Tourism GDP plummeted 43% between April and June, three times as much as the national economy.

This is the third consecutive quarter of decline and the most resounding tourism disaster since figures became available in 1993.

MEXICO (Times Media Mexico) – As widely expected, between April and June of this year, tourism suffered the largest drop in its history due to restrictions on mobility to contain the Covid-19 and because of the lower disposable income of families and businesses in the face of the global recession.

The tourism Gross Domestic Product (GDP) sank 43% during these three months, according to the quarterly variation of the tourism activity indicators that Inegi released this morning.

This is the third consecutive quarter of decline and the most resounding tourism disaster since figures became available in 1993. The second-worst record occurred between April and June 2009, when the industry decreased by nearly 8% due to the mortgage crisis that broke out in the United States. This influenza epidemic prompted the Mexican government to order the complete closure of factories, restaurants, schools, museums, and movie theaters, among other establishments.

With the 43% collapse, tourism fell into a recession almost three times deeper than the Mexican economy as a whole, which dropped 17% in the second quarter of the year, according to Inegi’s figures.

As part of the National Day of Healthy Distance, from March 23to May 30, tourism-related activities were suspended to avoid a generalized contagion of Covid-19.

The sector’s results respond that service activities, which contribute eight out of every 10 pesos of the tourism GDP, collapsed 42% between April and June, with the fourth quarter following a decline.

Tourism services refer to transportation, lodging, restaurants, commerce, second homes, and timeshares, among others.

Simultaneously, the production of tourist goods, such as handicrafts and clothing, suffered a 46% setback and was the third consecutive quarter in the red.

2020, tourism will have its worst achievement.
For Miguel Torruco, head of the Ministry of Tourism (Sectur), the sector will have in 2020 its worst performance since the Second World War (1939-1945).

“Tourism will be the economic activity that will suffer most from the consequences of the pandemic, due to restrictions on mobility to contain the virus, and by the reduction of available income and spending of families and businesses in the face of the global recession.” Explained the Center for Tourism Research and Competitiveness (Cicotur) Anáhuac.

Besides, a socio-psychological component may delay the way people return to travel as part of their lifestyle.

The crisis in the sector has put at risk about 500 thousand tourism companies, mostly micro, small, and medium, and about one million jobs estimate Cicotur.

Internal Tourist Expenditure
Spending by Mexican tourists inside the country plunged 37% between April and June, the deepest drop since records began. The second worst result occurred in the first quarter of 1995 when internal tourist consumption plummeted 7% and suffered the worst ravages of the so-called Tequila Effect.

Meanwhile, the disbursement made by foreign tourists within Mexico collapsed 89%, according to Inegi’s indicators.

Tourist consumption is linked to the employment situation. If people lose their jobs or are afraid of losing them, they begin to take care of their expenses and only spend on the indispensable.

Before the health crisis caused by Covid-19, the sector reported lower production due to problems of insecurity. Also, the loss of the North American market, uncertainty regarding government policies, the deceleration of the internal economy, the lack of international promotion, and the sargassum plague that affected the Mexican Caribbean, according to the most recent panel of businessmen who set up Cicotur and the National Tourism Business Council (CNET).

According to the Anahuac Panel, seven out of ten businesspeople believe tourism in Mexico will recover by 2022 or later.

On February 19of the following year, Inegi will release the tourism report from July to September 2020.

The Yucatan Times
Newsroom



Comments

comments

more recommended stories

doctoranytime BUSQUE A UN MÉDICO