The tourism industry is one of the most important in the world. Several countries view tourism as a genuine source of sustainable development. Tourism also contributes to the country’s economic growth. Furthermore, the arrival of foreign tourists generates foreign exchange revenue; according to federal authorities, tourism in Mexico has the potential to surpass remittances as one of the country’s most important sources of foreign exchange.
Mexico has secured a prominent spot in the global top 10 ranking of recipients of foreign direct investment, ranking as the ninth-largest recipient of foreign investment in 2020. However, although the country moved up in this ranking, the difficulties caused by the COVID-19 crisis did not go unnoticed; as a result of this setback, the flow of foreign visitors decreased by 14.7% compared to 2019.
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Benefits of Growth in Mexico’s Tourism Sector
Growth in the tourism sector has an impact on Foreign Direct Investment. This effect is reflected in large-scale private projects such as luxury hotels and resorts. From January through September 2021, Foreign Direct Investment (FDI) was reported to be 5.7% higher than in the same period of the previous year, totaling 24,831 million dollars (mdd) in FDI.
Tourism development serves as a tool for combating poverty, since an increase in the number of tourists leads to economic growth and higher contributions to tax revenues. Tourism plays a very important role in job creation thanks to business expansion driven by the need to meet the demands of the constant flow of visitors.
For the Mexican Republic’s economy, the tourism sector plays a very important role by contributing significantly to the national Gross Domestic Product; it also serves as a means of achieving economic growth and progress.
Mexico’s Tourist Attractions
Mexico generally enjoys a very pleasant climate, a factor that makes the country an excellent destination for millions of foreign visitors throughout the year.
Mexicans are generally very friendly and hospitable. This attitude influences, to a greater or lesser extent, how tourists feel during their stay in the country.
The cultural scene is one of the country’s most notable features, offering everyone a variety of opportunities to enjoy recreational and cultural activities that take place throughout the year in different states.
Furthermore, Mexico is home to several “magical towns” steeped in history, symbols, and legends that reflect the nation’s identity. Additionally, several Mexican sites are listed as World Heritage Sites, making them part of humanity’s shared heritage.
What types of tourism does Mexico offer?
- Cultural. Mexico’s cultural heritage is immense. Tourists can visit the Mayan and Aztec ruins scattered throughout the country, such as Teotihuacan and Chichén Itzá, and learn about the traditions of the different peoples.
- Beach. The country offers some of the best beaches in the world, located on the Riviera Maya, and is a favorite destination for tourists.
- Culinary. Mexican cuisine is one of the best known worldwide, and it’s the reason many tourists visit the country.
Mexico, one of the most visited countries
Although the tourism sector was affected in 2020 and 2021 as a result of the pandemic, which led to a series of travel restrictions, the country has managed to recover from this crisis. In fact, Mexico was the third most-visited country during the pandemic in 2020, a fact attributable to the fact that, in the most popular tourist areas, health measures were significantly relaxed to facilitate the stay of foreign travelers.
Despite the global decline in tourism, the sector has gradually rebounded, contributing to substantial growth in the Mexican economy. Currently, Mexico is the third most-visited country in the world.
Outlook for Mexico’s Tourism Sector in 2022
Now that the world is beginning to see greater flexibility in travel to different destinations—provided that the protocols established by each country in response to COVID-19 are followed—various work activities have resumed almost entirely. For the Mexican tourism sector, this is a great opportunity to regain stability and, as much as possible, make up for the losses caused by the pandemic.
- The outlook for the country is favorable in 2022, according to the Ministry of Tourism (Sectur). As stated by Tourism Secretary Miguel Torruco Marqués, tourism spending will total 146 billion dollars, a significant 12% increase compared to 2021.
- The number of flights Mexico expects to receive has shown a significant increase. It is estimated that 22.5% more passengers will enter the country than in 2019, before the pandemic.
- In 2019, tourism GDP accounted for 8.7% of the national GDP. In 2021, tourism GDP stood at 7.1%. This year, tourism GDP is expected to reach 8.3% of the national economy.
- Tourism spending on lodging is projected at 13,374 million dollars. Forty million foreign tourists are expected to arrive, 8.2 million more than in 2021. Average spending per visitor is projected to be $379.8, 6.1% more than in 2021.
Tourism projections for Mexico point to very strong growth; consequently, the development and expansion of this sector are expected to be positive.
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