Guadalajara -
Mexico's retail, service and tourist sectors lost a whopping 64.7 billion pesos in 2012 due to the nation's continued domestic insecurity, and a still raging drug war which shows no sign of abating. At today's exchange rate of 13 pesos to the dollar, that represents just under $5 billion U.S. dollars.
The data was contained in a year end report published this week by the Confederación de Cámaras Nacionales de Comercio, Servicios y Turismo (Concanaco-Servytur). The president of the trade group was quoted in today's electronic edition of SinEmbargo, a reliable Spanish language news service.
Perhaps the only good news on the horizon was that the hefty sum was considerably less than last year's. Economic losses attributed to the drug war in 2011 were $115.2 billion pesos, or about $8.86 billion dollars at the current exchange. That number was equal to 0.75% of Mexico's PIB (Producto Interno Bruto) - the nation's gross domestic product.
Both calculations represent direct commercial losses. Although the national trade federation didn't explain exactly how it had arrived at the tallies, a chamber of commerce group which contributed to the Concanaco-Servytur report distributed a questionnaire to its members, asking businesses to estimate how the drug war had affected revenues and operational expenses. In the latter category Concanaco noted that in 2011 Mexican business spent $47.7 billion pesos on security systems and personnel - some $3.66 billion dollars.
The federation also said that in 2011, at least 160,000 enterprises closed their doors throughout the nation as the direct result of security issues. Quintana Roo authorities reported in December 2011 that 300 businesses shut down last year in Cancún and Playa del Carmen, due to narco extortion and threats to owners. Businessmen who don't comply with organized crime demands often pay a hefty price.
Mexico's tourism industry has by far been the hardest hit industry during the six year drug war, launched by former president Felipe Calderón in December 2006. Well known resorts like Acapulco and Cancún have been the primary casualties, and the 2013 forecast for the country's lush Riviera Maya, on the Caribbean coast, is a tour director's nightmare (Two cartels unite to declare war on Los Zetas in Cancún, foreshadowing a "bloodbath" in Riviera Maya).
New president Enrique Peña Nieto, who took office on Dec. 1, remains firmly committed to Calderón's National Security Strategy, and has promised to enlarge federal paramilitary forces by some 75,000 (Enrique's challenging homework). With the outbreak of severe organized crime violence last weekend in Jalisco and Michoacán states, which left 14 police officers executed and at least 10 wounded, the PRI leader will have to do something very quickly to help Mexico's bleeding commercial sector.
Jan. 2, 2013 - Mexico's National Tourist Federation predicts no significant change in the number of international visitors in the year ahead. Arrivals could increase by 4.1% it says - or could decrease by 4.3%. In 2012 some 23.2 million travelers arrived from abroad, spending an average $453 USD each.
Jan. 6 - A trade group headquartered in Quintana Roo state reported last week that the two crimes which most frequently confront the Cancún business sector are commercial extortion and kidnapping for ransom.
Apr. 7, 2013 - Mexican states will spend $1.17 billion on security in 2013
May 8, 2014 - Mexico says insecurity costs it $16.6 billion USD annually, and 50 lives a day
Dec. 12, 2014 - In the year ending Dec. 31, 2013, business enterprises lost 110 billion pesos due to chronic insecurity, according to Mexico's National Statistical Institute (INEGI). That sum is equal to about $7.3 billion USD at today's exchange rate (15 pesos to the dollar).
Nov. 21, 2011 - Mexico reports major decline in tourism due to narco crime, world economic woes
Nov. 6, 2011 - 65% of Mexico declared "off limits" to foreign travelers by western nations
No comments:
Post a Comment