Argentina’s economic distortions, including the exchange rate gap and the loss of purchasing power of wages, can also be observed by enjoying a recital. A UADE investigation took advantage of upcoming tours by Roger Waters, Luis Miguel and the Red Hot Chili Peppers at compare the cost of tickets in different countries. The report concludes that prices in Argentina measured in dollars are the lowest in the region, but they are the most expensive in terms of income.
An example is farewell tour “This is not a drill” of the former Pink Floyd, which will offer two shows to a packed River Stadium (November 21 and 22), after playing in Chile and Uruguay. In Argentina, the price of a low stall in the Monumental is valued at $64,400 (US$132 blue priced at $490). This item represents 75.8% of the minimum wage. In Uruguay, an equivalent income costs 138 US dollars (25.6% of the minimum wage) and in Chile, 208 US dollars, which corresponds to 39.8% of a minimum income, detailed the UADE.
The data highlights the decline in real wages against the blue dollar. This parameter was used, according to Fausto Spotorno, the economist responsible for the survey, because “the official dollar is valid only for exporters”. Although the cost of concert tickets “is relatively high in terms of minimum wage, stadiums fill up because savings alternatives do not exist“.
The UADE points this out Argentine wages have declined in recent monthss, reaching May 2023 with a low of $84,512, or US$174, measured in dollars, U$174.” Compared to other Latin American countries, occupy the last positions in the region. Brazil (US$260) is also significantly lower. Uruguay ($542), Chile ($522) and Mexico ($359) have higher minimum wages,” the study indicates.
The Argentine scales of Waters and the Red Hot Chili Peppers (November 24 and 26) head the production company DF Entertainment. Luis Miguel’s, which will offer 9 dates at the Movistar Arena from August 3 to 18, is organized by Fenix. All shows are sold out. “During the pandemic and the quarantine, leisure and culture has been one of the most affected sectors.” Musical recitals and concerts they seem to be an escape from the economic crisis for Argentineswhich since the band’s Coldplay tour in November 2022 have filled stadiums,” the study points out.
The low costs in dollars, adds the UADE, are partly due to the fact that “the sector operates with a differential exchange rate, the so-called Coldplay dollar, which has a 30% surcharge on the official exchange rate, but which allows of the Central Bank, foreign currency is transferred abroad quickly”. But that doesn’t solve the decline in real wages as a result of the inflationary escalation and the surge in financial and informal dollars.
The UADE observes an almost perfect asymmetry in terms of prices and costs. On the one hand, “Argentina and Brazil are the two most expensive countries to go to see recitals compared to the minimum wage. In Uruguay, Chile and Mexico it’s cheaper.” However, “measuring the dollar price of tickets to the same shows, ‘Argentina and Brazil cost less, while Uruguay, Chile and Mexico cost more.’
The same methodology was applied with Luis Miguel and Red Hot Chili Peppers. The Mexican-born singer will tour Argentina, Chile and Mexico. “The value of a ticket in the Movistar Arena stalls is $50,000/US$103, which represents 59.1% of a minimum wage. In Chile, an equivalent ticket costs US$186, or 35.8% of the lower income.And in Mexico, the input ratio (US$134) is equivalent to 37.1% of the Mexican minimum wage, almost a carbon copy of what happens with the North American gang.
The UADE study concludes that “there is a huge difference in the cost of going to a recital between Latin American countries” and that “Argentina is the country where it costs the most if we compare it to the minimum wage (where revenues in general show a negative trend marking a very low floor), followed by Brazil, Chile, Mexico and, in last place, Uruguay”. However, “if we analyze the cost of tickets in dollars, Argentina and Brazil have the cheapest tickets, while countries like Chile and Mexico have a higher price. Uruguay is an intermediate case,” concludes the study.
Source: Clarin
