Role of Tourism Industry in Mexican Economy

Role of Tourism Industry in Mexican Economy

Tourism industry plays a critical role in the Mexican economy. In the more recent past, it has moved to various positions in consideration to its contribution to the economy. Currently standing as the third largest revenue contributor to the government, its role is invincible in relation to the economic growth by the year 2018.The Mexican GDP is focused to rise to about 9.4 percent by the elapse of President’s Enrique regime. According to the minister for tourism Claudia, the industry that employs up to seven million Mexican is destined to witness upward growth especially from tourist influx from countries such as those from the North of America.

In a candid remark, Ruiz claims that the industry will add a point to its current position, a factor that would possibly put it as Mexico’s second largest revenue contributor. The industry made 12.7 billion dollars in foreign exchange last year. This is according to a survey by JP Morgan and Company. Currently, the sector lags behind the energy and construction industries. In the past year, the second highest performing economy in Latin America received a total of twenty-four million visitors (Mente 23-25).

Role of Tourism Industry in Mexican Economy

This figure represents a 2.6 trillion improvement over the amount of visits seen in the previous year. According to reports from the World Tourism Organization, the number of visitors visiting the world has recently surpassed one billion. In what is generally referred to as foreign visits abroad, a 4.1 percent rise has been reported. According to the World Tourism survey, visitors to advanced economies increased by 3.6 percent. Tourism plays a significant part in the Mexican economy. It raises the amount of money invested, the number of jobs created, and the amount of money that can be earned. According to reports, it often generates one job prospect out of every eleven.

The industry’s contributions to the Mexican economy are extensive because it not only creates jobs but also stimulates the growth of the local area. In a similar vein, the industry disseminates critical knowledge about the country’s natural and cultural attractions. The benefit stems from the variety of options available to tourists throughout the region. The pre-Columbian culture history and the inclusion of archeological sites as important markers of the country’s identity are two of the most significant. On top of that, the nation boasts a variety of beaches as well as the incorporation of millenary cultures into its main cities. The nation is exceptional and excellent because of its historical characteristics, natural aesthetics, and dynamic technology. (Mark 31:31-33).

Global statistics indicate that Mexico takes position 10 in reference to the number of foreign tourists visiting the country. This position to be maintained has elicited promotional efforts by the government to enable it consolidate its command. This according to the government is the only way to ensure sustainability in line with meeting and coping up with the ever-increasing option of the country as the preferred destination for tourist. The government puts a lot of concentration in the different dynamics of the tourism industry. These include, coming up with a clear definition of tourism activities, comparing the input of various kinds of tourism to Mexican economy and development strategy in relation tourism.Currently, key focus is placed on purpose built and spontaneous resorts and ecotourism including its sustainability concept (Kutting 75-77). The government and various bodies are encouraging residential tourism a new approach that plays a critical role in the industry especially for the Mexican citizens.

The other aspect to be conspired when talking about the Mexican tourism industry is its all year round favorable climate. The weather is attractive all through the year since the climate in the country is determined vertically instead of horizontally. The average hours of sunshine compared to other areas of the world places Mexico above board.Recognitaion of the invincible role the industry plays has made the(FTB) Federal Tourist Bureau through the ministry of interior invest on advertisement both in America and other States of the world. The industry has led to the development of other ministries of the Mexican government such as that of Infrastructure and Transport. This is inclined to the obvious reasons that effective transport system is a needed asset for easy and faster movement of the tourist.

For this reason, the government has heavily invested in transport and infrastructure, which as indirectly boosted the growth of agriculture and even the import and the export industries. The airport plays a significant role since they have been constructed to world-class standards an eventuality that attracts not only tourist but also investors. The efforts of government to encourage ecotourism have been a positive game changer in the Industry. Currently tourist takes part in a activities that are beneficial to the environment. This in some other terms is referred to as green tourism. Considering the aftermaths of calamities such as the hurricanes, the industry has invested in informative tourism activities to enlighten the consumers with beneficial knowledge on the environment (Amalia 33-34).

In relation to other far-reaching benefits of tourism, the Mexican population has managed to acquire gainful employment because of the lucrative tourism industry. For instance, several hotels, curio shops, museums, and sporting activities have all been nourished by the busy tourism activities. According to the government report, employment has brought down different instances of crime levels in the society particularly in the area of illegal trade. Illegal trade has been a lifetime challenge particularly as far as trafficking of narcotics and firearms are concerned. The Ministry dealing with energy has equally benefited from the vibrant tourism industry. High influx of tourists translates to increased travel activities resulting to double demand of petroleum products such as fuel, electricity, and alternative forms of energy. Such a scenario because of increased consumption of energy products lead to enhanced revenue collection of the specific industry, which is beneficial to the entire economic growth.

In the agricultural sector, the influx would mean more need for food a factor that would in turn instigate increased production. Increased production would mean involving additional labor in order to meet the food demand on time. This indirectly offers employment to the Mexican population who finally pay revenue to the central government. The trend also ensures that adequate food is produced  and this has got a long term benefits to the country based on the fact that it enables it to have a reliable food security systems.

Mexico’s Share

According to Ruiz, the Mexican government is determined to expand its market share to its traditional markets, which mainly targets Canada and the United States. This is done while at the same time putting focus on prospective potential markets such as Argentina, Russia, china and Brazil. Through projection, this would register a record number of visits by the end of the year 2013.The influx of international travelers though comes at a time when close to 6200 people have perished in drug connected violence. This has been since Nieto took up office as reported by Milenio, a Mexican based print newspaper.

A press statement issued by the Mexican envoy to the United States clarified that its government approaches to combat organized crime are likely to take long term methodologies since most of them are inclined to institutional build up.However,he clarified that the number of victims are rapidly dropping.

Additional Economic Initiatives

Nieto has revealed that they are pushing for legislative changes by the elapse of the year to enable the realization of an energy industry controlled by the state. This according to him would enhance revenue collection with a margin of 6% annually. They also labor to concentrate more effort in private tourism industry.Similarly; the government is to unveil a comprehensive infrastructure strategy for the first time cover tourism development. The strategy seeks to build additional airports, commercial and cargo ports, highways, railway links, and competitive transport hubs.

2013 Spending

Ruiz has further revealed that the Mexican government has committed 23.3 billion dollars in infracstructure.He has further assured investors that the ministry of transport and communication would give statement soonest time possible concerning decongestion measures that would be taken at the City airport.

General Requirements

Similarly, a number of requirements for non-Mexican citizens is one area that the government tries to enlighten prospective visitors about. In the instance, that one is either a Canadian or a United States Citizen, the law requires that a visitor must obtain a passport and an identity card from the embassy in most of the occasions. Posing the passport enables a visitor to gain entry faster than the person who does not have one and also ensures that their stay in Mexico is not characterized by frequent disruptions from the authorities (Ryan 51-52).


Upon getting into Mexico, one is required to pass through the customs and fill in the relevant details. This form is normally issued by the plane crew or the ship crew.Altenatively,it can also be obtained at border points just before entry. Visitors are advised that they should always be keen as they fill in their details in these forms since incase of a random search from authorities, they would not feel harassed. Filling in misleading information about the individual amounts to a criminal offense, which is punishable by law.

Obligation to declare covers both individuals,representaivies aligned to foreign corporations and also the staff of international organizations.Additionally,it is important to clarify what the Mexican government accepts as personal luggage as one gains entry to Mexico (Costas 97-99).

  1. Goods for personal use such as used or new clothing, hygiene products, footwear provided that they are relevant with the time frame of the trip and there is convincing reason that the owner does not intend to sell them for business purposes within Mexico.
  2. Single video recorder and a camera if necessary together with their power sources. Under this section are also cellular phone apparatus. Sports equipment are allowed but restricted to the capacity of them being carried by only one person.
  3. Magazines and books are also allowed but with no intention to commercialization.

Outlining the requirements is essential in that they paint a rough picture of what the entire tourism expedition entail. In various occasions, some tourists have failed to carry out adequate research on what is needed and what is prohibited in every country they visit. Making assumptions that what is acceptable in ones state is also acceptable in Mexico is a wrong judgment thus the government of Mexico have put additional time in sensitizing its international vistors.Such a scenario is necessitated by the fact that Mexico as a country has its own unique laws that may not be applicable to other states. In the event of visiting the country, it is of significance for visitors to strive in keeping up with the laws of the land. The government of Mexico therefore has put in steps to ensure that clearance of tourists at entry points despite done in a thorough manner respects rights of tourists. This limits instances if embarrassment and the feeling of being mishandled by security authorities (World Tourism Organization 43-47).

In concusion, the tourism industry plays a vital role in the development of various economies of the world. This applies to Mexico as well which has witnessed an impressive growth courtesy of the lucrative industry. In order to sustain this trend and consolidate its presence in global tourism, the government has invested immensely in several segments to enable efficiency. Heavy investment amounting to billions of dollars has been pumped into infrastructure projects to ease travel and movement both by air and road. The industry has also affected other sectors of the economy such as the ministry dealing with agriculture a scenario, which has boosted food security in the country. Even more positive is that employment opportunities that have resulted from tourism has played a key role in reducing crime levels especially the perennial drug trafficking menace.Developement and investing in eco tourism has increased environmental awareness enabling more knowledge on environmental matters and how to respond to various calamities. This is in line with the hurricane disaster an occurrence, which the government has done a remarkable work in trying to limit chances of recurrence. As projections indicate, the industry has the potential of being the number one foreign exchange earner to the Mexican government if its full potential is to be exploited.

Work Cited
  • Mente, Boye.Romantic Mexico!: The Image & the Realities! (Cultural Insight Guide).New York: University of Hawaii. 2009. Print.
  • Mak, James. Tourism. New York: Palgrave Macmillan. 2003. Print.
  • Kutting, Gabriella. The. London: Common Wealth Secretariat. London: Wales. 2010. Print.
  • Amalia, Cabezas. Economies of Desire: Sex and Tourism in Cuba and the Dominican Republic . New York: Temple University Press. 2009. Print.
  • Mark, Hampton.Tourism and Inclusive Growth in Small Island Developing States. New York: Kindle books. 2013. Print.
  • Ryan, Chris. Tourism in China: Destination, Cultures, and Communities (Routledge Advances in  Tourism).New York: Routledge. 2008. Print.
  • Costas, Spirou. Urban Tourism and Urban Change: Cities in a Global Economy (The Metropolis and Modern Life).New York: Kindle books. 2010. Print.
  • World Tourism Organizations. Tourism by World Tourism Organization (UNWTO).New York: World Tourism Organization. 2012. Print.