|La Cumbre Presentation -- 1998
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Total travel from Mexico falls into three chunks: One is air travel, a highly lucrative segment of this market, which I'll focus on next. This remains relatively constant, ranging from 900 thousand to 1.4 million arrivals per year, or about 13-15% of total Mexican arrivals.
A second portion is those Mexican travelers within the frontier zone (25 miles on the U.S. side of the border) who spend at least one night in the U.S. This is the bulk of the travel market, ranging in the 3-4 million traveler zone. You can see the sharp decline in 1995 when total Mexican arrivals plummeted by more than 3 million and again the dip in 1997. Both are due to decreased travel among these frontier travelers.
The number of travelers who come by land beyond the frontier remains relatively constant at about 3 million arrivals per year.
You can see that the devalued peso and the continued unfavorable exchange rate have long-term effects on arrivals from our number two international market. Last week's dip to the lowest exchange rate in this three-year economic crisis, along with the steep losses on that country's stock market give us pause as we prepare our new forecast later this month. A lot of economists are busy revising their estimates on that country's growth, and those revisions are all downward.
|Chart 5 -- Total Arrivals from Mexico: The Effect of the Devalued Peso|
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