Mexico is a world known and popular tourism destination. Nevertheless, the global competition is becoming fiercer every year. Other destinations run programs to promote themselves and invest considerably in the tourism infrastructure. Mexico therefore needs to step up its effort to stay a prime tourism destination. The Mexican government is well aware of that and so they have increased their funding to the tourism industry. According to Mexican tourism minister Rodolfo Elizondo Torres, there will be a L3.5 million investment in the country’s tourism infrastructure, which is a 50 per cent rise compared to the last years expenditures. The finance will flow e.g. to the Zona Rosa, an entertainment quarter in Mexico City. Also the eco-tourism in Tlahuac will receive the funding, as well as the Route of the Gods, which is a regional cultural initiative involving states of Oaxaca, Puebla, Tiaxcala, Veracruz. L2.5 million will be invested in promoting Mexico as a tourism destination worldwide
According to the minister, the Mexico City Office for Congresses and Conventions will receive money to promote the MICE (Meeting, Incentives, Conferences and Exhibitions) industry. The aim is to lure more business travelers to various conventions, fairs, etc. It is obvious that the country needs to make these steps to stay competitive.
The government is well aware of the vital role of the tourism industry for the country’s economy. The industry is expected to generate some 14 per cent of the Mexican GDP this year. An example of swift government tourism policy was seen after the Hurricane Wilma hit Cancun in late October 2005. Cancun is a very important destination as it is responsible for 38 per cent of Mexico’s international tourists and 33 per cent of tourism spending. After the hurricane 85 per cent of all local hotel rooms were impacted. Government then made fast steps to rebuild the area. All investments were tax-free and the state invested L12.5 million to rebuild the beaches and at the end of the year 2006 most of the facilities were operational.
