Hotel Crisis in Mexico Accentuated by COVID-19

Without a doubt, the tourism sector is one of the most affected when a health and economic crisis hits countries. Mexico is no exception and as COVID-19 infections spread, hotel occupancy in Mexico fell to levels between 2 percent and 6 percent, the Mexican Association of Hotels and Motels (AMHM) reported this Thursday.

“If this situation continues, there is a risk that thousands of micro and small accommodation companies will go bankrupt due to a lack of the necessary resources to meet their tax obligations and payment of services, in addition to paying their workforce," said the AMHM.

This is the lowest hotel occupancy registered since the 2009 A-H1N1 influenza epidemic when the industry suffered a 95 percent drop in occupation across the country. So far, the COVID-19 crisis in the country has caused the closure of 645 hotels affiliated to the AMHM nationwide. Cancun and Mexico City are the most affected, with 71 and 50 closed, respectively.

Beach destinations are the most affected, with Isla Mujeres, Cancun and Acapulco been hit the hardest, while Zacatecas, Oaxaca, Aguascalientes, Mexicali, Ciudad del Carmen, Tuxtla Gutierrez, Mexico City, Durango, Ixtapan de la Sal and Chetumal registered an occupation of between 3 percent and 18 percent. AMHM plans to close another 182 hotels all around Mexico.

According to the hotel association, in Mexico City there are daily losses of MX$100 million (US$4.14 million) due to reservation cancellations, as well as the collapse in the sale of food and beverages that this implies.