Mexico’s tourism economy is expected to increase by an average of 5% per year over the next decade despite the outbreak of swine flu earlier this year, according to the World Travel and Tourism Council (WTTC).
The country has seen visitor numbers fall over the last three months with the Mexican government predicting the loss of at least $200-$300 million.
WTTC president and chief executive Jean-Claude Baumgarten said: “Given recent negative developments, it’s hardly surprising the situation is forecast to be tough for the remainder of this year.
“Indeed, we expect Mexico’s travel and tourism economy GDP to contract by 9% this year – more than the 6.5% decline forecast for Mexican GDP as a whole.”
Baumgarten said the Mexican government is responding pro-actively and planning to invest $90 million in the industry over the coming months, with an extensive marketing campaign being launched in key source markets.
The result is that WTTC/Oxford Economics believe that a sharp rebound in activity is likely over the next two years, with the travel and tourism economy GDP projected to expand by more than 6% in 2010 and 2011.
“More importantly, we are also optimistic for the longer term,” Baumgarten said.
“We still expect the growth in Mexican travel and tourism economy GDP over the next 10 years to average close to 5% per annum.”