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 Mexican GDP will likely experience a fall close to 10.0% for the 2020 period.
  • The tourism sector will not return to 2019 levels until the end of 2022
  • Unfortunately, the current administration has not applied concrete countercyclical policies that incentivize a faster recuperation of the tourism industry.
  • The behavior of Dollar-Mexican peso parity could result in a relevant competitiveness gain for the region.

México: Actualización de Mercado

El Reporte del Mercado Mexicano brinda una visión del estado actual de la economía mexicana, el sector turístico y la evolución de las variables que tienen una influencia tangible en el mercado de inversión hotelera en medio de la pandemia de COVID-19.

Durante 2019 México ocupó el puesto número 7 a nivel mundial en número de turistas internacionales (OMT). El turismo representó una participación del 8.7% del PIB mexicano en 2018.

Los especialistas de Horwath HTL México diagnostican la dirección a corto / mediano plazo que se puede esperar que tome el mercado, incluyendo:

  • Desempeño de la industria, KPI y tendencias antes del brote de COVID-19
  • Respuestas y medidas que están tomando las cadenas hoteleras, propietarios y operadores, así como los desafíos que se presentan para la demanda turística.

Principales Hallazgos:

  • Es probable que el PIB mexicano experimente una caída cercana al 10.0% para el período 2020.
  • El sector turístico no volverá a los niveles de 2019 hasta finales de 2022.
  • Lamentablemente, la actual administración no ha aplicado políticas contracíclicas concretas que incentiven una recuperación más rápida de la industria turística.
  • El comportamiento de la paridad dólar-peso mexicano podría resultar en una ganancia de competitividad importante para la región.

About Horwath HTL

Horwath HTL is focused one hundred percent on hospitality, tourism, and leisure consulting. Our services cover every aspect of hotel real estate investment, tourism, and leisure development. Our clients choose Horwath HTL because we have earned a reputation for impartial advice that will often mean the difference between failure and success. Each client project is unique, and they rely on us to utilize the experience we have gained throughout our 100-year history to assist them in achieving their goals. Being a global firm with 52 offices in 40 countries, we have successfully carried out over 40,000 assignments for both public and private clients. As part of the Crowe Global network, a top-ten accounting, and financial services network, Horwath HTL is the number one choice for companies and financial institutions looking to invest and develop in the industry.

For more information, please visit www.horwathhtl.com.

Stephanie Henley
Horwath