Yucatan Tourism Industry Struggles in 2024 – Can a $60 Million Plan Save It?

The tourism industry in Yucatan experienced a challenging first half of 2024, with a notable decline in visitors across most sectors. This decrease has had a significant impact on the local economy, according to Jorge Carrillo Sáenz, president of the Yucatan Business Tourism Council (Cetur).

To combat this downward trend and attract more tourists, particularly domestic ones, private sector tourism entities have devised a promotional strategy. This includes Cetur, the Hotel Association, Aaprotuy, and a major hotel on Colón Avenue. They plan to invest $60 million from the Yucatan Tourism Promotion Trust, a fund comprised of taxes from companies within the sector. This investment will be utilized in the last quarter of 2024 to boost visitor numbers during the Christmas season and the subsequent Easter and summer periods, traditionally the busiest times for Yucatan tourism.

"There's no denying that the first half of 2024 has been challenging, with a slight decline in visitors," said Carrillo Sáenz. He pointed to official statistics from Sefotur, which indicate a less than stellar start to the year. "The period from January to May was particularly tough, and we expect June's figures to follow this trend."

According to Sefotur's data, hotel occupancy rates from January to May 2024 were 2% lower than the same period in 2023. This decline has prompted service providers to initiate a more effective tourism promotion campaign, aiming to highlight the many attractions Yucatan has to offer.

One area of particular concern is the decline in congresses, conventions, and meetings. These events significantly boost hotel occupancy rates and contribute to the local economy through visitor spending.

"Official numbers confirm a decrease in congresses and conventions," Carrillo Sáenz noted. "From January to May, there were only 16 events at the International Congress Center (CIC) and 17 at Siglo XXI. These figures should be weekly, not over a six-month period."

While Sefotur reported 160 events from January to May, many of these did not meet the criteria of a traditional convention with 1,000 participants. The reported events included small meetings, sports, and social competitions, but only 33 were large-scale conventions held at specialized venues like the CIC and Siglo XXI.

"The number of large-scale conventions is disappointingly low," reiterated Carrillo Sáenz. "While smaller events and competitions are important, they don't generate the same economic impact as larger conventions."

He further noted that the expectations for the CIC, which was built with the anticipation of hosting large events, have not been met. Several hotels were constructed around the venue in anticipation of these events, but the expected influx has not materialized.