why are devaluing local currencies beneficial to tourists?

Question

I’ve heard commentators state that in places like Egypt, Turkey, and Argentina, that their devaluing currencies benefit tourists with strong currencies. If local prices rise to match the devaluation of the local currency, doesn’t that mean that you can’t exactly buy more with what you have since prices adjust?

In: 2

Answer 1

Local prices don’t change, since labor is local goods are local. Say the Argentine Peso falls by 50% to the dollar. But the 100 Peso steak dinner remains 100 Pesos, while it now costs half as many dollars to get 100 Pesos then the dinner costs half what it did before to tourists. Who might then end up splurging on that 80 Peso bottle of wine, too, and spend 180 Pesos (more money for restaurant/waiter) but the tourist still spent fewer dollars.