The impact of remittances on domestic tourism in Mexico

In this paper we use data from the National Household Income and Expenditure Survey for the years 2010, 2012, 2014 and 2016 to evaluate the impact of internal and international remittances on Domestic Tourism Consumption in Mexico. Using treatment and multi-treatment techniques, the results of this research show that the reception of remittances has a positive impact on tourism spending. In fact, the probability that a household will spend on domestic tourism doubles if it receives international remittances compared to internal remittances. Overall, these results allow us to suggest policy measures aimed at promoting mechanisms that encourage migrants to channel remittances toward local tourism consumption.