GlobalData’s latest report, Tourism Source Market Insight - United States, reveals that in 2020, the US spent the most on outbound travel with average spend per resident totalling US$3,505. Canada was the second highest spending source market with $1,576, followed by Colombia with $1,286.
Rheanna Norris, Travel and Tourism Analyst at GlobalData, commented: “While the Mexican Government is allowing travel into the country, restrictions on outbound travel are being applied by the US. Since the US is by far the highest spending source market for visitors, significantly ahead of other important source markets such as Argentina, Colombia and the UK, Mexico’s tourism industry will feel the restriction of non-essential travel from the US.”
Tourism industry will struggle with loss of US traveller
According to a GlobalData survey, travellers are willing to travel long-haul, which Mexico may be able to lean on. The survey found that out of 1,442 respondents globally, 37 per cent said that they are willing to take an international trip to a different continent. However, the tourism industry may still struggle to compensate for the loss of the high-spending US traveller. According to GlobalData, in 2020 83 per cent of all arrivals to Mexico were from the US, showcasing the country’s reliance on the US outbound market.
Norris concluded: “Despite the current restrictions, Mexico could experience a surge in visiting friends and relatives (VFR) travel from the US when it is fully permitted, as this is a top motivator for travel between the two countries. Travellers may, however, experience a hike in air fares due to the sudden increased demand. However, the desire to see loved ones after so long will encourage travellers to pay these high prices, benefitting airlines.”
Last year, SB Realtors and Novamar Insurance Mexico have launched travel insurance with medical coverage for foreign visitors travelling into Puerto Vallarta and Riviera Nayarit in Mexico, including Covid-19 cover.