With Mexico’s economy in deep recession, tourism is suffering the biggest hit of any sector of the economy.
In fact, tourism industry in Mexico is in the middle of a crisis.
According to the country’s Chamber of Tourism, the industry has lost 10.6% of its value in 2016.
And the loss has only been compounded by a massive decline in international tourism revenue, according to the Mexican government.
Tourism is the biggest economic driver in Mexico and contributes about 10% of the countrys total gross domestic product.
But in the past decade, tourism revenue has fallen from an estimated $5.7 billion in 2008 to just $1.8 billion in 2016, according the government.
The loss in tourism revenues is not only impacting Mexico’s tourism industry.
A study released by the Center for Strategic and International Studies (CSIS) said that Mexico’s economic growth is in danger of becoming a “recession-induced” depression.
In particular, the decline in tourism revenue is expected to have a “severe negative impact on Mexico’s current account” and the country will lose almost $8 trillion in its economy, according CSIS.
The Mexican economy is expected hit by another recession in 2021, according analysts at the Instituto Nacional de Estudios de Economía y Tecnología (INET) who noted that “the economy is in a severe recession.”
Mexico has the second largest tourism industry after China and is ranked second in the world for tourism spending per capita.
According to the Ministry of Tourism and Culture, the tourism industry has grown by 3.2% annually since 2008, but its current rate of growth is expected fall to 0.8% this year and then rise to 0% in 2021.
In addition, the Mexican Chamber of Commerce is predicting a $20 billion loss in the tourism sector in 2021 due to the economic downturn.
The economic crisis in Mexico has forced many companies to cut jobs and reduce their workforce.
And while the economy is still recovering from the recession, the economic outlook for Mexico is still grim.
The International Monetary Fund said in a recent report that Mexico is facing a “serious structural recession” that will lead to a sharp drop in its growth rate by 2019.