Augusto Balizano, right, and Edgardo Gargano dance tango at a gay tango club in Buenos Aires. (AP Photo/Natacha Pisarenko)

A pair of tango dancers moves awkwardly across the floor, laughing as they try to avoid stepping on one another's toes. As tango classics waft out of the sound system and a disco ball casts its refracted light, the pair is like any other learning a new dance -- except they're both men.

It's Wednesday night in Buenos Aires, and the country's only gay milonga is in full swing.

Goddess, a local gay club, began offering the milonga -- a tango dance party -- five months ago, around the time that organizers Roxana Gargano and Augusto Balizano began to notice an influx of gay tourists into Buenos Aires. It's the latest offering in a city that is fast becoming the hottest gay destination in South America.

Buenos Aires is in the midst of a tourism boom. The Argentine peso lost two-thirds of its value after the country's 2001 economic collapse. Though bad for Argentines, that drop has been good for tourists, who are now flooding what was once the most expensive city in South America.

"Buenos Aires is New York or London at one-quarter of the price," said Ray de la Pena, who visited the city from Hawaii three times in 2003.

According to figures compiled by the secretary of economic development, in 2003 tourism jumped about 40%. No figures exist on how many of those tourists are gay, but several signs point to a significant growth in their numbers.

Last year, Carlos Melia opened Pride Travel, the first and only agency in Buenos Aires dedicated exclusively to gay travel. Months later he had six employees, and the agency was immediately profitable, Melia said.

It puts out The Ronda, a gay guide to Buenos Aires, which is often called the "Paris of South America" for its cafe culture, French-style architecture and sophistication of its residents.

Other travel agencies are adding gay-oriented offshoots. A few months ago Friendly Apartments opened its doors, renting upscale city apartments to gay travellers. The agency currently maintains 15 apartments and will be adding 11 more, agency coordinator Matias Pico said.

People sit at a "gay friendly" Club. Buenos Aires is viewed as one of the most progressive cities in South America. (AP Photo/Natacha Pisarenko)

The city of 3 million boasts a lively gay scene and is famed for its nightlife, with dozens of bars and discos open every night and portenos -- as the multinational denizens of Buenos Aires are known -- dancing until the sun comes up.

Numerous gay bars and dance clubs have opened, in addition to gay-only B&Bs, gay-run restaurants, a gay-only beach, and shops and hotels that advertise as "gay-friendly."

Gay travel is a major business worldwide. In 2002 it generated $55 billion in receipts in North America alone, according to Robert Wilson of the International Gay and Lesbian Travel Association.

That Buenos Aires is viewed as one of the most progressive cities in South America fuels its appeal to the gay community.

Some neighbourhoods, like fashionable Palermo and Recoleta, are known for being safe places for gays and lesbians. Though gay visitors may need to be circumspect in some parts of the city, a live-and-let-live attitude prevails.

Balizano and Gargano dance tango. Buenos Aires is on its way to becoming one of the hottest gay tourist destinations. (AP Photo/Natacha Pisarenko)

"If you want to walk with your partner holding hands, no one will say anything," Melia said.

If you go... Pride Travel: Located Paraguay 523, 2nd floor, Ste. E, Buenos Aires. Contact (5411) 5218-6556 or www.pride-travel.com.

Friendly Apartments: Located Paraguay 1446, 9th floor, Ste. A, Buenos Aires. Contact (5411) 4816-9032 or www.friendlyapartments.com.

Goddess: Located Av. Cordoba 4185, Buenos Aires. Contact (5411) 4861-2961. A milonga known as La Marshall is held here every Wednesday at 10 p.m. (classes begin at 8:30 p.m.). Cover charge for the milonga is about $2 US ($3 with class). For more information on the milonga, call (5415) 5406-9784.

Guides: Bleu Cards puts out a map called Gay Map Buenos Aires; visit www.bleucards.com.ar for more information or pick up a copy at Pride Travel. The Ronda, another pocket guide, can also be picked up at Pride Travel. A website about Buenos Aires catering to gay tourists is www.thegayguide.com.ar.

Men dance tango at a gay tango club in Buenos Aires. (AP Photo/Natacha Pisarenko)

International Lesbian and Gay Travel Association: Based in Florida at (954) 776-2626 or visit http://iglta.org/. Language: English is not widely spoken. Basic Spanish, like the ability to ask for directions, is very useful.

Seasons: Spring in North America is fall in Argentina, a good time of year to visit, both in terms of weather and prices.