Inbound Tourist Arrivals Volume to Mexico to Grow at CAGR of 4.45% through 2016, Expects Timetric21 Sep 2012 • by Natalie Aster
Following the US, Canada and Barbados, the Travel and Tourism Competitive Index (TTCI) ranked Mexico as the fourth-most attractive destination within the American region to develop travel and tourism business. Mexico’s travel and tourism sector comprised 12.5% of the nation’s GDP in 2011, and accounted for 4 million jobs, representing 11.1% of the country’s total employment. During the review period (2007–2011), the total number of trips, both domestic and outbound, undertaken by residents increased from 160.4 million in 2007 to 188.3 million in 2011, registering a CAGR of 4.09%. While domestic trips increased at a CAGR of 4.77% during the review period, outbound tourism declined at a CAGR of 2.55% due to economic recession, lower levels of disposable income and the devaluation of the peso.
Domestic tourism is growing in Mexico due to the country’s expanding affluent middle-class population. Domestic tourism recovered significantly by recording an annual growth rate of 8.1% in 2010, following a 7.5% annual decline due to the global financial crisis and swine flu epidemic in 2009. Domestic tourists accounted for 87% of the total Mexican tourism expenditure and 83% of spending on accommodation in 2011.
The new report "Future of Travel and Tourism in Mexico to 2016" by Timetric states that Mexico has one of the world’s largest tourist volumes and popular attractions include the ancient Meso-American ruins, the most-visited tourist destination by inbound tourists in Latin America, and the second-most visited destination in the Americas. Mexico’s inbound tourism registered a CAGR of 1.65% during the review period, despite recording a decline in 2009 due to the adverse impact of the global financial crisis, drug-related violence and the H1N1 virus. The peak seasons for inbound tourism are December?January, and the mid-summer period, with a brief rise at beach resorts during US spring break. The number of inbound tourist arrivals to the country is expected to grow at a CAGR of 4.45% over the forecast period, resulting in 28.4 million arrivals in 2016. The main growth drivers will be the government’s efforts to increase inbound tourism, a rise in consumer confidence and promotional activities.
Future of Travel and Tourism in Mexico to 2016
Published: September, 2012
Price: US$ 1.950,00
The Mexican government has recognized the importance of travel and tourism to the country’s economic growth and, as a result, has increased its efforts to attract visitors. For example, the government signed the National Tourism Accord in 2011, with the aim of turning Mexico into one of the five-leading tourist destinations in the world by 2018. This will enable the country to create more than 4 million jobs and increase its income from inbound arrivals to US$400 billion in 2018.
The federal government has made significant investments in the country’s infrastructure by developing its roads, ports, airports and public transport. Government investment in tourism reached MXN4 billion (US$300 million) in 2010, a 200% increase over figures from 2006. Investments were even greater in 2011, with MXN6.8 billion (US$530.2 million) invested in promotional activities alone.
More information can be found in the report “Future of Travel and Tourism in Mexico to 2016” by Timetric.
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