Mexico’s Tourism Sector Shows Robust Growth in Late 2023

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MÉXICO » News » May 2024 » Mexico’s Tourism Sector Shows Robust Growth in Late 2023

Published by EFE | El Universal on May 1, 2024

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Mexico’s tourism industry displayed a remarkable growth of 5.5% in the fourth quarter of 2023, significantly outpacing the overall national economic growth, according to the Secretary of Tourism, Miguel Torruco. This surge is nearly double that of the national gross domestic product (GDP) growth, underscoring a vibrant recovery in the sector.

The Quarterly Indicators of Tourism Activity (ITAT), which includes measures like the Tourism Gross Domestic Product (GDP) and Domestic Tourism Consumption, were utilized to gauge this performance. This growth not only highlights the sector’s recovery but also its contribution to the broader economic landscape of Mexico.

Torruco emphasized that the tourism-related GDP’s year-on-year increase of 5.5% marks a sustained recovery trajectory. This represents a significant rebound, with a 5.8 percentage point increase over the fourth quarter of 2019, just before the global impact of the Covid pandemic hit the tourism industry hard.

In a detailed breakdown, the growth components within the tourism GDP were highlighted. Goods related to tourism saw a 2.3% increase compared to the fourth quarter of 2022, while services experienced a more substantial growth of 6.4% in real terms. This differential highlights the stronger rebound in service-related tourism activities, which typically include hospitality, travel services, and leisure activities.

However, when comparing the growth to the third quarter of 2023, goods in the tourism sector grew by 3.8%, but services were still 1.1% short of reaching the levels recorded in the same period, indicating some areas of sluggishness within the sector’s recovery.

Domestic Tourist Consumption also showed positive trends. This measure, which sums up both Domestic and Inbound Tourist Consumption, edged up by 0.2% in real terms when compared to the third quarter of 2023. However, when looking at the annual comparison to 2022, it is only 1.7% away from reaching last year’s figures, suggesting that there is still some ground to recover.

The robust performance of Mexico’s tourism sector in the latter part of 2023 highlights a promising trajectory towards full recovery and a significant contribution to the nation’s economic stability and growth.

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