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Councilor Pushes Diversification, Infrastructure, Partnerships
Puerto Vallarta is seizing a moment of slower U.S. air arrivals as a catalyst for transformation, with municipal leaders rolling out a broad, long-term strategy to diversify the city’s tourism offerings, strengthen infrastructure, and forge powerful partnerships. While the first half of 2025 brought a modest dip in visitors from the United States, city officials and business owners see the shift as a chance to adapt, innovate, and ensure the destination’s appeal remains strong for years to come.
Infographs provided by the Sustainable Tourism Advanced Research Center (STARC) at Anáhuac University
U.S. Arrivals Slide, Local Projections More Modest
Research from the Sustainable Tourism Advanced Research Center (STARC) at Anáhuac University places the drop in air visitors from the U.S. at 5.5% for the first half of 2025. Puerto Vallarta, along with Cancún and Los Cabos, reflects a broader contraction in tourism to beach destinations nationwide. The combined dip in international passenger traffic at these gateway destinations reached 5.1%, equating to approximately 830,000 fewer travelers by air.
Melissa Marlene Madero Plascencia, councilor and President of the Tourism Services and Visitor Relations Commission, draws on federal tourism data, noting a more moderate 3% decline in American arrivals from January to May compared to 2024 — roughly 111,000 fewer air passengers, suggesting variations depending on the data source and timeframe.
Madero said that promotions to the LGBTQ+ community continue at a heavy pace. The Puerto Vallarta Tourism Trust released data in 2024 that showed in 2023, the city welcomed a staggering 2 million LGBTQ+ tourists, generating a record-breaking $17 billion pesos for the local economy.
“Promotion of this segment is carried out autonomously and with good results,” she said. “An example of this is Vallarta Pride 2025, which recorded a historic influx of domestic and international tourists.”
Long-Term Planning Key: Councilor Madero
Madero emphasizes that the downturn is not limited to a few months and is concentrated principally in the U.S. market, while arrivals from Canada have held steady.
She insists that the current situation reflects years of structural decisions and gaps, not only recent administrative actions.
“Tourism requires highly advanced planning: air routes, cruises, events, and trips are scheduled months or even years in advance,” she said. “Reversing the trend demands strategic vision, consistency, detailed planning, and transparency for orderly, sustainable growth — without shortcuts, based on serious and measurable work.”
Strategy: Diversify, Regulate, Invest
Madero is spearheading a multi-tiered strategy to reposition the destination. Efforts include:
- Product diversification: Expanding into cultural, culinary, sports, medical, LGBT+, and nature tourism to broaden market appeal.
- Regulatory updates: Reforming the city’s tourism governance to promote organized, sustainable, and inclusive practices.
- Partnerships & marketing: Forging alliances with airlines, festival organizers, sister cities, and tour operators to boost destination promotion at regional and global scales.
- Infrastructure improvements: Upgrading tourism infrastructure with an emphasis on quality, accessibility, and long-term vision tied to economic and environmental goals.
Businesses Hurt: Voices from the Field
Some local businesses expressed to O&AP that they have seen a 30 to 40 percent drop in business since late May. We talked with a restaurant owner, a bar owner and a hotel owner, who expressed optimism about the future. All of them said that the ups and downs of tourism since January 2025 has been “headline” driven. When people are uncertain about the future, they don´t spend time on vacation. And in the current political environment, some people are afraid to leave the USA for fear of encountering problems upon re-entry.
“I agree with that perception,” Madero said. “Visitors are concentrated in all-inclusive hotels and cruise ship arrivals are low, with months even recording up to 25% fewer arrivals compared to last year.”
Christopher Biles, owner of Chachalaca Bar, reports a 35% drop in June and a steeper decline in August, compared to prior summers. With rent and costs climbing, he’s tapped personal credit to keep the bar afloat.
“We are working with minimal staff, and most staff work four days a week,” he said.
Biles calls on city leadership to ease financial pressures with lower business license fees and short-term low-interest financing during downturns: “It would be great if the city could give businesses some kind of economic break…”, he said.
Don Pickens, owner of Casa Cupula, reports an 11% decline — a hit comparable to the 2008 financial crisis or even the pandemic years. Rising operational costs of over 10% and underwhelming results despite doubling advertising budgets are squeezing margins.
He stresses an urgent need for destination-wide coordination: “As a community, create an alliance with a cooperative website that everyone participates in — promote the destination as a group.”
But Pickens said he has noticed a new trend – last minute bookings. Like, very last minute, some same day or day before reservations.
“But that fits with the headline driven concerns,” he said. “But the perception that people are worried about the economy and security is very true. We even see that internet searches for travel to our paradise has dropped considerably.”
National and Airport-Level Measures
Puerto Vallarta’s airport is undergoing a major expansion, including a new LEED Gold–certified terminal that will boost capacity to over 8 million passengers annually. Scheduled to open in late 2026, the development targets improved international connectivity and aims to keep the airport among the top five in Mexico for foreign arrivals.
A Road Forward Built on Resilience and Inclusion
Puerto Vallarta is navigating a confluence of challenges — from diminished U.S. arrivals to high costs and intensified competition. Yet, the municipal leadership led by Madero has charted a comprehensive roadmap: diversify the tourism product, reinforce infrastructure, cultivate partnerships, and enhance promotion.
“As the council member and president of the Tourism Services and Visitor Relations Commission, my strategy focuses on strengthening and diversifying Puerto Vallarta’s offerings,” she explained. “ I am currently working on updating the regulatory framework to promote organized, sustainable, and inclusive tourism, while also managing national and international partnerships with companies, organizations, festivals, airlines, operators, and sister cities to expand the promotion of the destination.
We are committed to diversifying our segments—cultural, culinary, sports, medical, LGBT+, and nature, among others—and improving our tourism infrastructure with projects that emphasize the quality and accessibility of our experience. All with a long-term vision that combines economic development, environmental stewardship, and excellent hospitality.”
Madero underscores the importance of inclusive and sustainable development.
“All with a long-term vision that combines economic development, environmental stewardship, and excellent hospitality.” Success, she said, “hinges on consistent execution and strategic, data-driven investment.”
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