Mexican Caribbean Hoteliers Pin Recovery Hopes on November as Promotion Support Stalls

Cancún, Quintana Roo — Hoteliers in Mexico’s Caribbean are betting that occupancy and visitor numbers will begin to recover in November, after a difficult autumn in which they say they received almost no help with promotion while taxes on international tourism rose.

Dolores López Lira, president of Grupo Lomas, said the region is at a clear disadvantage in promotion and that rival Caribbean destinations “are literally eating our lunch” because of the lack of government support for tourism marketing. She said hotel chains have done their own work instead, with every company investing in promotion, and that she expects more favorable results during the coming winter season.

Hotels are spending “every last cent” on promotion, sending representatives to meet travel buyers in Mexico and the United States — the region’s natural market — with the help of industry associations promoting the destination, she said.

Stronger peso cuts into revenue

López Lira said the winter outlook is good, and that the dollar’s recent gains against the peso work in the sector’s favor. When the peso strengthens, she said, the industry loses nearly 40% of its revenue even as operating costs continue to climb.

She acknowledged that the United States has shown the steepest decline in arrivals, while the domestic Mexican market has held up better. Canada has increased flight frequencies to the destination and new airlines have begun serving it, though those gains will not be reflected until November and December, she said.

The hotel executive said autumn has been extremely difficult and that, for the first time — even taking the pandemic into account — properties have had to introduce reduced “solidarity” working days in order to keep their staff employed.

Whatever revenue remains in pesos has been channeled into promotion, she said. The missing piece, in her view, is for authorities to do their own job: U.S. travelers are still taking vacations, she noted, but they are choosing Jamaica and the Dominican Republic. That trend must be addressed through promotion, she argued, rather than by making Mexican destinations more expensive.