Level Playing Field Now Established for Traditional Hotels and Platforms: Torruco
September 24, 2024
Miguel Torruco Marqués, head of Mexico’s Secretariat of Tourism, recently highlighted the achievements of his tenure during a tour of Puerto Vallarta. He emphasized successes such as enforcing tax collection from digital lodging platforms like Airbnb, which previously evaded taxes amounting to 20 billion pesos. These platforms are now required to pay Value Added Tax (VAT) and Income Tax.
“When I served as President of the Mexican Hotel Association, the primary demand was to create a level playing field for these platforms, which were then considered an additional hotel offering. Under this administration, we succeeded in regulating all platforms. Today, 100% of them comply with paying income tax and VAT, and in 21 states, the lodging tax is also being charged. For example, Cancún is collecting an additional 450 million pesos from this tax, more than they received from the Mexico Tourism Promotion Council. In Nayarit, the tax has brought in around 86 million pesos, and here in Jalisco, 100 million. This redirected revenue for promotion exceeds what they previously received from the CPTM,” he explained.
NO OPPOSITION TO CONDOMINIUMS AND PLATFORMS
Torruco was also asked about the proliferation of condominium buildings and apartments, and the issue of gentrification—a process of renewing urban areas, often displacing original residents with those of higher economic means.
“The real estate business is a natural development, driven by supply and demand. We can’t oppose it, as long as rental properties are paying their taxes to maintain a level playing field with the organized hotel industry in the country,” he emphasized.
He proudly noted that he is only the second Secretary of Tourism in Mexico’s history to serve a full six-year term. He credited the positive results to a collaborative effort that repositioned Mexico among the world’s most visited countries, breaking records in foreign exchange revenue and infrastructure investment.
“Our strategy was global, and so were our promotional efforts. We visited 40 major tourism markets, inviting all state secretaries and tour operators to join us. This time, unlike in the past, there were no free tickets—everyone covered their own costs. I met with 4,500 tour operators across 40 cities, all interested in Mexico as a destination. For example, in Rome, there was only one flight operating three days a week. We coordinated with Aeroméxico’s director and the Mexican embassy, held a meeting with over 250 receptive tour operators, and as a result, we secured daily flights. We had similar success in Milan.”
He also announced new flights to China and South Korea, completing the restoration of connectivity with the Asia-Pacific region. He reminded everyone that the next Tianguis Turístico will take place in Tijuana and Rosarito, Baja California, marking the first time this event is hosted in a border state. Torruco predicted record participation from U.S. and Canadian tour operators. Additionally, he revealed that for the first time ever, Mexico will be the guest of honor at the world’s largest tourism fair, Fitur, in Spain.
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