MEXICAN TOURISM UNCOVERED

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To build a tourism strategy that lasts and that works for all, you have to be realistic in analysing what works and what doesn’t. In the second of this ‘‘Uncovered’’ series of reports, experts at TOPOSOPHY lift the lid on tourism trends in Mexico and make an honest, frank assessment of the top priorities for government and business in the country today.

Domestic and international tourism in Mexico is continuously growing. The tourism industry growth continues to ride higher than the average national GDP growth and investment in the tourism sector is pouring into the country as the main source market, the United States, recovers from the global financial crisis.

Nevertheless image remains the main concern as incidents relating to organised crime continue to affect parts of the country and Mexican citizens have mobilized to demand more security as mid-term elections approach (Summer 2015). As this report will explain, the media often reports a distorted view of the reality of daily life in Mexico. Furthermore, Mexicans’ views of their own country can often be subject to an inferiority complex or over-influenced by current events.

Discover TOPOSOPHY’s take on the current state of Mexican Tourism in this candid report that aims to provide an external view and an independent perspective on how a tourism industry with high potential can deliver for the country in the future.

Study Snapshot: ITB World Travel Trends Report 2009/2010

The findings in the ITB World Travel Trends Report were based on the assessments of 60 tourism experts from 30 countries, on a special IPK International trend analysis undertaken in leading source markets, and on core data supplied by the World Travel Monitor, recognised as the largest ongoing survey of global travel trends in some 60 source countries.

Key Trends

Air Travel

  • The first decline in arrivals and receipts since 2003
  • Turnaround confirmed by monthly trends
  • Africa is the sole region to buck the general trend
  • Flat is the new growth
  • Premium travel has been the hardest hit …resulting in declining yields and continuing airline losses
  • Airlines Capacity cuts have been widespread …… but forecasts confirm the industry’s resilience
  • Airfares are set to rise in the short term …… but technological advances will generate longer-term efficiencies

Accommodation

  • Hotels slash prices to remain competitive
  • Signs of improvement are still very patchy
  • Local conditions are also expected to play a significant role in determining which types of hotel accommodation, in terms of design and functionality, are being conceived and planned for hotel guests of tomorrow.
  • corporate travellers losing further share of the market …… but spending on business travel remains strong

Markets

  • Longhaul destinations such as Europe are being hit hardest as Japanese, Chinese, Indians and Thais also choose to stay home or travel within Asia.
  • Travel demand for 2010 is likely to pick up, but spending is likely to lag at around 2005-2006 levels.
  • Prospects for 2010 will be greatly determined by any return of consumer confidence in Japan and China.

Main drivers of growth

  • Confidence levels are still relatively weak
  • Unemployment remains a major concern
  • Structural changes in the travel & tourism market …… due to changes in demographics and lifestyles
  • Unpredictable Consumers’ reaction in times of crisis

Strategies and responses to the downturn

  • Crisis reveals underlying structural weaknesses
  • New research, and new ways of using research
  • Changing the marketing message as well as the medium
  • Partnership is key
  • Business cycles are always with us
The report concludes, “There are currently too many uncertainties to be able to predict with any real confidence the likely trends in terms of travel and tourism demand from the world’s leading source regions. “For the time being, pending developments over the next few months, the best ‘guesstimates’ suggest that neither Europe nor North America will do better than achieve a flat year in terms of growth, unless the economic recovery is much stronger in the USA than currently expected. “But Asia Pacific should see at least a modest increase in outbound trip volume – mainly for intra-regional destinations – a trend also forecast for South America and the Middle East.”
Download the full report at ITB World Travel Trends Report 2009-2010