By: Daniel Linares Domínguez, AMDETUR

The vacation ownership industry in Mexico is a constantly evolving sector that has successfully navigated numerous challenges since its inception. One of the most significant obstacles stems from a constitutional restriction prohibiting foreigners from owning real estate along the country’s coastline. As a result, traditional timeshare models involving property ownership were not viable in Mexico. Instead, the industry developed unique models that offered usage rights rather than ownership, with properties held in trust. This limitation, in my view, was the catalyst for innovation, forcing the industry to think differently from the very beginning—and that spirit of innovation has continued ever since.

Entrepreneurs and investors, recognizing that their primary market consists of U.S. citizens, have focused on understanding and addressing the needs of this demographic. Their vision has led to increasingly flexible products while maintaining the allure of Mexico’s unique vacation experiences. Over time, the evolution of these products has been accompanied by enhancements to the overall experience. What began with simple all-inclusive packages has now transformed into comprehensive offerings that include meals, drinks, activities, mobility within resorts and destinations, and curated experiences. The emergence of concepts like “All Fun Inclusive” exemplifies this trend, elevating the vacation experience to a new level of convenience and enjoyment.

The success of these efforts is evident in the industry’s performance. In 2024, sales in Mexico are estimated to surpass $6.3 billion, securing its position as the second-largest market globally, after the United States. The U.S., with over 1,580 developments, generates approximately $10.9 billion in annual sales, averaging $6.9 million per development. In comparison, Mexico’s 680 developments achieve an impressive $9.25 million in average sales per property. This speaks volumes about the efficiency and appeal of Mexico’s vacation ownership offerings.

Further reinforcing the industry’s success is the remarkably high sales closing rate, which exceeds 25%, and a low cancellation rate of under 7%. These metrics underscore the strong preference U.S. consumers have for vacation ownership and experiences in Mexico. The country’s diverse landscapes, rich culture, and unparalleled hospitality have made it a favored destination for international travelers, particularly from the United States.

As we look ahead, the Mexican Association of Tourism Developers (AMDETUR) recognizes the need to address the challenges that lie ahead for the industry. Issues such as cybersecurity, digital transformation, and fostering a culture of compliance across all operational processes require proactive attention. Providing members with tools, guidance, and support will be key to turning these challenges into opportunities. By doing so, developers in Mexico can focus on what they do best: selling and delivering unforgettable vacation experiences.

The vacation ownership industry in Mexico has come a long way, overcoming constitutional constraints to become a global leader. Its success is a testament to the resilience, innovation, and vision of those who drive the industry forward. With continued focus and adaptation, the future looks bright for vacation ownership in Mexico, ensuring its position as a top choice for travelers worldwide.