Mexico`s Tourism Sector`s GDP

Mexico’s Tourism Sector and its
Poverty Reduction Potential
Mexico’s Tourism Sector’s GDP
• Tourism is not generally considered as a sector of economic
activity in the System of National Accounts (SNA)
• As a result, the tourism sector’s contribution to GDP cannot be
assessed directly
• INEGI, Mexico’s National Statistics Institute, produced the
Tourism’s Sector Satellite Account, which is part of the SNA
• This allows one to decompose the tourism sector’s contribution to
GDP into five sources:
o Manufacturing Industry
o Trade, Restaurants and Hotels
o Transportation, Storage and Communications
o Communal, Social and Personal Services
o Other Goods and Services
Mexico’s Tourism Sector’s GDP
Tourism Sector’s GDP as a share of total GDP in Mexico: 1993-2004
8.5%
8.3%
8.0%
Percent
7.5%
7.0%
7.0%
6.5%
6.0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: Cuenta Satélite del Turismo de México. Instituto Nacional de Estadística, Geografía e Informática (INEGI).
Mexico’s Tourism Sector’s GDP and its Composition
Composition of Mexico’s Tourism Sector’s GDP: 1993-2004
Trade,
Restaurants and
Hotels
46.4%
Manufacturing
Industry
20.3%
Other Goods
and Services
2.2%
Transportation,
Storage and
Communications
Communal,
25.3%
Social and
Personal
Services
5.9%
Source: Cuenta Satélite del Turismo de México. Instituto Nacional de Estadística, Geografía e Informática (INEGI).
Mexico’s Tourism Sector’s GDP and its Growth
Annual Growth Rate of Mexico’s Tourism Sector’s GDP: 1993-2004
4.5%
4.1%
4.0%
3.5%
Percent
3.0%
2.9%
2.5%
2.1%
2.0%
1.8%
1.7%
1.6%
1.5%
1.2%
1.0%
0.5%
0.0%
Total GDP
Tourism Sector
GDP
Manufacturing
Industry
Trade,
Transportation,
Restaurants and
Storage and
Hotels
Communications
Communal,
Social and
Personal
Services
Other Goods and
Services
Source: Cuenta Satélite del Turismo de México. Instituto Nacional de Estadística, Geografía e Informática (INEGI).
Mexico’s Tourism Sector’s GDP and its Growth
Annual Growth Rate of Mexico’s Tourism Sector’s GDP: 1993-2004
110%
100%
100.0%
90%
80%
Percent
70%
60%
48.2%
50%
40%
31.7%
30%
20%
16.0%
6.7%
10%
0%
-2.7%
-10%
Tourism Sector
GDP
Manufacturing
Industry
Trade,
Transportation, Communal, Social Other Goods and
Restaurants and
Storage and
and Personal
Services
Hotels
Communications
Services
Source: Cuenta Satélite del Turismo de México. Instituto Nacional de Estadística, Geografía e Informática (INEGI).
Mexico’s Tourism Sector’s Employment
Mexico’s Tourism Sector Employment as a Share of Total Employment:
6.4%
1993-2004
6.3%
6.2%
6.0%
Percent
5.8%
5.6%
5.4%
5.4%
5.2%
5.0%
4.8%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: Cuenta Satélite del Turismo de México. Instituto Nacional de Estadística, Geografía e Informática (INEGI).
Mexico’s Tourism Sector’s Employment and its Composition
Composition of Mexico’s Tourism Sector’s Employment: 1993-2004
Trade,
Restaurants and
hotels
59.8%
Manufacturing
Industry
13.3%
Other Goods
and Services
2.3%
Transportation,
Storage and
Communal,
Social and Communications
17.2%
Personal
Services
7.4%
Source: Cuenta Satélite del Turismo de México. Instituto Nacional de Estadística, Geografía e Informática (INEGI).
Mexico’s Tourism Sector’s Average Productivity
Average Labor Productivity in Mexico’s Tourism Sector: 1993-2004
Economy-wide
Tourism Sector
Manufacturing Industry
Trade, Restaurants and Hotels
Transportation, Storage and Comunications
Comunal, Social and Personal Services
Other Goods and Services
Average value added per worker
(in thousands of constant 1993 pesos)
100
90
80
70
60
50
40
30
20
10
0
2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993
Source: Cuenta Satélite del Turismo de México. Instituto Nacional de Estadística, Geografía e Informática (INEGI).
Mexico’s Tourism Sector’s GDP
• The Tourism’s Sector Satellite Account reveals the following facts:
o The tourism sector represents close to 7% of GDP and 5.4% of
total employment in Mexico
o Within the tourism sector’s GDP, the Trade, restaurant and
hotel subsector accounts for the largest part of (47%), followed
by Transportation, storage and communications (25%),
Manufacturing industry (20%), Communal, social and personal
services (6%) and Other goods and services (2%)
o The tourism sector has grown at a lower rate than the rest of
the economy: over the period 1993-2004 the economy grew at
an average annual growth rate of 2.9%, whereas the tourism
sector grew at 1.6%. As a result, the tourism sector contribution
to GDP, although high relative to other sectors, has been
declining
o The tourism sector has significantly higher average labor
productivity than the rest of the economy
Mexico’s Tourism Sector’s Competitiveness
World Economic Forum’s 2009
Travel & Tourism Competitiveness Index (TTCI)
Country/Economy
Canada
United States
Barbados
Costa Rica
Brazil
Mexico
Puerto Rico
Panama
Chile
Jamaica
Uruguay
Argentina
Dominican Republic
Guatemala
Colombia
Peru
Honduras
Trinidad and Tobago
El Salvador
Ecuador
Suriname
Guyana
Nicaragua
Venezuela
Bolivia
Paraguay
Overall Index
Regional r Overall ranScore
1
5
5.32
2
8
5.28
3
30
4.77
4
42
4.42
5
45
4.35
6
51
4.29
7
53
4.27
8
55
4.23
9
57
4.18
10
60
4.13
11
63
4.09
12
65
4.08
13
67
4.03
14
70
3.9
15
72
3.89
16
74
3.88
17
83
3.77
18
84
3.75
19
94
3.63
20
96
3.62
21
99
3.54
22
102
3.5
23
103
3.49
24
104
3.46
25
114
3.33
26
122
3.16
Travel and Tourism
T&T business
T&T human,
regulatory
environment and cultural, and natural
framework
infrastructure
resources
Rank
Score
Rank
Score
Rank
Score
23
5.41
4
5.36
10
5.19
57
4.7
2
5.47
1
5.67
19
5.47
29
4.62
45
4.21
48
4.94
55
3.77
31
4.54
95
4.12
69
3.53
4
5.4
80
4.34
62
3.66
13
4.87
44
4.99
41
4.1
84
3.71
53
4.8
56
3.77
53
4.14
49
4.87
58
3.76
64
3.92
51
4.85
57
3.76
80
3.76
45
4.98
74
3.33
57
3.96
74
4.4
70
3.51
41
4.34
54
4.75
71
3.46
68
3.88
81
4.32
81
3.2
48
4.17
91
4.18
88
3.08
34
4.43
89
4.24
92
2.96
33
4.43
83
4.31
87
3.08
63
3.92
100
4.04
51
3.82
112
3.38
73
4.42
83
3.19
123
3.28
103
4.01
97
2.91
62
3.93
110
3.86
91
3.01
79
3.76
94
4.14
111
2.68
88
3.66
98
4.05
101
2.79
93
3.63
122
3.63
86
3.12
91
3.65
127
3.33
110
2.7
58
3.96
116
3.74
130
2.44
122
3.3
Mexico’s Tourism Sector’s Competitiveness
• Mexico’s Tourism Sector needs to improve particularly in the
following areas:
1. Policy rules and regulations
2. Environmental sustainability
3. Safety and security
4. Health and hygiene
5. Prioritization of Travel & Tourism
6. Air transport infrastructure
7. Ground transport infrastructure
8. Tourism infrastructure
9. ICT infrastructure
10. Price competitiveness in the T&T industry
11. Human resources
12. Affinity for Travel & Tourism
13. Natural resources
14. Cultural resources
Mexico’s Tourism Sector’s Potential for Poverty Reduction
Main characteristics
Variables of interest
Census household data
National surveys of
employment
Limitations
• Includes 32 metropolitan
areas
• Performed quarterly
• Ratative panel data of 1
year
• 199X-2004
ENEU
• Includes 32 metropolitan
areas
• Performed quarterly
• Rotative panel data of 1
year
• 2005-
ENOE
National
census
National
count
• Performed every 10
years
• Data based on AGEB and
aggregated to
municipalities
• Performed every 5 years
• Data based on AGEB and
aggregated to
municipalities
• Detailed data on labor markets
participation, incluing sector,
income and characteristics of the
job
Information
from both
sources can not
be merge
• Detailed data on labor markets
participation, incluing sector,
income and characteristics of the
job
Includes “big”
metropolitan
areas and not
“small”
communities
• Detailed data on individuals
characteristics: location, education,
income and some variables of labor
markets
Vary few
variables can be
used
• Limited data on individuals
characteristics: location, education
Not reliable data
on income
13
Mexico’s Tourism Sector’s Potential for Poverty Reduction
Selection of
“touristic” cities
Selection of
comparison
cities
Objective
•To identify cities were
tourism is a driver of
growth
•To identify cities were
other sectors are drivers
of growth
Criteria
•Cities were a high share
of economic activity is
related to tourism
•Big cities?
•Growth?
•Different types of cities,
beaches, colonial towns,
cultural capitals and cities
in the border
•Cities related to:
•Maquila
•Oil
•Agriculture
•Government
expenditures
•Match toursitic cities
with comparison cities in
population and
marginality index 1995
Database
Economic
census 2004
•Economic
census 2004
•CONAPO
Comparison of
outcomes
Conclusions
•Analize differences in
means in: total
employment, formality vs.
informality, marginality
index 2005, migration
•Same variables adjusted
for migration
•If possible inequality
using ENOE
•Economic
census 2004
•CONAPO
•ENOE
14
Mexico’s Tourism Sector’s Potential for Poverty Reduction
Beaches resort
Celestúm
Economic
growth
Small beaches
Playa del Carmen
Pueblos Mágicos
200
Other little towns
Tapalpa
Arqueological sites
In the period
of our study:
Beaches show
the highest
growth
Mazamitla
Valle de
Bravo Puerto Vallarta and
Nuevo Vallarta
Cancún
50
Malinalco
Los Cabos
Tecolutla
Huatulco
Real del Monte
Cihuatlán
Acapulco Ixtapan de la Sal
Cuetzálan
Palenque
Puerto Escondido
Yahutepec
Ixtapa
0
Arquelogical
sites show the
lowest growth
Chichén Itzá
La Huerta
-20
Uxmal
40
20
Tourism
importance
(percent)
15
Mexico’s Tourism Sector’s Potential for Poverty Reduction
Muy bajo
Marginality index
Bajo
Medio
Playa del Carmen
Mazamitla
Celestúm
Playa del Carmen
Tapalpa
Chichén Itzá
Alto
Tecolutla
Uxmal
Playa del Carmen
Mazamitla
Mazamitla
Celestúm
Celestúm
Tapalpa
Tapalpa
Tecolutla
Uxmal
Chichén Itzá
Tecolutla
Uxmal
Chichén Itzá
Muy alto
1995
2000
2005
16