MEXICO ON YOUR CALENDAR FOR 2025?

Mexico Just Got Cheaper!

Originally Published Dec. 2024 in Western Outdoor Publications

Year 2024 was a tough year to travel to Mexico. Although Mexico remained the #1 destination for American vacationers and still broke travel records, it was a somewhat somber travel year.

After several years of post-covid travel boom that shattered statistics, things leveled off in 2024.  A number of reasons can be cited.

For one, there was less “covid fatigue.”

Those first few years as covid fears eased, folks were tired of being cooped up.  They were anxious to get out. 

Anxious to move about.  Anxious to “do something” before some new restrictions fell into place!

Mexico was close.  It’s familiar.  It’s easy.  It didn’t bust the piggy bank.

Mexico had it’s arms open and begged to be visited!

Many Mexican vacation destinations couldn’t keep up with the demand.  It was a boom. The rush was on!

However, in 2024, things settled down.  The novelty and cabin fever had worn off a bit. 

It didn’t help that the post-Covid U.S. economy didn’t exactly jump through hoops.  It also took a tumble the last few years as many of us know.  

Those first years,  folks took off to Mexico with an urgency to travel.  As the years continued, folks re-adjusted.  They got more economically thoughtful.

Belt tightening on many levels.  Life settled into the post-Covid groove, so to speak.

On top of it all, Mexico simply got more expensive on so many levels.

Flights got more expensive. Air travel, in general, still never recovered from Covid snafu’s. 

Prices for hotels and services in Mexico hit all-time highs. 

Partially higher prices resulted from higher demand.  Simple Economics 101.   Booms in tourism produced higher rates.

But, much of it was also the result of higher fuel prices.  Anything and everything has ties to fuel in one way-shape-or-form. 

Gas prices skyrocketed in Mexico and higher transportation costs were reflected in higher prices for everything.  Not just for tourists, but locals as well.

The double / triple whammy for tourists was the devaluation of the American dollar against the Mexican peso.  The peso got stronger and the dollar dipped.

Actually, it took a nosedive.

Take a look.

Pre-Covid the rate of exchange for Pesos-to-dollars was about18:1. That means 18 pesos for 1 American dollar.

If a hotel room cost $2500 Mexican pesos per night, that would mean, about $138 U.S. out of your pocket.

If dinner for 2 cost $1500 Mexican pesos, you’d be paying about $84 dollars.

Last year, rates dropped to 15:1.  That’s 15 pesos for one U.S. dollar.

That 2500 peso hotel room cost now jumped to $166 per night.

Dinner cost $100 U.S. dollars.

Plus, prices went up on top of it all.

That hotel for $2500 pesos was more likely $3000 pesos per night or $200 U.S. dollars.

Dinner jumped to $1800 pesos or $120 bucks from your wallet.

Again, simple economics.  Prices rise.  Demand diminishes.

Mexico became harder to afford.  Across the board…flights, hotels. gasoline, car rentals, food, fishing, etc.   All more expensive for everyone.

From a personal perspective, I think many Americans were also holding onto their dollars because it was an election year.  Everyone was waiting to see what happened in November.

But, guess what? 

The peso has taken a tumble against the dollar.

 In the last 2-3 months, the exchange rate of the peso-to-dollar has risen to more than 20 pesos to 1 dollar.

So, the dollar is at an all-time high.  Your travel dollar is once has purchasing strength and goes further.

That $3000 pesos room that was $200/night has now dropped to $150 of your dollars.

Dinner for two that was $120 dollars has now become more affordable at $90.

In Mexico, prices may not have relatively dropped on the ledgers and blackboards.  But, in terms of real-time money costs for Americans, this is a really good time to take a little vacation!

That’s my story!

Jonathan

 

 

Jonathan Roldan has been writing the Baja Column in Western Outdoor News since 2004.  Along with his wife and fishing buddy, Jilly, they own and run the Tailhunter International Fishing Fleet in La Paz, Baja, Mexico  www.tailhunter.com.

They also run their Tailhunter Restaurant Bar on the famous La Paz malecon waterfront.  If you’d like to contact him directly, his e-mail is: jonathan@tailhunter.com

Or drop by the restaurant to say hi.  It’s right on the La Paz waterfront!

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“What makes us happiest in life? We sell smiles for a living. Here, have one free. It looks good on you! “