Mexico Shows Signs of Recovery

The Mexican economy is showing signs of recovery, amid a trend that has seen other Latin American nations experiencing similar growth. The Trump administration’s tariffs have been the catalyst for this development, but it remains to be seen if Mexico can maintain its momentum.

The “skift research” is a report by Skift that shows signs of recovery in Mexico. The article says, “Mexico has always had an allure for tourists and investors, but the country’s recent economic troubles have made it increasingly difficult to get in.”

Mexico Shows Signs of Recovery

Thanks to Governor Mauricio Vila Dosal’s support and coordinated cooperation between state and federal agencies, the 45th edition of the Tianguis Turistico held this year in Mérida, Yucatán, achieved a new record in terms of purchasers.

The Mexican Tianguis Turistico is a trade exhibition that brings together public and private organisations. According to the Yucatan government, 1,600 buyers from 900 foreign firms from 41 nations attended the most significant promotional event.

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After over 5,800 business meetings, the Tianguis Turistico Mérida 2021 established a new record for operations: more than 1,600 purchasers and about USD 30 million in sales.

El Tianguis Turístico se llevará a cabo bajo los estándares sanitarios que garanticen la salud de todos los participantes. 2021 Tianguis Turistico

“The economy of Yucatán, the host state, increased at 11%, and 15 months later, 8,000 additional jobs were created, more than before the epidemic,” the governor added.

“I want to tell you that the route to get to this Tianguis was not simple,” the governor said, adding that the Tianguis Turistico in Mérida had been a dream for more than ten years. Before we entered office, as governor-elect, I was chatting with Miguel Torruco, who was also elected Tourism Secretary in 2018, and I told him, “Miguel, we’ve been attempting to host the Tianguis Turstico for more than ten years, and I’d want us to be able to host this major event… and here we are.”

Tourism is a significant contributor: it accounted for 6% of GDP before to the epidemic, with three percentage points needing to be restored; the trade balance was USD 14.7 billion before the pandemic, and it is now at half.

“We have a lot of stuff to do.” The tianguis was an important event; without movement and human connection, the industry would be impossible to imagine. “The digital tianguis were a fantastic concept, but they didn’t make as big of a difference,” says Braulio Arsuaga, head of the National Tourism Business Council (CNET).

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Small and medium-sized businesses (SMEs) play an important role in tourism. They employ four million people who, among other things, provide huge resorts and airlines.

The INEGI – an independent entity of the Federal Public Sector – recognizes 450 thousand economic units (businesses) that represent USD 65 billion in the hotel industry’s value chain.

“As tourism is vital, we offered a crucial way to include it in the United States-Mexico-Canada Agreement (USMCA).” This industry is not addressed in this agreement. We also have a plan to help and generate employment in the southeast of Mexico, where a lot of migration occurs and there is a lot of poverty,” Arsuaga added.

The corporate executive is persuaded that synergy with Mexico’s most significant source of visitors, the United States, is required. He also provided some statistics: before the outbreak, the United States accounted for 55% of Mexican tourism; after the pandemic, it increased to 80%.

Miguel Torruco, the Federal Secretary of Tourism, is happy of some of the accomplishments of the current government thus far: In all, 31 million visitors are predicted in 2021, generating $300 billion in revenue and a 46 percent occupancy rate. In addition, tourist GDP is predicted to increase to 7.1 percent by the end of 2022, and then to 8% by the end of 2023.

Until October, tourist investment totaled nine billion dollars, with 9,490 projects expected to produce 156,000 employment. Torruco said, “There is trust in the government.”

The Foreign Tourism Investment Office received 711 million dollars in the first semester of 2021, resulting in a total of four million people engaged in the industry, over 250,000 more than in the first quarter of 2020.

Mexico was ranked seventh in the globe for tourist arrivals in 2020, and seventeenth in terms of drawing money. The nation placed 3rd and 14th, respectively, after the epidemic and owing to the temporary condition of closures and limitations.

Torruco set a goal for the rest of the present administration: spread the 92 percent of visitors who congregate in six key locations, as well as increase the appeal of tourists from other nations, since Mexico is now reliant on just two: the United States and Canada.

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