Business · Economy · 10 hrs ago

Experts warn Mexico’s hotel downturn could deepen in 2027

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.

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What people are saying

Enrique de la Madridformer Tourism Secretary
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.
via El Universal
The government will raise the cost of airline tickets even though arrivals by air are falling, which is illogical.
via El Universal
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.
via El Universal