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From Plazas to
Playas: Tourists
Find a Warm
Welcome in Mexico
Despite seasonal patterns, the tourism industry in Mexico continues its upward
trajectory and is one of the most significant sectors in the economy. Both the government and private investors are paying attention and planning for the vacationers of the future.
Who doesn’t enjoy curling up to a good book on a pristine beach while attentive wait- ers replenish your frothy drinks? Or perhaps you prefer to explore art museums, Maya temples, or active volcanoes. Whatever your pleasure, there are few people who would not consider Mexico to be one of the most enticing tourist destinations in the world. Yet, tourism in Mexico is about more than white sands and a welcoming culture. Scratch below the surface and you will find an industry making a total contri- bution of US$166 billion to the Mexican economy.
IT ALL ADDS UP
“The last three years have been fantas- tic for the tourism industry in Mexico,” exclaims Julien Debarle, Vice President Operations for hospitality company Grupo Presidente. After recovering from the economic slowdown of 2009, he ob- serves that the industry has experienced double-digit growth since 2014. Debarle foresees more of the same in 2017, de- spite an air of economic uncertainty.
In 2016, including direct, indirect, and induced spending, tourism accounted for 16 percent of the country’s GDP. Some 8.7 million Mexicans have jobs sustained by the industry—a figure that represents 16.8 percent of the economy’s employ- ment, either directly or indirectly. Direct employment in travel and tourism sur- passes that of every sector in Mexico with the exception of retail and agriculture.
The country has truly evolved from a sleepy destination for international hon- eymooners or a convenient choice for adventurous spring-breakers from the United States. The direct impact of the tourism sector on GDP has increased 77.3 percent since 1997, as compared to a total economic increase of 58.5 percent over the same period. All told, an as- tounding 35 million international travel- ers visited Mexico in 2016, making it the ninth-ranked destination in the world for international tourist arrivals. Growth in travel and tourism will continue to out- pace the economy over the next decade by a rate of 2.9 percent to 2.4 percent. By 2027, more than 55 million international travelers are expected to visit Mexico.
Yet foreign visitor spending made up only 16.1 percent of travel and tourism’s total contribution to the GDP in 2016. According to Luis Barrios, CEO of Hote- les City, “The other [approximately] 80 percent of tourists are internal, domestic travelers, and they travel all around the country.” He adds that the growing Mex- ican middle class means even more do- mestic tourism, leading to a higher qual- ity of life and more disposable income for those in the industry. This bodes well for sectoral growth, according to Barrios. “Here is a chance for us to capture that growing market,” he explains.
THE HOT SPOTS
“The most important areas in Mexico for tourism are Puerto Vallarta, Riviera Maya, Los Cabos, and Cancún,” attests
México City is the most populous city in Latin Amer- ica, and its International Airport landed more than 20 million domestic and in- ternational arrivals in 2016. Long a business hub, the city is beginning to pro- mote itself as a tourist des- tination, with high-visibility festivals and sports events.
Victor M. Lachica Bravo, CEO & Presi- dent of Cushman & Wakefield of Mexico. “The dollar is stronger right now, so our country is attractive to foreign travelers.” Even with a strong dollar, gone are the old days when a handful of change could pay for a taxi ride all the way across town, while a six-course meal with drinks only sets you back a pittance. Nonetheless, the visitors keep coming. Lachica points to occupancy rates in December 2016 of 80 to 90 percent at the most popular lo- cations as evidence of high tourist inter- est. The nation’s hottest markets, which also include México City, are planning for significant growth—industry analyst JLL indicates that 2,469 new rooms in those areas will become available in 2017.
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