Playa Del Carmen, Mexico (PressExposure) November 24, 2010 -- The Mexico real estateindustry for North American investors is closely tied to the country's tourism industry, and thus to the health of world tourism. This is why it is important for investors to note that world tourism has once again reached its peak levels from before the recession (2008).
One of the most direct ways investors benefit from increasing tourism is through Mexico condo or house investment, which owners rent out to vacationers to generate an ongoing and reliable form of income, and return on their investment.
The practice has been proven to be an excellent way of generating return, with some investors even buying through financing, and producing enough income to cover the costs of their payments and other expenses, basically letting the condo "pay for itself." This kind of investment is directly dependent on healthy tourism, but other forms of real estate investment in Mexico also benefit from strong tourism.
The statistics from the UN World Travel Organization (WTO) indicate that tourism is on a heatlthy return, and that international tourism has virtually recovered from the 4.2% decline experienced last year under the impact of economic crisis.
In the first eight months of 2010, the number of international tourist arrivals exceeded the peak reached during the same period the year before the crisis, 2008.
According to the WTO, between January and August 2010 arrivals worldwide reached 642 million, about 40 million more than in 2009, for an increase of about 7%, and 1 million more than the same period in 2008, thus surpassing the all-time record. WTO predicts that during 2010, the increase will average between 5 and 6%. For 2011, and slower pace growth of 4% is predicted. The part which is still lagging is tourist spending; the average tourist is still spending less than in 2008.
While the recovery has been uneven, Mexico is one of the areas surpassing the world average, with a recovery exceeding the 9% of its region (North and Central America.)
Real estate investment markets in Mexico to benefit directly are those which offer rental revenue from tourists; other markets, however, also benefit. Markets which receive less direct attention, such as Playa del Carmen land, also benefit from the world-wide recover in tourism. The ongoing opportunities in this market, which have seen appreciation of over 20% in the past year, are largely due to the growth of Playa del Carmen - currently one of the fastest growing municipalities in Latin America - which is a direct result of healthy tourism.
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