Blow to Cancun: COVID 19 rise and hotels will not be able to fill 100%, even with 60% occupancy, they lose money


The hotel industry in the Mexican Caribbean suffered a severe blow with the announcement by the Federal Ministry of Health that 10 states are on the alert to reach a red light, as many went back to orange light, as happened with Quintana Roo, where there was hope that Cancun and Riviera Maya would have the permission of 100% occupy this high Christmas season.

Quintana Roo, even though was close to turning green at the National Epidemiological Light, has registered a re-outbreak of infections that now there is the risk of going back to orange light, which forces a maximum occupancy of 30%, and moves it farther away from the full occupation of all its rooms, compared to the current restriction of 60 percent.

The governor of Quintana Roo Carlos Joaquín González reported last Thursday that, Quintana Roo could return to the orange light due to an increase in infections.
“Going back to orange means more restrictions, reduction in activities, fewer jobs. December is an important month for economic reactivation, let’s not spoil it, “warned the governor.

Both the northern and southern areas of Quintana Roo had planned to continue in yellow during the week of December 7 to 13.

However, even with 60% occupancy, Cancun hoteliers still do not achieve benefits since they managed to reach the maximum allowed number of occupied rooms thanks to dropping rates by more than 50 %, according to the union’s representatives.

The current situation of tourist ruin and the economic debacle that the destination is experiencing makes the sector consider the possible collection of the 10 dollar tax that is intended to be applied to international tourism in Quintana Roo as absurd, after the governor, Carlos Joaquín González, arise arguing that they have no resources.

At a press conference, the representatives of organizations such as the Business Coordinating Council (CCE), the Hotel Association, the Cancun Vacation Club Association (Acluvac), the Mexican Association of Travel Agencies (Amav), and the Association of Commercial Malls, spoke out against the charge of $10USD (270 pesos) and announced that they will make a counterproposal.

Miriam Cortés, from Acluvac, indicated that the “usage and maintenance of services for foreign tourists” through which it is intended to charge 10 dollars to international tourists who visit the state, is added to five more taxes that are already charged, which will leave the Mexican Caribbean destinations out of the market against competitors in the region such as the Dominican Republic and the Bahamas, for example.

She specified that, currently, the international vacationer pays an average of 2,193 Mexican pesos, in five types of taxes: the Non-resident (DNR) of 558 pesos from Migratory Services, for 149 pesos for the Airport Use Fee (TUA), 461.25 pesos for Lodging Tax (IH), 660 pesos from municipal Environmental Sanitation, and 364.84 pesos per night of stay.

The president of the Cancun, Puerto Morelos, and Isla Mujeres Hotel Association Roberto Cintrón Gómez reported that they have received letters from wholesalers and tour operators in Canada, Europe, and Latin America, warning that it is not appropriate to try to increase the tax burden on foreign tourists.


The Cancun Post