{"id":38112,"date":"2020-07-30T14:14:28","date_gmt":"2020-07-30T18:14:28","guid":{"rendered":"https:\/\/www.escapeartist.com\/?p=38112"},"modified":"2021-04-19T11:28:21","modified_gmt":"2021-04-19T16:28:21","slug":"on-mexican-hospitality-hotels-restaurants-bars-and-other-investment-opportunities","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/on-mexican-hospitality-hotels-restaurants-bars-and-other-investment-opportunities\/","title":{"rendered":"On Mexican Hospitality: Hotels, Restaurants, Bars, and Other Investment Opportunities"},"content":{"rendered":"

On Mexican Hospitality: Hotels, Restaurants, Bars, and Other Investment Opportunities<\/strong><\/h2>\n

I know what you’re all thinking – 1) are the following statistics even valid because of Covid-19, and 2) things will likely never be the same. And yes, I agree that things might never be as they once were, however, the human race LOVES to travel. They love to leave their home country and go places. Whether they fly or drive, they want to leave and see what else is out there. So let’s look at the way it was, and look forward to what will most likely be…and the way the real estate market is in Mexico, I can certainly see that doubling, even tripling what we have seen in the past. And talking about Covid-19, many governments have totally destroyed their countries and people want out and for good. Whether they leave their country and renounce their citizenship, or just leave for sunnier skies and a better life, they want to leave.\u00a0\u00a0<\/span><\/p>\n

Enjoy this podcast from The Expat Money Show<\/a> – JohnnyFD<\/a> who talks about moving from the USA and living in Bali and Thailand.<\/strong><\/p>\n

So let’s get to it!<\/p>\n

As a developing market economy, Mexico\u2019s GDP in 2018 grew by2.2%\u2014managing to be greater than Canada\u2019s – 2.1% growth. As the <\/span>12<\/span>th<\/span> largest exporter<\/span> in the world, boasting <\/span>12 free trade agreements<\/span>, a major <\/span>electronics manufacturing center<\/span><\/a>, <\/span>globally competitive companies<\/span><\/a>, and the <\/span>world\u2019s 7<\/span>th<\/span> largest auto manufacturer<\/span><\/a>, Mexico has quite a lot going for it.\u00a0<\/span><\/p>\n

And if investments in <\/span>Mexico\u2019s oil industry<\/span> don\u2019t seduce you, perhaps its promising real estate ventures will.\u00a0<\/span><\/p>\n

But we\u2019re here to talk about something that attracts less investor attention\u2014but offers high returns just the same\u2014the hospitality industry.\u00a0<\/span><\/p>\n

Handpicked Related Content: Working in Mexico: Key Facts to Know<\/a><\/i><\/b><\/span><\/p>\n

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Mexico: A Booming Tourism Site<\/strong><\/h2>\n

From cultural festivals<\/a> to nature reserves and from colonial cities to beach resorts, Mexico entices a throng of tourists and travellers to its plateaus and plains, volcanoes and peninsulas. Featuring a fusion of Mesoamerican and European cultures, Mexico serves as the perfect backdrop for the adventurous traveller\u2019s escapades<\/a>; it\u2019s the <\/span>7<\/span>th<\/span> most visited country<\/span> on the globe for a reason!<\/span><\/p>\n

The number of tourists visiting Mexico in the past few years has been on the rise, which indicates that the next few years will be even better in terms of tourism and travel. <\/span>45 million international visitors<\/span> visited Mexico in 2019\u2014that\u2019s 3.7 million visitors more than in 2018. The majority of these international visitors\u2014<\/span>10.8 million to be exact<\/span>\u2014flew in from U.S. airports. And this is just the number of people <\/span>flying in<\/span><\/i> from the U.S. The total number of U.S. citizens\u2014many of them coming in via sea routes and land\u2014was even higher. If you\u2019re looking for a number, estimates peg it around <\/span>32.39 million<\/span>. So much for that wall, we guess.\u00a0<\/span><\/p>\n

Handpicked Related Content: 10 Reasons To Move To Mexico<\/a><\/i><\/b><\/span><\/p>\n

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Demand for Infrastructure\u00a0<\/strong><\/h2>\n

The <\/span>2<\/span>nd<\/span> largest economy in Latin America<\/span><\/a>, Mexico has a lesser-known investment venture that can bring you real estate equity support, a solid stream of continuous income, and a long-term financial gig with promising monetary rewards. Business-class<\/a> lodging, hotels, restaurants\u2014all fall under the scope of hospitality investment ventures, and all of them are beyond lucrative.\u00a0<\/span><\/p>\n

Business trips to Mexico, in addition to the holiday and tourism revenue, make it ripe for near-full occupancy for most of the year. There will always be demand for infrastructure in the hospitality industry, and the projected growth in this particular sector is decidedly positive.\u00a0<\/span><\/p>\n

The currency in Mexico is strong; it has a vigorous, young skill pool; and its workforce comes cheap. Its location, right next to the world\u2019s biggest market, ensures institutional and market stability. The <\/span>North American Free Trade Agreement<\/span> (yes, the same NAFTA that Trump kept <\/span>threatening to \u201crip up\u201d<\/span><\/a>) has secured its position as one of the world\u2019s fastest-growing free trade regions. As for the rip-up threat, yes, <\/span>NAFTA <\/span>was<\/span><\/i> ripped up<\/span>\u2014but another <\/span>U.S.\u2013Canada\u2013Mexico deal<\/span><\/a> was signed quickly enough, and that simply proves that business is business.\u00a0<\/span><\/p>\n

Handpicked Related Content: Real Estate Investment Potentials in Mexico<\/a><\/i><\/b><\/span><\/p>\n

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Advantageous Proximity with the United States<\/strong><\/h2>\n

Its strategic closeness to the States, as well as the fact that the U.S. is Mexico\u2019s largest trade partner, ensures that Mexico is bound for growth. Despite the political upheavals and border skirmishes, business is operating as usual. You may think that President Trump\u2019s trade policies will injure Mexico\u2019s economic output, but the country\u2019s prospects still look bright.\u00a0<\/span><\/p>\n

The modernized and revitalized EU-Mexican <\/span>Trade Agreement of 2016<\/span>, for instance, is a major contributor to its growth. This agreement was further solidified <\/span>in May 2020<\/span>. This new <\/span>free-trade agreement<\/span><\/a> brings with it the promise of progress and growth, despite any Trump trade policies. Besides, the <\/span>United States-Mexico-Canada Agreement (USMCA)<\/span><\/a>, signed earlier this year, is proof that the U.S. is very interested in fostering trade deals with its neighbours.\u00a0<\/span><\/p>\n

Handpicked Related Content: Buying Property In Mexico: A Step-By-Step Guide For Expats<\/a><\/i><\/b><\/span><\/p>\n

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The Importance of the U.S. Dollar<\/strong><\/h2>\n

When you compare the U.S. dollar against the Mexican Peso, the difference is titillating enough for any investor to start concocting plans regarding their next Mexican investment. Compare it to other popular tourist destinations\u2014like Greece, for instance\u2014and you realize how high your Mexican returns can be. Peso devaluation and inflation are major contributors in this case. In order to make up for the losses, the country encouraged and promoted tourism, making it an affordable option for international tourists. It\u2019s a win-win for you.<\/span><\/p>\n

Handpicked Related Content: A Financial Case for Moving to Mexico<\/a><\/i><\/b><\/span><\/p>\n

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Low-Risk and High-Reward<\/strong><\/h2>\n

It’s a classic low-risk and high-reward environment\u2014something investors are always on the lookout for. <\/span>FIBRAs and CKDs<\/span><\/a>\u2014real estate investment trusts and development capital certificates\u2014have allowed investors to buy real estate assets with ease, while also allowing them to operationalize their pension funds. Interestingly, these interventions are directed toward the hospitality sector\u2014therein, the federal government also recognizes that raising funds from the hospitality sector is a profitable idea. Touted as investment funds\u2014with many Mexicans investing their retirement funds in FIBRAs and CKDs\u2014the money generated from these ventures goes directly into the development of the hospitality sector.\u00a0<\/span><\/p>\n

This proves that the demand for hospitality infrastructure is high in the country. As an investor who\u2019s looking for opportunities that don\u2019t pose too many risks, this might be just what you\u2019re looking for.\u00a0<\/span><\/p>\n

Handpicked Related Content: Best Cities in Mexico for Snowbirds<\/a><\/i><\/b><\/span><\/p>\n

Engage with us about this piece on Twitter – Respond to this thread with your questions and comments, and we’ll get back to you!<\/em><\/strong><\/p>\n

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There are actually big opportunities with #Mexico<\/a>‘s hospitality industry right now…regardless of the current circumstances, humans love to travel, and Mexico is open for business right now…[thread]<\/p>\n

\u2014 Mikkel Thorup | Author & Podcast Host (@ThorupMikkel) August 3, 2020<\/a><\/p><\/blockquote>\n