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Over 100 Businesses Close: Lack of Tourists

Real Acapulco News - 14 October, 2010

According to the National Chamber of Commerce, 120 businesses in Acapulco closed this year due to the drop in tourist traffic, and perhaps as many as 50 more will close before the high season goes into high gear around Christmas time. The local chamber president, Javier Saldívar Rodriguez, pointed to the bad press Acapulco has received because of narco violence as the cause, even though violent episodes rarely occur anywhere near the tourist area. Another reason is that the economic crisis has caused tourists to limit their spending when on vacation. In the downtown section alone, around 40 businesses have closed their doors, without much prospect for re-opening when the high season arrives. "The situation is alarming,” he said, “and more may close because this type of situation, regretfully, cannot be resolved so quickly."

Saldívar Rodriguez also points to a third factor, the heavy taxes, as well as the high commercial rates charged for water, light, phone and rental services. Even bank deposits are taxed. This sentiment was echoed by the Chairman of Mexico’s National Chamber of Transformation Industries, Paschal Romero García, who said that as many as 50 more closings can be expected in the fourth quarter because owners cannot sustain the costs of operation without a good influx of tourism. Of the 500 local members of his chambers, ranging from small businesses to hotels, he said 10 per cent will close their doors this year. Some may re-open later, but the overall picture is bleak.

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