The Business Tourism in Mexico
In 2022, Mexico experienced a significant boost in business tourism, marked by the arrival of nearly half a million foreign business travelers. The resurgence was attributed to the growing trend of nearshoring, where companies relocate their operations closer to home.
From January to November 2022, Mexico saw a 107% increase in business visitors compared to the entire year of 2021. This surge, however, represents only half of the business travelers recorded in 2019. The Mexico City International Airport alone registered 238,715 business travelers in 2022, reflecting a 118% increase from 2021 but still below pre-pandemic levels.
Major cities like Mexico City, Monterrey, Cancún, Querétaro, and Guadalajara were focal points for business activities. Alejandrina Salcedo, Chief Economist at the Bank of México, noted that while business tourism has shown recovery, it has not yet returned to pre-pandemic levels.
Border cities, especially in the northern states like Chihuahua, Ciudad Juárez, Tijuana, and Hermosillo, showcased greater recovery, attributed to business tourism and nearshoring. The report by Banxico highlighted higher-than-pre-pandemic levels in these regions.
Mexico's airports, including Asur, GAP, and OMA, experienced passenger growth of over 20% in December 2022 compared to the same month in 2019. Monex predicts strong earnings for these airport operators in 2023, driven by both tourism and nearshoring.
As nearshoring continues to shape business strategies, experts anticipate sustained growth in Mexico's business tourism. Reuters reported a likely boost to Mexico's airports in 2023 due to tourists staying at resorts and the ongoing influence of nearshoring.
The Rising Significance of Business Tourism in Mexico
Business tourism in Mexico encompasses a broad spectrum of activities, including meetings, conventions, conferences, and exhibitions. This sector plays a crucial role in maintaining a steady flow of clients throughout the year, contributing to the economic development of local communities.
Mexico ranks 23rd globally and 5th in the Americas in Meetings Tourism, representing approximately 1.6% of the GDP. The country's competitiveness in this sector stems from its extensive infrastructure and warm service quality.
Erick Brunet, Director of Transactions at Newmark, anticipates robust growth in Mexico's business tourism driven by nearshoring. The arrival of companies, including Tesla in Nuevo León, has not only increased demand for industrial spaces but also led to a surge in business tourism in cities like Monterrey, Tijuana, Saltillo, Ciudad Juárez, and Mexico City.
The influx of nearshoring has catalyzed new business models that blend corporate, family, and leisure spaces. Hotels are adapting by incorporating business centers and amenities to cater to executives traveling with families for extended stays.
The industrial sector in Mexico has witnessed a post-pandemic boom, particularly due to foreign direct investment and nearshoring. The increased demand for industrial spaces is reshaping the real estate landscape.
Erick Brunet highlights a continuous boom in luxury hospitality, especially in connection with nearshoring. The forecast indicates growth in sectors like renewable energy, mining, manufacturing, aerospace, back-office operations, automotive, and auto parts.
While acknowledging the positive trends, experts point out challenges such as infrastructure development around industrial facilities, energy supply concerns, and labor-related issues. Despite these challenges, Mexico's demographic advantage and population growth position it favorably.
Mexico Emerges as Business Tourism Hub: Focus on Guadalajara
In the early months of 2023, Baja California, Jalisco, Oaxaca, Yucatán, Quintana Roo, and Mexico City witnessed a notable increase in business tourism. Companies are choosing these regions to announce and discuss upcoming projects.
The International Congress and Convention Association (ICCA) rank Mexico City 29th globally for meetings tourism, securing the third position in the Americas after Buenos Aires and Montreal.
The nearshoring trend has become evident in the corporate events industry, with many foreign companies opting to migrate their meetings to Mexico. The country's established business destinations make it an attractive choice.
The business tourism sector faces the challenge of consolidating hybrid events, given the increased prevalence of such formats in 2023 due to the resurgence of Covid-19 cases. Companies are adapting to the evolving needs, emphasizing sustainability, globalization, and technological transformation.
Guadalajara's Ascendancy
Guadalajara emerges as a significant beneficiary of the demand for business spaces, boasting over 600,000 square meters for conventions, trade fairs, and corporate meetings. The city's infrastructure, economic dynamism, and strategic location make it a preferred choice for business gatherings.
Guadalajara, particularly in the western region, stands out as a prime location for business meetings, driving economic growth and attracting investments. The region's dynamic business and meetings landscape positions it as a hub for major events.
Mexico's business tourism landscape is undergoing a transformative phase, fueled by nearshoring trends, and increased global business activities. The diversification of business models, real estate boom, and the rise of luxury hospitality underscore the evolving dynamics. As Mexico solidifies its position as a regional business tourism hub, challenges are met with adaptability, presenting opportunities for sustained growth.
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