*Updated Apr. 15 - Progreso violence*
Mérida, Yucatán -
The Mexican Hotel Association (MHA) reported that Yucatán occupancy rates dropped 4.24% in the first 90 days of 2013, compared with the same period in 2012.
The numbers delivered by the trade group were anemic in the extreme. MHA said that average occupancy in establishments of all grades, from one star to five, was 46.38% during the first quarter of the year.
Industry professionals say most hostelries cannot turn a profit without at least 50% occupancy. In 2008, before the worldwide economic downturn, the peninsula enjoyed an average occupancy of 62%. Last fall, in anticipation of Mundo Maya "end of the world" activities, the rate was about 56-57%, according to the Yucatán Tourism Council. Overall the state reported a modest 4.5% increase in tourist traffic through the third quarter of 2012. Yucatán tourism languishes.
In January average occupancy was 42.53%, and in February it bottomed out at 41.8%. Traffic slightly rebounded in March to 54.82%, due to spring break arrivals. Most of that business is now over for the 2013 season.
MHA president Ricardo Dájer Nahum complained that neither the city nor the state are doing enough to promote tourism. "There aren't enough events and activities generating interest in Mérida. Tourism promotion is more than just saying, 'We're here, come visit us.' It's about products, festivals, special attractions - anything which will encourage travelers to visit the state. It's a continuing challenge for both the government and the business sector," he said.
Lagging tourism in Mexico's arguably most secure state (Yucatán safety continues to be subject of hot debate) could be a matter of simple economics, drug war concerns or both. Once packed Pacific coast tourist destinations are suffering similar symptoms (Puerto Vallarta: tensions linger after brazen narco attack).
The peso's rise against the American dollar won't help matters any, since it makes Mexican tourism less attractive to travel bargain hunters. U.S. dollar continues downhill slide against Mexican peso.
Apr. 15 - Nineteen members of a gang in Progreso have been taken into custody after stabbing and nearly killing a 23 year old woman who was on her way home from the local Pemax office where she is employed. The accused participants include 11 juveniles and eight adults who demanded money from the victim. She gave them 500 pesos - all she had - but they weren't satisfied. The assailants may be charged with attempted murder.
Mexican drug war experts have noted in recent months that cartel violence is rapidly morphing into more localized gang violence, often involving street crime and common offenses where anyone is at risk. Puerto Progreso is Mérida's Gulf access, less than 20 miles from the heart of the city. The town is a popular port of call for major cruise lines.
Apr. 15 - Mérida police busted a "clandestine gay bar" early yesterday, arresting no less than 54 persons at the scene, all of whose names were published in today's Sipse.com story. "Semi-nude men were interacting with bar clientele who were drinking when we arrived," said the incident report. That's one gay drinking establishment which will see a permanent drop in revenues. It had no license.
Apr. 17 - Highwaymen assault ADO bus on Yucatán peninsula
Apr. 23 - House of Deputies proposes dramatic change in rules for foreign ownership of real estate
June 6 - Mexican tourism posts strong four month recovery
Mar. 7 - U.S. security consultant Stratfor urges tourist caution throughout Mexico
Feb. 25 - Yucatán capital, $32 million in the hole, looks for way out
July 17, 2011 - Shakira – a $21 million peso ticket, but so little to show for it
© MGRR 2013. All rights reserved. This article may be cited or briefly quoted with proper attribution or a hyperlink, but not reproduced without permission.
And, this is the "high season". It would interesting to see how many "colonial" homes, mostly owned by foreigners, are offered for rent, some by the single night, and what effect this might have on hotels. Additionally, are these rental schemes on the up and up?
ReplyDeleteI can't speak to foreign-owned homes being offered as vacation rentals, but there's definitely a ton of real estate available in Mérida which owners are desperate to sell to the first qualified buyer with cash in hand. Most residential property is drastically overpriced in this city, because owners, realtors and promoters are still banking on the notion that all the baby-boomer money from the States and Canada is headed south to sunny Mexico. That may well have been true a decade ago, but it isn't any longer. Times and circumstances have changed - and drastically so.
DeleteIt's easy to buy a home in Mérida. The tough part is selling one should you ever need or want to. The same properties appear month after month, year after year on all the usual expat oriented websites, with all those luring descriptions: "Cute little casita in a charming colonial neighborhood, just waiting for your special touch . . ."
Those house hunting should follow this rule: it's a buyer's market, not a seller's (although the latter and their agents will tell you otherwise). Tell the seller just what your prepared to pay. And if you purchase that dream home, be prepared to stay forever. You won't be selling it anytime soon.
There are plenty of homes (colonial and otherwise), casitas, studios, etc, for rent in Merida. One of the main listings can be found here: http://www.vrbo.com/vacation-rentals/mexico/yucatan-mayan-riviera/yucatan/merida?showhoods=False
DeleteHow many are owned by non-Mexicans? Hard to say, but my suspicion is it is the majority. Personally I do not think that the vacation rentals have a major effect on hotel occupancy though, as I believe it is a different market. The renters tend to be independent types who don't like hotels, at least those who stay a week or more.
Anonymous - are they on the up and up? Absolutely, if they are listed on a site such as VRBO. If they are on Craigslist, then you take your chances.
And Edward is right about the market. There are houses which were for sale when I bought mine some years ago, which are still for sale, on the same websites with the same alluring descriptions (you forgot 'darling' which is a key word in many). Prospective buyers in Merida should be buying for the long term, and primarily because it is somewhere they want to spend time (vacation, season, or long term) themselves. The time for 'flipping' has passed. I suspect that the time for buying a ruin, fixing it, and selling quickly at a good profit has also passed.
"MHA president Ricardo Dájer Nahum complained that neither the city nor the state are doing enough to promote tourism". Sorry Ricardo, but tourism is down in Mexico for only one reason - safety - real or perceived, Mexico is not considered safe. I'm suprised its down only 4%. Unless things change for the better soon, the Mexican tourism industry will completely collapse. Any day now, these whacked-out narcos will post a video of an American spring-breaking teeny-bopper getting gang raped and hacking her head off, and then, it will be over.
ReplyDeleteI agree with your comments. Difficult economic times in the U.S. and elsewhere haven't helped Mexican tourism, of course, but security issues are the main culprit.
DeleteMost people north of the border have gotten wise to the fact that the English language media reports a fraction of what happens in this country every day. And of course, relying on travel websites and commercial blogs which primarily focus on selling things to travelers and expats is foolhardy; they have an obvious motive to carefully filter the truth. As people change their news-gathering habits and learn where to go to get accurate information, their travel destinations naturally shift, too. That's why these are difficult days for the tourism industry in this country.
The unfortunate part is that Mexico will be fighting organized crime and drug cartels a decade from now. The end is a very long way off. In fact, there really is no end-game strategy; the best anyone can hope for is that security will gradually improve over the years. But that will be a generational cure, not a quick fix.
Tourism in Merida seems to be mainly Mexicans... I would speculate that airfares into Merida might have some impact, however small.
ReplyDeleteI can't wrap my head around why the fares into MID are so much more than CUN.
If I didn't have reason to come here, based upon the fares, I wouldn't...
As it is I have to get creative to make it reasonable....
Why are the (international) fares into Merida so much more than into Cancun? Simple - United Airlines is the only US carrier flying to Merida. Monopoly = high fares. One flight a day to/from Houston. Cancun has a vast number of daily flights to/from many cities in the US and Canada, plus Europe and Latin America. I suspect it has more international traffic than Mexico City, but I may be wrong.
DeleteDomestic fares into Merida however are generally no higher than into Cancun, since there is competition including low cost airlines.
Thanks for that note, Stewart. And for those seeking good domestic fares within Mexico, and excellent service, I recommend Interjet. For those seeking crappy, arrogant, smart-ass service with a nasty attitude, I recommend Volaris.
DeleteAnd I forgot one other thing. The Volaris air fare charge which ultimately shows up on your credit card will be about two or three percent higher than the advertised fee you booked on its web site.
DeleteMGR thanks you, Volaris, for this opportunity to advertise your travel services to the international community.
Agreed, Interjet is a great way to fly. As is Magnicharters, a tiny airline which flies between Merida and Mexico City.
ReplyDelete