists of buying peso-denominated bonds in the financial and then selling them for dollars. The implicit rates of exchange at which those operations are carried out are the “financial exchange rates” — the MEP dollar, if they are done in the local market, and the blue-chip swap rate if they are done in the international market (in these cases, the money ends up in foreign bank accounts).

That may sound complicated, but the appetite this country has for the greenback and the ongoing restrictions are increasingly more people investing in the market through various apps. Once relatively obscure terms, “MEP” and “blue-chip” are now mainstream and in the last couple of years, everyone’s become a trader.

“Netflix” and “Qatar” dollar

But US dollars aren’t just for savings under the mattress. Sometimes, Argentines need to pay for things that are priced in dollars with their debit or credit card, namely streaming services, travel expenses abroad, or that really cute 1-1 scale My Little Pony figurine that I saw on eBay last night. Enter the “card dollar”, also called “tourist dollar”— its value is the same as the “saver’s dollar” (AR$735.5).

Until October 10, the government had differentiated exchange rates popularly called “Qatar” and “Netflix”for overseas and domestic expenses respectively. The “Netflix” name is pretty self-explanatory, and the “Qatar” dollar was enforced in late 2022 when Argentines traveled en masse to a certain West Asian country to watch a certain sports event.

However, the government unified the values for the Qatar, Netflix and ahorro exchange rates. Since then, you get the same exchange rate whether you watch the heartless 2022 remake of “Pinnocchio” or go hug a Disney World cast member dressed as the wooden puppet in Florida. Which is a normal state of affairs, I guess.

Foreign tourist dollar

Although technically not another exchange rate, the “foreign tourist dollar” is a measure launched by the government that allows tourists — or anyone with a foreign credit or debit card — to get their purchases in the country processed with the MEP rate. And no, it’s not the same as the regular tourist (or Qatar) dollar. Before the foreign tourist dollar was introduced, purchases were processed at the official rate (approximately 96% less).

The government did this as a way to make the country cheaper for tourists and dissuade them from dangerously spelunking in dangerous “caves” or climbing “little trees.”

Coldplay dollar

When Coldplay sold out nine concerts in Buenos Aires last year, people started wondering which exchange rate they would use to take home the pesos thousands of Argentines paid to listen to “Fix You” or “Viva La Vida”?

The rules would imply that it was the official rate, but businesspeople in the entertainment industry protested and got a special exchange rate of the sector, which was the official rate plus 30% (AR$455 at the time of writing). They could have settled for the official rate, but hey — if you never try, you’ll never know just what you’re worth.

Temporary exchange rates

Sometimes, the government launches exchange rates with expiry dates. For example, the “Vaca Muerta” dollar and the various iterations of the “agro dollar” or “soybean dollar” — beneficial rates aimed at oil or agricultural exporters that are higher than the official exchange rate. However, with the proposals of dollarization or “rapid exchange rate unification” some candidates are making, all of these exchange rates could soon be destined to the great rates chart in the sky.

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Example sentences tourism dollars

The neighborhood today runs on tourism dollars from shops, restaurants and local events.

And even though his island of exile has not achieved worldwide fame and tourism dollars , that may be more blessing than curse.

With the influx of tourism dollars , the typical traditional rondavels have been replaced by square, cinderblock homes roofed with tin and occasionally tiles.

Definition of 'tourism' tourism

Definition of 'dollar' dollar

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Argentina, the peso and the 'blue dollar': what tourists need to know

Tourists in Argentina are suddenly finding their money will go a lot further than it did just a few days ago. The peso has gone into freefall , plummeting just over 17% against the dollar in two days.

As an example, a seven-course tasting menu at HG Restaurant at the Fierro Hotel in Palermo, named as one of the 50 best restaurants in Latin America in 2013 , now costs £27 compared with £36 a month ago.

Hotelier Martin Rosberg, who runs the Fierro Hotel where the restaurant is based, explains: "Argentina has suddenly got cheaper – and that's with the official rate, not the blue rate."

Since the country's government introduced tough currency change restrictions on its people, a black market has emerged. In short, you can change your money at an official outlet for one price; or you can go to an unofficial trader and get it changed at the "blue" rate – which will put many more pesos in your pocket. Taking plenty of hard cash contradicts the usual advice to tourists travelling abroad, but many visitors to Argentina have been doing just that to take advantage of the black market rates.

Numerous websites and Twitter accounts have emerged to keep visitors and locals up-to-date on the two parallel rates, such as @DolarBlue . Even newspapers report on the two, side by side. "I've stood behind tourists in the bank, watching them hand over dollars to change them at official rate, and wanted to scream, Noooooo!" says one expat, who has been working in Buenos Aires for over 10 years.

So how do you track down the more favourable blue rate? Many foreign visitors set up a local contact who can make the change, or ask their hotel to recommend a " cueva " (literally meaning cave; in reality, more like fully functioning businesses, accepting dollars, euros and pounds). Other tourists simply head to central shopping streets and respond to not-so-subtle calls of " Cambio! Cambio! " (exchange); the wise ones having checked the current rate first, so they can barter.

"It was a pretty surreal experience," says one British tourist, who just returned from a trip to Buenos Aires. "An acquaintance recommended a place was given an address, on the upper floors of an office building. I had to explain myself in very limited Spanish, but they knew what I was there for. It was a fully organised operation. It's not something you expect to do on holiday, but not really a problem, as it turned out."

Dan Clarke, the director of RealWorld , a tour operator specialising in South American travel, offers this advice: "Although changing money through non-official channels is illegal, it is a fact of daily life in Argentina at the moment. You can run the risk of ending up with some forged notes, but you'll also exchange at sometimes 30% better than the official rate. If possible, ask someone you trust – like a good local rep – for recommendations."

If you want to stick to using US dollars in your day-to-day transactions, that's common too. The Argentinian market, which experienced a complete economic meltdown in 2001/02, has quickly adapted. Many businesses, including hotels and restaurants, will accept US dollars. Some will work to the blue rate, even though that is illegal, or they will come close to it. When a shopkeeper recognises you are a tourist, you are likely to be offered an upfront deal: "We accept dollars at 12 pesos", or something similar.

The dual rate began after the government initiated a number of restrictions on currency exchange in an attempt to prop up the fledging peso and reduce capital flight (ie investors taking their fortunes out of the country). Argentinians have, of course, been hit much worse than any visitor. There has been a prohibitive amount of red tape they have to get through if they wanted to exchange pesos to dollars. If they wanted to use credit cards abroad, the government taxed them a whopping 35 per cent on each transaction. Online shopping has also been curbed (Want a parcel from eBay delivered to your door? Forget about it). After the peso has gone into freefall , falling just over 17 per cent against the dollar in the last two days, the government is now scrabbling to relax some restrictions (those credit card taxes will fall to 20% from Monday).

After a tough few years battling the effects of high inflation (believed to run at almost 30%), the tourist industry could experience a boom, as it did in the mid-2000s, when tourists were able to get more for their money and new boutique hotels seemed to open every five minutes.

Meanwhile, Argentinians face the grim reality of yet another financial crisis.

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Definition of tourist noun from the Oxford Advanced American Dictionary

• have/take a vacation/a break/a day off/a year off/time off
• go on/be on vacation/leave/honeymoon/safari/sabbatical/a trip/a tour/a cruise/a pilgrimage
• go backpacking/camping/sightseeing
• plan a trip/a vacation/your itinerary
• reserve a hotel room/a flight/tickets
• have/make/cancel a reservation
• rent a condo/a vacation home/a cabin
• rent a car/bicycle/moped/scooter/Jet Ski
• stay in a hotel/a bed and breakfast/a youth hostel/a villa/a trailer/a vacation home/a resort/a timeshare
• cost/charge $100 a/per night for a suite/a single/double/twin room
• check into/out of a hotel/a motel/your room
• pack/unpack your suitcase/bags
• call/order room service
• cancel/cut short a trip/vacation
• apply for/get/renew a/your passport
• take out/buy/get travel insurance
• catch/miss your plane/train/ferry/connecting flight
• fly (in)/travel (in) first/business/economy class
• make/have a brief/two-day/twelve-hour layover/stopover in Hong Kong
• experience/cause/lead to delays
• check (in)/collect/get/lose your baggage/luggage
• be charged for/pay excess baggage fees
• board/get on/leave/get off the aircraft/plane/ship/ferry
• taxi down/leave/approach/hit/overshoot the runway
• experience/hit/encounter (mild/severe) turbulence
• suffer from/recover from/get over your jet lag/motion sickness
• be seasick/carsick
• attract/draw/bring tourists/visitors
• encourage/promote/hurt tourism
• promote/develop ecotourism
• build/develop/visit a tourist/tropical/beach/ski resort
• work for/be operated by a major hotel chain
• be served by/compete with low-fare/low-cost/budget airlines
• use/go to/have a travel agent
• contact/check with your travel agent/tour operator
• buy/be on/go on a package deal/vacation/tour
• buy/bring back (tacky/overpriced) souvenirs

Definitions on the go

Look up any word in the dictionary offline, anytime, anywhere with the Oxford Advanced Learner’s Dictionary app.

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[ toor -ist ]

• a person who is traveling, especially for pleasure.
• tourist class .

to travel tourist.

/ ˈtʊərɪst /

• a person who travels for pleasure, usually sightseeing and staying in hotels

tourist attractions

• a person on an excursion or sightseeing tour
• a person travelling abroad as a member of a sports team that is playing a series of usually international matches
• Also calledtourist class the lowest class of accommodation on a passenger ship
• of or relating to tourist accommodation

Discover More

Derived forms.

• tourˈistic , adjective

Other Words From

• non·tourist noun

Word History and Origins

Origin of tourist 1

Example Sentences

South Dakota is the more tourist-friendly, slightly better weather, historic Mount Rushmore spot.

Amsterdam has an economy which is highly dependent on tourists.

Travelers, however, are eligible to have the tax refunded on goods they take home with them, which is what agencies such as Planet specialize in facilitating, giving it a clear view of how much tourists are buying.

In June, when peak season is typically getting underway, tourist spending was still 98% below its level last year based on Planet’s data.

Besides feeling safe, tourists may also be lured to local destinations given international travel currently comes with complicated quarantine protocols by governments in different countries.

Its graceful hotels and beautiful restaurants are totally dependent on the tourist trade.

It is the only tourist center Ukraine has left on the Black Sea, since Russia annexed Crimea last spring.

For the Brogpas, transforming into a tourist attraction may offer their community a way to generate much-needed income.

The two islands are now tourist sites for visitors from Taiwan and mainland China.

Not all Israeli gay propaganda is pinkwashing—a lot of it is good, old-fashioned PR to attract gay tourist dollars to Tel Aviv.

The tourist climbing tna, or Vesuvius' rugged side, puffs on though they perchance have long since ceased to smoke.

They have developed fishing and agriculture, and have brought the tourist into districts little visited before.

Mr. Frank Cook had insisted upon our being the guests of his firm on their tourist steamer Amasis.

My father knew him well, often talked to me about him, and told me stories of the excursion and tourist trade in its early days.

This was the first small beginning of that great tourist business which now encircles the habitable globe.

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Definition of tourist

• excursionist
• rubbernecker
• traveller
• tripper [ chiefly British ]

Examples of tourist in a Sentence

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'tourist.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

1775, in the meaning defined at sense 1

Phrases Containing tourist

tourist attractions

• tourist card
• tourist class
• tourist court
• tourist season
• tourist trap

Dictionary Entries Near tourist

Cite this entry.

“Tourist.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/tourist. Accessed 28 Apr. 2024.

Kids Definition

Kids definition of tourist, more from merriam-webster on tourist.

Nglish: Translation of tourist for Spanish Speakers

Britannica English: Translation of tourist for Arabic Speakers

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Meaning of tourist in English

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• I must look like the typical tourist with my shorts and my camera .
• My dad has a cottage which he rents out to tourists.
• The Caribbean is a popular tourist destination .
• Bus-loads of tourists pour into this place in the summer .
• A year after the hurricane , tourists are gradually beginning to come back to the region .
• air corridor
• amenity kit
• high season
• phrase book
• post-holiday
• put something up
• ranger station
• tourist trap
• trailer park
• youth hostel

You can also find related words, phrases, and synonyms in the topics:

tourist | American Dictionary

Tourist | business english, examples of tourist, translations of tourist.

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a place where owners can leave their dogs when they are at work or away from home in the daytime, or the care the dogs receive when they are there

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What is domestic tourism and why is it so important?

Disclaimer: Some posts on Tourism Teacher may contain affiliate links. If you appreciate this content, you can show your support by making a purchase through these links or by buying me a coffee . Thank you for your support!

Domestic tourism is BIG business in some countries, bringing in a significant revenue for the economy of the local area and nationwide. But what is domestic tourism?

In this article I will explain what domestic tourism is and why it is important. I will also give some examples of some of the biggest domestic tourism destinations worldwide.

What is domestic tourism?

Domestic tourism definitions, why is domestic tourism important, domestic tourism in the united kingdom, domestic tourism in the united states of america, domestic tourism in india, domestic tourism in south africa, domestic tourism in china, domestic tourism: conclusion, further reading.

As I described in my tourism glossary , domestic tourism is the act of travelling for business or leisure within one’s home country. According to the UNWTO , a person must be away from their usual place of residence (but still in their home country) for at least one night to qualify as a domestic tourist.

Popular destinations for domestic tourism include the USA, India and China . This is because they are big countries with a variety of tourist experiences to offer.

Ever seen the film ‘ Into the Wild? ‘ This is a great example of domestic tourism! It’s a story of a young guy who sold all of his belongings and hitch hiked through America to Alaska . Here is the trailer-

Travelling a few miles away from your home, you don’t expect to be classed as a ‘tourist’ right? But in fact, you often will be classed as a tourist- a domestic tourist!

In general, domestic tourists are anyone who undertakes travel activities in their own country of residence, i.e. living in London and travelling to Glasgow for the day or for an overnight stay.

Unlike other definitions in the tourism ‘vocabulary’, the term ‘domestic tourism’ has not changed in its years. In 2005, Gillian Gale, in her text book designed for BTEC National Travel and Tourism students , defined domestic tourists as;

“People who are travelling in their own country for tourism purposes”

Further to this, Arjun Kumar Bhatia, in his text on International Tourism Management states that;

“In domestic tourism, people travel outside their normal domicile to certain other areas within the country as contrasted with travelling outside the boundaries of the country as in international tourism .”

According to a recent report published by the World Travel and Tourism Council (WTTC), domestic tourism accounts for 73% of total Travel and Tourism spending globally in 2018; thus it is a key driver of the tourism sector.

Countries rely on domestic tourism as a tool to reduce poverty, improve infrastructure, generate employment and most importantly to drive economic growth.

The activities of domestic tourists create economic importance as the money spent on domestic tourism feeds back into that particular country’s economy; providing itself with a more viable and prosperous economy.

Popular domestic tourism destinations

According to the WTTC report published in 2018, there has been a slight shift in the countries’ positions in domestic visitor spending between 2008 and 2017.

Below I have listed a few examples of domestic tourism.

According to Visit Britain and its annual review, in 2017/2018, 100.6 million domestic overnight trips were taken and 1.5 billion domestic day visits were taken in England in 2017.

The UK’s domestic overnight trips reached £19 billion, whilst the 1.5 billion domestic day visits reached £50.1 billion. All of which feeds back into the UK economy.

The most popular travel attractions for domestic tourism in the UK are:

• The Tower of London
• Westminster Abbey
• Kew Gardens
• St Paul’s Cathedral
• Chester Zoo
• Windermere Boat Cruises, Bowness
• Flamingo Land Theme Park and Zoo, Yorkshire
• Drayton Manor Theme Park

As you can see from the list above, the majority of the locations are based in London, the Capital city of the UK. Most domestic tourism activities in the UK are either centred around the conservation of either natural or heritage sights or theme parks.

Despite living on the outskirts of London for most of my life, I am ashamed to say that I have only actually ever visited a few of these attractions! I guess I will add these to my bucket list and take the kids on a day trip soon…

In 2018, domestic tourists spent $933 billion dollars in the United States of America – representing 86% of total tourism expenditures. In 2018, domestic tourism supported 7.7 million jobs.

To me, it is no surprise that the domestic tourism industry in the USA is worth so much. Not only is it a HUGE country with an incredible range of diversity in tourism areas, from the snows of Alaska to the heat of Miami, but it is also true that most Americans do not have a passport !

According to the World Atlas , the most popular destinations for domestic tourism in the United States are;

• Alaskan Cruise, Alaska
• Orlando, Florida
• Las Vegas , Nevada
• Maui, Hawaii
• New York City, New York
• Honolulu, Hawaii
• Hawaiian Cruise, Hawaii
• Miami Beach, Florida
• Washington, DC
• Los Angeles, California

The table below shows you the percentage of domestic tourism which took place in each of these locations in 2018.

India is home to some of the most beautiful natural and cultural heritage sites in the world, not only making it a popular destination for international tourists, but also for domestic tourists.

According to the World Travel and Tourism Council, domestic spending in India is at 87.2%, compared to foreign spending at 12.8%. Therefore, domestic tourism in India contributes to 9.4% of its overall GDP.

According to Treebo the top 7 visited states by domestic tourists are;

• Uttar Pradesh
• Madhya Pradesh
• Andhra Pradesh
• Maharashtra

India is a beautiful country, with so much to offer! It has certainly been one of my favourite countries to travel and I hope to return with my children someday soon. It is no surprise to see that the domestic tourism industry in India is so significant, given the diversity of attractions and the sheer size of the country, not to mention that many people living in India cannot afford to travel internationally.

One of our recent travel destinations is South Africa , which is a growing destination for domestic tourism. The Minister of SA has fostered The National Tourism Sector Strategy (NTSS), which is a strategy that focuses on domestic tourism and its contribution to a sustainable tourism economy.

You can read more on The National Tourism Sector Strategy here .

According to a report by Statistics South Africa , the number of day trips increased from 39.4 million in 2016 to 48.0 million in 2017. Overnight trips also increased to 44.4 million in 2017.

Unlike the other destinations listed above, South Africa is home to abundant wildlife and nature reserves sites that attracts domestic tourism. According to the South African Tourism Board, the top destinations in South Africa are;

• The Winelands
• Garden Route
• Johannesburg
• Kruger National Park
• Durban beachfront
• Robben Island
• Blyde River Canyon Nature Reserve
•  Wild Coast

I can certainly say that we loved South Africa. You can see a taste of what the country has to offer in our video below.

According to the Chinese Ministry at a press conference, domestic tourism generated 5.13 trillion yuan ($764 billion U.S dollars) in revenue last year and this figure was climbing steeply each year prior to the pandemic, in fact the Chinese market (both domestically and internationally has been the fastest growing tourism industry in the world in recent years!). In comparison, Chinese tourists spent a total of $115.29 (U.S dollars) on outbound tourism .

According to research by the WTTC , China has been extremely successful in fostering domestic tourism, and is now one of the leading domestic tourism markets in the world.

There is a lot of hidden cultural heritage in China that is often overlooked or ignored with its commercialised industry and giant sky scrapers. Here is a video demonstrating some of China’s most popular tourist attractions.

We have all most likely been a domestic tourist in our life at one point or another, whether we realised it at the time or not! As this post has demonstrated, the domestic tourism industry is a huge economic contributor in many destinations, especially in countries that are large or where the local people do not often have the cash to travel internationally.

Do you want to learn more about the tourism industry? Take a look at my types of tourism glossary to see which areas are covered in the blog. You can also refer to some of the texts named below, which are particularly useful if you are a travel and tourism student! Oh, and why not subscribe to the blog for updates on new posts, travel discounts and deals? You can subscribe to the blog using the form below.

• BTEC National Travel and Tourism – a textbook for BTEC Level 3 Travel and Tourism students
• The Business of Tourism – an essential text for students of tourism management or travel and tourism
• Tourism: Principles and Practice – the ultimate one-stop text for any student studying Tourism
• An Introduction to Tourism – a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends

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• Geopolitics
• Environment

Made in China: Zero-dollar tourists

In a previous article, The ASEAN Post highlighted the fact that today, in Sihanoukville, Cambodia, Chinese mainlanders own more than 90 percent of all businesses.  While this has increased land prices in the once sleepy-coastal town, the fact that the Chinese are willing to pay millions of dollars to buy land there only serves to heighten worries that Sihanoukville is becoming a small Chinese colony. And the worry does not end there.

Recently, on 16 July, news reports quoted Cambodia’s Minister of Tourism Thong Khon as vowing to take action against companies offering zero-dollar tourism. The minister’s statement was largely in support of tourists whom he said were cheated by these companies. He said that low-cost or “zero-dollar” tours bring unsuspecting tourists to businesses in which they are coerced into purchasing expensive goods.

While this may very well be the case for many innocent tourists who only come to Cambodia looking for a good time, there is more to zero-dollar tourism than just that. 

As its name suggests, zero-dollar tourism refers to packaged tours which are much less expensive than independent travel with one catch: tourists are taken on many shopping trips and are often required to buy overpriced products. Tour guides and drivers get a kickback from these shopping excursions, offsetting the loss on the tour’s initial cost. 

In most cases, these shops are Chinese-owned and the money tourists spend is diverted back to China.  With more shops utilising mobile payments through WeChat Pay and Alipay, the payments don’t even have to be converted into local currency, avoiding foreign exchange fees that would normally go to local money changers.

In 2016, the Thai government decided to stamp out zero-dollar tourism, estimating losses of US$2 billion each year in tax revenue. Three companies were shut down, 2,155 buses were seized and several people were arrested for money laundering and operating illegal low-quality tours. 

Meanwhile, in the last quarter of 2016, Chinese tourist arrivals to Thailand dropped by 12 percent year-on-year and countries such as Vietnam experienced a boom in China tourist arrivals.

Bali has seen a growing problem with “zero-dollar” tours as well, claiming that nearly 70 percent of its almost 1.4 million Chinese tourists are on such tours. 

“Chinese tourists, of course, they benefit Bali. They are staying in Bali’s hotels, restaurants; they still pay for the tour packages. [It’s] just the shopping that we are missing out [on],” explained Bali Tourism Board chairman, Ida Bagus Agung Partha Adnyana. 

Coming back to Cambodia and more specifically Sihanoukville, between 2012 to 2017, tourism increased more than 700 percent, with Chinese tourists accounting for one-third of the 6.2 million visitors Cambodia received last year. Officials estimate that Chinese nationals make up some 90 percent of the expatriate population in Sihanoukville. 

Chinese tourists flocking to Sihanoukville

Y Sokleng, the mayor of Sihanoukville, told the media that the Chinese had begun flocking to the town about three years ago and their population is now estimated to be the same as that of Cambodian residents, or around 80,000. Other municipal officials, however, suggest the number of Chinese is actually two or three times higher.

The concern here is that while the influx of Chinese continues through zero-dollar tourism and Sihanoukville continues to develop, there is very little gain as far as Cambodia is concerned. Sihanoukville is quickly turning into a town that seems to be made by and for mainland Chinese only. Already, many ordinary Cambodians appear to believe that rising luxury hotels in the town are being built for even more Chinese tourists.

Zero-dollar tourism may persist due to the sheer number of potential tourists in China who are unaware of its pitfalls. However, an increasing number of Chinese tourists are becoming more sophisticated and preferring to travel independently.

According to a study by the Chinese Tourism Academy and travel portal Ctrip.com, a growing number of Chinese travellers are making their own bookings online and travelling alone. They are no longer as dependent on travel agencies as they were in the past.

Related articles:

Does Sihanoukville belong to China?

Zero-dollar tourists not welcome

Tangshan And Xuzhou: China's Treatment Of Women

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