Here's the latest on changes all across the continent, country by country, city by city.
Argentina
Many readers will wonder how Argentina's economic crisis has affected the tourism industry and the rest of the country. First, prices have been slashed across the board, from hotels and restaurants to airfares, attractions, and shopping. Argentina has become a bargain for foreign travelers. Also, with growing recognition that tourism provides oxygen for the struggling economy, travelers to Argentina are catered to in a way they never were in the past. You should be aware, however, that many hotels and other establishments have introduced different prices for foreigners than for Argentines; confirm prices before agreeing to the service, and realize that high inflation and volatile exchange rates will limit the accuracy of rates quoted here.
This economic crisis is popularly viewed as the worst in Argentina's history, and everyone feels it. Poverty has skyrocketed, young people can't find jobs, and some children face malnutrition as families struggle to get bread on the table. One result is an increase in crime, particularly in the big cities, and travelers should take extra precautions when visiting Argentina.
Buenos Aires
Travelers will find Buenos Aires far cheaper than at any time in recent memory, and quality hotels, restaurants, shops, and tourist attractions are all open for business. Due to the economic crisis, however, travelers should avoid walking alone and should not take taxis off the streets. Call a radio taxi or remise (private, unmetered taxi), instead.
The Argentine Lake District
San Martín's new restaurant, La Pierrade, Mariano Moreno and Villegas (tel. 02972/421421), is the epitome of romance with a beautiful stone fireplace and plump red pillows. Specials include deer carpaccio and a variety of Patagonian pâtés. Bariloche's luxurious Llao Llao Hotel & Resort, Avenida Bustillo (tel. 02944/448530; www.llaollao.com), now offers extensive spa packages at its lovely new spa. The treatment rooms have breathtaking views of the mountains and the lake.
Bolivia
The recent unrest has not prevented adventurous visitors from visiting this enchanting country. But because most of the recent protests have been in and around La Paz (including the roads to Lake Titicaca), the focus of many travelers has shifted south to Sucre and even Cochabamba. Be sure to check your country's travel warnings before your trip to Bolivia as the security situation is constantly changing.
Lloyd Aéreo Boliviano (LAB; tel. 0800-4321; www.labairlines.com) now offers daily nonstop flights to Santa Cruz from Miami, with immediate connections to La Paz and Cochabamba. Unfortunately, the airline still operates an aging fleet of Boeing 727s on its domestic routes, and delays are common.Sucre
Sucre's newest hotel is very charming and very affordable. Hotel La Posada, Calle Audiencia 92 (tel. 0104/6913-427; Laposadahostal@entel.bo), boasts an excellent restaurant with an outdoor seating area in its delightful courtyard.
Potosi
Finally, a comfortable and modern hotel in Potosí: The Hotel Cima Argentum, Av. Villazon 239 (tel. 0102/6229-538; www.hca-potosi.com), not only has attractive (and heated) rooms, but it also boasts an excellent restaurant and a friendly, efficient staff.
Cochabamba
The newest resort in all of Bolivia is located a 30-minute drive from the center of Cochabamba. Nestled against verdant hills and overlooking a small lake, the romantic Hacienda De Kaluyo Resort, Camino La Angostura, Tarata (tel. 0104/4576-594; www.kaluyo.com), offers a great getaway for both active travelers and those looking for rest and relaxation. The property includes an open-air gym, a handsome restaurant, and an adjoining 19th-century chapel -- perfect for weddings.
The newest restaurant in Cochabamba is Casa de Campo, Av. Uyuni 618 (tel. 0104/4243-937), a huge and vibrant eatery specializing in local cuisine. It's the best place in town to try the slightly spicy and aromatic traditional chicken stew, picante de pollo. Come here for a boisterously fun evening with the locals.
Brazil
The biggest news has been the presidential election of left-of-center candidate Luiz Inácio Lula da Silva. Lula, as he is universally known, is an impressive figure: a bear of a man with the charisma of JFK and a true-life rags-to-riches story to rival any in America. Although not all Brazilians agree with Lula's policies, everyone took pride in the fact that the country could elect a left-wing candidate without provoking a meltdown in the economy, foreign intervention, or a domestic coup d'état. The huge celebration at Lula's January 2003 inauguration was really for Brazil itself, where democracy at last seems to have taken firm root.
Rio De Janeiro
Recently taken over by the excellent Windsor hotel chain, the Miramar Palace Hotel, Av. Atlântica 3668, Copacabana (tel. 0800/232-211 or 021/2521-1122; www.windsorhoteis.com), offers luxury beachfront accommodations at reasonable rates.
New in downtown Rio is Cais do Oriente, Rua Visconde de Itaboraí 8, Centro (tel. 021/2233-2531). This former warehouse has been gloriously restored and emerged as a stunning restaurant and bar venue; the kitchen serves up an interesting mix of Asian and Mediterranean dishes. Over the past couple of years Leblon has cemented its reputation as the diner's destination in Rio. The epicenter is a 4-block stretch on the upscale Rua Dias Ferreira, home to the trendiest of Rio's new restaurants. New kid on the block Zuka, Rua Dias Ferreira 233 (tel. 021/3205-7154), does up cleverly inventive dishes. Across the street you'll find Carlota, Rua Dias Ferreira 64 (tel. 021/2540-6821), chosen by Condé Nast Traveller as one of the 50 most exciting restaurants in the world. Nearby is Rio's top sushi spot, Sushi Leblon, Rua Dias Ferreira 256 (tel. 021/2512-7830).
For lovers of Brazilian music, Lapa remains the place to go, even more so now thanks to two extraordinary new music venues. The Centro Cultural Carioca, Rua do Teatro 37, Centro (tel. 021/2242-9642; www.centroculturalcarioca.com), hosts local musicians as well as big names who specialize in samba, MPB, choro, and gafieira. In a renovated warehouse on Lapa's edge, Rio Scenarium, Rua do Lavradio 20 (tel. 021/2233-3239), is crammed with antiques, centered on a stage and dance floor visible from all three floors. It's the perfect setting for traditional Brazilian samba and choro.
If you just want a nice little bar to hang out with some friends, check out Devassa, Rua General San Martin 1241, Leblon (tel. 021/2540-6087). This new bohemian bistrolike bar attracts a good-looking crowd that seems to enjoy the casual atmosphere and the delicious microbrews on tap.
São Paulo
Builders just can't seem to get enough of São Paulo and new luxury hotels are springing up left and right. Most notable of these is the Unique, Av. Brigadeiro Luis Antônio 4700 (tel. 011/3055-4700;www.hotelunique.com.br), an extraordinary hotel with gorgeous rooftop views and rooms featuring the cleanest of clean white-on-white decor and a plethora of room gadgets. More discrete but just as luxurious is the Emiliano, Rua Oscar Freire 384, Cerqueira César (tel. 011/3069-4369; www.emiliano.com.br). It's top-flight treatment all the way, from the welcome massage to the minibar stocked according to your preferences and a personalized selection of pillows, carefully fluffed and placed on your Egyptian cotton sheets.
The gourmet capital of Brazil, São Paulo offers some outstanding restaurants, including the gorgeous Figueira Rubaiyat, Rua Haddock Lobo 1738, Jardins (tel. 011/3063-3888), which is built around a magnificent centenary fig tree with a glass expansion wrapping around the trunk to let in lots of natural light. The menu specializes in a la carte meats and seafood, most of it freshly grilled.
The latest hit on São Paulo's club scene is Azucar, Rua Mario Feraz 423, Itaim Bibi (tel. 011/3078-3130). Salsa, merengue, and other Latin beats get the crowd going. For a night of barhopping, the Vila Olimpia neighborhood has recently emerged as the São Paulo destination. Packed with clubs and bars, it's always busy, even on weeknights. The more popular bars concentrate along the Rua Prof. Atilio Innocenti.
Salvador
Pestana Bahia, Rua Fonte do Boi (tel. 071/453-8005; www.pestana.com), is positively buzzing after its extensive makeover. Set on an outcrop overlooking Rio Vermelho, its privileged location guarantees all 430 units an ocean view, and the amenities are outstanding. Porto da Barra's newest budget hotel, Village Novo, Av. Sete de Setembro 3659 (tel. 071/267-4362; www.villagenovo.com), is housed in a 125-year-old heritage mansion. Village Novo offers a number of beautiful rooms at very reasonable rates.
The latest eatery by a longtime darling of Salvador foodies, Caranguejo da Dadá, Av. Otavio Mangabeira 940 (tel. 071/363-5151), is located out in Patamares beach. Overlooking the ocean, the bar and restaurant are perfect for a casual afternoon snack or as a fine dinner destination in itself. For years, one of the best fine-dining restaurants in Salavador has been the Trapiche Adelaide, Praça do Tupinambás 2, Av. Contorno, Comércio (tel. 071/326-2211; www.trapicheadelaide.com.br).New chef Luciano Boseggia has given the menu a definite Italian twist with a hint of French influence, and the results are excellent.
Manaus
Riverboats now dock at the brand-new Hidroviaria do Amazonas (Riverboat Terminal), in the middle of downtown at Rua Marquês de Santa Cruz 25 (tel. 092/621-4359). The terminal features a bar and churrascaria, Choppicanha Bar and Grill (tel. 092/631-1111), on a deck with a view of the broad Amazon River. Downstream of downtown by the Ceasa port, the new Peixaria Moronguêtá, Rua Jaith Chaves s/n (tel. 092/615-33), serves fresh local Amazon fish in a astonishing variety of ways.
For those looking to explore the rainforest in depth, the best option is the new suite of kayak descents offered by Amazon Mystery Tours, Av. Djalma Batista 385, Sala 103 (tel. 092/633-7844; www.amazon-outdoor.com). Amazon Mystery has the skills and experience to bring you deep into the rainforest, make your time there safe and fun, and then get you back to town again. For a more luxurious rainforest experience, there's a new lodge with lots of space, Amazonat (tel./fax 092/633-3227; www.amazonat.com.br). Located 160km (98 miles) east of Manaus, Amazonat is surrounded by walking trails that you are free to roam on your own; there is a lake with a beach for swimming and an orchid park with more than 1,000 specimens to explore.
Chile
The Chilean tourism industry has lost a lot of business to neighboring Argentina over the past 2 years, after the devaluation of the Argentine peso. However, worldwide interest in Chile continues to grow wildly, mostly because Chile offers wonderful landscapes and adventure-travel opportunities that are incomparable to its Andean neighbor. As a result, the country's tourism infrastructure continues to improve.
The bad news is that the reciprocity entry fee for first-time visitors from the United States has risen sharply to $100, but it's good for the life of the visitor's passport.
It's comical how fast telephone numbers in Chile change; have your hotel help you find any updated numbers.
United Airlines, in the face of its recent bankruptcy, has pulled out of Chile completely. Delta has entered the scene, usually offering the lowest fares to Santiago, via Atlanta. Great news for Canadians: Air Canada now offers nonstop service from Toronto to Santiago.
The total overhaul of the portion of the Panamericana Highway that runs from Puerto Montt to the north of Chile is finished at last, meaning that hundreds of tollbooths dot its length at highway exits and entrances. Prices range from 30¢ to $5.
Santiago
The hotel industry is stagnant, keeping prices down. Don't be afraid to investigate rates for hotels that might seem well beyond your budget as these hotels often advertise incredible bargains, especially for multiple-day stays. Santiago now has South America's first Ritz-Carlton, El Alcalde 15 (tel. 800/241-3333 from the U.S., or 23/629619; www.ritzcarlton.com), which opened in May 2003.
The Central Valley
Viña del Mar's newest lodging option is the Hotel del Mar, Av. San Martín 199 (tel. 600/700-6000; www.casino.cl), which abuts the grand, classic casino. Its beautiful seaside views and a sumptuous indoor pool and gym are draws, but this hotel needs to work out a few bugs in its service. Great location nonetheless.
Chile's wine industry has seen unbelievable growth and an unprecedented improvement in quality over the past few years. The new Hotel Santa Cruz Plaza, Plaza de Armas 286, Santa Cruz (tel. 72/821010; www.hotelsantacruzplaza.cl), in the heart of the Colchagua Valley, serves as an excellent jumping-off point to sample the wonderful varieties Chile has to offer. The Hotel Santa Cruz will organize day tours with the Ruta del Vino, or you can just rent a car and explore at your own pace.
The Chilean Lake District
Pucón's new airport (no phone), minutes from the center of town, is now operational, saving you from the tedious 1 1/2-hour drive from Temuco. LanChile (tel. 600/600-4000; www.lanchile.com) jets arrive from Santiago on Friday and Sunday, in high season only.
The Airesbuenos International Hostel, General Lagos 1036 (tel./fax 63/206304; www.airesbuenos.cl), opened in one of Valdivia's most beautiful historical mansions. In addition to private rooms with en-suite bathrooms, there are bunk beds for $8.50 for those traveling on a tight budget.
There are two notable additions to the vibrant restaurant scene in Puerto Varas. Kika's, Walker Martínez 584 (tel. 65/234703), serves distinctive cuisine blending old German favorites with local ingredients, such as grilled Patagonian venison with sauerkraut. Its wine list is made up entirely of award-winning Chilean vintages. Mediterráneo, Santa Rosa 068, on the corner of Portales (tel. 65/237268), serves up imaginative Chilean-Mediterranean fusion dishes in a great location with a view of the water.
Also, a deluxe hotel has opened in Puerto Montt. The sleek seven-story Gran Pacífico, Urmeneta 719 (tel. 65/482100; Reservas@hotelpacifico.cl), towers over the city's harbor and offers breathtaking views from its Art Deco rooms, which come with large-screen TVs and small marble bathrooms.
The Carretera Austral
A convenient, scenic, and very comfortable way to travel from Puerto Montt to Chaitén has just begun: catamarans that make the trip in 4 hours. Catamaranes del Sur (tel. 02/482308; www.catamaranesdelsur.cl) operates three times a week and costs $40 one-way, $72 round-trip.
Ecuador
Ecuador is booming -- and it's not only the Galápagos that are getting all the attention.
Quito
The old town is getting safer and new restaurants are opening up. Right on the lovely Plaza de la Independencia, you'll find the grand Mea Culpa (tel. 02/2951-190). Be sure to call ahead for reservations and request a table by the window overlooking the plaza. A few minutes by taxi up the hill, you'll find the most spectacular view in the city at Café Mosaico, Manuel Samaniego N8-95 and Antepara (tel. 02/2542-871). Here, the crème de la crème of Ecuadorian society can be found sipping coffee, nibbling on cheesecake, and taking in the sumptuous views of Old Town.
Cuenca
This lovely pedestrian-friendly city boasts two beautiful new hotels. First to open was Mansión Alcázar, Calle Bolívar 12-5 and Tarquí (tel. 07/823-918; www.mansionalcazar.com), an oasis of elegance and tranquillity right in the heart of the historic downtown. The incredible back garden even has a resident hummingbird. Steps from the main plaza in one of the finest colonial buildings in the city, you'll find Hotel Santa Lucía, Antonio Borrero 8-44 and Sucre (tel. 07/828-000; www.santaluciahotel.com). The hotel has already received the city's most prestigious architectural award for the meticulous renovation and preservation of a historical building.
Guayaquil
Ecuador's largest city has been practically a huge construction site since the mayor began his ambitious plan of turning his drab metropolis into a vibrant tourist attraction. There are new museums, shopping areas, restaurants, and cafes sprouting in safe and attractive neighborhoods. Don't miss a stroll up the steps to the attractive Cerro Santa Ana neighborhood, and a visit to the new lighthouse at the top of the hill with a spectacular view of the river and the entire city.
Best of the city's new restaurants is Lo Nuestro, Av. Estrada 903 and Higueras (tel. 04/2386-398), serving not only Ecuadorian cuisine but also dishes unique to Guayaquil (think lots of bananas, fresh seafood, and tropical fruit).
The Galapagos Islands
Aerogal (tel. 800/2376-425; aerogal@andinanet.net), short for AeroGalápagos, began service last year from Quito and Guayaquil to the island of San Cristóbal in the Galápagos, giving Tame a run for its money. Its clean and comfortable planes and professional crew have an enviable on-time record.
There's also now a truly luxurious resort in Ecuador -- and in the Galápagos, no less. The Royal Palm Hotel (tel. 800/528-6069 in the U.S., or 05/5527-409; www.royalpalmhotel.net) is destined to become one of the most celebrated new resorts in South America. It sits on 200 lush tropical hectares (500 acres) and offers personalized service and unique day excursions to the outlying islands. The views from its drop-dead gorgeous villas are breathtaking.
Peru
Peru had a rough time of it during the first couple years of Alejandro Toledo's administration, with strikes by public workers and several cabinet reorganizations, but international interest in Peru continues to grow. The recent discoveries of still more "lost" Inca cities has added to the fascination of Machu Picchu and given a fresh jolt to the appeal of the Inca Trail and Peru's ancient ruins. Simmering unrest and widespread dissatisfaction among Peruvians, and discord in neighboring Bolivia (which some observers expected to spill over to Peru), have so far not affected travel in any part of the country.
United Airlines no longer flies to Lima from the United States or Canada. Contrary to some published reports, AeroContinente has not resumed international service from Miami to Iquitos.
The world's highest train, the eternally problematic, on-again, off-again Ferrocarril Lima-Huancayo (which travels from Lima to Huancayo in the Central Highlands) is apparently up and running again -- but that's not necessarily reason to believe it will be by the time you hit Peru. For the meantime, the schedule for one of the Americas' most impressive train trips is just one round-trip per month (during the 3rd or 4th week of the month) between April and October. The round-trip cost is US$30 per person for the 10-hour journey. The train departs downtown Lima at the Desamparados station, Jr. Ancash 201 (tel. 01/441-2222), just behind the Government Palace. A train schedule is posted at www.incasdelperu.org/StatusoftheTrain.htm. For additional information, visit www.ferroviasperu.com.pe and make reservations at reservas@fcca.com.pe.
Lima
All that glitters is apparently not gold. The famed Museo de Oro del Perú (Gold Museum), for decades the most popular attraction in Lima, has been determined to be one of the biggest museum frauds ever uncovered. The National Institute of Culture and the Tourism Protection Bureau declared just about everything in the museum -- about 7,000 pieces, much of it purportedly pre-Columbian gold artifacts -- to be complete and utter fakes.
Cusco
Lima has long been Peru's preeminent museum city, but Cusco has added an important archaeological museum, the Museo de Arte Precolombino, Plaza de las Nazarenas s/n (tel. 084/233-210), to its stately attractions. Taking advantage of the vast collection of pre-Columbian works belonging to the Rafael Larco Herrera Museum in Lima, this new addition in the San Blas district occupies a onetime Inca ceremonial court and later colonial-era mansion, and displays nearly 500 pieces dating from 1250 B.C. to A.D. 1532 representing the Nasca, Moche, Huari, Chimú, Chancay, and Inca cultures.
The Sacred Valley Of the Incas
The spectacular narrow-gauge train from Cusco to Machu Picchu has new names, prices, and categories for its services, including the introduction of a top-flight luxury service, the Hiram Bingham, which includes brunch, afternoon tea, a guided tour of the ruins, and cocktails and dinner on the return trip. It's the way to go if money is no object. Check www.perurail.com for the latest details and rates. Helicopter travel to Machu Picchu has been suspended indefinitely, although the Hiram Bingham train should suffice for bragging rights.
The Peruvian government, seeking to limit numbers of trekkers on the Inca Trail, has finally begun to strictly enforce the new regulations adopted in 2001. All trekkers must still organize their treks through an approved local agency that provides guides and porters, but the price of hiking the trail has steadily risen. To guarantee a spot with an agency (which must request a trek permit for each trekker), trekkers must make a reservation and pay entrance fees at least 15 days advance, and at least 1 month in advance during the peak months (May-Sept). It's now nearly impossible to show up in Cusco and quickly organize an Inca Trail trek, even though some first-come, first-served spots may be available.
Puno/Arequipa
Train service from Arequipa to Puno is now available by charter only, although it may be reinstated sometime in the near future. The train from Arequipa to Colca Canyon also no longer is in service. For updates, visit www.perurail.com.
Uruguay
The major news in Uruguay is the currency devaluation, which, as with Argentina, has made the country more affordable. Punta del Este, the historic favorite of jet-setting Argentines, is slightly quieter as a result of the ongoing economic crisis next door. This means better bargains in shops, and friendlier rates at hotels and restaurants.
Venezuela
Venezuela's political situation continues to be tense, and the economy is in steep decline. This has led to a drastic drop in tourism. Caracas continues to be relatively inhospitable, but brave souls venturing farther afield will find wonderful adventures, abundant wildlife, deserted beaches, and real bargains (thanks to an artificially fixed exchange rate, tight currency restrictions, and a thriving black market).
INATUR (tel. 0800/462-8871 or 0212/576-9032; www.inatur.gov.ve) is the new national tourism institute. Its main office, located on the 35th floor of the Torre Oeste (West Tower) of the Parque Central (near the Caracas Hilton), is open weekdays during business hours.
In January 2002, the government fixed the official exchange rate at 1600Bs to the U.S. dollar. It also made it virtually impossible for Venezuelan citizens and businesses, as well as tourists, to exchange bolívares for dollars. This has led to a thriving black market, where the real exchange rate hovers around 2500Bs to the dollar at press time.
There is an airport departure tax of 48,500Bs, paid in either bolívares, or the current official exchange in dollars. This fee is sometimes included in the airline ticket price, so be sure to ask before paying twice.
Caracas
After several years of sitting in mothballs, the Pico El Avila Teleférico (tel. 0212/793-5129) is finally open again. This modern cable car system stretches from the Maripérez station on the northern edge of the city 3.4km (2 miles) to the top of El Avila. The restoration and reopening of the tramway section down to the coastal city of La Guaira is still far off.
The luxurious Four Seasons Caracas (www.fourseasons.com), near the Altamira metro station, has been shut down for over a year, due to legal wrangling. But the fancy new JW Marriott Hotel, Avenida Venezuela and Calle Mohedano, El Rosal (tel. 0212/957-2222; www.marriott.com), is filling the void.
Finally recovering from the disastrous mudslides and devastation of the 1999 Vargas tragedy, the coastal area near the Simón Bolívar International Airport in Maiquetia now boasts a few hotel options for those wanting a quick overnight, without having to brave the traffic, madness, and insecurity of Caracas. Among the choices are the Hampton Inn & Suites, Avenida La Armada, Urbanización 10 de Marzo (tel. 800/426-7866 in the U.S., or 0212/331-7111 in Venezuela; www.hamptoninn.com), located just 2 minutes from the airport terminals. For a more upscale option, try the recently restored Hotel Olé Caribe, Avenida Intercomunal, El Playón Macuto (tel. 0212/331-1133; www.hotelolecaribe.com).
The American Book Shop, has moved into new, more spacious digs at Centro Plaza, Nivel Jardín, Avenida Francisco de Miranda, Los Palos Grandes (tel. 0212/286-2230).
Isla De Margarita
Conferry (tel. 0212/782-8544, or 0295/261-6397 for current ferry schedules and fares) has finally opened regular express service between La Guaira (just outside of Caracas) and Margarita, although it only runs on Tuesday and Thursday...
The beach-side restaurant Bahia in the Bella Vista section of Porlamar has closed. In the Sambil mall, A Granel (tel. 0295/260-2491) is a popular new restaurant and cafe that often features live jazz or bolero groups.
Los Roques National Park
All visitors to Los Roques must now pay a one-time 15,000Bs entrance fee for the national park, good for the duration of your stay. Banesco (tel. 0237/221-1265) has opened a branch office on Gran Roque, but it is of limited use to travelers, as it does not have an ATM and will not change money. However, it will do in a pinch if you need a cash advance off of your credit card.
Merida, The Andes & Los Llanos
The somewhat upscale (at least for Mérida) Hotel Tisure has closed. However, the folks at Natoura Adventure Tours are nearing completion on a very comfortable new hotel Posada Casa Sol (tel. 0274/252-4164; www.posadacasasol.com) just a few blocks away.
Canaima, Angel Falls & The Gran Sabana
The new and comfortable Waku Lodge (tel. 0286/962-0559; www.canaimatours.com) is set right on the banks of the Canaima lagoon, with excellent views across the water and toward several waterfalls.