Unfortunately, the spread continues as the number of daily cases rises. Fortunately, the distribution of vaccines is underway. Slightly under two-thirds of Mexico\u2019s adults have received at least the first jab.<\/p>\n\n\n\n![\"third](\"https:\/\/www.travellersquest.com\/blog\/wp-content\/uploads\/2021\/12\/third-wave-in-mexico.jpg\")
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Source: Bloomberg <\/a> <\/p>\n\n\n\n In addition to the health crisis, the country faces related economic trouble. Mexico\u2019s travel industry is bracing for losses of as much as USD 2 million per day, according to estimates by the World Travel & Tourism Council (WTTC).<\/p>\n\n\n\n The U.K. quickly sounded the alarm, changing its rating on Mexico-related travel from amber to red. This led to an exodus of British travelers from Mexico as tourists sought to avoid a looming quarantine requirement with a hefty price tag attached.<\/p>\n\n\n\n Residents who get caught in a U.K.-defined red zone would be forced to stay at an approved hotel for a 10-day stretch, a stay which would cost them approximately GBP 1,750 upon their return. These travelers from Mexico would have to book the hotel reservations ahead of time or face a fine of as much as GBP 4,000. Some 6,000 U.K. travelers are affected by these rules. Meanwhile, non-British citizens traveling from Mexico are not allowed to enter the U.K.<\/p>\n\n\n\n The U.K. rules are significant considering that Mexico is a highly sought-after tourist destination among British residents. The number of U.K. travelers to the North American nation climbed nearly 17% in the four years leading up to 2018, a total of close to 600,000 tourists<\/a>.<\/p>\n\n\n\n Meanwhile, land port restrictions for the U.S. borders with Mexico and Canada \u2014 which target inbound crossings<\/a> \u2014 were recently extended to Aug. 21. The bans have been in place since the spring of 2020, and businesses have been reeling from a loss of customers. According to reports, the non-essential travel ban has devastated small businesses<\/a>, including those on the Texas\/Mexico border. Many border businesses that were forced to close their doors are not expected to reopen.<\/p>\n\n\n\n The Wall Street Journal spotlighted<\/a> El Paso-based small business owner Gregoria Flores. Flores owns a shop called Novedades Yeya\u2019s and the majority of her customers would spill over from Ciudad Ju\u00e1rez before the border ban was in place. Now Flores is desperately awaiting their return.<\/p>\n\n\n\n According to Hector Cerna, president and CEO of IBC Bank-Eagle Pass, cited by the Rio Grande Guardian, many of these businesses rely on consumers from the Mexican side of the border. These American businesses are in a unique position, as much of their money comes from neighboring Mexico. Cerna describes it as \u201cone city, two countries\u201d and he believes that the U.S.-Mexico border must reopen. <\/p>\n\n\n\n Mexico\u2019s tourism sector has been on a wild roller coaster ride for the past few years. In April 2021, the country saw 2.3 million international travelers, which was up nearly 200% compared to a year prior, during the height of the pandemic-fueled lockdowns. Nonetheless, Mexico\u2019s April 2021 results fall below the 3.6 million visitors Mexico saw during April 2019. As a result, the country has yet to return to its pre-pandemic levels for international travel.<\/p>\n\n\n\n The data demonstrates the importance of Mexico\u2019s travel sector to the economy. According to the World Travel and Tourism Council<\/a> , the travel and tourism sector contributed 15% of GDP to Mexico\u2019s economy in 2019. The industry\u2019s contribution was slashed to 8.5% during the pandemic year, which was a decline of close to 50%.<\/p>\n\n\n\n In addition, the travel and tourism sector is a big driver of employment in the country. In 2019, the travel industry generated more than 7 million jobs or close to 13% of total employment in the country. In 2020, the number of travel-related jobs fell to below 6 million or just over 11% of Mexico\u2019s total employment. <\/p>\n\n\n\n The travel bans take direct aim at the Latin American country\u2019s economy. For example, international travelers spent USD 23.7 billion in Mexico in 2019. Tourist\u2019s spending fell by 49% in 2020 to USD 12 billion. Mexico\u2019s domestic visitor spending was down by a similar percentage in 2020 vs. 2019 levels.<\/p>\n\n\n\n Most of the inbound flights to Mexico originate from the United States, at 81% and 89% in 2019 and 2020, respectively. The U.K. was the fourth most frequent jurisdiction for inbound arrivals to Mexico, preceded by Spain and Canada, in 2019, which jumped from position four in 2019 to position four in 2020.<\/p>\n\n\n\n Source: WTTC.org <\/a> <\/p>\n\n\n\n The spread of COVID-19 in Mexico has dampened the expectations for economic growth this year. Economic minister Tatiana Clouthier now predicts that GDP will grow<\/a> less than 6.3% in 2021. Economic growth is still expected to reach a minimum of 5.5%, despite the new wave of Delta cases. Previously, the economy ministry forecasted that GDP would reach 6.5% this year. To achieve this growth, the government is prioritizing the following areas in the interim: <\/p>\n\n\n\n U.S. Land Border Restrictions<\/h2>\n\n\n\n
Mexico\u2019s Tourism Industry<\/h2>\n\n\n\n
![\"inbound](\"https:\/\/www.travellersquest.com\/blog\/wp-content\/uploads\/2021\/12\/inbound-travel.jpg\")
\nMexico\u2019s Economy<\/h2>\n\n\n\n