Travel and Tourism in Mexico to 2017
Tourism accounted for 12.5% of Mexico’s GDP and 13.9% of its total employment in 2012.
Aarkstore Enterprise (India), 28th September, 2013 : Despite a decline in 2009 due to the financial crisis, the Mexican travel and tourism sector performed well over the last five years. Inbound trips to Mexico recovered to register a CAGR of 0.52%, and outbound tourist volumes posted a CAGR of 1.09% during the same period. Promotional activities by the tourism authority, coupled with relatively stable economic conditions, were the key growth drivers. According to the World Travel and Tourism Council (WTTC), tourism accounted for 12.5% of the nation’s GDP and 13.9% of its total employment in 2012.
Domestic tourist volumes increased from 174.2 million in 2008 to 194.3 million in 2012, at a CAGR of 2.78% over the last five years. Between now and 2017, volumes are anticipated to increase at a projected CAGR of 4.51%, to reach 242.2 million by 2017. The key growth drivers are expected to be economic stability, rising levels of consumer confidence and government initiatives to increase domestic tourism. Domestic tourism expenditure is forecast to increase at a CAGR of 8.39% over the next few years to value MXN2.4 billion (US$180.1 million) by 2017.
Over the last few years, inbound tourism rose at a CAGR of 0.52%, increasing from 22.6 million tourists in 2008 to 23.1 million in 2012 with the highest annual growth rate of 8.6% being recorded in 2010. Inbound tourist arrivals are expected to reach 25.8 million in 2017, expanding at a CAGR of 2.26%. The key drivers of this growth will be economic improvements in key source markets, improved access to travel services at increasingly competitive prices, and government efforts to promote Mexico as a tourist destination.
Mexico’s North American neighbors play a major role in tourism activity within the country. Realizing their importance, the Mexican government is taking steps to increase.