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Mexico requires the resolution of the current, fundamental challenges

You should read that whole report if you live in Mexico full-time or involved in any business. It examines two dimensions of Mexico’s economy that are currently smoldering: Tourism and oil Mexico’s energy sector. Smoldering as of the stage before the fire starts!! According to the World Travel & Tourism Council’s report on Mexico for 2018, travel and tourism made direct contributions to Mexico’s GDP of US$82.2 billion or 7.1 percent in 2017.
However, the total contribution to Mexico’s GDP by the T&T industry was US$185.4 billion or 16.0 percent of GDP in 2017.



In comparison, revenue from Mexican petroleum products provides less than a 4 percent contribution to national GDP. For Mexico, T&T provides 16+ percent of total employment in Mexico. International trade (exports plus imports) comprise 77 percent of Mexico’s GDP.
It is also interesting to note that the influx of foreign-born residents inhabiting Mexico doubled from 2000 to 2010.
Those foreign-born residents are now estimated at one million. 750,000 of these are said to be Americans. Translation: More Americans have immigrated to Mexico over the past half-decade than Mexican citizens migrating to the U.S.



Tourists, travel and their direct and indirect economic contributions to Mexico remain strategically important factors for Mexico’s overall economic stability and sustainability. Recently, Mexico President López Obrador said tourism provided 41.4 visitors to Mexico who contributed US$22 billion to the economy in 2018, making tourism Mexico’s third largest source of foreign exchange behind the automotive industry and remittances sent by Mexicans working outside the country.
According to the World Justice Project, their Rule of Law Index places Mexico ranks 99th out of 126 countries.“Mexico continues to rank among the worst countries in the world on an index that measures the rule of law based on the experiences and perceptions of the general public.”

The point is perception is everything and reality is a bitch. Alejandro Zozaya, CEO of Apple Leisure Group, has declared that Mexico’s high-end tourism market has declined 20 percent in 2019, and will continue to decline throughout the year. The National Chamber of Commerce and Tourism Services reported that in February 2019 Puerto Vallarta received between 10-13,000 reservation cancellations due to the ongoing lawlessness in Mexico; an economic loss of some 400 million pesos for the Puerto Vallarta area.


Cancun has also suffered a decline in tourist visits in 2018. In 2018, Forbes declared: “More Americans were reported killed by homicide in Mexico than the combined total of Americans killed by homicide in every other country abroad.” That’s not a narrative to be nuanced. It is the reality that continues to disrupt the effective functioning of a cylinder in Mexico’s economic engine.

To read the full report visit IDN - indepthnews.net