Russian Tourism to Mexico to Increase 400% in 2012

Russian Tourism to Mexico to Increase 400% in 2012

Earlier this month, we published a post speculating about aninteresting trend in tourism to Mexico. The theory goes something like this: The negative/slanted media coverage of Mexico pouring out of the US is hurting the Mexican Tourism industry, which has caused the industry to lower prices and offer enticing deals.

These deals are being eaten up by international travelers from outside the US, causing an overall rise in tourism to Mexico. A recent press release from the Mexican Government seems to be adding validity to theory, predicting Russian tourism to Mexico to increase by 400% in 2012.

2010 saw 27,137 travelers from Russia, which was an increase of 134% increase from 2009. From January to April of this year, Mexico has already welcomed more than 14,000 Russians, which is a 64% increase from the same time period in 2010.

Taras Kobishchanov, the President of the Association of Tour Operators of Russia, said that not only is Russian tourism to Mexico expected to explode in 2012 but that if this trend of growth continues, Mexico could be seeing about 500,000 yearly visitors from Russia by 2018!

Even more interesting (and important for Mexico) is that the average group of Russian travelers spends about 10 days in Mexico, whereas US travelers usually stay for only 4.5 days per trip. In addition, Russian groups spend an average of $1,000 dollars a day during their travels in Mexico.

According to the press release, “The most attractive destinations for Russian tourists are: Cancun-Riviera Maya (64.8 percent), the Federal District (29.7 percent), Puerto Vallarta (1.7 percent) and Los Cabos (1.6 percent).”

Russian travel agencies have reported that the Mundo Maya program and the approach of 2012 have sparked great interest among their clients. To capitalize on this interest, the international airline Aeroflot has announced that they will begin new flights to Mexico beginning October 3rd.

Needless to say, this new influx in Russian travelers is great news for Mexico as the country continues its march towards the Top Five International Travel Destinations in the World.

Mexico real estate has emerged as a safe bet

U.S.A. is hurtling from one crisis to another. It narrowly avoided a potentially embarrassing debt crisis only to be downgraded by S&P. This clearly signals that how globalinvestors now perceive USA as an investment destination. USA is confronting high employment ratesfor which it has no solution in coming few months. With no recovery in sight stock markets areawashed with negative sentiments and are tumbling every other day. For US citizens this is a peculiar problem. Stock markets which have been a huge component of their investments is not longer a safe option given its volatility. Real estate prices never ever recovered after the subprime crisis. They are short of any viable investment options at least in USA. In midst of all this mayhem and turmoil there is one placing which remains a solid investment destination now and forever. Mexico real estate has emerged as a safe bet for investors who are looking for not only stability but also potential returns in future. Recent drop in Mexico real estate prices are boon for those investors who have burnt their hands at US stock market and want to invest in a stable market with good potential upside. Naturally, a question will arise – US real estate prices are also low, so why not buy it there. The reason why US real estate market is not apt for investing right now is that prices in US market will be very slow to rise. There is a glut of inventory in the market and many foreclosures are yet to be put in to the market. So, if you want to buy real estate Solely for investment purposes and not as a primary residence then real estate in Mexico is the way to go. Mexico home prices are the lowest in last 5 years, interest rates are at an all time low and there are no foreclosure problems in Mexico. Mexico is a very popular destination for tourists and will remain so for a long time. Mexico is also a very rapidly developing country with a strong and resilient economy. This means that the demand for real estate will always be there and will only rise in next few decades. Another factor that makes Mexico such a good real estate investment option is that baby-boomers in USA have been severely affected by the recession and have seen erosion of their savings. In this scenario, it is difficult for them live off their savings for their entire life with same kind of luxury. Mexico is an inexpensive place to live. Retirees can enjoy a luxurious lifestyle with all amenities and facilities for a longer time. So, if you are an investor looking for an option to park your savings or a retiree who wants to prolong his savings, then Mexico real estate is the safest choice.