According to an article published online by The Wall Street Journal last Wednesday, Mexico’s Tourism Ministry has reported that private investment in the country’s tourism projects has risen 127 percent, hitting a whopping $903 million during the first three months of 2011 alone, as compared to the same period in 2010.
The vast majority of the newly allocated investment money has been flowing into Mexico City, which has received nearly $200 million dollars in tourism-related funds so far this year. The second largest recipient is reportedly Mexico’s state of Nayarit, which is located along the scenic Pacific coast, at $164 million dollars, followed by the central Mexico state of San Luis Potosi, which has been granted more than $100 million dollars.
According to the article, much of the new investment money will be dedicated to building new lodging and accommodations, while the rest will be dedicated to supporting and developing new real estate opportunities, as well as food and beverage services, which was another prime focus for the funding. These decisions were made based on data that was collected from investors, federal entities and various local business organizations throughout the areas that are receiving the funding.
Since 2006 when current Mexican president Felipe Calderon took office,Mexico has already secured more than $14 billion in tourism investment dollars. The country’s Tourism Ministry attributes this to the quick recovery of assets and investments in Mexico, which is supported by ideal macroeconomic conditions and a highly skilled workforce.
According to a report by the World Travel and Tourism Council, tourism is expected to account for more than 13 percent of Mexico’s gross domestic product, which is the value of all goods and services produced, and also will provide close to 15 percent of all domestic jobs, making tourism Mexico’s third largest source of revenue.