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LUXURY HOSPITALITY IN MEXICO.
Outlook &
Opportunities.
Mexico.
The economy is projected to expand by 1.9% in 2022 and 2.1% in 2023. Consumption will be supported by the gradual improvement in the labour market, remittances, and the increasing share of the population vaccinated.
Exports will continue to benefit from deep integration in global value chains and a gradual recovery in tourism.
Planned public infrastructure projects will benefit investment. Inflation will stand at 6.9% in 2022 and edge down to 4.4% in 2023.
It is the nation’s 4 star – and above – hotels that are proving to be the most popular choices when it comes to the accommodation
preferences of tourists, with such hotels being advertised at higher rates than those throughout the U.S. and Canada.
For example, in the month of December of 2021 – when many countries around the world were not even open for tourists – Mexico saw
the average price of their 4 star (and above) hotel rooms being advertised at around $280.
| SOCIAL INDICATOR | TREND |
|---|---|
| Poverty headcount ratio at $2.15 a day (2017 PPP) (% of population) | 3.1 |
| Life expectancy at birth, total (years) | 75 |
| Population, total 130,262,220 | 130,262,220 |
| Population growth (annual %) | 1.0 |
| Net migration | -300,000 |
| Human Capital Index (HCI) (scale 0-1) | 0.6 |
| ECONOMIC INDICATOR | TREND |
|---|---|
| GDP (current US$) | 1.29 (2021 trillion) |
| GDP per capita (current US$) | 9,926.4 |
| GDP growth (annual %) | 4.8 |
| Unemployment, total (% of total labor force) (modeled ILO estimate) | 4.4 |
| Inflation, consumer prices (annual %) | 5.7 |
| Personal remittances, received (% of GDP) | 3.9 |
This figure outweighed the average price of the equivalent standard of hotel room in the U.S., during the same time, by more than $100 – with the United States seeing their average price of a night at a 4 star (and above) hotel being sold for $160. The accommodation choices for tourists visiting Mexico are also proving to be significantly higher in cost compared to pre-pandemic times – with STR sales executive Rico Louwe
recently confirming that “hotels are charging much more than in 2019”.
What Makes Mexico's
Labor Rates Competitive
For years, Mexico has attracted foreign businesses mainly because of its competitive labor rates. For example, the average hourly wage for production operators in Mexico is
about $3.50 (USD) per hour. Even skilled laborers, like production engineers, receive a much lower income compared to the U.S. because Mexico’s cost of living is lower. IVEMSA has found that, on average, businesses see a 40 – 50%
savings in labor costs in Mexico.
TOURISM.
Mexico closed 2021 with 31 million tourists, who brought US$18.5 billion in revenue.
As reported by the World Tourism Organization, Mexico remains the most visited country in Latin America in 2020 (as it was in 2019). In fact, it became the third most visited destination worldwide during the pandemic year, despite losing 46.5% of its visitors.
The Mexican tourism sector is recovering. The average annual hotel occupancy expectation for 2021 was estimated at 45.9
percent, a 19.9-point growth from 2020.
The tourism sector represented 7.1 percent Mexico’s GDP for 2021 and is forecasted to represent 8.3 percent in 2022.
TOURISM IN MEXICAN CARIBBEAN.
The region around the Mexican Caribbean seems to be recovering the fastest, even if it is still far below the figures of two years ago as well. The contribution of this region alone to the GDP is forecast to grow by 47.3%, compared to 2020. Similarly, per capita tourist spending is forecast to
increase by over 60%. Notably, this development will also create up to 12% more jobs, which is particularly important given that around a quarter of all jobs in the region were lost during the pandemic. Globally, on the other hand, an increase of only 0.7% is expected.
Cancun International Airport is the main point of entry for the majority of the millions of tourists that have visited the Mexican Caribbean , which 2021 is positioned as the 10th place among the busiest airports in the world., with 12.3 millions of tourists.(1) Recently published statistics show that more than 20 million people have transited through Cancun’s airport between January and August 2022. And with four months left in the year, that number is projected to climb significantly.(2) Projections show that should the momentum continue, the airport is well on its way to reaching 26 million
passengers by the end of the year.
1. Airports Council International (ACI)
2. Grupo Aeroportuario del Sureste (Asur)
BIODIVERSITY.
Mexico has around 12% of the planet’s
biodiversity. (UNEP-WCMC)
The Yucatan Peninsula has 30% of the total.
PRESERVATION OF LIFE.
Quintana Roo has 11 Natural Protected Areas, that delimit because of their biological, cultural or historical wealth, in such a way that it seeks to regulate or impede the activity of man to preserve or restore them.
LIFE UNDERWATER.
The reefs of Quintana Roo are part of the second most important barrier reef in the world: the Mesoamerican Reef System (SAM), they extend over around 1000 km and provide numerous benefits to the area.
Water
The largest underground river system in the
world, called the Sac Actun System is
located along the Mexican Caribbean.
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