US Passport Law Hurting MEX Tourism
 Parker Leavitt - Arizona Republic
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July 07, 2009
| | Despite the difficulties, some forms of tourism, such as cruises and resort getaways, are beginning to rebound. | |
A new law requiring Americans to have a passport to visit Mexico is the latest in a series of problems plaguing the Mexico travel industry, Arizona business owners say.
The recession, border violence and the swine flu have drastically cut into the revenue of many travel businesses, including resorts, travel agencies and Mexico auto-insurance brokers.
But the Western Hemisphere Travel Initiative, which became effective June 1 and requires a passport for re-entry into the U.S. from Mexico and Canada, has made a difficult situation even tougher, business owners say.
"The timing couldn't be any worse. We've had the perfect storm hit us over the last couple of years," said Jason Sprinkle, business manager of Rocky Point Reservations in Phoenix. "Now, the passport laws have changed. That could slash our clientele by two-thirds right there."
Only about 22 percent of Arizonans have a passport, compared with 30 percent nationwide, according to state officials.
Rocky Point, where empty condos and sparsely populated beaches are now the norm, highlights the industry's plight.
"You can't just say, 'Let's go camping in Rocky Point,' anymore," travel agent John Faulds said. "They've added another barrier, another hoop to jump through."
Tempe resident Travis Butterfield, 30, said he stayed home while his friends drove to Rocky Point to celebrate Fourth of July.
"I forgot to get a passport, so I couldn't go with them," he said.
Geoff Millar, co-owner of Ultimate All-Inclusive Travel in Maricopa, said the passport law may be keeping families from visiting Mexico.
"A family with five kids might have to spend an additional $500 to get passports," Millar said. "That can be difficult in this economy."
Auto-insurance companies also say there are fewer U.S. motorists driving to Mexico. Mexico auto-insurance sales at AAA Arizona are down 57 percent from last year. That reflects a steep decline in motorists heading to Rocky Point, spokeswoman Linda Gorman said.
Other auto-insurance companies, such as Mexpro in Flagstaff and Mexico Insurance Services in San Diego, also have experienced a drop in business.
After the recession, border violence and the swine flu, the new passport requirement has become "the fourth element" contributing to a decrease in business over the past 30 days, said Nate Watson, Mexpro's chief operating officer. Despite the difficulties, some forms of tourism, such as cruises and resort getaways, are beginning to rebound.
Debbie Winnie, owner of Dolphin Travel in Scottsdale, said more vacationers are taking advantage of discounts for high-end destinations, such as Cancun and Puerto Vallarta. Many prices for all-inclusive packages that include airfare and four-star hotel accommodations have been cut in half, starting at about $500, Winnie said.
Business owners hope the discounted rates will help boost the travel industry, while some say there is hope that the worst may be over.
"We are starting to see some slow but definite signs of renewed interest," Gorman said. "And it can't hurt that the deals are phenomenal." |
Vallarta Weddings
Travel & Outdoors | July 2009 
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