Mexico - Travel & Tourism: Government initiatives to drive tourism (Strategy, Performance and Risk Analysis)
Mexico - Travel & Tourism: Government initiatives to drive tourism (Strategy, Performance and Risk Analysis)
SUMMARY
Mexico has numerous attractive destinations, which coupled with the depreciation of the peso, is driving the influx of inbound tourists. In 2016, international arrivals increased at an annual growth rate of 8.8%, rising from 32.1 million in 2015 to 34.9 million in 2016.
In the passenger airline segment, the number of seats available and volume of seats sold recorded respective review-period (2012-2016) CAGRs of 6.9% and 8.0%. Growth was primarily driven by demand from foreign tourists. Passenger airlines revenue recorded a review-period CAGR of 2.0% due in part to revenue derived from full-service airlines. In the accommodation segment, there was an increase in the number of room nights available at a review-period CAGR of 2.1%; the number of room nights occupied posted a CAGR of 4.9%. Growth was driven by an increase in the volume of tourists.
MarketLine Premium’s industry reports provides a comprehensive overview and include sections on risk and reward, key industry trends and drivers, SWOT analysis, industry benchmarking, competitive landscape, industry innovation, deals and key developments.
KEY HIGHLIGHTS
Luxury segment to drive revenue per available room
Total revenue per available room recorded a review-period CAGR of 0.1%, from US$76.5 in 2012 to US$76.6 in 2016. It will post a forecast-period CAGR of 3.1% to reach US$89.4 in 2021. Revenue per available room in the luxury segment stood at US$140.7 in 2016. The decline recorded during 2015-2016 was due to the impact of Hurricane Odile in September 2014, which forced luxury resorts at Los Cabos to close for several months. Revenue per available room in the luxury segment is therefore anticipated to post a forecast-period CAGR of 3.9% to reach US$170.7 in 2021.
The fleet size of car rental firms to record growth
The fleet size of car rental firms recorded a CAGR of 1.8%, from 30,801 in 2012 to 33,133 in 2016 and will post a forecast-period CAGR of 1.8% to reach 36,274 in 2021 due to the strengthening of international and domestic tourism volumes. Due to the government’s restriction on vehicular use on account of air pollution concerns, car rental companies are devising alternative business propositions. In 2017, Hertz Mexico introduced a fleet of hybrid Toyota Prius vehicles, exempt from the restriction program.
New middle class population to drive growth
Total tourist volume recorded a CAGR of 5.2%, from 237.4 million in 2012 to 291.2 million in 2016. Tourist volumes are expected to post a forecast-period CAGR of 6.9% to reach 406.7 million. Growth was due to a rise in travel for leisure purposes on account of an emerging middle class population. The situation was supported by the depreciation of the peso, which led to an increase in international arrivals.
SCOPE
SUMMARY
Mexico has numerous attractive destinations, which coupled with the depreciation of the peso, is driving the influx of inbound tourists. In 2016, international arrivals increased at an annual growth rate of 8.8%, rising from 32.1 million in 2015 to 34.9 million in 2016.
In the passenger airline segment, the number of seats available and volume of seats sold recorded respective review-period (2012-2016) CAGRs of 6.9% and 8.0%. Growth was primarily driven by demand from foreign tourists. Passenger airlines revenue recorded a review-period CAGR of 2.0% due in part to revenue derived from full-service airlines. In the accommodation segment, there was an increase in the number of room nights available at a review-period CAGR of 2.1%; the number of room nights occupied posted a CAGR of 4.9%. Growth was driven by an increase in the volume of tourists.
MarketLine Premium’s industry reports provides a comprehensive overview and include sections on risk and reward, key industry trends and drivers, SWOT analysis, industry benchmarking, competitive landscape, industry innovation, deals and key developments.
KEY HIGHLIGHTS
Luxury segment to drive revenue per available room
Total revenue per available room recorded a review-period CAGR of 0.1%, from US$76.5 in 2012 to US$76.6 in 2016. It will post a forecast-period CAGR of 3.1% to reach US$89.4 in 2021. Revenue per available room in the luxury segment stood at US$140.7 in 2016. The decline recorded during 2015-2016 was due to the impact of Hurricane Odile in September 2014, which forced luxury resorts at Los Cabos to close for several months. Revenue per available room in the luxury segment is therefore anticipated to post a forecast-period CAGR of 3.9% to reach US$170.7 in 2021.
The fleet size of car rental firms to record growth
The fleet size of car rental firms recorded a CAGR of 1.8%, from 30,801 in 2012 to 33,133 in 2016 and will post a forecast-period CAGR of 1.8% to reach 36,274 in 2021 due to the strengthening of international and domestic tourism volumes. Due to the government’s restriction on vehicular use on account of air pollution concerns, car rental companies are devising alternative business propositions. In 2017, Hertz Mexico introduced a fleet of hybrid Toyota Prius vehicles, exempt from the restriction program.
New middle class population to drive growth
Total tourist volume recorded a CAGR of 5.2%, from 237.4 million in 2012 to 291.2 million in 2016. Tourist volumes are expected to post a forecast-period CAGR of 6.9% to reach 406.7 million. Growth was due to a rise in travel for leisure purposes on account of an emerging middle class population. The situation was supported by the depreciation of the peso, which led to an increase in international arrivals.
SCOPE
- Risk & Reward Index - The Risk & Reward Index compares the lucrativeness of the Mexican travel and tourism industry with other countries in the region via a set of specific risk and reward parameters.
- Industry Snapshot and Industry View - Key travel and tourism industry statistics, including revenue and expenditure in key segments and trends driving market performance.
- Industry SWOT Analysis - Discover the strengths, weaknesses, opportunities and threats impacting market performance.
- Industry Benchmarking - Benchmarks the Mexican travel and tourism industry’s performance against regional and global markets in terms of car rental fleet size, car rental revenue, number of hotels, hotel revenue, passenger airline revenue, seats available and seats sold, travel intermediary revenue, and tourism expenditure growth.
- Competitive Landscape - Overview of players in the Mexican travel and tourism industry, specifically airlines, hotels and car rental companies split by category and compared against their peers across a set of relevant industry indicators.
- How is the market performing in terms of indicators such as total tourist visits, passenger airline seats sold, seats sold by purpose of visit such as leisure, revenue, room nights available, room nights occupied, hotel revenue, car rental days among others.
- How risky is it to invest in the Mexican travel and tourism industry compared to other countries in the North America?
- What is driving the performance of key industry segments such as passenger airlines, accommodation and car rentals?
- Who are the leading players in the Mexican travel and tourism industry and their overview and product portfolio?
- What trends are being witnessed within the Mexican travel and tourism industry?
- What are the Mexican travel and tourism industry’s Strengths and Weaknesses and what Opportunities and Threats does it face?
- What are the recent developments and innovations in the Mexican travel and tourism industry?
Risk & Reward Index
Industry Snapshot
Industry View
Industry SWOT Analysis
Industry Benchmarking
Industry Performance
Competitive Landscape
Innovation
Deals
Key Developments
Appendix
Industry Snapshot
Industry View
Industry SWOT Analysis
Industry Benchmarking
Industry Performance
Competitive Landscape
Innovation
Deals
Key Developments
Appendix
