Playa del Carmen, Quintana Roo — At least 70 businesses on Playa del Carmen’s iconic Fifth Avenue have shut down, driven by a combination of declining tourism, mounting violence, and extortion by criminal groups, according to local merchants.
Small business owners Abigail Torres, Arnulfo Salazar, Daniel Santos, María Elena González, and Oscar Aguirre said the closures reflect a broader crisis gripping the popular Caribbean resort town.
“The situation got worse this year. We thought it would be better than 2025, but sales started dropping in April. As the sargassum seaweed piled up on the coast, activity declined, and extortion demands from criminal groups made it worse,” Torres said. “Many decided to close because it was no longer profitable. You don’t know whether to pay payroll or pay the criminal pizzo.”
Among the shuttered businesses are the Waterboys bar-restaurant, clothing store Sayab, Porfirios bar-restaurant, El Chachalaco, boutique D’Beatriz, Lunata, and several other bars and restaurants. Their premises now stand empty along the once-bustling tourist strip.
Security in Playa del Carmen has eroded steadily, and closures are not limited to Fifth Avenue. Across the city, shop owners are lowering their shutters for good, fearing for their lives.
“Running a business is not profitable because of the complicated security situation, combined with the sargassum that has hit the economy — not just businesses but the entire population,” Salazar said.
Santos noted that many merchants closed due to the dual impact of sargassum and criminal extortion. “The problem is that if you refuse to pay, they threaten you, and you can’t report it to the authorities because there are reprisals,” he said.
González added, “Businesses are closing their doors because they can’t sustain themselves. With tourism down, the economy collapses, and it’s no longer worth working just to pay taxes to the government and pizzo to criminals, especially with high rents.”
The violence has spiraled, with criminals demanding payments regardless of sales. Amounts range from 50,000 pesos monthly, depending on the size of the business.
“Some silver shops closed and left Playa del Carmen to protect their families. Others closed temporarily hoping tourism picks up, but they live in fear of extortion,” Aguirre concluded.
