Mayor Mercado Ignored Hotel Tax Proposals, Say Business Leaders

Chetumal — The president of the Riviera Maya Hotel Association, Toni Chávez, stated that Playa del Carmen Mayor Estefanía Mercado has yet to respond to formal requests from local business sectors regarding proposed increases in property tax assessments. Instead, he noted, the municipal government has initiated a media campaign against hoteliers, making unsubstantiated claims.

Hoteliers Demand Evidence of Allegations

Chávez expressed surprise at the mayor’s public statements, including claims that some hotels pay as little as 50 pesos in property taxes—less than a home in Villas Sol. He challenged the mayor to provide proof, saying, “We have asked Mayor Estefanía Mercado to demonstrate this assertion, but so far, there has been no response. If there is a hotel paying that amount, let her prove it.”

He warned against misinformation, stating, “There’s a saying that a lie repeated a hundred times becomes the truth. If such a hotel exists, show us the evidence.”

Concerns Over Economic Impact of Tax Hike

Chávez emphasized that the business community’s opposition to the proposed tax increases is not an affront to the mayor but a plea for reconsideration given current economic conditions. He argued that retroactive adjustments spanning 10 to 12 years would be unsustainable, as businesses should not bear the consequences of previous administrations’ failure to update tax tables.

Instead, he proposed a gradual increase based on 2024 data, adjusted for inflation. However, he indicated that the municipal government appears unwilling to compromise.

Risk of Hotel Closures and Legal Challenges

Chávez warned that if the original tax proposal is approved, small hotels could see their property tax bills skyrocket from 300,000 pesos to 7 million pesos annually. He estimated that 45% of small hotels may be forced to close or convert into apartments, leading to job losses and broader economic repercussions.

He also noted that larger hotels may resort to legal injunctions to block the tax hike. The impact, he stressed, would extend beyond the business sector, affecting the entire population of Playa del Carmen.

Unified Opposition from Business and Professional Groups

Chávez clarified that the resistance is not limited to the hotel industry but includes other business organizations, the Bar Association, and professional groups. He dismissed claims of a “lobby” exerting undue influence, stating that the opposition reflects widespread concern over the proposal’s economic consequences.

The hotel association and other stakeholders continue to await a formal response from the municipal government.