Small Hotels in Playa del Carmen Hit by Historic Slump, President Says

Playa del Carmen, Quintana Roo — Small hotels in Playa del Carmen are experiencing their worst period in two years, with occupancy rates at just 35%, according to Offner Arjona, president of the association representing them.

Arjona said the decline in room rates has hit all hotels because there is no economic flow. He noted that the traditional slow season used to be September and October, but now the destination has faced two consecutive years of lean times with no reliable forecast for recovery.

“We have had two years of lean times and there is no real occupancy forecast for the coming months,” Arjona said.

Andrés Pulido, a former employee of a small hotel, said he was laid off as occupancy fell. He said other establishments have also cut staff. “I will wait to see if occupancy improves during the next vacation period. If not, I will have to return to my home state because everything in Playa del Carmen is expensive,” he said.

Arjona said high-spending tourists have stopped coming to Playa del Carmen, choosing safer destinations abroad. He also noted that road tourism has declined due to violence in the region, with travelers preferring closer, less risky locations.

The disappearance of the Mexico Tourism Promotion Council has also hurt, Arjona said, as international promotion was suspended. Small hotels are now doing their own advertising, but the tax burden remains heavy.

Carlos Antonio Medrano, a handicrafts employee, said Playa del Carmen is becoming like Tulum, with high costs and insufficient income to cover household expenses.

Looking ahead to the winter holidays, Arjona said it is uncertain whether there will be any rebound, as long as sargassum seaweed and violence persist.