Industry Overview and Economic Impact

• Tourism GDP Contribution: In 2023, tourism accounted for 8.6% of Mexico’s national GDP, returning to pre-pandemic levels. It employed nearly 4.94 million people, representing 9.2% of national employment, with women comprising 51% of the sector.
• Resilience: The data reflects a full recovery from COVID-19 and underscores tourism as a core economic engine for regional development and national growth.

Inventory and Growth

• Hotel Count (2024): 26,911 hotels, up 1.5% from 2023.
• Room Inventory: 899,389 rooms in 2024, up 1% from the previous year.
• Geographic Concentration:
  • Hotel Establishments: 54.1% located in 10 states (e.g., Jalisco, Oaxaca, Quintana Roo).
  • Rooms: 58.2% in states like Quintana Roo, Mexico City, and Baja California.

Categories

• Fastest Growing Segment: 3-star hotels (+3.5%) lead growth.
• Luxury Hotels: 4- and 5-star categories grew by 2.2%.
• 1-Star Hotels: The only category to decline (-1.1%).

Boutique & Branded Residences Boom

• Boutique Hotels: 32 certified properties; Jalisco leads with 18.5%.
• Branded Residences: Explosive growth driven by demand for luxury, exclusivity, and brand trust. Notable developments include:
  • Ritz-Carlton, Four Seasons, Armani, and Mandarin Oriental across Mexico City, Los Cabos, Riviera Maya, and San Miguel de Allende.
  • Fractional ownership and smart home integration are defining traits.

Development Pipeline & Investment (2025–2028)

• Mexico leads Latin America with 248 hotel projects (38,104 rooms) under construction (10% YoY growth).
• Hyatt, Marriott, Hilton are the top developers.
• Key destinations: Cancun, Tulum, Mexico City, and San Miguel de Allende.
• The luxury and upscale classes dominate the construction pipeline.

Occupancy & Demand Trends

• Top Performing Destinations (2024):
  • Playacar (87.3%), Akumal (79.2%), Cabo San Lucas (76.9%).
• Best Performing Category: 5-star hotels (average occupancy: 76%).
• Air & Land Arrivals:
  • 27 million tourists in 2024.
  • 22.3 million air arrivals, mostly from USA (63.4%), followed by Canada and Colombia.
• Cruise Sector: 2,759 ships (+4.3% YoY); Cozumel leads with 4.5 million passengers.

Infrastructure as a Growth Driver

Key projects boosting hotel development:

• Mayan Train: Will connect Cancun, Tulum, Bacalar, Mérida, etc., unlocking new eco-tourism zones.
• Tulum International Airport: Enhances Riviera Maya’s connectivity.
• Nichupté Lagoon Bridge: Improves tourist access within Cancun.
• Guadalajara–Puerto Vallarta Highway: Reduced travel time, stimulating growth in lesser-known coastal towns.
• Transisthmian Train: Creating industrial and cultural tourism hubs in Oaxaca and Veracruz.

Challenges Ahead

Geopolitical & Economic Uncertainty

• Tariffs from the U.S. (Trump-era policies) may impact U.S. tourists’ spending power and investor confidence.
• Potential decline in U.S. travel due to inflation, recession risks, and political tensions.

Security Concerns

• Ongoing issues with organized crime in some regions impact perception and safety.
• The sector is countering this via:
  • Enhanced security in hotels.
  • Strategic public-private safety campaigns.
  • Promotion of “safe” destinations like Mérida.

Strategic Insights

• Diversification is critical: Mexico must reduce dependence on U.S. tourists.
• Luxury market continues to outperform across development and demand.
• Infrastructure investments are acting as catalysts for new hotel development and repositioning of existing assets.
• Domestic and regional tourism will be increasingly important as a hedge against global shocks.

Download Report