Business · Economy · 10 hrs ago
Experts warn Mexico’s hotel downturn could deepen in 2027
Mexico’s hotel downturn could deepen in 2027, experts warn.
In 70 destinations tracked by Mexico’s Tourism Ministry, occupancy averaged 57.1% from January to August, its second consecutive annual fall and lowest level since 2022.
Former tourism minister Enrique de la Madrid says government decisions could add to the pressure on hotels.
A fee for foreign air travelers is set to rise from 983 to 1,158 pesos in 2027, with most of its revenue going to the Defense Ministry.
De la Madrid argues that the government’s failure to promote tourism is a major reason Mexico is losing ground to other destinations.
Air travelers generated 80% of international tourism income, making them especially important to the sector.
If occupancy keeps falling, hotels may cut prices to limit further losses.
Mexico’s hotel downturn could worsen in 2027, experts warn, citing government decisions and a loss of tourism promotion.
Average hotel occupancy across 70 destinations was 57.1% from January to August, the second consecutive annual decline and the lowest level since 2022.
Former Tourism Secretary Enrique de la Madrid warned that lower occupancy could force hotels to cut prices and lose more revenue.
The fee paid by foreign air travelers is set to rise in 2027, with most of the revenue going to government bodies rather than tourism promotion.
- Who
- Hotel experts, including former Tourism Secretary Enrique de la Madrid, warn of a deeper downturn.
- What
- Mexico’s hotel sector could face falling occupancy and revenue in 2027.
- When
- The warning was published on November 9, 2026, and concerns 2027.
- Where
- Mexico.
- Why
- Experts cite government decisions, including a higher fee for foreign air travelers and reduced tourism promotion.
This story does not have two clearly opposing sides.
The government cancelled the Mexican Tourism Promotion Council, according to De la Madrid.
Average occupancy across 70 destinations was 57.1%, the second consecutive year of decline and the lowest since 2022.
The fee paid by foreign air travelers is set to increase from 983 to 1,158 pesos.
- Average occupancy
- 57.1% across 70 destinations from January to August
- Occupancy trend
- Second consecutive annual decline; lowest since 2022
- DNR fee
- Set to rise from 983 to 1,158 pesos in 2027
- Fee revenue allocation
- 57% to the Defense Ministry; 15% to the National Migration Institute; 28% to the federal Treasury
- Tourism spending
- Air travelers entering Mexico accounted for 80% of international tourism revenue and spent an average of $1,290 each
What people are saying
There is a risk that occupancy will fall further and tourism businesses will have to lower their prices to prevent occupancy from continuing to fall and to avoid losing more revenue next year, when RevPAR (revenue per available room) also declined.
The government will raise the cost of airline tickets even though arrivals by air are falling, which is illogical.
Remaining without promotion is suicide and theft, because the government does not return the DNR fee to tourism, the sector that generates that revenue and which did not cost Mexicans anything.