Determinants of Tourism Demand: for Mexico
Instituto Tecnológico y de Estudios Superiores de Monterrey
Campus Monterrey
Determinants of Tourism Demand
For Mexico
Emilio Noé Hernández Kelly*
Fernando Mendoza López**
Econometría II
Dr. Héctor Rodríguez
Monterrey, Nuevo León, November 29th, 2004
I. INTRODUCTION
Tourism has long been considered a viable option for growth in many less Developed nations. It has been widely accepted that tourism is a low investment, high return industry making its profitability extremely high. In Mexico, the tourism industry directly provides around 8% of the GDP, and leaves even more through spillover effects.
Mexico owns many tourist attractions of different types. For example, Mexico has world renowned beaches and resorts, such as Cancun or Los Cabos. It also has many colonial cities, which mix a classic Spanish-European type architecture with an indigenous touch. Ancient ruins of lost civilizations still persist in the central and southern areas of the country. With all this and more Mexico has much to offer for international tourists.
International tourist flows have increased amazingly since the 60 's and 70 's creating a market that is tremendously important on a global level. It is an industry that can be common to both developed and less developed nations. Mexico, being one of the top tourist destinations in the world has seen this growth first hand, and seemingly has also done very well in this respect.
It is interesting to remark that despite Mexico 's apparent diversity and cultural heritage, its development on foreign tourism, measured in currency flows, is represented on a 54% by five destinies that are promoted by the FONATUR (National Fund of Tourism Foment) which are: Los Cabos, Cancun, Loreto, Ixtapa and Huatulco. These destinations represent a tax income of over 300 million dollars per year.
Obviously, there are many people who believe that this industry also brings many disadvantages to having a strong tourism
Campus Monterrey
Determinants of Tourism Demand
For Mexico
Emilio Noé Hernández Kelly*
Fernando Mendoza López**
Econometría II
Dr. Héctor Rodríguez
Monterrey, Nuevo León, November 29th, 2004
I. INTRODUCTION
Tourism has long been considered a viable option for growth in many less Developed nations. It has been widely accepted that tourism is a low investment, high return industry making its profitability extremely high. In Mexico, the tourism industry directly provides around 8% of the GDP, and leaves even more through spillover effects.
Mexico owns many tourist attractions of different types. For example, Mexico has world renowned beaches and resorts, such as Cancun or Los Cabos. It also has many colonial cities, which mix a classic Spanish-European type architecture with an indigenous touch. Ancient ruins of lost civilizations still persist in the central and southern areas of the country. With all this and more Mexico has much to offer for international tourists.
International tourist flows have increased amazingly since the 60 's and 70 's creating a market that is tremendously important on a global level. It is an industry that can be common to both developed and less developed nations. Mexico, being one of the top tourist destinations in the world has seen this growth first hand, and seemingly has also done very well in this respect.
It is interesting to remark that despite Mexico 's apparent diversity and cultural heritage, its development on foreign tourism, measured in currency flows, is represented on a 54% by five destinies that are promoted by the FONATUR (National Fund of Tourism Foment) which are: Los Cabos, Cancun, Loreto, Ixtapa and Huatulco. These destinations represent a tax income of over 300 million dollars per year.
Obviously, there are many people who believe that this industry also brings many disadvantages to having a strong tourism
Bibliography: Lewis, H. Alexander. (1953) The impact of tourism on the economy of Cape Cod, Massachussets. Economic Geography, Vol. 29. No. 4, 320-326. Williams, Anthony V, Zelinsky, Wilbur (1970). On some patterns in international tourist flows. Economic Geography, Vol. 46. No. 4, 549-567.