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The total contribution of Travel & Tourism to employment (including wider effects from investment, the supply The total contribution of Travel & Tourism to employment (including wider effects from investment, the supply
chain and induced income impacts, see page 2) was 7,985,500 jobs in 2015 (15.9% of total employment). This is chain and induced income impacts, see page 2) was 7,985,500 jobs in 2015 (15.9% of total employment). This is
forecast to rise by 2.6% in 2016 to 8,191,000 jobs (16.0% of total employment). forecast to rise by 2.6% in 2016 to 8,191,000 jobs (16.0% of total employment).
By 2026 Travel & Tourism is forecast to support 9 787 000 jobs (17 1% of total employment) an increase of
,,,.,
By 2026, Travel & Tourism is forecast to support 9,787,000 jobs (17.1% of total employment), an increase of
1.8% pa over the period. 1.8% pa over the period.
MEXMICEXOI:CTOO:TAOLTACLOCNOTRNITBRUIBTIUOTNIOONFOTFRTARVAEVLE<&OTUORUISRMISTMOTEOMEPMLPOLYOMYEMNETNT
MEXICO: TOTAL CONTRIBUTION OF TRAVEL & TOURISM TO EMPLOYMENT
'00
12,0 10,0 8,0 6,0 4,0 2,0
The total contribution of travel and tourism to employment.
%%ofowfhwohleoleceocnoonmomy yememplpolyomymenetnt
18.108.0 16.106.0 14.104.0 12.102.0 10.10.0
8.08.0
6.0 6.0
4.0 4.0
2.0 2.0
0.0 0.0
Direct Direct
2015 2015
Indirect Induced Indirect Induced
2016 2026
2016
2026
0'0j0o0bsjobs
1020,.000.0 100,.000.0 080,.000.0 060,.000.0
4,000.0 00.0
2,000.0 00.0
0.0 0.0
Direct Direct
2015 2016 2026
2015 2016
20262026 2026
Indirect Induced Indirect Induced
By 2026, travel and tourism is forecast to support 9,787,000 jobs
WTTC Travel & Tourism Economic Impact 2016
WTTC Travel & Tourism Economic Impact 2016
(17.1% of total employment.)
ORLD TRAVEL & TOURISM COUNCIL LD TRAVEL & TOURISM COUNCIL
Source: WORLD TRAVEL & TOURISM COUNCIL
44
44|W | WOR
The total contribution of trav- el and tourism to GDP includes direct spending, like that on ac- commodations or attractions; indirect spending, like invest- ment or supplier purchases; and induced spending, the goods that direct and indirect employ- ees are additionally able to buy. That number is expected to rise to US$232.2 billion, or 17.2 per- cent, of Mexico’s GDP by 2027.
WHERE TO NOW?
Ideas both practical and theoretical pres- ent themselves to Mexico’s tourism di- rectors. From a functional perspective, for example, the government is looking to reduce red tape and wait times at the nation’s airports. Rolf Meyer, Country Manager for United Airlines, notes that today’s savvy traveler seeks connectivity and convenience. “The whole experience and process of traveling” should reflect this demand, he says, “from check-in to tracking their luggage.” The OECD lauds
Mexico’s innovations in streamlining and expediting entry at airports but cautions that there is room for improvement, par- ticularly in international travel. Other stimulative measures include continuing to move forward with liberalizing air ser- vice agreements to improve connectivity for all airports, both international and do- mestic.
On the speculative side of the industry, Mexico seems limited only by imagination. It should be possible to grow the nation’s tourism development model to empha- size assets such as ecotourism, gastron- omy, and adventure tourism in order to invigorate local economies. There is even room for growth in subsectors such as the wine industry, which is taking off in Baja. “Mexican wine garners great respect,” says Hans Backhoff, CEO of Monte Xanic. “Thirty years ago, the thought was that Mexican wine was of poor quality. That taboo is gone!”
NEW—AND LUCRATIVE— OPPORTUNITIES
A renewed interest in private investment is sparking the nation’s hospitality in- dustry. Erin R. Green, the VP of Develop- ment-Americas for Rosewood Hotel Group, recently noted, “We’re bullish on Mexico,” praising its attractive investment funda- mentals. “There’s a relatively low cost ba- sis from construction and operations,” she
continued, “it’s a growing economy, and it has beautiful destinations.” Analysts agree that the country has not begun to reach its peak; many regions—even popu- lar beach and business destinations—are not yet fully developed, and emerging and secondary cities are only now realizing the need for hospitality services.
The introduction in 2010 of FIBRAs, an investment trust vehicle similar to REITs, has allowed public equity investment in Mexican real estate. Currently, two FIBRAs are focused on Mexico’s hotel market. Michel Montant, Director of Cor- porate Development for Grupo Posadas, said in 2015, “The coming of the Mexican REITs has dramatically changed the sce- nario for Mexican investments.” In ad- dition to FIBRAs, national agencies like Bancomext and FONATUR are encourag- ing investment and public–private part- nerships for tourism development.
Will a rising tide of foreign investment accompanied by a wave of eager vaca- tioners come to fruition in 2017 and be- yond? Industry leaders, policy makers, and researchers can only speculate. But one thing is certain—future tourists will not only want to spend their time soaking in the sun; they will also want nature walks, zip lines, and cultural and culinary expe- riences. Mexico plans to make these, and many other adventures besides, available to its guests.
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