Due to the strengthening of the Mexican peso against the dollar, hotels in Cancun, Riviera Maya, and Los Cabos have raised their prices in dollars to cover salaries and supplier costs in pesos.
In terms of the exchange rate, the dollar was at 20.52 pesos 12 months ago, but it closed at 17.13 this Friday. Consequently, prices in pesos have increased by more than 16%, while the Dominican peso has only risen by less than 1.0% in the same period. Additionally, the Canadian dollar has devalued slightly more than 2.0% against the US dollar. These are just a few examples of short-distance destinations from the United States, as reported by Dinero en Imagen.
Mexico is now facing competition from other destinations. While millions of Americans previously favored the beaches of the Mexican Caribbean and urban destinations in the country, they are now considering alternatives such as the Dominican Republic.
A similar trend is emerging in the real estate market of tourist destinations like Los Cabos, where property prices in dollars have increased by approximately 10%, while price listings in pesos remain unchanged.
According to Dinero en Imagen, this situation not only poses the risk of discouraging sales, but it could also potentially reduce the prospective appreciation for buyers in dollars once the peso eventually adjusts against the dollar.
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