- Mexico ranks second worldwide in medical tourism.
- Mexico ranks fourth in cultural tourism.
- It is one of the best places for retirement in the world.
- It is the sixth country with more sites declared as "World Heritage" in the world.
- Mexican cuisine is one of the three kitchens in the world declared Intangible Cultural Heritage by UNESCO.
Mexico’s gross domestic product reached about $1.3 trillion in 2014 (+2.1% versus 2013) and ranks as the 15th largest economy in the world and the second largest in Latin America (after Brazil). The Mexican economy is strongly linked to the economic activity of the United States and presents a high incidence of the tourism industry (about 8.5% of national GDP).
- The headline inflation expectations for year-end 2015 and 2016 will be 3.47% and 3.49%, respectively.
- The annual rate of average growth of GDP for 2015 and 2016 are 3.83% and 4.12% respectively, and is forecast to grow around 4% annually over the next 10 years.
- The exchange rate of the peso against the dollar may close at 13.08 pesos in 2014 and 12.95 at the end of 2015.
Most of the international tourists who arrive to Mexico come from the United States and Canada. European tourists also are important for inbound tourism in the country, though the Latin American countries also have been increasing their participation during the last few years.
Click chart to enlarge.
According to the 2013 International Congress and Convention Association Rank, Mexico is the fifth most relevant destination regarding meetings-incentives-conventions-and-exhibitions tourism, hosting 158 international events during 2013.
Quintana Roo, where some of the most important beach destinations such as Cancun, Playa del Carmen and Tulum are located, concentrates more than 15% of the total hotel supply in the country, according to DataTur. Jalisco (Guadalajara, Puerto Vallarta) and the Federal District (Mexico City) concentrate 11.5% and 8.9%, respectively.
Click chart to enlarge.
The hotel rooms’ supply has increased more than 60% since 2000, reaching a 4% compound-annual-growth rate.
According to STR, parent company of Hotel News Now, during the past few years the Mexican market has presented an accumulated growth of 13% in terms of average occupancy rate, with occupancy rates between 55% and 62%. Moreover, average daily rate presented an accumulated growth of 17% in U.S. dollars between 2010 and 2014. This resulted in, according to occupancy levels, a significant accumulated growth of the revenue per available room of 33% in U.S. dollars between 2010 and 2014.
When comparing Mexico with other Latin American countries, it is the only country that showed a sustained growth level during the last few years.
- Over the last few years the hotel industry in Mexico has experienced a remarkable change regarding its source for financing development. The FIBRAs (real estate investment trusts focused on real estate development and acquisition) have shown their interest in the hotel industry and become relevant players in the market.
- Fibra Hotel and Fibra Inn are two of the main REITs that are developing hotel projects in Mexico.
- Fibra Hotel holds a portfolio of 42 hotels, mostly focused in the budget and midscale segments (business hotels) and managed under national hotel flags such as One and Fiesta Inn (Grupo Posadas), Real Inn and Camino Real (Grupo Real Turismo).
- FIbra Inn holds a portfolio of 31 hotels also focused in the budget and midscale segments (business hotels), but they are mostly managed under international flags such as Hampton Inn (Hilton Worldwide Holdings); Holiday Inn, Holiday Inn Express and Crowne Plaza (InterContinental Hotels Group); Aloft (Starwood Hotels & Resorts Worldwide); Microtel and Wyndham Garden (Wyndham Hotel Group); and Courtyard, Fairfield and Marriott (Marriott International).
- Other relevant players in the market such as the largest national hotel chains (City Express, Grupo Posadas) seek for expansion through initial public offerings.
- The 3-, 4- and 5-star hotels are the main drivers of development in the country.
- According to STR, as of March 2015, Mexico had 20,250 rooms in 125 hotels under contract.
- The government has taken various actions toward the consolidation and modernization of Integrally Planned Centers. The National Tourism Development Fund has invested more than $100 million distributed in Cancun, Ixtapa, Loreto, Los Cabos, Huatulco, Playa Espiritu and Riviera Nayarit from September 2013 to August 2014.
- Some of the largest hotel brands (Posadas, Starwood, Hoteles City, Marriott, AM Resorts, IHG, Hyatt, Hilton, NH Hotels, Barceló, RIU Hotels ) have expansion plans in the country.
- The slow, yet steady improvement of the U.S. economy is expected to impact positively in the Mexican tourism industry.
- Not only the international brands are expected to growth significantly over the next years, but also the Mexican hotel chains are starting to expand outside Mexico. City Express Hotels, for example, is opening the first hotels in Costa Rica and Colombia.
Maria José Gutiérrez currently holds the position of International Director in Horwath HTL LatAm and Managing Director in Horwath HTL from Mexico and Colombia. She specializes in ski resorts, residential tourism, thermal tourism, hotels and resorts conceptualization, golf courses, marinas and tourism standards and quality. She has led and participated in conceptualization projects, feasibility assessment and market research, besides generating private investment for projects promoted by public administration and prospecting demand for destinations. She was member of the Intersectorial Committee of Certification of the ICTE -Instituto para la Calidad Turística Española- and member of the writing committee of tourism quality standards and their application in thermal and spa establishments for ICTE and ANET in Spain. Recently, María José Gutierrez created the Colombian Tourism Thermal Project for the country’s government; in addition, she conducted a research study of the potential hotel development in the eight most important cities in the country. Throughout her extensive career, she participated in the development of projects in Mexico, Colombia, Argentina, Brazil, Chile, Panama, Peru, Dominican Republic and Ecuador. She has also developed projects in European countries such as Bulgaria, Croatia, Czech Republic, Germany, Poland, Portugal, Romania, Russia, Senegal, Spain and Ukraine.