Mexico Must Bet on Private Sector to Boost Tourism: WTTC
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Mexico Must Bet on Private Sector to Boost Tourism: WTTC

Photo by:   Jorge Aguilar
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Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Tue, 12/06/2022 - 14:22

During the World Travel and Tourism Council’s (WTTC) Global Summit that took place in Saudi Arabia, Julia Simpson, President and CEO, WTTC, said it is positive that the Mexican government is developing infrastructure projects to boost tourism. Nonetheless, those benefits could be amplified if the administration allowed the private sector to participate in the development.

The federal government has started various infrastructure projects that aim to boost tourism and improve connectivity in the country like the Mayan Train, the Felipe Angeles International Airport (AIFA) and the Tulum International Airport. However, Simpson said that it is a disadvantage for Mexico that these projects are all in hands of the Ministry of Defense (SEDENA). 

According to Simpson, the government should trust the private sector more since it is an “agile” sector and has sufficient capital to develop such projects. She also criticized that the government does not grant the tourism industry the importance it deserves as it does with the mining and energy sectors. “The government does not understand the potential of our sector, in the sense that we will create 126 million jobs globally within the next decade and we will grow more than the economy will in general,” she added. 

Simpson highlighted that Mexico is a special case: While other countries have a touristic offer limited just to their capital cities, Mexico has a variety of destinations throughout the country. Hence, the government should focus on improving the country’s connectivity to allow tourists to move within Mexico, which should receive more people in lesser-known destinations. 

Saudi Arabia stood out as an example of tourism-focused investments. Simpson highlighted that the country plans to invest US$800 billion in tourism-related projects within the next ten years, to diversify the heavily oil-focused economy. She also noted that Mexico has a competitive advantage since it is a well-established touristic destination that is diversifying its offer to both local and international visitors. 

However, Simpson said that all countries can benefit from more tourism since the industry will grow over 5.8 percent within the next ten years and the economy, in general, will grow over 2.7 percent. She explained that thousands of families saved money for the two years that COVID-19 restrictions lasted and are looking for experiences abroad. In an interview with MBN, José Botelho, Executive Director and CEO, ALTA, identified this phenomenon as “revenge tourism,” a key factor that will boost the industry in the next months.
 

Photo by:   Jorge Aguilar

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