"Expensive, Smelly and Scary"... What's Happened to the "Honeymooners' Paradise" Tourists Have Abandoned?

Slumping as a strong currency, climate change and security concerns take their toll
Tourism accounts for 8% of Mexico's GDP

Mexican resort cities, including Cancun, once regarded as a honeymooners' paradise, are struggling with a decline in tourist numbers. They are being hit by a triple whammy: a stronger peso, environmental problems and worsening public safety.

According to the Financial Times (FT) on Oct. 11 (local time), the number of international passengers at Cancun International Airport fell 12% last month compared with the same period a year earlier. From January to August this year, the number of foreign visitors who entered Mexico through the airport was down 1.9% from a year earlier. The number of U.S. visitors plunged 5.8%.

Major coastal cities in Mexico, including Cancun, have been famous tourist destinations. Mexico is also a tourism powerhouse, with the industry accounting for 8% of gross domestic product (GDP). But the sudden drop in visitors is expected to hurt not only the tourism industry but also the Mexican economy.

Beach in Cancun, Mexico. EPA-Yonhap News

The FT said Mexico's economic growth slowed to 0.6% last year and is forecast to remain sluggish at 1.2% this year, adding that this "is putting pressure on the current government, which inherited Mexico's largest fiscal deficit since the 1980s."

The tourism downturn is due to three major setbacks facing Mexico. First, the Mexican peso has risen 12% against the U.S. dollar over the past 18 months. As a result, travel costs in Mexico have become a greater burden for foreign visitors.

Climate change is another negative factor. Rising sea temperatures in the Gulf of Mexico have led to an increase in sargassum, a type of brown algae. As a result, foul odors have spread along the coast, and the beaches and seascapes have been blighted.

Public safety has also been cited as an obstacle to the tourism industry's recovery, as cartel groups are moving into the area to target affluent visitors who come to enjoy festivals and parties.

The FT said that "the peso is showing signs of weakening as the U.S. Federal Reserve (Fed) raises interest rates," but forecast that "it will not be easy to win back the tourists who have already stayed away in large numbers."

This content was produced with the assistance of AI translation services.