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mexico tourism surge brings hopes of strengthening intl recovery

News Posted On: 30 May 2011

Travel giant Expedia has reported strong growth in tourism to Mexico in the past 12 months, so much so that the firm has bumped Mexico up into its top 3 destinations worldwide.

Expedia owned Hotels.com reported that bookings have increased by 25% in the past year, according to a report by the firm. The report also quotes credit card operator Visa stating that "people spent 10% more (from $4 billion in 2009 to $4.4 billion in 2010) on their credit cards" in Mexico during the same period.

Tourism Secretary Gloria Guevara Manzo has said that the country is achieving "real and sustained progress in making Mexico safe and secure."

The Ritz Carlton will soon open a new 124-villa complex in Cabo overlooking the Sea of Cortez and Spanish hospitality group Sol Melia is planning to develop two flagship resorts at Riviera Maya on the Caribbean coastline.

This is of course good news for the Mexican tourism industry, which suffered greatly during the international financial crisis. But it is also good news for the international tourism industry and, in conjunction with a wealth of other reports, for the overseas property industry as well.

In 2006, 07 and even 2008 we were seeing destinations like Morocco, Tunisia, Cape Verde and Mexico bursting onto the scene fuelled by rapidly rising tourism spurring a wave of resort construction, featuring big-name golf courses and marinas -- the full works.

Now we are hearing that these destinations are either experiencing a revival, or really never died at all. We just heard that the Tortuga Beach and Spa Resort has just opened 100% sold out, and another resort by the same developer is 80% sold out and still under construction. Because we know that sales were hit in Cape Verde, then this means a major revival has happened since then.

Morocco has seen sales to foreign buyers continue, and now that tourism is rising in Mexico once again we will likely see a revival in its property market as well. It will likely be a good few years before we see the next boom, but as booms tend to be followed by busts that is probably a good thing anyway.

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