Business Council Rules Out Mass Layoffs in Cancún as Hotel Occupancy Drops

Cancún, Quintana Roo — The Caribbean Business Coordinating Council said it does not foresee a wave of layoffs in Cancún, despite lower hotel occupancy and cost-cutting measures that hotels and restaurants have introduced during the low season.

Council president Alejandro Arvizu acknowledged that the slowdown in tourism has already started to affect companies and the earnings of some workers, especially those who depend on tips.

Arvizu said some businesses have resorted to “solidarity days” — voluntary unpaid days off — along with other cutbacks to reduce costs. He stressed, however, that these measures have not so far led to a wave of mass layoffs.

“There has indeed been a decline in employment because of low occupancy,” Arvizu said. He said the priority for the business sector is to hold on to workers while waiting for tourism activity to recover.

The business leader declined to estimate the percentage of job losses, saying it would be necessary to wait until the end of the low season to measure the impact. He also noted that some employees have started seeking temporary work because their income has shrunk.

Arvizu said he expects tourism activity to improve toward the end of the year and asked authorities to keep paperwork, tax audits, and inspections flexible so that economic pressures do not put jobs at risk.