Mexican Travel and Tourism to the United States

1
Mexican Travel and Tourism to the United
States Receptive Services Association of
America March 24, 2005
2
The Importance of Mexico

• Second highest source of international visitors
  to the United States (after Canada).
• Most resilient market into the United States
  first to rebound after 9/11.
• Very lucrative market that is often overlooked by
  U.S. travel and tourism companies.
• Market due to increase by 15 by 2007.

3
More to the World than the U.S.

• Currently, the United States is the top
  destination for Mexican travelers, with over 87
  of the market share.
• Increasing competition for middle-income
  travelers from Canada, Europe, South America and
  the Caribbean.
• Those countries do not require a visa.

4
Mexican Travel to the U.S.

• In 2003, 9.6 million Mexicans traveled to the
  U.S. Preliminary 2004 figures 5
• Down 1.4 from 2002, but less than the overall
  decline of 4 into the U.S.
• Air Travel 1.3 million visitors.
• Though traveling less, spending more!
  Significant implications for U.S. tourism.

5
Demographics

• Pop 100.3 million
• GDP per capita - 6834
• 74 percent urban
• Under 20 - 44
• Wealthy - 5
• Upper Middle - 18
• Middle Class - 37
• Poor - 40

6
Mexico - Trends in Arrivals (Thousands of
Tourists)
7
Mexico - Trends in Receipts(Millions of USD)
SOURCE. U.S. Department of Commerce, ITA, Office
of Travel and Tourism Industries, Buereau of
Economic Analysis.
8
Where do Mexicans Travel?

• Florida Miami 11.4
• New York 9.8
• Los Angeles 21.6
• Pacific and West Central Regions most popular
• Means more room for growth for Florida and New
  York. Orlando is a very popular destination for
  families.

9
Why do Mexicans Travel?
10
When/How Do they Travel?

• High Travel Seasons summer, Christmas and Easter
• Very Family Oriented
• Like package trips with admission fees and
  transportation fees included.
• Travel in larger groups.
• Prefer fun activities for entire family.

11
Activity Preferences

• Mexicans prefer shopping, gambling,
  entertainment, amusement parks and cosmopolitan
  cities.
• Nature is not high on the priority list skiing
  is the exception.

12
How to Penetrate the Market

• Wholesalers are key.
• Low internet penetration travel agencies still
  overwhelmingly used for travel plans.
• Repeat visits to Mexico to cultivate
  relationships.
• FAM tours.
• Expo Vacaciones/SeeAmerica Media Day.

13
A Large and Complex Market
Tijuana
Monterrey
Guadalajara
Mexico City
14
See America Week, February 2006

• Joint effort among the Visit USA Committee, the
  Travel Industry Association and the U.S.
  Commercial Service
• See America Media Day connect with 100 of
  Mexicos Travel Media
• Expo Vacaciones USA unique trade show that
  focuses on U.S. destinations
• Other events to promote the U.S. as Mexicos top
  tourist destination

15
Business Customs

• Mexico has diverse customs.
• Importance of establishing personal relationships
  before business is done.
• Importance of business meals.
• Flexible attitude toward time.
• Patience is key. Punctuality is less important in
  Mexico.

16
Business Customs

• Importance of physical contact - handshake, air
  kiss, abrazo
• Indirectness - difficulty in saying no
• Wine and dine the travel industry
• Use an interpreter if needed

17
Services for U.S. Destinations

• MATCHMAKING - Gold Key service, available in
  Mexico city, Monterrey, Guadalajara, Tijuana,
  Cancun, and Juarez.
• CONTACT LISTS
• TRAVEL BAROMETER specific research through
  quarterly surveys
• COUNSELING
• ASSISTANCE at Expo Vacaciones, La Cumbre, Pow-Wow
  and more

18
Potential MexicanCustomers
Total Population 100.3 million
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Where do Mexicans go for Shopping?

• Due to their diverse income level and traveling
  reasons, Mexicans can be found in completely
  different shopping spots.
• Mexicans can buy at Wal-Mart or K-mart, but do
  also at designer boutiques or high end stores
  such as Saks Fifth Avenue or Neiman Marcus.

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Where do Mexicans go for Shopping?

• Mexicans are price sensitive customers.
• Outlets are becoming very famous and demanded by
  Mexican travelers.
• Most famous outlet malls among Mexicans are
• San Marcos, San Antonio
• Orlando Premium Outlets
• Sawgrass Mill, Miami
• Las Vegas Premium Outlets

21
What do Mexicans buy?

• The most demanded articles by Mexican visitors
  are clothes, consumer goods, souvenirs, and
  electronics.
• Mexicans love to buy at establishments and stores
  that cannot be found in Mexico.

22
When/How Do they Travel?

• High Travel Seasons summer, Christmas and Easter
• Very Family Oriented
• Like package trips with admission fees and
  transportation fees included.
• Travel in larger groups.
• Prefer fun activities for entire family,
  including shopping.

23
How to Penetrate the Market

• Wholesalers are key.
• Low internet penetration travel agencies still
  overwhelmingly used for travel plans.
• Repeat visits to Mexico to cultivate
  relationships.
• FAM tours.
• Expo Vacaciones/SeeAmerica Media Day.

24
Added-value programs for Mexican wholesalers

• Discount shopping coupons and dining offers
• Pre-paid meal vouchers
• Pre-fixed group menus
• Educational tours
• Complimentary shopping bags
• Customized gift certificate incentive events and
  shopping packages
• Other

25
Promotion in Mexico is Key

• Shopping malls and high-end stores organize
  fashion shows in Mexicos most important cities
• The fashion shows attract key wholesalers, but
  also travel and tourism media in Mexico to
  promote the exhibitors in their publications

26
Services for U.S. Destinations

• MATCHMAKING - Gold Key service, available in
  Mexico city, Monterrey, Guadalajara, Tijuana,
  Cancun, and Juarez.
• CONTACT LISTS
• TRAVEL BAROMETER specific research through
  quarterly surveys
• COUNSELING
• ASSISTANCE at Expo Vacaciones, La Cumbre, Pow-Wow
  and more

27
Mexico TT Specialists

• Aileen Nandi, Commercial Officer
• aileen.nandi_at_mail.doc.gov
• Juan Carlos Ruiz, Commercial Specialist
• juancarlos.ruiz_at_mail.doc.gov

28
Thank you

• Juan Carlos Ruíz
• Commercial Assistant
• U.S. Commercial Service Mexico City
• Liverpool 31, Col. Juárez
• 06600, México, D. F.
• Tel [phone]
• Fax [phone]
• E-mail juancarlos.ruiz_at_mail.doc.gov