12 Aug 2019
Posted in Consumer
Mexico forecast to increase international arrivals to 2023, but closure of DMO international office slows growth of inbound travelers, says GlobalData
While Mexico continues to grow its international arrivals, the actual compound annual growth rate (CAGR) is set to fall from 8.9% for the period 2016-2019 to 7.1% for 2020-2023 – with the closure of its destination management offices (DMO) contributing to this slowdown, says GlobalData, a leading data and analytics company.
GlobalData’s latest report, ‘Tourism Destination Market Insights: North America (2019) – Analysis of source markets, infrastructure and attractions, and risks and opportunities’, reveals that while the country will see continual growth in the number of international arrivals threats of crime, rising competition and lack of international promotion will cause inbound arrivals to slow.
Johanna Bonhill-Smith, Travel & Tourism Analyst at GlobalData, comments: “A DMO acts as a vital marketing source for tourism, and removing it will have drastic effects. It is now crucial for Mexico’s regional and local tourism authorities to join forces to enhance international recognition and ensure continual inbound growth into the country.”
High crime rates will also be a contributor. More than 25,000 homicides occurred in Mexico during 2018, which increased by 15% from the previous year. President López Obrador aimed to tackle crimes and violence throughout the country yet the effects are still to emerge.
Bonhill-Smith continues: ‘Travelers are more adventurous and traveling further afield to explore unique destinations, but security and safety are still key factors within a holiday decision. Therefore, high crime rates and safety issues can severely affect a destination’s global image and reputation.”
Rising competition from key Caribbean destinations are also threatening Mexico’s inbound travel figures.
Bonhill-Smith adds: “Along the Yucatan Peninsula, Cancun and Playa del Carmen are still major tourism hotspots. Coastal destinations such as the Dominican Republic, Costa Rica and Jamaica are experiencing considerable growth.”
Information based on GlobalData’s report: ‘Tourism Destination Market Insights: North America (2019) – Analysis of source markets, infrastructure and attractions, and risks and opportunities