Currency, Tourism Growth, Real Estate and Politics in Mexico

Tourists in Yucatan, Mexico

Tourists in Yucatan Riviera

Last month officials announced that the number of internationals tourists in Mexico rose by at least nine percent in 2016, with around 35 million tourists pouring into the country’s top destinations from around the world, compared to just over 32 million in 2015. This news comes with a slew of other positive signs related to Mexico’s economy, its top real estate markets and its future under the Trump administration. 

Mexico Tourism Numbers Soar

Breaking it down, Reuters reported that nearly 17 million visitors arrived in Mexico last year by plane, followed closely by roughly 14.5 million who traveled across the border (mostly from the U.S.) and trailed by around 6.7 million who arrived by sea. 

“Mexico enjoyed a banner year in 2016 for tourism, hitting ‘historic highs’ in part due to a spike in the number of US travelers drawn in by the weakened peso,” wrote Yahoo! News

The Ministry of Tourism said the sector added more than $19.5 billion to Mexico’s economy last year, proving it is “one of the main driving forces” of the country’s ongoing economic strength. This growth represents a rise of around 10.4 percent compared to 2015.

Mexico beach

Mexico beach

Mexico Real Estate Market Going Strong

As a result of the ongoing rise in Mexico tourism, savvy developers are also rapidly making money in Mexico real estate by offering innovative new vacation home rentals, including beach condos, boutique hotels, private residences and other investment properties.

“Cancun and the Riviera Maya have emerged as the most attractive tourist destinations in Mexico for investment in the real estate sector,” wrote the Yucatan Times.

As a result of the stability of tourism numbers in Cancun, Playa del Carmen, Tulum and other parts of the Riviera Maya, a large number of foreign buyers are also learning how to invest money in Mexico real estate. Of course, Mexico just so happens to be one of the best places to retire abroad and also one of the best countries for expats moving abroad – regardless of age. Just ask anyone who is living in Playa del Carmen, Tulum, Puerto Aventuras Cabo San Lucas, Puerto Vallarta or any of the other popular expat communities in Mexico!

“In 2017 we expect that the real estate transactions [in Mexico’s Riviera Maya], as well as lending and home construction, will remain high,” shared Arturo, Machua Garcia, who serves as president of the Colegio de Valuadores de Quintana Roo which specializes in real estate appraisals in Cancun and throughout Mexico’s Riviera Maya. “We expect to surpass the [number of ] valuations recorded last year.”

Mexico market

 

Politics and the Peso

Despite Donald Trump’s ongoing divisive rhetoric and talk of building a massive wall along Mexico’s northern border, the peso has reversed its losses in recent days after the president’s speech to the United States Congress Tuesday and strengthened .06 percent against the dollar, according to Reuters. Although Trump mentioned the wall briefly during his speech, he seems to have ceased claiming that Mexico will pay for it.

“The peso’s barometer-like behavior could significantly diminish the damaging effect on the Mexican economy of any new American tariffs,” wrote Forbes“The cost of the tariffs would be felt by American businesses and consumers as higher import prices. And on the other side of the trade equation, America’s exports to Mexico would be hammered by a sharply rising dollar.”

Since the day before Trump took office in late January, the peso has rallied 10 percent, which is around twice as much as the world’s No. 2 major currency. In summary, the longer it takes the new administration to take real action on any of its threats, the better it will be for Mexico’s peso… and the economy as a whole!

source: investmentpropertiesmexico.com

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