Mexican Caribbean Hoteliers Face Crisis Worse Than Pandemic

The Mexican Caribbean is handling one of its most complex periods in recent years. For tourism businesses, the drop in visitor arrivals and revenue has created a scenario that, in some indicators, is even more difficult than during the COVID-19 pandemic. Dolores López Lira, founder and president of Grupo Lomas's Administrative Council, issued the warning.

López Lira stated that a combination of reduced air connectivity, fewer travelers, low occupancy levels, increased costs, and an unfavorable exchange rate is placing unprecedented financial pressure on companies. "For the first time in our history, not even during the pandemic, we have had to ask our collaborators to give up days," she said, explaining the direct impact on workers' incomes.

Air Connectivity Halved in Cancun

A key indicator of the market's deterioration is air activity. López Lira noted that during peak demand seasons, Cancun International Airport used to register over 600 daily operations. Currently, it barely exceeds 300. "That gives you the guideline of 50%," she said, referring to the reduction in air traffic, which she considers a primary factor behind fewer tourists.

She attributed the contraction to a mix of factors hindering travelers' ability to reach the Mexican Caribbean. These include international conflicts, increased jet fuel prices, more expensive airfares, and changes in U.S. And Canadian airline operations. Even the soccer World Cup, initially seen as a regional tourism opportunity, adversely affected connectivity. Some U.S. Airlines moved aircraft from the Mexican market to handle domestic tournament demand, with Canada making similar moves.

A shift in the U.S. Market, particularly in Texas-historically a key summer market-also played a role. López Lira explained that tightened ICE immigration operations caused fear among some of the Latino population, reducing their willingness to approach airports and travel.

Exchange Rates and Soaring Costs Compound Issues

The decline in visitors coincides with higher operational costs and a reduction in the peso value of dollar-denominated revenue. Much business planning assumed an exchange rate near 20 pesos per dollar, López Lira explained, while the current rate is around 16 pesos. "Right now the dollar is at 16, meaning, from the start, we are receiving four pesos less for every dollar," she specified.

Simultaneously, taxes, salaries, supplies, and even fuel have increased in cost. The businesswoman estimated these items have accumulated an increase of nearly 80 percent over the last four years. The result is a particularly difficult combination: fewer tourists and less income, but higher costs to maintain operations.

Riviera Maya Hotel Occupancy Plummets

The situation is reflected in the hotel sector. López Lira estimated that, broadly, some areas of the Riviera Maya currently have occupancy levels between 30 and 40 percent, though she acknowledged certain establishments reach 60 to 70 percent. The problem is not limited to available rooms but extends to the composition of the current travel market. It is a segment that generates significant visitor volume but is reducing trips due to increased travel costs.

Pressure on hotels is compounded by the growth of vacation rental platforms like Airbnb. López Lira clarified the model is not negative in itself but considered it essential for such platforms to operate under rules creating conditions similar to those faced by formal hotels. The concern also has an economic and social dimension, as formal activity generates jobs and tax revenue.

Another element deteriorating the destination's tourist perception, according to López Lira, is sargassum seaweed. She believes other Caribbean destinations and U.S. States like Florida and Texas also face the phenomenon but have chosen to give it less public exposure.

Crisis Reaches Tourism Workers Directly

One of the most concerning aspects for the business sector is that the tourism contraction is now directly impacting workers. López Lira revealed Grupo Lomas has had to ask some collaborators to give up certain workdays-a measure she said had never been necessary before, not even during the pandemic. "That is something that pains us because we know they are not receiving tips, they do not have their complete income," she stated.

The reduced tourist flow has a multiplier effect: it decreases company activity, reduces workers' hours and tips, while most corporate obligations remain unchanged. For López Lira, the current scenario forces a look beyond general visitor and occupancy figures, as the true impact is reflected in companies' ability to sustain operations and in the incomes of thousands of workers who depend directly on tourism. Recovery, she considered, is closely tied to the destination's ability to regain air connectivity and attract volume tourism again, particularly from the international markets that have historically sustained the Mexican Caribbean's activity.