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Financial Times Predicts Tourism to Remain "Big Business" in Mexico

03 October, 2013

Not surprisingly,tourism is already Mexico’s fifth largest source of annual revenue – a number that is expected to increase dramatically over the next five years. In fact,the Financial Times predicts that tourism will reach the nation’s third largest source of annual revenue by 2018.

“There appears to be plenty of room for expansion in the industry,” writes the Financial Times. “Most visitors to Mexico are from North America. But Qatar apparently has eyes on Caribbean hotspot Cancun and the Riviera Maya – home to the imposing pre-Colombian ruins,Tulum.”

In fact,according to a recent report by Tourism Review,a group of Quatari investors are planning to invest at least $100 million to develop a new tourism project in the region,which demonstrates clearly that some of the world’s most skilled investors see plenty of room for growth in Mexico real estate.

“Last year,tourism generated $12.7 billion in foreign exchange inflows,according to a report by JP Morgan Chase & Co,a 10.5 percent increase versus 2011,” writes Bloomberg Businessweek. “Tourism trails manufacturing,oil,remittances and foreign direct investment as the nation’s biggest source of revenue." 

2012 saw a record number of visitors opting to soak up the sun in Mexico for vacation,with 24 million international visitors – a jump of more than 2.6 percent,according to the World Bank. All of this positive news has prompted Tourism Minister Claudia Ruiz Massieu to predict that tourism could easily represent one more point of GDP over the next few years,citing the “upward trend” in this important economic sector,which currently employs at least seven million people.

“Tourism’s participation in Mexican gross domestic product will climb 100 basis points to 9.4 percent by the end of President Enrique Pena Nieto’s administration,” reports Bloomberg. “This will be driven by more visitors from countries outside of North America and better tourism facilities.”

She says Mexico is currently focusing on attracting more visitors from emerging markets,including Argentina,Brazil,China and Russia. Also,the number of visitors heading to Mexico each year from the U.S. and Canada continues to grow annually,right along with the number of investors who are considering purchasing real estate in Mexico as a way to diversify and protect their portfolios from the volatility of the stock market.