Due to the COVID-19 pandemic, the tourism revenue in Mexico had decreased by more than 50 percent as of September 2020, based on a year-over-year comparison. Meanwhile, the country’s international tourism volume plummeted by nearly 60 percent. Consequently, the tourism contribution to the Mexican GDP dropped by more than 45 percent in the second quarter of that year. In the 2010s, this sector accounted for over eight percent of the North American country's GDP .

Mexico’s tourism GDP

In the years prior to the COVID-19 pandemic, the tourism sector contributed more than 1.5 trillion Mexican pesos to Mexico’s GDP. Based on exchange rates of December 31, 2019, this amount equaled around 80 billion U.S. dollars. Out of the several economic activities related to this sector, accommodation and foodservice stand out as its most important segments, with both accounting for over 40 percent of the Mexican tourism GDP. In 2019, there were approximately 82 thousand foodservice establishments and 24 thousand hotels operating in the Latin American country.

International tourism in Mexico

Mexico is by far the leading tourism destination in Latin America. Its combination of beautiful beaches, authentic cuisine, and indigenous history attracts millions of tourists every year. In 2019, this country welcomed six times more international visitors than Argentina, which was the second most popular Latin American tourism destination among foreign travelers that year. Mexico is also the country with the highest international tourism receipts in the region.

According to August 2020 estimates, the best foreseeable evolution of the COVID-19 pandemic in Mexico for the remaining months of the year could allow the country to welcome a total of 20.11 million international tourists. This would translate into a revenue of 8.17 billion U.S. dollars by the end of 2020. Considering the worst-case scenario, the number of international travelers in Mexico in 2020 would amount to 19.32 million, with an international tourism revenue of eight billion U.S. dollars.

Nearly half of Mexicans were planning to travel for leisure as soon as they could, after the restrictions imposed by the COVID-19 pandemic, according to a survey published in September 2020. Three out of ten respondents said they would be more cautious when deciding to take a recreational trip, due to the risks of contagion, while 16 percent of Mexicans surveyed would only travel for holidays or similar purposes after a vaccine against the virus was developed. A survey about Easter holiday plans in 2020 found out that 91 percent of respondents in Mexico decided to cancel their trips due to COVID-19.

Visits to travel sites in Mexico - including travel, tourism, and hospitality online services - plummeted in mid-March following the announcement of restrictions in the North American country aimed at controlling the spread of COVID-19. Between the end of September and the beginning of October the sector showed a slight recovery, with visits to these pages slightly rising to fall again in the month of December.

Mexico Visitor Arrivals: Tourist Center: Tlaxcala data was reported at 2,125.000 Person in 31 Mar 2024. This records an increase from the previous number of 1,834.000 Person for 24 Mar 2024. Mexico Visitor Arrivals: Tourist Center: Tlaxcala data is updated weekly, averaging 1,402.000 Person from Jan 2006 (Median) to 31 Mar 2024, with 925 observations. The data reached an all-time high of 4,505.000 Person in 17 Nov 2019 and a record low of 201.000 Person in 03 May 2020. Mexico Visitor Arrivals: Tourist Center: Tlaxcala data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q001: Visitor Arrivals: by Tourist Center. [COVID-19-IMPACT]

According to estimates of August 2020, the most optimistic development for Mexico’s COVID-19 situation in the remaining months of the year have the potential to see the country's accommodation industry generate 10.4 billion U.S. dollars in annual revenue. In the best possible scenario, Mexico's hotel occupancy could reach 46.9 percent, with a total of 101 million overnight tourists by the end of year. On the other hand, in a scenario considering a high risk of COVID-19 infection, the number of travelers staying in hotels or similar establishments across the country would amount to 71.1 million. This would translate into a hotel occupancy of 32.9 percent and revenues amounting to 7.28 billion U.S. dollars for this industry.

Hotel occupancy in Mexico

Since 2016, Mexico passed the 60 percent mark in hotel occupancy, and it even rose above 61 percent in 2017. This represents an overall increase of around eleven percentage points, when compared to the rate recorded at the beginning of the decade. However, in Mexico’s key tourism markets, hotel occupancy exceeds these numbers. During the first half of 2019. For example, over 80 percent of hotel rooms in the areas of Nuevo Vallarta, Playacar, and the Riviera Maya were occupied. Nevertheless, these rates inevitably plunged during the first semester of 2020 due to the consequences of the COVID-19 pandemic.

Average daily rate of hotels in Mexico

The average daily rate (ADR) is a performance indicator used in the accommodation industry to calculate the average rental income per occupied room over a specific time period. In 2019, the ADR in Mexico amounted to 2,205 Mexican pesos, around 117 U.S. dollars at the time of the exchange rate in December 31, 2019.

Mexico No. of Hotel Room: Tourist Center: Taxco data was reported at 6,391.000 Unit in 07 Apr 2024. This records an increase from the previous number of 6,384.000 Unit for 31 Mar 2024. Mexico No. of Hotel Room: Tourist Center: Taxco data is updated weekly, averaging 6,160.000 Unit from May 2003 (Median) to 07 Apr 2024, with 1071 observations. The data reached an all-time high of 7,027.000 Unit in 04 Jun 2017 and a record low of 4,534.000 Unit in 31 Jan 2021. Mexico No. of Hotel Room: Tourist Center: Taxco data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q019: Number of Hotel Room: by Tourist Center. [COVID-19-IMPACT]

In 2020, the gross domestic product (GDP) of Central and South America had suffered a contraction of more than 110 billion U.S. dollars due to the impact of the COVID-19 pandemic on tourism. Meanwhile, the global travel restrictions imposed due to the health crisis caused a GDP decline of roughly 33 billion U.S. dollars in the Caribbean. In consequence, tourism employment was also severely affected in those regions that year.

Tourism contribution to GDP in Latin America and the Caribbean

The gross domestic product (GDP) measures the value of all goods and services produced in a country or a region within a certain period. Excluding Mexico, the total contribution of the tourism sector to Latin America and the Caribbean’s GDP saw a moderate but overall positive trend during the past decade, surpassing 350 billion U.S. dollars in 2019. In Mexico alone, nearly two trillion Mexican pesos (more than 100 billion U.S. dollars at exchange rates of December 31, 2019) were added that year to the country’s GDP by tourism-related activities.

COVID-19 impact on travel and tourism in Mexico

Mexico is not only the leading country for tourism in Latin America but also one of the key players in the travel sector worldwide. For most of 2020, the Mexican government opted out of travel restrictions and lockdowns. This measure, however, did not rescue the country's tourism sector from the harsh impact of COVID-19. As of October of that year, Mexico was among the travel destinations most affected by the pandemic, with tourism revenue losses amounting to nearly 14 billion U.S. dollars.

Mexico No. of Hotel Room: Tourist Center: Ixtapa Zihuatanejo data was reported at 44,037.000 Unit in 02 Apr 2023. This stayed constant from the previous number of 44,037.000 Unit for 26 Mar 2023. Mexico No. of Hotel Room: Tourist Center: Ixtapa Zihuatanejo data is updated weekly, averaging 35,605.000 Unit from May 2003 (Median) to 02 Apr 2023, with 1013 observations. The data reached an all-time high of 44,079.000 Unit in 06 Mar 2022 and a record low of 30,015.000 Unit in 22 Jun 2003. Mexico No. of Hotel Room: Tourist Center: Ixtapa Zihuatanejo data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q019: Number of Hotel Room: by Tourist Center. [COVID-19-IMPACT]

Mexico No. of Hotel Room: Tourist Center: Huichapan data was reported at 1,799.000 Unit in 24 Dec 2023. This stayed constant from the previous number of 1,799.000 Unit for 17 Dec 2023. Mexico No. of Hotel Room: Tourist Center: Huichapan data is updated weekly, averaging 1,799.000 Unit from Jan 2012 (Median) to 24 Dec 2023, with 533 observations. The data reached an all-time high of 1,997.000 Unit in 26 Jan 2020 and a record low of 858.000 Unit in 10 Mar 2013. Mexico No. of Hotel Room: Tourist Center: Huichapan data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q019: Number of Hotel Room: by Tourist Center. [COVID-19-IMPACT]

Mexico Visitor Arrivals: Tourist Center: Mérida data was reported at 35,083.000 Person in 28 Apr 2024. This records an increase from the previous number of 34,009.000 Person for 21 Apr 2024. Mexico Visitor Arrivals: Tourist Center: Mérida data is updated weekly, averaging 21,392.500 Person from May 2003 (Median) to 28 Apr 2024, with 1074 observations. The data reached an all-time high of 44,794.000 Person in 28 Jul 2019 and a record low of 0.000 Person in 31 May 2020. Mexico Visitor Arrivals: Tourist Center: Mérida data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q001: Visitor Arrivals: by Tourist Center. [COVID-19-IMPACT]

Mexico No. of Hotel Room: Tourist Center: Tecate data was reported at 4,207.000 Unit in 31 Mar 2024. This stayed constant from the previous number of 4,207.000 Unit for 24 Mar 2024. Mexico No. of Hotel Room: Tourist Center: Tecate data is updated weekly, averaging 2,184.000 Unit from May 2003 (Median) to 31 Mar 2024, with 1066 observations. The data reached an all-time high of 4,207.000 Unit in 31 Mar 2024 and a record low of 1,393.000 Unit in 30 Oct 2016. Mexico No. of Hotel Room: Tourist Center: Tecate data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q019: Number of Hotel Room: by Tourist Center. [COVID-19-IMPACT]

Mexico Visitor Arrivals: Tourist Center: León data was reported at 25,781.000 Person in 28 Apr 2024. This records an increase from the previous number of 23,215.000 Person for 21 Apr 2024. Mexico Visitor Arrivals: Tourist Center: León data is updated weekly, averaging 21,853.000 Person from May 2003 (Median) to 28 Apr 2024, with 1073 observations. The data reached an all-time high of 54,602.000 Person in 17 Nov 2019 and a record low of 2,605.000 Person in 12 Apr 2020. Mexico Visitor Arrivals: Tourist Center: León data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q001: Visitor Arrivals: by Tourist Center. [COVID-19-IMPACT]

In March 2020, it was estimated that the coronavirus (COVID-19) pandemic could endanger 1.7 million jobs in the travel and tourism sector in Mexico alone. The most populated Latin American country, Brazil, could also lose up to 1.2 million jobs in the tourism and travel industry. Furthermore, the pandemic could also cause the Argentine tourism sector to lose around 200 thousand jobs.

Mexico Visitor Arrivals: Tourist Center: Linares data was reported at 1,450.000 Person in 03 Mar 2024. This records an increase from the previous number of 1,401.000 Person for 25 Feb 2024. Mexico Visitor Arrivals: Tourist Center: Linares data is updated weekly, averaging 701.000 Person from Jan 2016 (Median) to 03 Mar 2024, with 421 observations. The data reached an all-time high of 3,815.000 Person in 26 Nov 2023 and a record low of 0.000 Person in 02 May 2021. Mexico Visitor Arrivals: Tourist Center: Linares data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q001: Visitor Arrivals: by Tourist Center. [COVID-19-IMPACT]

In 2022, the domestic tourism expenditure in Mexico increased by over 18 percent to nearly three trillion Mexican pesos. This figure represents an increase versus the previous year and the second rise versus the coronavirus (COVID-19) pandemic.

Mexico Visitor Arrivals: Tourist Center: San Cristobal de las Casas data was reported at 10,428.000 Person in 28 Apr 2024. This records an increase from the previous number of 9,640.000 Person for 21 Apr 2024. Mexico Visitor Arrivals: Tourist Center: San Cristobal de las Casas data is updated weekly, averaging 11,468.000 Person from May 2003 (Median) to 28 Apr 2024, with 1079 observations. The data reached an all-time high of 40,110.000 Person in 01 Jan 2017 and a record low of 240.000 Person in 10 May 2020. Mexico Visitor Arrivals: Tourist Center: San Cristobal de las Casas data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q001: Visitor Arrivals: by Tourist Center. [COVID-19-IMPACT]

Mexico Visitor Arrivals: Tourist Center: Colima data was reported at 5,109.000 Person in 31 Mar 2024. This records a decrease from the previous number of 5,883.000 Person for 24 Mar 2024. Mexico Visitor Arrivals: Tourist Center: Colima data is updated weekly, averaging 2,575.000 Person from May 2003 (Median) to 31 Mar 2024, with 1089 observations. The data reached an all-time high of 7,514.000 Person in 31 Dec 2017 and a record low of 526.000 Person in 10 May 2020. Mexico Visitor Arrivals: Tourist Center: Colima data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q001: Visitor Arrivals: by Tourist Center. [COVID-19-IMPACT]

In 2022, Mexico welcomed more than 38 million international tourists, increasing its tourism volume by 20 percent versus a year earlier, though not completely recovering from the coronavirus (COVID-19) pandemic. Mexico, as one of the few exceptions worldwide, did not adopt strict restrictions to the entry of foreign visitors during the health crisis. However, the global air travel halt and the fear of contagion severely impacted the country’s inbound tourism in both years, which up until 2019 had registered a steady increase.

Business tourism in Mexico

While the amount of total international travelers in Mexico was growing over the years prior to the 2020 COVID-19 outbreak, the country’s same-day international guests were lessening, from over 77 million in 2016 to roughly 63 million excursionists in 2019. In the inbound business travel segment, tourism expenditures apart from transportation expenses have also decreased in recent years, contrary to the annual total spending from travelers motivated by personal reasons. During 2019, business travel in Mexico City was reported to cost international guests nearly 220 U.S. dollars a day, with hotels accounting for over two thirds of that expense.

International air travel into Mexico

In 2019, around 17.6 international visitors passed through Mexico City International Airport, the leading Mexican airport for inbound travel. During this time, the North American country’s flag carrier Aeroméxico handled the largest share of its international air passenger traffic, with nearly 16 percent of the market. That same year, Grupo Aeroméxico generated a revenue of nearly 68.8 billion Mexican pesos, which was a decrease from the almost 70.3 billion Mexican pesos produced a year prior.

Mexico No. of Hotel Room: Tourist Center: Cozumel data was reported at 36,239.000 Unit in 31 Mar 2024. This stayed constant from the previous number of 36,239.000 Unit for 24 Mar 2024. Mexico No. of Hotel Room: Tourist Center: Cozumel data is updated weekly, averaging 31,434.000 Unit from May 2003 (Median) to 31 Mar 2024, with 1046 observations. The data reached an all-time high of 36,999.000 Unit in 02 Jul 2017 and a record low of 15,883.000 Unit in 08 Jan 2006. Mexico No. of Hotel Room: Tourist Center: Cozumel data remains active status in CEIC and is reported by Secretary of Tourism. The data is categorized under Global Database’s Mexico – Table MX.Q019: Number of Hotel Room: by Tourist Center. [COVID-19-IMPACT]