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 Editorials | At Issue | July 2006 
Problems Cast a Shadow on Tourism Investments
 Carlos Veranda
| | Hotel owners and tourism project developers look at the future of this business in Mexico with optimism due to the growing number of tourists worldwide. |
Hotel owners and tourism project developers look at the future of this business in Mexico with optimism due to the growing number of tourists worldwide. Nonetheless, some clouds have appeared in the horizon over the last few months that could change this perspective.
Just a week ago, the CROC (a labor union organization) announced it would call for a strike at a group of important Mexico City hotels, including the Presidente Intercontinental, Four Seasons, Fiesta Americana, Nikko and El Camino Real, to support the recognition of Napoleon Gomez Urrutia as leader of the miners' union.
The most recent information is that the Mexico City Administrative Labor Court has not admitted the strike because it considers that there are no legal grounds for it. Anyway, it is an ominous sign for investors that a labor union organization is planning such a senseless situation as this, that it only takes a rebellious stance and no way defends employment and tourism workers' rights.
We have also become aware of the Fairmont chain planning to sell its hotels in Acapulco, the Princess and the Pierre Marquis, and although the chain's Mexico director, Seyed Rezvani, explained that it is a corporate decision, no one could ignore his annoyance with merchants invading Revolcadero Beach in front of said hotels.
In fact, the executive sent a harsh letter to Zeferino Torreblanca, governor of Guerrero, airing his annoyance with this situation and also asked Tourism Minister Rodolfo Elizondo to put an end to impunity.
After all the foregoing, the fact that both hotels have been put up for sale doesn't seem like a coincidence, or at the very least it fits into this Canadian chain's argument that it is not happy having such important investments in Acapulco.
In this story of red flags, we shouldn't overlook the drastic fall of hotel occupancy in Oaxaca as a result of the conflict between teachers and State Governor Ulises Ruiz.
No voices of alarm are heard yet but there an undeniable common denominator in all this: the rule of law is missing.
In this context, Mexico's presidential elections could have an additional undesirable effect on tourism.
Our main concern is that the next president handles public finances responsibly, but the victory of a politician with deep commitments with his political clientele such as Andres Manuel Lopez Obrador could also worsen the phenomena described above.
More street merchants, more land being invaded, more union leaders waging power struggles, more teachers on strike would create a scenario that tourism investors would not like to see. |
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