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 Travel & Outdoors | November 2006 
Where We Stand - An Overview of Tourism in Mexico
 Marion Edward - hotelinteractive.com
The October 2006 Sectur study, “Where We Stand” profiles the impact of tourism to Mexico’s economy: The tour and travel industry has the potential to become the most import source of foreign exchange for Mexico. This requires consistent long-term policy measures in marketing, facilitation and in the promotion and encouragement of investment.” Noting that tourism is the key to Mexico’s economic development, Sectur declares tourism is also the source for generation of wealth among all socioeconomic groups and an activity, which involves all levels of government.
The significance of tourism to Mexico can be understood as a win/win situation: it’s a lucrative investment for developers and a source of sustainability for the Mexican government and its population. By 2013, it is estimated that Mexico will be the world’s 2nd fastest-growing destination. As of 2005, Mexico claimed 15% of the world tourism market (808 million). Domestically, Mexican tourism grew faster than the world tourism market in 2005, experiencing a 9.1% change or 1.4% over world market tourism growth.
The third largest source of foreign exchange earnings, Mexican tourism has been a major source of compensation for Mexico’s trade deficit for the past decade in allotment of its surpluses toward the balance of payments. More than $11.8 million USD in foreign exchange earnings provided $4.2 billion for the tourism account in the balance of payments Tourism earnings have doubled from 1990 to the present.
From a macro perspective, tourism is 8 percent of Mexico’s GDP. The Mexican government is allotting 50 percent of revenues raised from non-immigrant visitors to be earmarked for the Mexican Tourism Board. Additionally, private sector investors are expected to fuel the economy with $10 billion. Proactive planning is in place to maintain the cultural heritage of Mexico’s different states while also protecting environmental assets and counteracting poverty. In 2005, tourism provided 180,000 jobs. Municipalities affected by tourism revenue have demonstrated healthy economies of scale. Collaborated efforts are reallocating resources to develop new and different destinations beyond the traditionally-recognized tourism centers of Cancun, Cozumel, Acapulco and Mexico City.
Highly-competitive hospitality companies such as Wyndham, InterContinental Hotels Group, Choice Hotels, Marriott International, Accor and Starwood, are jockeying with the popular condo investor market for beach destinations, business centers and other key commercial markets. Investors and owners note the significance of domestic tourism consumption, estimated at 80 percent while from 1993 to 2006, international tourist arrivals have achieved or exceeded 2 million consistently.
Mexico’s market strengths and opportunities are abundant natural and cultural resources, exceptional geography in proximity to major feeder markets and a current government infrastructure of tourism support with a relatively low operating cost. Leisure and business travel abound offering five-star resorts at beach locations to extended-stay, mid-scale hotels in the country’s commercial centers.
Noting the popularity of lifestyle marketing in hospitality, Mexico’s range of vacation venues appeal to the ecologist, the adventure traveler, the historian, artist, sun and surf fan, deep sea fisherman, archaeologist/anthropologist, shopper, family, honeymooner, student, single traveler. Convenient access by car or air travel facilitates today’s demand by Americans in search of value for dollars spent. For the uninitiated, the expanse of Mexico is an amazing palette of topography, cultures, cuisines and lifestyles. A viewer of the recent film, “Frida”, memorializing the life of artist, Frida Kahlo, need only reflect on the tremendous evolution of Mexico City’s metropolis within the last hundred years.
Whether tourist or investor, it is beneficial to understand Mexico’s essence prior to embarking on a trip or business venture. Despite a period of past challenges with international events, natural disasters and economic instability, Mexico’s economic growth rate has returned to historic levels. In 1994, Mexico, the U.S., and Canada negotiated the North American Free Trade Agreement (NAFTA), which was designed to erase trade barriers. The government, enjoying the US$44 billion accrued investment, currently appeals to the international convention market with its incentive of a zero tax charge when foreign countries hold meetings in Mexico.
Unique in the travel and tourism industry is FONATUR (Mexico’s National Trust Fund for Tourism Development). FONATUR is charged with planning and developing sustainable tourism projects. Integrally Planned Resorts (IPR) are a FONATUR initiative which have two principal objectives: develop a resort that integrates and respects the surrounding natural environment through targeting the project to low environmental impact tourism and boost the area’s economy
The IPR for Nayarit will be developed in three stages: Litibu, El Capomo and La Penita. The total area is 2,175 acres and is forecast to offer by 2025 tourist and residential lodging for 14,500 rooms, 1,025,000 affluent tourist visits per year which will generate an income of US$866 million with an estimated investment infrastructure from US$178 million, private tourism investment up to US$1,800 million and the creation of 17,400 new jobs. By positioning itself within convenient reach of well known Puerto Vallarta and providing for an 18-hole, par 72, PGA-Certified golf course designed by Greg Norman, FONATUR is insuring satisfaction for the requirements of the tourist residences and hotel visitors who will patronize its club house, purchase its residences and enjoy its shopping and entertainment centers.
FONATUR and its five integrally planned resorts: Cancun, Los Cabos, Ixtapa, Loreto and Huatulco, have helped multiply tourism in Mexico by a factor of six. Together they contain 258 hotels and more than 38,526 rooms. FONATUR's destinations now represent 40 percent of Mexico's hotels, receive 46 percent of foreign tourists that visit Mexico and generate 54 percent of Mexico's foreign exchange earnings from tourism. The occupancy rate of the hotels installed in FONATUR's Integrally Planned Resorts in 2003 reached 64.36 percent--nearly 8 percentage points higher than that of Mexico's other beach resorts.
FONATUR's Integrally Planned Tourism Project "Costa Maya" is being designed as an upscale vacation destination in the Mexican Caribbean south of Cancun that meets the most rigorous environmental standards--targeting those attracted to eco-tourism and adventure travel, diving, fishing and golf.
Comprising 31,344 acres and offering 6,000 hotel rooms, beach clubs, three golf courses and a theme park, Costa Maya will feature an ecological reserve situated on 83.2 percent of its property. The development, which is expected to spark economic growth in southern Quintana Roo State, will create an estimated US$730 million in revenue from foreign tourism.
FONATUR's Sea of Cortes project is the first sustainable tourism project oriented at promoting, organizing and regulating tourism development in the states of Baja California, Baja California South, Sonora, Sinaloa and Nayarit. While this project is close to the heart of Mexico’s current government, it is historically one of the earlier areas that has seen quiet, consistent development over the past thirty years.
Looking back or forward, Mexico is positioned for prosperity and abundant growth in tourism. Its civilization is ancient; its resources for ecotourism abound; its infrastructure through FONATUR is supportive. |
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