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5 Reasons to Invest in Real Estate Retirement/Tourism Sector in Mexico

Tourism and second/vacation homes is a sector that is in full growth, registering improvements of remarkable figures that bring confidence to investors.

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In a recent market analyzes, some outstanding figures have been recorded in terms of the number of international tourists, which has led to an increase in revenues significantly.

In the period between the years, 1995 and 2014 doubled the volumes of tourists traveling around the world and has been a trend that has continued to rise, reaching and overcoming the barrier of one billion people. In parallel to this are the revenues produced in the tourism sector, which have already reached a figure of more than 1.6 trillion USD.

This positive situation can be seen in 5 reasons that provide great confidence to investors to take the tourism sector as the objective of their investments.

Reasons that are detailed below to better understand the positive situation of this market as it relates to Mexico:

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Mexico, Sixth Place in the World Ranking for International Tourists, Confirms OMT

Press Release 84 – The World Tourism Organization (WTO) announced, based on the document “UNWTO Panorama of International Tourism 2018”, the world ranking figures for 2017, which confirms that Mexico rose to sixth place in receiving of international tourists, registering 39.3 million international tourists who arrived in Mexico last year.

  • The World Tourism Organization (UNWTO) released the figures of the world ranking regarding the arrival of international tourists, and the collection of foreign currency corresponding to the tourist activity of 2017.  
  • Three months after the end of the administration of the Federal Government in Mexico, the document “OMT Panorama of International Tourism 2018” confirms that Mexico rose two places in the world ranking, going from the eighth place in 2016, with 35.1 million international tourists, to the sixth site with 39.3 million in 2017.
  • The data of the UNWTO indicate that the first place for the arrival of international tourists is occupied by France with 86.9 million; the second place Spain, with 81.8 million, in third place the United States with 75.9 million, China in fourth with 60.7, and Italy in fifth, registering the arrival of 58.3 million.  

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Three months after the end of the administration of the Federal Government in Mexico, the UNWTO, an organization dependent on the United Nations (UN), indicated through its website that Mexico rose two places in the world ranking to move from the eighth place in 2016 with 35.1 million international tourists to the sixth place with 39.3 million in 2017, a figure higher by 12 percent compared to the tourists who arrived in 2016.

The document “OMT Panorama of International Tourism 2017” indicates that the first place for the arrival of international tourists is occupied by France with 86.9 million; the second place Spain, with 81.8 million, in third place the United States, with 75.9 million, China in fourth place with 60.7 million, Italy, in fifth place with 58.3 million, and Mexico, as indicated, in the sixth place with 39.3 million of foreign tourists.

Next, in the seventh place, the United Kingdom with 37.7 million, Turkey with 37.6 million, Germany with 37.5 million, and in tenth place, Thailand with 35.4 million international tourists.

These excellent results in 2017, added the international body, were driven by the sustained demand for travel to destinations in all regions of the world, including the strong recovery experienced by those who have faced security challenges in recent years.

UNWTO pointed out that the increase in arrivals was reflected in a strong increase in exports generated by tourism, which amounted to US $ 1.6 trillion. in 2017, making tourism the third most important export sector in the world.

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1. Increase in tourism globally

Investors have seen global tourism reach a point where it grew more than the global GDP, which has placed it in a succulent market.

It is growing at a speed of around 5% of more global tourists every year, with a forecast that in 2030 the number of travelers that travel the world has amounted to a total of 1800 million people.

With these figures as an example, the tourism sector points to optimism.

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2. Development of emerging markets

What in the past were countries that did not capture visits or interest beyond those who came to them in humanitarian work have now become tourist places of great value.

Emerging countries are positioning themselves as good destinations for expansion for a type of tourist that seeks more adjusted experiences depending on their volume of income. Each time these countries are gaining more attention and contributing their income to the expansion of global tourism.

In the future, China or India will be destinations that will have the same relevance as those areas of the world that are more developed and established.

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3. The middle class

In today’s society, there is an expansive worldwide growth of the middle class, one that can not afford to travel constantly but takes into account that one-third of its income can be allowed to invest in non-basic goods, such as travel and vacation.

This derives from the growth of the tourist market because it is one of those that attract the most interest of these middle families in an expansion. The middle class invests in travel and this provides more income to the market.

Taking into account that in 2009 there were 1.800 billion individuals of the middle class and that the forecast for 2020 is that there are 3.200 billion, it is understood as a major force difficult to stop.

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4. Ease of achieving profitability

But it is clear that in an indifferent way to the market situation, investors want to have a tangible demonstration of what they can obtain based on their investment initiatives.

In this sense it is being appreciated that the tourism market not only provides great flexibility to make investments but also does it with a real income demonstration, all this applied with profitable strategies to invest can suppose the guaranteed success that the investors are searching.

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Investors in the sector have seen their properties grow and have not hesitated to increase their presence volumes in the acquisition of hotels, companies that provide transportation to travelers, airlines or other related businesses.

5. A clear and easy to understand market.

If there is one thing that the tourist market has to offer, it provides ample clarity to investors about what the trends are among the tourists that move around the world.

And the main proposals, those of greater demand, are immovable, having a high rate of permanent popularity that is receiving new additions thanks to the increase in popularity of different areas.

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Sources: International Living, Forbes, Live and Invest Overseas, WTO, Travel Leisure,


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