The drop in the arrival of international tourists to Mexico has persisted in the last couple of years due to the pandemic, but several factors have converged to show another phenomenon in the sector: travelers from abroad spend more than before the pandemic during your stay in the country.
During 2021, inbound tourists – those who enter and stay in the country – spent an average of 960.7 dollars in Mexico, 8.4% more than in 2019, and which also represents the highest level since at least 2016, according to data of the Survey of International Travelers of the National Institute of Statistics and Geography (INEGI).
Although other components within international tourism had higher growth –such as that of border excursionists, whose spending increased by 44.5% compared to pre-pandemic rates–, the inbound tourism indicator is relevant as it is the travelers who spend the most; While a tourist of this profile who arrived by air spent an average of 1,110.2 dollars in 2021, a border excursionist – who does not enter the country, staying only in the strip – spent an average of 53.2 dollars.
Behind this trend there are several factors. For Arik Staropolsky, general director of the firm STA Consultores, the rise in prices that has persisted in Mexico and other regions of the world affected the average that international tourists spend in the country, and that it also represented an opportunity for recovery for the sector. .
“In many states and destinations there were restricted capacity (…) An increase in average hotel rates was observed and, as service providers had less influx, they had to increase prices,” he explains. “From the tourist’s point of view, this means more spending.”
This price increase can be perceived in the tourist services sections of the National Consumer Price Index (INPC). Air travel inflation, for example, soared 63% in December 2021 compared to 2020, and even the prices of packaged tourist services increased by 20% compared to the previous year.
Another factor that explains this trend has been the arrival of tourists with greater purchasing power, mainly from the United States, who before the pandemic visited regions such as Europe, and who, due to travel restrictions and the health contingency environment, opted for closer destinations. such as Mexico and the Caribbean.
This trend has even been seen in the Mexican market, where almost 72% of tourism consumption is concentrated in the 20% of the population with the highest income, according to a study by the Anáhuac Tourism Research and Competitiveness Center (Cicotur).
However, foreign travelers from other socioeconomic segments have also seen in Mexico an alternative to vacation at low costs, which led to the arrival of new tourists in regions such as Los Cabos, according to STA Consultores documents.
“A lot of people arrived who had never been to Mexico. In Los Cabos we have it extremely measured; the socioeconomic level dropped from what was previously seen in the destination. Before the rate of return of the destination was 50% and now it is 30%; new people arrived at the destination, and indicators such as timeshares also fell. The good news is that it served as a promotional showcase for the country”, explains Staropolsky.
The expectations of the tourism sector for 2022 suggest that it will be a year relatively similar to 2021 in terms of health measures and even some travel restrictions, but in terms of the mood of tourists, an improvement is expected.
According to a survey by the Expedia platform conducted among 12,000 travelers in 12 countries, 65% of users plan to “travel big” this year, which translates into a travel trend that could even be described as “extravagant”, given the isolation conditions that many tourists have faced during the last two years. Even a report from the World Tourism Organization confirms that this trend will prevail during the year.
“Travellers are expected to visit more distant destinations, but with a longer stay,” says the agency in the Tourism Trends 2022 report. “Consumers will seek to enjoy as much as possible each place they visit.”
Hence, as travelers regain the confidence to go out, spending indicators are expected to continue, even in a high inflation environment.
“Mexico has been sold as a cheap destination. Average spending may continue to increase, but where [the pandemic] is going to hit, it is going to be the arrival of tourists,” Staropolsky considers. “There will continue to be price increases, because tourism service providers have to spend more on inputs and salaries, and if everything goes up, rates will go up. In addition, given the financial gap that the pandemic meant for many, in some way it will be a way to recover.
