Hotel sector reports drop in occupancy and proposes redirecting lodging tax to promotional campaigns
With high-profile events scheduled for the coming year and a backdrop of slowing hotel occupancy rates, Puebla’s lodging sector has proposed rethinking the use of the Lodging Tax (ISH). The goal is to allocate a larger share of these funds to promoting tourism in the state.
This position was voiced by the Puebla Hotel and Motel Association, which believes that public funding for tourism promotion requires a more strategic approach—particularly given upcoming events such as the Tianguis Turístico and an oil-sector convention, both of which are expected to draw visitors and businesses to the state.
Manuel Domínguez Gabián, the association’s president, noted that Puebla needs to strengthen its standing as a tourist destination—both domestically and internationally—through sustained campaigns that capitalize on the economic benefits generated by such gatherings.
The hotel industry leader recalled that previous experiences, such as the 2013 edition of the Tianguis Turístico held in Puebla, raised high hopes for establishing the state as a competitive destination. However, he pointed out that the results were not sustained over time, which limited the long-term impact.
Against this backdrop, the sector believes that the lodging tax—which currently generates approximately 60 million pesos in revenue—should be redirected toward its original purpose: boosting tourism and strengthening the competitiveness of the service sector. Business leaders argue that these funds could be crucial for financing broader, sustained promotional campaigns.
Domínguez Gabián emphasized that tourism in Puebla should be viewed as a strategic economic activity capable of generating jobs and economic benefits across multiple sectors, ranging from hotels and restaurants to transportation and ancillary services. In this regard, he described it as a “smokeless industry,” highlighting its economic impact without the need for direct industrial activity. Regarding the sector’s recent performance, the association reported that average hotel occupancy stood at 51% during the first half of the year, representing a decline of approximately five percentage points compared to the same period last year. They warned that this trend highlights the need to strengthen promotional strategies to reverse the situation.
The business leader also noted that there are varying estimates regarding the budget currently allocated by the Secretariat of Tourism Development for promoting tourism in the state, although he pointed out that there is no clear official figure. Some sources, he said, suggest amounts close to 600 million pesos, though there is no precise public confirmation.
Given this scenario, the hotel sector believes that authorities need to adjust tourism spending plans to adapt to new market conditions, particularly amidst increasing competition among domestic and international destinations.
On the other hand, the association highlighted that revenue from the Lodging Tax (ISH) has recently improved following the regulation of digital accommodation platforms—such as Airbnb, Booking, Vrbo, and other apps—which has expanded the taxpayer base and boosted tax revenue for the state.
Source: m.municipiospuebla
