Report: Closure Of DMO, Crime & Competition Will Slow Mexico Growth

Open Jaw

GlobalData’s latest report, "Tourism Destination Market Insights: North America (2019)", reveals that while Mexico will see continued growth in the number of international arrivals, threats of crime, rising competition and lack of international promotion will cause inbound arrivals to slow. 

The actual compound annual growth rate is expected to drop from 8.9% between 2016-2019 to 7.1% in 2020-2023.

“A DMO acts as a vital marketing source for tourism, and removing it will have drastic effects," says Johanna Bonhill-Smith, Travel & Tourism Analyst at GlobalData. "It is now crucial for Mexico’s regional and local tourism authorities to join forces to enhance international recognition and ensure continual inbound growth into the country.”

More than 25,000 homicides occurred in Mexico during 2018, a 15% increase from the previous year. President Andrés Manuel López Obrador has aimed to tackle crimes and violence throughout the country, but the effects are still to emerge.

"Travellers are more adventurous and travelling further afield to explore unique destinations, but security and safety are still key factors within a holiday decision. Therefore, high crime rates and safety issues can severely affect a destination’s global image and reputation," continues Bonhill-Smith.

Rising competition from key Caribbean destinations are also threatening Mexico’s inbound travel figures.

Bonhill-Smith adds: “Along the Yucatan Peninsula, Cancun and Playa del Carmen are still major tourism hotspots. Coastal destinations such as the Dominican Republic, Costa Rica and Jamaica are experiencing considerable growth.”