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Mexican Travel and Tourism to the United States Receptive Services Association of America March 24, 2005 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.

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Mexican Travel and Tourism to the United States

Receptive Services Association of America

March 24, 2005


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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.


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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.


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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.


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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%


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Mexico - Trends in Arrivals (Thousands of Tourists)


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Mexico - Trends in Receipts(Millions of USD)

SOURCE. U.S. Department of Commerce, ITA, Office of Travel and Tourism Industries, Buereau of Economic Analysis.


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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.



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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.


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Activity Preferences

  • Mexicans prefer: shopping, gambling, entertainment, amusement parks and cosmopolitan cities.

  • Nature is not high on the priority list – skiing is the exception.


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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.


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A Large and Complex Market

Tijuana

Monterrey

Guadalajara

Mexico

City


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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 Mexico’s Travel Media

  • Expo Vacaciones USA – unique trade show that focuses on U.S. destinations

  • Other events to promote the U.S. as Mexico’s top tourist destination


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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.


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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


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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


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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


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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.


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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.


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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.


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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…


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Promotion in Mexico is Key

  • Shopping malls and high-end stores organize fashion shows in Mexico’s most important cities

  • The fashion shows attract key wholesalers, but also travel and tourism media in Mexico to promote the exhibitors in their publications


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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


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Mexico T&T Specialists


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Thank you

Juan Carlos Ruíz

Commercial Assistant

U.S. Commercial Service Mexico City

Liverpool 31, Col. Juárez

06600, México, D. F.

Tel: +52 (55) 5140-2654

Fax: +52 (55) 5535-1139

E-mail: [email protected]


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