Tourism Leaders Appeal to Reactivate the SectorBy MBN Staff | Thu, 06/18/2020 - 11:55
One of the industries most affected by COVID-19 is, without a doubt, tourism. Even though in some states of the country the sector is starting to resume activities, tourist arrivals will still be slow. Because of this, the National Tourism Business Council (CNET) appealed to the Tourism Commissions of the Mexican Chamber of Deputies and Senators to revive the sector and attract capital, according to a document presented by El Heraldo de Mexico.
Among the requests made by businessmen in the field are the tax deduction of family trips of up to MX$25,000 (US$1,112), to make work benefits 100 percent deductible, to increase the deductibility of restaurant consumption to 50 percent, a zero VAT rate for congresses and conventions and allowing the participation of foreigners in the acquisition of properties in coastal areas of the country. "Today, property management is done through trusts that limit further investment," said CNET in the document, which also proposes modifications to the Foreign Investment Law to open the participation of foreign capital in national airlines, which is currently limited to 49 percent.
Entrepreneurs also request modifications to the ISR Law to accelerate tax deductions of new investments to inject liquidity to companies. In addition, they ask Congress to allocate more resources to the expenditure budget as the government in the Philippines did.
Turning its Back
Despite that in 2018, the tourism industry contributed 8.7 percent to Mexico's GDP and 2.3 million jobs, surpassing those generated by the construction and automotive industries, the Ministry of Tourism (SECTUR) asked the private initiative to stop solely focusing on tourism as a source of boundless profit and focus on social and environmental sustainability.
"We are on the threshold of understanding tourism in a different way. It is time to make decisions and undertake commitments and responsibilities to safeguard its future," said the Minister of Tourism Miguel Torruco when inaugurating the Virtual International Symposium 'The new era of tourism' on June 11. Torruco added that the closing of establishments, the dismissal of workers, the cancellation of trips, the restriction of events and the lockdown measures made the industry turn its gaze towards a hidden reality: a limited health system, workers lacking social protection and companies without reserves or cash flow.
“Businessmen are a fundamental part of the change; they are agents of transformation and indisputable protagonists of the tourist activity. Unity has made tourism a mainstay for growth. Let us maintain that integration to overcome the challenges that a new reality imposes on us. I am convinced that tourist activity will continue to be a lever for development and progress,” he pointed out.