Tulum’s $3.8M Loan Amid Tourism Collapse

TULUM, MX — Just weeks after hosting a large-scale celebration for Mexican Independence Day, the Tulum City Council has approved a request for a short-term, unsecured loan of 76 million pesos to address a severe financial crisis stemming from a collapse in tourism.

The loan, approved during a council session, has a term of 12 months and must be paid off before the conclusion of the current administration.

Justification for the Loan

During the session, Tulum Mayor Diego Castañón Trejo explained that the funds would only be used if absolutely indispensable to guarantee essential services such as police patrols, public lighting, and waste collection. He emphasized that obtaining authorization does not necessarily mean the financing will be utilized.

"The loan represents only 5% of the budget," Mayor Castañón stated. "It is not something that will affect the municipality's finances. Just because we have it doesn't mean we will use it; it is for operating expenses. Everything will be done with transparency; nothing will be hidden. Let's not be alarmed, we need to have more vision."

An Unavoidable Crisis

The session acknowledged that the "volatility of the tourism sector" has jeopardized municipal finances. The statistics presented were stark:

• In May 2025, hotel occupancy was at 77.7%.
• In recent weeks, it fell to 30% in the coastal zone and 15% in the city center, despite it being what should be the high season.

The loan was further justified by the argument that the municipality's rapid population growth generates an "extraordinary demand for basic public services"—security, lighting, infrastructure, and social programs—which places additional pressure on operating expenses.

A Loan for Operating Expenses

Mayor Castañón specified that the loan, if used, would be directed toward covering operating expenses and essential services. He recalled that when Mayor Marciano Dzul assumed office, Tulum was already carrying a debt of between 70 and 80 million pesos from a fiscal credit, in addition to a 50 million peso legal award, both of which were settled in their time.

Councilwoman Genny Jazmin Maza Sánchez stated that according to the arguments presented, the loan is justified, as Tulum is experiencing accelerated population growth, which creates greater pressure and demand for public services.

Furthermore, she pointed out that the decline in tourism, due to problems such as sargassum and issues generated by excessive fees at the El Jaguar park, among other factors, undermines the municipality's income. "These are factors that justify extraordinary measures," she noted.

"My position is based on three pillars: responsibility, transparency, and demanding results," said the eighth councilwoman, who requested that the treasurer deliver precise reports—with a realistic payment schedule—and be transparent about the application of the resource to guarantee that every peso is used for the benefit of the people.

Councilwoman Ileana Aurelia Canul Dzib stated that with the approval of this loan request, she expects the resources to be used responsibly and transparently, under the principles of legality and honesty mandated by law.

The second councilwoman exhorted the municipal treasury and corresponding areas to comply with the provisions of the agreement, particularly the fourth clause, which instructs the treasurer to guarantee that the financing is obtained under the best market conditions and in accordance with current regulations.

Mayor Diego Castañón added that the priority is to maintain municipal services without affecting the local economy and assured that the administration will act with financial responsibility in handling these resources.

Absences and Opposition

The council session featured key absences: the trustee from the Labor Party (PT), Rifka Queruel, and the first councilor from MORENA, David "Fili" Tah Balam. From the opposition, councilors from Movimiento Ciudadano, Jorge Portilla and Édgar Tun Cámara, did not participate, although the eighth councilwoman, Genny Yasmín Maza Sánchez, a former member of that party, did.

While the economic crisis empties the hotel zone and causes vacation rental income to plummet, the approval of this loan exposes that the municipal coffers are exhausted, despite recent expenditures on festive events.