Pedro Juan Caballero: Tourism Potential Fueled by Holidays and Currency Dynamics

Paraguay is gearing up for an extended holiday period centered around December 8th, the Feast of the Virgin of Caacupé. This timing, coinciding perfectly with the pre-Christmas season, is set to provide a significant boost to domestic tourism, particularly in Pedro Juan Caballero. This city serves as the administrative hub for the Amambay Department. Named in honor of Captain Pedro Juan Caballero, a key leader in Paraguay's independence movement, the city presents travelers with a compelling mix of historical significance, natural beauty, and robust commercial activity.

A central landmark for visitors remains the historic landscape of Laguna Punta Porá. This area marks the site of the original settlement, established on December 1, 1899. While this date is frequently cited as the founding moment of the municipality of Pedro Juan Caballero, some historical researchers point to August 30, 1901, as the official establishment date. Tourists traditionally gravitate toward the green spaces surrounding the lagoon, where a monument honors the pioneers. This monument features a traditional oxcart, symbolizing the historical transport of yerba mate. Furthermore, wall murals vividly depict the region's rich history. Due to its elevation exceeding 600 meters above sea level, the city has earned the unofficial moniker, the "Terrace of the Country."

As Christmas approaches, the thoroughfare of 14 de Mayo Street undergoes a festive transformation, becoming the pedestrianized zone known as Paseo Navideño. This holiday artery is adorned with seasonal decorations, including a figure of Santa Claus, his sleigh, and one of the nation's largest boots, which stands an impressive six meters tall. Adding to the allure for visitors is the "Tunnel of Light," a 50-meter illuminated passage. This installation will remain operational until January 6, 2026, and has proven especially popular once darkness falls.

The observance of the Feast of the Virgin of Caacupé on December 8th mirrors the Catholic celebration of the Immaculate Conception and draws tens of thousands of pilgrims annually. Simultaneously, Pedro Juan Caballero reinforces its standing as a major commercial center. It offers a wide array of goods, notably in electronics, perfumes, and apparel. A crucial factor influencing consumer activity this holiday season is the favorable exchange rate. By early December 2025, the US Dollar had dipped to 6,870 Paraguayan Guaraníes. Historical data from the start of December 2025 indicates that the lowest rate recorded was 6,918.80 Guaraníes per dollar on December 1, 2025. This figure sits below the average rate observed over the preceding six months, which hovered around 7,350.97 Guaraníes.

This reduction in the cost of imported goods benefits both local residents and Brazilian consumers, potentially leading to price reductions of 5% to 10% across specific product categories during the holiday rush. The city, situated directly on the border with the Brazilian state of Mato Grosso do Sul, forms a single urban area with Ponta Porã, collectively housing over 200,000 inhabitants. The region's economic magnetism is further amplified by its role as a vital border crossing. This function has historically spurred commercial growth, moving beyond the area's initial focus on mate processing and logging in the latter half of the 20th century. Estimates suggest that 23,285 tourists visited Pedro Juan Caballero in 2017, signaling a growing interest in the destination. Projections for the close of 2025 anticipate a continued weakening of the USD/PYG exchange rate, possibly reaching 6,976.38 Guaraníes in December.