Bargain Time in Mexico

If you read newspapers in the United States in the border regions you will likely come away with the notion that Mexicans are avoiding crossing the border to buy goods and services in the United States because the peso has dropped so much against the dollar in the past two years.  The truth is that while that does affect their buying power, the Mexican government relaxed some of the tax structure in border cities, making prices more competitive in Mexico.  Additionally, with most merchants sourcing their materials within Mexico, Mexicans can often avoid a two hour wait to cross the border because they can buy the same goods for less money in Mexico.

Take the economy pizza for example.  If a Mexican person in Tijuana wanted a Little Caesar’s Pizza for 79 pesos three years ago, it would have cost over 7 dollars and so it would have been cheaper to buy the 5 dollar version from Little Caesar’s in San Diego.  Today, the same pizza in Tijuana costs around $4.30, making it much more attractive to purchase it in Mexico.

The upshot for tourists is that their travel dollars will go much farther this year in Mexico.  The peso is temporarily down and prices are not up- something to keep in mind this year as you plan your Spring and Summer vacation.