GlobalData predicts outbound spending of Mexican travellers to reach US$16.9bn in 2023

Wednesday, July 10, 2019

According to GlobalData, a data and analytics company,  the number of Mexican travellers spending on outbound travel is expected to reach at a compound annual growth rate (CAGR) of 4.43% from US$13.6bn in 2018 to US$16.9bn in 2023.

Tourism Source Market Insight:Mexico, GlobalData’s latest report brought forward that the growth was driven by increasing employment opportunities and rising standards within health care and education.

There were 267 million domestic trips made in 2018 as compared to only 20.3 million outbound trips which showed that the domestic travel had surged ahead of outbound trips within Mexico.

It is also predicted that the all forms of tourism within and out of Mexico will see a  slowdown in growth over the coming years. However, the total expenditure along with the average length of stay is increasing.

Johanna Bonhill-Smith, Travel & Tourism Analyst at GlobalData, commented that as the education system has improved, the spending power of the Mexican traveller has advanced enabling travellers to not only spend more but increase the length of their stay.

The expenditure patter in 2018 was dominated by the transport for both domestic (US$32.9bn) and outbound (US$5.1bn).

But the retail and food service were higher spending priorities over entertainment and sightseeing for all forms of travel.

It was important for Destination Management Organisations and local authorities to promote experience concerning gastronomy and retail opportunities when trying to influence the Mexican travellers.

In 2016 due to Donald Trump’s electoral campaign and perceived hostility the Mexican travellers started moving to different destinations.

There was a 35% increase between 2016 and 2017 and 20% in 2018 in Canada’s inbound travellers.For Mexican travellers the US will continue to be the main destination mainly due to proximity and accessibility.

According to Bonhill-Smith established destinations throughout Europe such as Italy, Spain and France have also received an influx of Mexican travelers over previous years. Marketing bodies should tap into this traveller market as their spending power develops and connectivity between destinations continues to rise.

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