The swine flu media frenzy has calmed down a bit, and, unfortunately for Mexico, so has tourism and travel South of the Border. According to Smith Travel Research, hotel occupancy in Mexico dropped over 50 percent at the end of April and beginning of May.
An example of how quick and drastic the change was: on Sunday, April 26, hotel room occupancy was at 36 percent. On Saturday, May 2, it had dropped to 24.4 percent. That week, the occupancy fell 51 percent overall from the previous year.
Travel and tourism plays a big role in Mexico's economy, so these numbers are certainly troubling. Mexico's federal government has announced a stimulus package that includes $165 million for tourism promotion. The CDC also recently removed its travel health warning for Mexico.
Do you think these initiatives be enough to help Mexico's tourism industry, which has also taken a hit from the recession and reports of border violence? Or will it take much more?