VIEW FROM THE TOP
TOURISM GAINS TRACTION DESPITE MACROECONOMIC HARDSHIPS PABLO AZCÁRRAGA President of the National Tourism Business Council (CNET)
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Q: What role does tourism play in Mexico’s economic
Q: How is CNET joining forces to secure the sector’s
development?
future growth?
A: Mexican tourism follows a cyclical process. The 2008
A: For the first time, tourism executives have a seat on the
financial crisis had a significant negative impact on tourism
Business Advisory Board for Mexico’s Economic Growth
but in the last five consecutive years this sector has seen
at CNET. Because CNET is able to bring together all
double-digit growth, which has motivated the industry to
associations and chambers associated with the tourism
continue investing. Tourism revenue totaled much more
sector, it can represent the industry well. CNET is asking
than that of oil and gas exports in the last year and it
the government to develop an entity that will use public
was the only sector to register a surplus in 2016, which
funds to develop Mexico’s priority tourism destinations.
amounted to US$9.3 billion, while oil and gas saw a deficit
There must be more public investment in tourism to ensure
of US$12.8 billion. Although the results have been strong,
the competitiveness and sustainability of each destination.
we must continue to demand more, not least because of
Tourism is vulnerable and if we do not invest, it will lose
the number of jobs the sector creates. In contrast to other
all its competitive advantages. Without sustainable
industries, tourism will not be displaced by technologies
development, there will be even more problems that will
because the service cannot be substituted.
create bottlenecks for future growth.
Q: What does Mexico need to do to reach its tourism
Q: How could the regulatory framework and fiscal
potential?
incentives be improved to attract more investment?
A: The sector needs more investment either in infrastructure
A: There must be a change in the Fiscal Reform. We live
or image. It needs to diversify, attract new markets other
in a vicious cycle whereby, if a tourism destination is
than only the US and Canada and finally move away
successful, the municipality and state are allocated fewer
from its dependency on beach destinations. Although
resources to support the sector. The state and municipal
North America will continue to be the most important
governments suffer because the money collected in taxes
contributor to Mexico’s tourism development in the future,
is absorbed by the federal government and it leaves
we should complement this with higher market penetration
only a small proportion for the development of the area.
from other countries. Infrastructure is key. If we want to
This will only lead to problems since four to five days of
attract 50 million tourists per year, we have to invest in
the week, destinations are at full capacity. We need to
infrastructure since, with the existing framework, we do
develop a new fiscal incentive for tourism investment.
not have the capacity to receive or host more tourists. If we do not invest, our numbers will remain stagnant at 30
Q: What is the main factor that is holding back the
million foreign visitors for years to come. The lack of a large
Mexican tourism sector?
airport in Mexico has been an enormous bottleneck for the
A: Mexico is a difficult country to develop because it
industry. This is the price the country has paid for the lack
continues to be extremely bureaucratic and has too many
of political will. It often goes unmentioned but this lack
formalities. Often, federal government requisites are not
of airport capacity has impacted not only tourism, but all
aligned with those of the state and municipalities, which
Mexican industries.
results in a delay in investment due to a lack of continuity. But all in all, the future looks bright. We have a steady growth that will continue to motivate players to change the sector’s
The National Tourism Business Council (CNET) represents 96
business model and incorporate more efficient schemes that
percent of tourism activities in Mexico through 11 chambers of
will allow us to boost growth. The potential market is huge,
commerce. It looks after the interests of private companies and
with more than 200 million people traveling within the US,
contributes to the sustainable growth of the sector
while only around 20 million come to Mexico.
