Federal Spending on Transportation and Tourism Plummets Ahead of 2026 World Cup; Urban Infrastructure Lags Warned
Federal spending allocated to transportation and tourism functions registered steep declines between January and August, according to figures from the Ministry of Finance and Public Credit (SHCP). Transportation spending contracted by 56.3%, the sharpest drop for a comparable period, while tourism spending fell by 38%. These cutbacks are happening less than two years before Mexico, together with the United States and Canada, hosts matches of the 2026 FIFA World Cup in Mexico City, Guadalajara, and Monterrey.
Underlying these declines are two major dynamics: first, the winding down of flagship infrastructure projects that concentrated resources in the latter stages of the previous administration; and second, a pattern of fiscal consolidation, which has led to adjustments in programmable spending—particularly investment—in order to maintain macroeconomic stability and lower the deficit. In the functional classification of the budget, “transportation” and “tourism” encompass investment and operational programs in mobility, connectivity, and tourism promotion. Therefore, cuts in these areas often translate into fewer new projects and deferred maintenance.
On the logistics front, experts warn that World Cup host cities face increasingly tight timelines to complete key infrastructure projects. In the metropolitan area of the Valley of Mexico, the Mexico City International Airport (AICM) is still dealing with maintenance and capacity management needs, while the Felipe Ángeles International Airport (AIFA) requires improved ground connectivity to handle increased traffic. In Guadalajara, fast-tracking mobility projects—such as road expansions and the development of mass transit corridors—will be crucial; and in Monterrey, ongoing metro expansion and improvements to major roads are still underway. These projects, by nature, demand advance planning, permits, and bidding processes that are difficult to resolve in just a few weeks.
Tourism budget cuts also carry consequences. Since the elimination of the former federal tourism promotion scheme, states and the private sector have played a bigger role in attracting visitors. With the World Cup, there’s potential for the economic boost to reach beyond stadiums to beach resorts, colonial cities, and cultural routes. However, without adequate conditions—sufficient hotel capacity, urban services, connectivity, and effective marketing—the local economy might miss out on much of this momentum, especially small businesses in lodging, food, and entertainment.
The broader macroeconomic context compounds these challenges. While inflation has been trending down from the 2022 peaks and the economy continues to grow above its recent average, interest rates remain historically high, making project financing more expensive. Additionally, the strength of the peso raises costs for travelers spending dollars, demanding greater focus on quality-to-price ratios in tourism services. At the same time, local governments are exploring co-investment schemes and public-private partnerships to close infrastructure gaps, though regulatory environments and project timelines will be key for ensuring projects are completed on schedule.
Looking ahead, the key will lie in the execution of the 2025 budget and in the ability to prioritize projects that have an immediate impact on mobility and visitor experience, without neglecting maintenance of critical assets. Coordination between the federal government, states, municipalities, and the private sector will be central to overcoming bottlenecks in airports, public transportation, security, and urban services. For an event as large as the World Cup, logistics not only shape fan satisfaction but also determine the extent of economic impact and the country’s image as a destination.
In summary, the sharp decline in transportation and tourism spending is a flashing yellow light as 2026 approaches. The opportunity to capitalize on the World Cup is there, but time to secure key projects and services is limited. Prioritization, coordination, and timely execution will be decisive in turning a sporting event into a true economic catalyst.
