PUERTO VALLARTA (PVDN) – Mexico is still a good bargain for tourists. Still, the strengthening of the Mexican Peso over the past year has made it a little more difficult for the middle-class Americans who save all year for vacation to consider Mexico. With a stronger peso and inflation, the cost of vacationing in Mexico has increased by 20% or more compared to 2022.
The summer of 2023 has seen fewer international tourists arriving at Mexico’s prime beach destinations than in 2022, according to newly released data. Airports in Cancun, Cozumel, Huatulco, Los Cabos, La Paz, Puerto Vallarta, Mazatlán, and Zihuatanejo recorded a collective 8.9 million international tourist arrivals between June and September this year, nearly 100,000 fewer than in 2022.
Data from the Southeast (Asuer), Pacific (GAP), and Central North (Oma) airport groups indicate that there was a noticeable annual decrease in international passenger numbers in July and August. Airports in Cancun, Los Cabos, and Puerto Vallarta, which account for two-thirds of international tourist arrivals in Mexico, witnessed this decline extending into September. Particularly concerning were the double-digit losses recorded in Mazatlán and La Paz during the four months examined.
Francisco Madrid, director of the Anahuac Tourism Research and Competitiveness Center (Cicotur), highlighted several reasons behind the drop in international travelers by air. Chief among them was the strengthening of the Mexican peso against the dollar, making Mexico a relatively more expensive destination. A lack of effective promotion and ongoing concerns about violence in the country also contributed to the decline.
Madrid further cautioned that a significant contributing factor was the reopening of other global destinations that compete directly with Mexico. “Mexico greatly benefited in 2021 and much of 2022 because many countries remained closed, had travel restrictions, or were not considered reliable destinations. This allowed Mexico to gain significant market share,” said Madrid.
The resurgence of travel to Europe, mainly from American tourists who form Mexico’s primary market, was another reason for the decrease. In previous years, travel restrictions and pandemic-related concerns had boosted foreign travelers to Mexican shores. However, the reopening of global destinations has seen American tourists increasingly prefer European destinations.
The appreciation of the Mexican peso by 15 to 17 percent annually against the dollar this summer was another point of concern. “Practically speaking, the destination became more expensive, and the market recognizes it,” added Madrid. However, he noted that by September, the exchange rate approached closer to 18 pesos per dollar and is expected to stabilize for the remainder of the year.
Madrid added that insufficient foreign promotion, owing to budget cuts and the dissolution of Mexico’s Tourism Promotion Council (CPTM), as well as the persistent perception of insecurity, are also inhibiting factors. He warned that this decline in attracting foreign tourists to beach destinations will continue in the coming months, although a moderate recovery is anticipated towards the winter season.
The developments came when Mexico climbed to the third spot among the ten most visited nations in 2020, according to the World Tourism Organization (UNWTO). Though the rise was considered circumstantial by Miguel Torruco, head of the Secretary of Tourism (Sectur), it has nevertheless placed greater scrutiny on the country’s tourism sector as it navigates an increasingly competitive and rapidly changing landscape.
PUERTO VALLARTA (PVDN) - Mexico is still a good bargain for tourists. Still, the strengthening of the Mexican Peso over the past year has made . . .
