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“One of the advantages that Mexico developers have
is that they can provide the services at a much lower price
point,” says Agostini, noting that many Mexico resorts include
daily maid service, and a wide array of amenities and dining
experiences.
SECTUR has already set its sights on strengthening
the bond with a promising niche in the U.S. market—Hispanic
residents, who comprise 20 percent of the U.S. popula-
tion and spend approximately US$7,000 per household
annually on leisure and entertainment activities. A social
media campaign called #MiMexico was designed to shift the
perception of Mexico from a place just to visit relatives to
a vacation hotspot by sharing personal stories, tastes, and
sensations of the many Mexicos that the country offers, and
highlighting where their money goes further.
Canada continues to be a strong secondary market, and
arrivals from Europe (especially the U.K., Italy, and Germany),
Latin America, and the Caribbean grew by about 13 percent in
2014, with visitors from Colombia spiking by 25 percent. While
Asian countries still account for a small share of international
arrivals (3 percent), visitors from China increased by 25 percent
in 2014, prompting SECTUR to launch a “Close to China” seal
of approval for hotels and travel agencies. It is also pressing to
simplify visa procedures for Chinese tourists.
No Place Like Home
“We must never forget about the local travelers,” Agostini
says. “Mexico has 130 million people, with a younger popula-
tion and an emerging middle class. That is a huge opportunity
to drive traffic to resorts.” According to SECTUR, the domestic
market makes up more than 80 percent of tourist spend-
ing. The number of national tourists traveling to the 70 most
popular tourist destinations in the country—many well-
beyond the iconic beach resorts—rose 18.7 percent
between 2008 and 2014.
“Our business primarily has been catering to U.S. and
Canadian travelers, because that’s where the business began,”
Agostini says. “But there’s also a big opportunity for more
moderate-tier products or products that cater more to the
national traveler, because no one’s looking at them and I believe
there’s a huge opportunity.”
Diversify, Diversify, Diversify
For decades, Mexico’s spectacular Caribbean and Pacific
beaches have been the centerpiece of tourism. But there is
much beyond to appeal to a new generation of travelers who
are interested in experiencing new cultures and cuisines. With
33 UNESCO World Heritage sites and a gastronomic tradi-
tion declared by UNESCO to be an intangible custom, Mexico’s
ancún, once a swampy spit of sand in the Mexican Caribbean,
is home to more than a dozen Five Diamond hotels. In 2016, new
properties and direct flights from more U.S. destinations, as well
as Europe and Colombia, lead to what could be a record year, with
more than 6.5 million visitors. The dusty dunes of Los Cabos at the
tip of Baja California Sur are now cloaked in 14 championship golf
courses. The luxury enclave is in the midst of a real estate boom
that is on course to add nine new resort properties by the end of
2017. With 36 beaches stretching 22 miles (35 kilometers) across nine
bays, Huatulco has enjoyed growth and sustainable development,
according to strict guidelines set down by FONATUR. As a certified
sustainable tourism destination with EarthCheck platinum certifica-
tion, it is on the front line of the growing trend in ecotourism.
More than 40 years after FONATUR got to work, Mexico is the
ninth most-visited country, according the United Nations World
Tourism Organization (UNWTO). In 2015, 32 million international tour-
ists arrived in Mexico—10 million more than in 2005. Numbers have
grown yearly, increasing 9 percent in 2015 after a 21-percent spike in
2014. By August 2016, numbers had increased again by more than 8
percent and are anticipated to continue on an upward trajectory. The
cruise segment grew by 29 percent in 2014, according to Banco de
México. And after six consecutive years of improved performance in
the hotel industry, investors are spinning big plans. Grupo Vidanta will
invest nearly US$1.28 billion in theme parks, expansions, and new
projects.
A New Chapter
In the face of almost every kind of setback—recession, hurricanes,
drug cartel violence, Zika—Mexico’s tourism sector has rallied.
Today, the sector accounts for about 8.5 percent of Mexico’s GDP.
New government initiatives are writing the next chapter in this suc-
cess story to ensure tourism remains a key economic driver for the
long term.
In December 2016, the Mexican Secretariat of Tourism (SECTUR)
welcomed more than 200 industry professionals from the Ministry of
Tourism and SECTUR, along with representatives from more than 40
tourist destinations across Mexico, to a three-day summit entitled
“Co-Creating the New Era of Mexico Tourism.” The goal: to col-
laborate on a long-term strategic plan to take tourism to the next
level—50 million international visitors by 2021.
Speakers included senior strategists from international marketing
and business innovation consultancies, as well as social media experts.
Independent research highlighted fresh opportunities to engage new
markets, globally and at home. New priorities were established to bet-
ter leverage Mexico’s rich history, culture, gastronomy, and biodiversity,
and to bring airlift and infrastructure in line with growth.
The Many Mexicos
“I think Mexico has a lot to offer across the different segments, and
it also can cater to a different demographic,” says Marcos Agostini,
executive vice president of global sales and business development
for Interval International. “Where can it evolve to? I think Mexico can
go in an array of different directions.”
Vacation ownership has grown along with Mexico’s tourism
industry since the early days, when Interval affiliated its first Mexican
resort in 1977. Today there are more than 159 resorts in Interval’s
Quality Vacation Exchange Network, and Interval offices in Cancún,
Los Cabos, and Mexico City.
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MARKET SPOTLIGHT
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EL ARCO IN CABO SAN LUCAS
PUNTA DE MITA