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.
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.
LUXURY HOTELS IN MEXICO - CATEGORY ANALYSIS – Source: Euromonitor International Dec -2021
KEY DATA FINDINGS
▪ Retail value sales increase by 33% in 2021 to MXN20.1 billion
▪ Punta Bete SA de CV is the leading player in 2020, with a retail value share of 14%
▪ Retail sales are expected to grow at a current value CAGR of 26% (2021 constant value CAGR of 22%) over the forecast period
Sales in Luxury Hotels: Value 2016-2021
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.
Measurements
Housings
