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International journey to Mexico is down, partly resulting from much less favorable trade charges. Getty Pictures
The journey increase that made Mexico one of many world’s high vacationer locations throughout the pandemic is coming to a halt because the appreciation of the peso will increase journey prices, whereas making Mexicans decide to go overseas throughout trip months.
The variety of overseas vacationers arriving in Mexico throughout August, high-season for summer time holidays within the northern hemisphere, dropped 1.5% in comparison with the earlier 12 months, the primary annual contraction since March 2021, the nationwide statistics institute INEGI stated Tuesday. In the meantime, Mexicans flying overseas jumped greater than 26% that month, it stated.
In July, Mexico’s peso posted a seventh-straight month of good points, the longest such streak in 15 years, with the forex hovering close to its strongest degree since 2015. Whereas the peso misplaced some floor since late August amid market volatility, it’s nonetheless the world’s second-best main forex this 12 months, with a acquire of 8.8% towards the greenback.
The so-called tremendous peso has made a visit to Mexico dearer in {dollars} for worldwide vacationers, with whole spending down 7.2% in August, in line with the INEGI estimates. On the similar time, spending by Mexicans flying overseas grew virtually 30%, an indication additionally of sturdy client demand as Latin America’s second-largest financial system is seen rising 3.2% this 12 months.
Mexico was one of many few principal vacationer locations that didn’t prohibit worldwide tourism throughout the Covid-19 pandemic, benefiting from the arrival of vacationers — significantly from the US — that had been barred or restricted in different nations between 2020 and 2022.