Brazil is having one of its coldest winters in years, but the beaches are full thanks to Argentine tourists.

From Florianópolis in the south to Pipa and Jericoacoara in the northeast, resorts are packed. The reason is Argentina’s strengthened peso, which has fueled an explosion in outbound travel.

Brazil set a record with over five million tourists this year, nearly half from Argentina. Chile also saw a 150% rise in Argentine visitors in early 2025. Many are not only seeking sun and sand but also shopping, since goods in Brazil cost about half as much as in Argentina. This is a reversal of the old pattern, when South Americans flocked to Argentina for bargains in wine, steak, and leather.

The shift comes from President Javier Milei’s sweeping reforms since taking office in 2023. He stopped the Central Bank from printing pesos to finance spending, and the currency rose over 40% last year, the strongest globally. The stronger peso gives Argentina’s middle class more power to travel and spend abroad, keeping Milei popular with them.

But at home, the story is mixed. Working-class families hurt by cuts to subsidies cannot share in the boom. Tourism within Argentina has also taken a hit, with foreign arrivals down 14% in May. Local operators are now turning to wealthier international travelers, focusing on luxury wine resorts in Mendoza and adventure tours in Patagonia.

Milei may bask in the glow of Argentines enjoying caipirinhas in Rio, but he still faces the bigger challenge of making life better back home.