IVIS Country Analysis – Mexico

MEXICO

9,670,000 Arrivals in the United States

Loss of 137,000 over 2002, -1.4%

87.8% of all Mexican Outbound Travel

-0.2% over 2002

SUMMARY

In 2003, total outbound travel declined by 1.2 percent over 2002, generating 11 million arrivals to destinations worldwide. Arrivals to the U.S. also declined 1.4 percent over 2002. The faster rate of decline in U.S arrivals in 2003 caused the U.S. market share (MSI) of outbound travel from Mexico to decline by 0.2 percent year-over-year. The U.S. still commands an 87.8 percent market share of the total Mexican outbound travel.

In 2003, the Mexican economy continued to be positive, but barely. Real GDP grew only one percent, and real private consumption increased 1.4 percent in 2003 over 2002. Inflation continued to abate, with consumer prices increasing only 4.6 percent year-over-year. The unemployment rate in 2003 increased to 15.1 percent, a high for the decade. The Mexican peso depreciated against the U.S. dollar by 10.4 percent. It was among very few world currencies to lose value against the U.S. dollar in 2003. The Mexican peso also lost value against other world currencies (-8.4%).

The United States is by far the most popular country destination for outbound travelers from Mexico, earning 87.8 percent of the market in 2003. Other popular country destinations for Mexican outbound travelers include Spain (1.7%), Italy (2.3%) and Canada (1.3%). Among these countries, only Italy increased its market share in 2003.

Source: Global Insight

Regionally, after the United States (87.8%) Europe received the most Mexican outbound travelers with 6.6 percent of the market, and South/Central America claimed 2.7 percent of the market in 2003, and the Caribbean earned one percent. Regionally, only the U.S. lost market share of Mexican travel in 2003.

Source: Global Insight