Mexico is poised to benefit much more than China from the massive growth in revenue and manufacturing among a variety of global industries over the next decade and has also drawn up several joint tourism agreements that will increase the number of Chinese visitors who vacation in Mexico.
“Mexico is the Next China,” Ferrari North America CEO Marco Mattiacci told Forbes in a discussion about the future of the worldwide luxury market. “We see indicators that a lot of manufacturing is moving back to Mexico. The quality of education is absolutely outstanding,and you have a proximity with the U.S. as well. Plus there has been a change of government.”
Furthermore,Mexico’s manufacturing exports are already number one in Latin America and the nation’s trade percentage of its GDP outpaces that of China,according to Fox News. Mexico’s GDP was around four percent in 2012 and is expected to increase by at least 3.3 percent annually over the next five years. Time magazine also reported that Mexico is well above any other nation in the region on the World Bank’s ease of doing business rankings,while the nation’s debt as a percentage of its GDP is only around 43.5 percent – which is less than halft that of the U.S.
Manufacturing isn’t the only thing Mexico is drawing away from China these days,with a growing number of the 400 million Chinese tourists who travel abroad each year opting to spend their holidays enjoying Mexico. Many of these visitors come to see firsthand the ancient ruins and fabulous resort cities of the Riviera Maya and Cancun real estate,which is one of the most popular destinations for Chinese tourists.
Between 2005 and 2012 the total number of Chinese tourists visiting Mexico grew by more than 360 percent – a trend that is unlikely to reverse,especially after a variety of new tourism agreements were developed during the Chinese president’s recent visit to Mexico. During the first quarter of 2013,the number of Chinese tourists visiting Mexico increased by more than 35 percent compared to the same period in 2012. Mexico is expected to work at streamlining the visa process for Chinese visitors and more flights from China to Mexico will likely be announced in the near future.
Finally,the new Dragon Mart project that is set to open in Cancun will promote Chinese trade with Mexico and the entire region. This multi-billion dollar facility will help Chinese investors and a wide variety of international traders to capitalize on the Latin American market and will also provide access to the large number of tourists and ex-pats who come to the region.