Market Report: Mexico

Mexico Market Update

The Mexican Market Report provides an insight of the current state of the Mexican economy, the tourism sector, and the evolution of variables that have a tangible influence on the hotel investment market amidst the COVID-19 pandemic. During 2019 Mexico was ranked number 7 worldwide for the number of international tourists (OMT). Tourism accounted for an 8.7% share of the Mexican GDP in 2018.

Horwath HTL Mexico experts diagnose the short/medium-term direction the market can be expected to take, including:

• Industry performance, KPIs and tendencies before the COVID-19 outbreak
• Responses and measures hotel-chains, owners and operators are taking as well as challenges presented for each sector of the tourism demand.

Key Findings:

• The behavior of Dollar-Mexican peso parity could result in a relevant competitiveness gain for the region.
• The tourism sector will not return to 2019 levels until the end of 2022
• The Mexican GDP will likely experience a fall of 8.3% for the 2020 period.
• There are no concrete countercyclical policies that incentivize a faster recuperation of the tourism industry.