Tourism projects have potential in Mexico despite conjuncture

Hotel industry analysts are confident that investments will flow to Mexico in 2019 despite the national and global environment.

Investments in tourism projects in Mexico will flow in 2019 despite the economic slowdown in the country before the first year of the new government and a global slowdown, experts agree in the hospitality sector on the grounds that the country remains the preferred destination for tourists, especially those from the United States and Canada.

Lorea Arnoldi, senior project manager at HVS Mexico City, a consulting firm specializing in the hotel industry, tells Obras that the cancellation of the New Mexico International Airport (NAIM) has caused concern "because there was a great opportunity for Mexico City became an international hub and we could have the reach of attracting markets from the Middle East. "

However, he adds, it is expected "that with the Santa Lucia project, some of this demand may be recovered".

About the Maya Train project, the executive mentions that it is a great opportunity for regional growth, but it is important that it be carried out in a structured manner and with a solid development strategy.

He adds that Mexico is an excellent place for the development of master plan projects, which in recent years have been possible with the support of Fonatur and private investment. Among those projects are Costa Canuva, announced just last week, Isla Navidad, La Mandarina, Costa Palmas and Kanai.

Emile Gourieux, business development executive of STR in Mexico, another consulting firm, says that in the country there is a pipeline of 96 hotel projects, with the Caribbean leading the list with 32 projects in Cancun-Riviera Maya, followed by the state of Guanajuato with seven, Tijuana-Mexicali with 11, Mexico City with 10 and Los Cabos as Monterrey with nine properties each.

It is worth noting that in Mexico City the days with the highest hotel occupancy are Wednesday and Tuesday with 82.4% and 80.5% respectively. As a country, Mexico has an occupation of 63.1% and an average rate of 120 dollars, below the United States with 130 dollars and Canada with 126 dollars.

Long-term confidence

Although both executives agree that some investments were paused due to national and global uncertainty, they trust Mexico as a country of investments due to the growing demand and their expansion plans are always considered in the long term.

In this regard, they stress that the country is not the only destination that presents challenges in economic terms since the world will go through a global slowdown in 2019 and 2020.

In the case of Mexico, the first measures implemented by the new federal administration caused confusion, as the cancellation of NAIM and some initiatives by lawmakers increased the risk premium explains Delia Paredes Mier, Executive Director of Economic Analysis of Grupo Financiero Banorte, during the ninth annual Mexico Hotel & Tourism Investment Conference (MexHIC 2019).

In addition, it details that the decelerations are the product of the first year of the government of each administration.

Among the positive measures released by President Andrés Manuel López Obrador are to boost the stock market and make the payment system efficient.

Delia Paredes estimated that the price of the dollar will close at 21.30 pesos in 2019, inflation will be controlled and Banxico will maintain the interest rate.

Source: Obras

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