Tourism
From The Report: Mexico 2015
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Two straight years of record growth in Mexico’s tourism sector have solidified its importance as a motor for economic growth. Tourism contributes over 8.7% to Mexico’s GDP, employs 3.6m people directly and is the fourth most important source of foreign currency. The sector exceeded growth expectations for 2014, registering a record number of international tourist arrivals, at nearly 29.3m, and generating revenues of nearly $16.2bn, enabling the country to reclaim its spot among the top 10 tourist destinations in the world, according to the UN World Tourism Organisation. The outlook for the industry is particularly positive. Rising demand for accommodation is driving growth in the hotel market and raising investor interest, while government efforts to boost the competitiveness of tourist destinations and increase promotional efforts should see greater diversification of both the tourist offering and source markets in the coming years.

This chapter features an interview with José Luis Castro, CEO, CTS (Corporate Travel Services).

Articles from this Chapter

Overview

Looking ahead: Authorities are laying the foundation for long-term growth
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Two straight years of record growth in Mexico’s tourism sector have solidified its importance as a motor for economic growth. According to the Ministry of Tourism (Secretaría de Turismo, SECTUR), tourism contributes over 8.7% to Mexico’s GDP and employs 3.6m people directly, 57% of them women. It is also the fourth most important source of foreign currency. Given its dynamic performance, the sector was recognised as a pillar for development. Government authorities are working to establish a…

Interview

Warm welcome: OBG talks to José Luis Castro, CEO, CTS (Corporate Travel Services)
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Interview:José Luis Castro What is the size of the local travel agency industry? JOSE LUIS CASTRO: It is very complicated to measure the size of the industry, as the launch of low-cost carriers (LCCs) has affected the measurement. In the past, we had a ranking based on the bank settlement plan (BSP), but since LCCs also withdraw from the BSP we can only measure the size of the air industry by omitting LCCs, which gives us an estimate of $3bn – an amount that in our view is very conservative.…

Analysis

After a piece of the pie: States eye economic benefits of expanding the MICE segment
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With Mexico regaining its spot among the world’s top 10 tourist destinations in 2014, it is no surprise that the meetings, incentives, conferences and exhibitions (MICE) segment is becoming increasingly dynamic. Recognising the segment’s importance, particularly for states that have traditionally been primarily sun and sand destinations, state authorities are now developing strategies to raise their competitiveness, with a view to attracting a bigger share of events. The current investment in…

Analysis

Changing landscape: Introduction of public investment vehicles helping to shape hotel market dynamics
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The Mexican hotel industry has been in recovery mode since 2009, after feeling the effects of the economic downturn from the 2008 financial crisis and the breakout of the H1N1 virus in 2009. According to consultancy firm Jones Lang LaSalle (JLL), the industry posted average annual growth of 4.7% on occupancy rates and average daily rates in the period from 2009 to 2014, while revenue per available room grew at an annual average of 9.5%. Six consecutive years of improving performance has, once again,…