Mexico has always been a popular travel destination, but recent financial fluctuation along with other factors promote increasing rates of tourism. The Oxford Journal said record growth in the 2013 and 2014 Mexican tourism market included huge increases in domestic and foreign travelers.
More recently, Forbes said tourism is the country's fourth-largest source of foreign cash. Mexico responded to increasing travel demands by improving security and building new attractions for different visitors. Looking at the most recent factors increasing travel to Mexico, individuals and businesses can draw conclusions about the country's place in the foreign market.
More Mexicans choose to travel around their own country as the economy improves and the government provides more reasons for domestic tourism. The Mexican Ministry of Tourism reported domestic tourism should show a 4 percent annual growth rate between 2015 and 2020, according to Tourism-review.com. This means the country should see 100 million domestic travelers in 2020.
The growth rate is due in part to a strong economy in the beginning of 2016. The Mexican government wants to encourage domestic travel by creating new destinations and improving old favorites. In May 2016, 70 luxury hotels were under construction in the country. The Ministry of Tourism wants to modernize the country's hotel industry while taking advantage of its growing construction industry.
Another goal of the government is to create travel opportunities for citizens who haven't had the chance before. Initiatives are underway to provide trips for disadvantaged people and plan social tourism trips. Pumping money back into the country through fun vacations should keep growth consistent in the future.
One reason more Mexicans can pay for vacations is unemployment in the country is at a record-breaking low. Trading Economics reported the country's unemployment rate was 3.6 percent in March 2016. Many of these jobs are provided by foreign manufacturers that offshore or nearshore facilities in Mexico.
When foreign businesses have manufacturing locations and other offices in Mexico, managers and supervisors visit the country to get a look at operations. A Global Business Travel Association Report found business travel accounted for 1.5 percent of Mexico's global domestic product in 2015, according to Travel Daily News. The amount business travelers spent grew by 9.9 percent between 2014 and 2015, while overall travel volume increased 7.1 percent.
Many brands in North America choose to nearshore to Mexico to benefit from the country's skilled and cost-efficient workforce and favorable trade agreements. Another advantage of manufacturing in Mexico is U.S. company representatives shorten the distance they have to travel when moving between domestic and foreign locations. The depreciation of the peso at the end of 2016 also made it surprisingly affordable to vactaion in Mexico. If nearshoring continues to be popular, the business travel market will remain strong.
Mexico's proximity to the U.S. encourages many types of travelers. The Oxford Business Group research found over 50 percent of foreign visitors in Mexico come from the country's neighbor to the north. This can cause a variety of factors to influence tourism rates.
For example, when the U.S. suffers from particularly cold winters, Americans might head to Mexican beaches. Other influences may include the travel market itself. The Seattle Times said cheap gas prices will cause more vacationers to drive - instead of fly - in the summer of 2016. This could cause more Americans to take quick trips across the border.
Paste Magazine suggested travelers may have outdated notions about the security of Mexico, but most people recognize that it's a big country and most areas are as safe as any other vacation destination. Individuals planning a trip or companies researching offshoring advantages should speak with companies well-versed in local culture to see where is the best place in Mexico for a short trip or a new business location.