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Nicholas Heyward, 31, was killed in Mendoza on Monday by motorcycle bandits who shot him four times.
He died in the arms of his friends, while the assailants fled into the suburbs of west of Mendoza.
Protesters marched to the park yesterday morning local time, where Mr Heyward was shot, Radio New Zealand reported.
Declan McGarvey, a reporter in Buenos Aires, said although these sorts of crimes were common in Argentina, Mendoza was known to be a small safe provincial town.
He told RNZ residents were shocked and astonished that such a crime could happen in their town, and that was reflected in the protest.
They are calling for the provincial government to put a new security and crime prevention plan in place, Mr McGarvey said.
The provincial security minister had asked to meet the protest's organisers next week to discuss the issue.
According to El Sol Online, a 19-year-old was arrested in connection to the killing in the neighbourhood in upper Mendoza following police raids.
He was due to be released shortly, El Sol Online said.
After the offer of a 40,000 pesos ($5800) reward for information leading to the capture of the assailants, a witness came forward on Monday night.
Mr Heyward was born in Australia but his late mother was from New Zealand. He also travelled on a New Zealand passport.