Vacation Rentals Overtake Hotels in Tulum as 1,000 Rooms Sit Closed

Tulum, Quintana Roo — The unregulated growth of vacation rentals is beginning to show its consequences for the tourism economy of this Caribbean destination. As digital platforms accumulate more than 8,200 active lodging listings, around 1,000 hotel rooms remain out of operation, either temporarily or permanently, in a market where oversupply, falling revenue and gaps in public services are testing the profitability of investment.

The gap between real estate growth and actual visitor demand has become one of the main challenges for the sector.

According to figures released by David Ortiz Mena, president of the Tulum Hotel Association, the Quintana Roo Tourism Department has identified roughly 3,700 vacation lodging units, while registries from platforms such as Airbnb show a considerably larger supply.

The problem is not limited to the number of properties available. Over the past year, vacation rental listings rose 5 percent while average revenue fell 8 percent, according to indicators shared by the hotel sector.

The combination reflects a market in which supply keeps expanding but economic returns are not growing at the same pace. For property owners, it means greater difficulty recovering their investments; for traditional hotels, it represents increasingly intense competition for the same visitors.

A market losing revenue

An AirROI analysis published Nov. 6 identified 8,269 vacation rental listings in Tulum, making it the largest market among the 29 destinations monitored in Quintana Roo. The same study found that January can generate up to three times the revenue of September, a gap that reveals a heavy dependence on peak tourist seasons.

Jobs under pressure

Even as more properties are added to the tourist rental pool, part of the traditional hotel infrastructure remains idle. Ortiz Mena previously confirmed that close to 1,000 rooms are closed and warned that some establishments may choose to operate only during periods of highest demand.

Low occupancy has caused financial strain for hotels that can no longer cover operating costs and payroll. José Antonio, a worker at an establishment that suspended operations, said the slump in occupancy made it impossible to keep paying operating expenses and wages. After the closure, he said, work has been limited largely to caring for and maintaining the property.

His account illustrates one of the most sensitive consequences of the crisis: behind every closed room are jobs tied to housekeeping, maintenance, reception, kitchens, security and administration. Food suppliers, laundries, transport operators and small businesses that depend on hotel activity are also affected.

Closing rooms does not necessarily mean those jobs disappear for good, but it does reduce operating capacity and puts at risk the economic stability of families that depend on tourism.

Not enough infrastructure

Another factor deepening the problem is the expansion of real estate developments in areas where public services have not kept pace. Shortcomings in drainage, drinking water supply, paving and mobility create difficulties for residents and visitors alike.

The operation of these properties increases demand for water, sewer service, transportation and waste collection, adding pressure on existing infrastructure, especially during peak occupancy periods.

The situation poses a contradiction for the destination: while apartments, studios and villas are marketed as tourist accommodation, certain areas of Tulum still struggle with access, street lighting, waste management and basic services. Real estate growth can bring investment and economic opportunity, but when it outpaces the capacity of public services it can also degrade the visitor experience, hurting the destination’s competitiveness regardless of whether a tourist stays in a traditional hotel or a platform-rented property.

Rules on the books

Quintana Roo has regulations covering tax obligations, tourism registration and safety measures for lodging providers. The regulations implementing the state Tourism Law require platforms to publish the registration number for each property advertised and set obligations on emergency information and guest safety.

The state Lodging Tax Law, meanwhile, requires digital platforms to withhold and remit the tax. Airbnb says it applies a 6 percent lodging tax on bookings made in Quintana Roo.

The challenge for authorities is to verify effective compliance, identify unregistered properties and prevent commercial competition from unfolding under unequal conditions.

Occupancy does not stretch far enough

Recent tourism indicators show that the economic recovery remains limited. For the period from Oct. 31 to Nov. 6, Tulum reported hotel occupancy of 58.3 percent, while vacation rentals reached about 46 percent.

The same report counted 239 hotels with 11,993 rooms, along with 3,554 active vacation rental properties. The average hotel rate stood at about 2,400 pesos a night, with an estimated stay of five nights.

Those figures help size the problem. Although tourists are still arriving, a significant share of available capacity sits empty, and occupancy percentages alone do not reflect the profitability of each establishment, since operating, maintenance, staffing and service costs must also be weighed.

Economic pressure is also reaching restaurants, shops and businesses that depend on visitor spending. In recent months, commercial outlets have closed in Tulum, and some landlords have cut rents by as much as 50 percent to keep other businesses from abandoning their premises.

December brings hope of recovery

The arrival of the winter season offers a chance to improve occupancy levels, particularly on expectations of more domestic and foreign visitors. Specialists and business representatives agree, however, that a strong high season will not automatically resolve the destination’s structural problems.

The hotel sector faces the challenge of reopening closed rooms, holding onto its workforce and competing with a lodging supply that keeps diversifying. Vacation rental owners, for their part, need to increase bookings in a market where average revenue has declined.

For Tulum, the debate is no longer only about attracting more real estate investment or building new rooms. The task is making the existing supply profitable, compliant with the law and backed by infrastructure sufficient to serve visitors.

With thousands of listings, roughly 1,000 closed hotel rooms and occupancy that still leaves installed capacity unused, the destination faces a fundamental question: how much more lodging supply can be added without a proportional increase in tourist arrivals?