2012-09-13 17:19:19 - Mexican travel industry to increase at a CAGR of 3.7%

Revenues within the Mexican travel industry have been forecast to increase at a compound annual growth rate (CAGR) of 3.7% over the next four years, to reach a projected value of MXN26.3 billion (US$2.1 billion) in 2016.Key factors behind industry growth include the increase in domestic, outbound and inbound tourism due to Mexico´s overall economic growth, the increasing penetration of the country´s low-cost airlines, and a greater demand for package tours than free or independent travel.Government investment in tourism reached MXN4 billion (US$300 million) in 2010, a 200% increase over figures from 2006. Investments were even greater in 2011, with MXN6.8 billion (US$530.2 million) invested in promotional activities alone.Mexico was ranked as the fourth most attractive destination within the Americas

 

 

region to develop a travel and tourism business, beaten by the US, Canada, and Barbados.Mexico´s travel sector comprised 12.5% of the nation´s GDP in 2011, and accounted for four million jobs, representing 11.1% of the country´s total employment. Of the total jobs created through the sector, 2.5 million were industry specific, while 1.5 million were supply chain related.The total revenue generated by airlines reached MXN99.9 billion (US$8.1 billion) in 2011. Full service carriers accounted for the highest proportion of the total revenue generated by airlines with a share of 78%, followed by low cost carriers with a 19.8% share and charter carriers with a 2.2% share.In 2011 national airlines increased their capacity and geographic coverage by expanding their fleets and increasing the number of destinations and flight frequency. In addition to national destinations, airlines also expanded their coverage by adding destinations in the US. As a result, consumers enjoyed a range of alternatives in terms of price, schedules and destinations.For more information on the Mexican travel industry, see the latest research: Mexican Travel Industry ReportFollow us on Twitter @CandMResearch

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