Printable View
I am considering opening a hostel in BA, but have serious concerns about doing business in Argentina. I might do it if I can limit my risk to the yearly lease and found the right property. Also, I wonder if BA is not over-saturated with hostels now. Any advise appreciate, especially if you are or have owned a hostel. THANKS
Why do mongers complain, getting fooled and charged overprices when they were too lazy or stubborn to learn spanish?
And why has anybody, in his first / second / third vacation here the genius-idea af starting a hostel?
Forget it.
BA is absolutely saturated.
If youwant to get the habilitacion, you must have residency or a manager (who will fool you any second, you are not in).
They will fool you till you got the habilitacion.
They will fool you by faked or real inspectors even if you have a habilitacion.
Do you know the rental / hostel / hotel / resto - business? Just to know, where to find the clients or do you think, you can use some forums to get them for free?
The ultimate point of ex-pats with few cash but high expectations. Why do they think or hope earning millions of greenies without any idea of calculation, comerce, taxes and labor-laws.
To KISS (keep it short and simple): Don't
Mongers-
Doing business in Argentina is not for the faint of heart, those who do not speak fluent spanish, or those without extremely thick skin and ability to "roll with the punches" which come at you from all angles down here. As this thread specifically asks about a hostel, I'll address that: the market for hostels is super-saturated and the potential for worthwhile profits is extremely low whereas the potential for extreme and expensive headaches is very high. Think about who generally stays in hostels; cheapskates, drunks, drug users, hippies, transients, etc, those who stay there because it is the cheapest place to stay the night save for sleeping in the street. The clients of hostels are notorious for leaving without paying and causing all sorts of headache-inducing problems (drug use / sales, drunken recklessness, sexual assault, vandalism, etc).
That being said, worthwhile money can be and is in fact made in certain businesses in Argentina. I have been doing business down here for about five years and have lived to tell about it and I do know of a few other foreigners who have put together businesses down here with at least some level of success. If you can overcome the barriers to entry, carve out a niche, actually know what you are doing, and figure out how to clock the system down here there is some worthwhile money to be made.
Suerte,
Rock Harders
RockHarders,
I for one always appreciate and value your comments on this forum very much.
I couldn't agree more on your comment on this topic as well.
Having said that, can you propose some new unexplored business ideas for BA.
Thanks
[QUOTE=Jabone;416875]I am considering opening a hostel in BA, but have serious concerns about doing business in Argentina. I might do it if I can limit my risk to the yearly lease and found the right property. Also, I wonder if BA is not over-saturated with hostels now. Any advise appreciate, especially if you are or have owned a hostel. THANKS[/QUOTE]About a year ago there were over 400 hostels in BA!
Super saturated!
A lot have gone out of business while some continue to make money and stay booked.
Think it over carefully.
TL
The Hostel Clan went out of business sometime this year and I don't know the reason. I've been going there for cheap Spanish classes since 2003 so I was very surprised to find it closed when I arrived this month. The building appears vacant at Alsina 912.
[url]http://www.hostelclan.com.ar/[/url]
[QUOTE=HappyGoLucky;416891]I've been going there for cheap Spanish classes since 2003.[/QUOTE]I think you may have solved the mystery regarding their business demise.
Thanks for the feedback, I am aware of some of these problems, but just wanted to get some honest outside opinion which I know is never in short supply here.