Mexico is one of the most important tourism powerhouses not only in Latin America but in the entire world. Its appeal lies in a perfect balance between the natural beauty of its landscape and its cultural richness. Not to mention that Mexico’s hotel industry offers unparalleled service. In fact, Mexico is considered the seventh country with the best hotel infrastructure in the world.
As one of the top tourist destinations, Mexico has a large hotel industry to meet the needs of visitors. Below, we explain in simple and detailed terms everything you need to know about the hotel sector in Mexico. We also discuss the outlook and projections for the hotel industry in the future.
Table of Contents
The Importance of the Hotel Industry in Mexico
In 2021, Mexico ranked as the second most popular tourist destination in the world. The country boasts nearly 200 archaeological sites, more than 100 “magical towns,” and 34 sites recognized as World Heritage Sites. It also has just over 11,000 km of coastline for tourists to enjoy their beach vacations.
Tourism is one of the country’s largest sources of revenue, second only to international remittances. In addition, tourism promotes the empowerment, integration, and income generation of historically marginalized populations, such as rural communities and indigenous peoples. The tourism sector generates more than 4 million jobs and contributes just over 4% of the national gross domestic product.
The Hotel Industry in Mexico as a Pillar of the Economy
The hotel industry accounts for 28.7% of Mexico’s tourism gross domestic product (GDP). Each hotel room generates 1.5 direct jobs and 3 indirect jobs, which accounts for 9% of the sector’s jobs. By 2020, despite the pandemic, Mexico ranked as the seventh country with the best hotel infrastructure in the world.
The Mexican hotel industry contributes more than 8.7% to the national GDP, according to the National Institute of Statistics and Geography (INEGI). Although hotel occupancy fell by 28.9% in 2020, it rose by 17.3% in 2021. As a result, the Mexican hotel sector began 2022 with a promising outlook.
According to Braulio Arsuaga Losada, the hospitality industry is considered important for Mexico because it creates jobs and is both sustainable and cutting-edge. Arsuaga is the president of the National Association of Hotel Chains (ANCH), which brings together the various hotel chains operating in Mexico.
Among them are Meliá Palace, NH Hotels, Barceló, AMResorts, City Express, Grupo Posadas, Hyatt, Brisas, and Grupo Presidente.
Investment in Mexico’s Hotel Sector in 2022
According to Miguel Torruco Marqués, by the end of February, more than 215 million pesos had been invested. Mexico’s Secretary of Tourism explained that this figure is broken down into 521 projects within the tourism sector. He also stated that more than 75% of these projects involve the construction of new hotel rooms.
This investment would create more than 115,000 new direct and indirect jobs in the beneficiary states. The state with the largest investment in the sector is Nayarit, followed closely by Mexico City and Baja California Sur. In addition, the states of Yucatán, Guerrero, and Quintana Roo also received a share of the investment.
Global Overview of the Hotel Industry
One in every 10 jobs worldwide is supported by the hospitality and tourism sector. In Europe alone, the sector generates more than 25 million jobs across hundreds of companies. During the pandemic, most of these jobs were lost due to the decline in flights and biosafety protocols.
Despite the health crisis, Mexico ranked as the second most-visited destination worldwide in 2021. International tourists specifically favored the state of Quintana Roo.
Other popular destinations, such as France, Italy, Spain, Germany, the United States, and Turkey, suffered significant losses. More than 60% of tourists chose to visit other countries. Mexico, on the other hand, saw only a 19.4% decline in international visits in 2021.
How many hotels are there in Mexico?
One indicator of the success of a country’s hotel industry is the number of hotels in that country. Therefore, How many hotels are there in Mexico? Mexico ranks seventh in the world in terms of the number of hotels: it has more than 24,000, with a total of 854,000 rooms. To get a sense of the strength of Mexico’s tourism sector, let’s take a look at the numbers: the number of hotels has risen from 14,000 to 24,000 in just 15 years. That is why, when assessing the state of the tourism sector in Mexico, it is not only important to consider how many hotels there are, but also how many have been built in recent years.
Projections for the Hotel Industry in Mexico in 2022
Mexico expects a 22.5% increase in tourism revenue compared to 2021. Likewise, a 25% increase in the number of international visitors is projected, which will have a positive impact on hotel occupancy. The goal is for the annual average to exceed the previous year’s figures by 12.9 percentage points.
Miguel Torruco Marqués stated that by the end of the year, tourism spending will exceed 146 billion dollars. This would represent a 12% increase over the previous year—provided, of course, that both international and local spending are included.
Mexico’s Secretary of Tourism noted that more than 40 million international visitors are expected to arrive. That is more than 8 million more than the previous year, representing a 25.6% increase.
Let’s remember that, after remittances, the hotel and tourism industries represent the country’s largest source of foreign exchange earnings. Foreign exchange earnings from international tourists are expected to exceed 24,000,000 U.S. dollars in 2022. The per international tourist is estimated to be approximately $380, according to Mexico’s Ministry of Tourism.
Tourism’s share of GDP within the national GDP. The ideal forecast is for it to reach 7.1% of the national economy. Ultimately, the goal is to regain a share of more than 8.3%, just three-tenths of a percentage point below the 2019 level.
