Argentina Tries To Rise Above The Low Occupancy Tide

<B>Argentina Tries To Rise Above The Low Occupancy Tide</B>

By Kellie K. Speed

Low occupancy rates nationwide, resulting from numerous economic crises ravaging South America, has Argentina slowly trying to rebuild its business travel sector by constructing new hotels. During the past year, for instance, Choice Atlantica Hotels has built three new properties in Buenos Aires in an effort to attract more business travelers.

"We are trying to expand the business travel market, which has been a difficult process for us, but things are looking better now," said Roberto Acosta, regional director of marketing and sales for Choice Atlantica in Argentina. "We are hoping to pull ourselves out of the current state of the economy and are confident that it will happen."

In addition to a Clarion Hotel and Comfort Hotel, Choice Atlantica recently opened a Comfort Inn & Suites in Argentina. The newest addition will attempt to entice corporate travelers by featuring business class rooms with ergonomic chairs, spacious desks, efficient telecommunications and dataports for PC modems in hopes of attracting a business clientele to the property.

"This hotel offers business travelers everything they need, but guests don't pay for services they will never use, like banquet spaces and spas," said Paul J. Sistare, president and CEO of Choice Atlantica. "The limited service hotel concept has arrived in Argentina and we firmly believe that travelers will respond favorably to this hotel."

However, at least one consultant predicted more adversity ahead for the country. "Argentina's economic problems have decreased international travel to the area because the country does not seem to offer its business travelers the most for their dollar," said Karen Davies, travel consultant for Global Travel International of Florida. "Finding a way to attract international business travelers seems to be Argentina's main concern."

Marriott International, in addition to Choice Atlantica, also is trying to bring more business to Argentina. It recently announced plans to manage a new 180-room, full-service hotel in Mendoza, the second Marriott hotel in the Latin American country.

But with "the average daily rates of most hotels having dropped dramatically," said Acosta, the future prosperity of the new hotels is in question. "In Buenos Aires, the occupancy rates are now at about 50 percent because of the recession," he said, "and in certain provinces, it is now even around 45 percent over the past year. We expect the occupancy rates to get a little better than they have been this past year, but are not expecting a dramatic change this year. We hope things will stay pretty much the same as they are right now."

Diego Tripaldi, an independent development manager in Buenos Aires, was of the same opinion: "We have a somewhat stabilized economy now," said Tripaldi, "so occupancy rates will not get any worse. We are hoping that things will now look up for Argentina.