Tourism decline widens with Mexico’s continuing woes

When it comes to European tourism, North American has never recovered from the events of 9-11. And the latest drug and airline crisis in Mexico could cast more dark clouds in that market.
 

In addition, a bumpy European economic recovery and battered currency have helped stall European tourism to North America especially the Caribbean and Mexico, though Canada is faring better, tourism experts say.
 

“The number of Europeans visiting the United States and Canada fell 10 percent last year, according to government data, as cash-strapped consumers opted for vacations nearer home and business travel froze,” Reuters reported.
 

Despite the debt crises buffeting Greece and some other European countries and a euro which has weakened up to 15 percent against the US dollar this year, the number of Europeans visiting the United States remained flat for early this year, reported the US Office of Travel and Tourism Industries.
 

"It may take a while for people to feel good enough about their future job prospects to get back into the vacation cycle that they had enjoyed," said Rich Harrill, director of the International Tourism Research Institute at the University of South Carolina.
 

Exchange rates are a key but not the only reason why foreigners visit the US.
 

"The perception that the United States is not as welcoming as it was pre-9/11 continues to drive visitors away," said the association’s Geoff Freeman, adding that Washington needed to overhaul visa and entry processes.
 

Canada appears to be faring a little better with the number of Europeans visiting rising 6.4 percent for the first quarter of 2010 compared to last year boosted by the Winter Olympics in Vancouver in February.
 

"I don’t think we’re seeing any decline, but we just hosted the Olympics so we’re sort of the hot commodity," said Amber Sessions, a manager of media relations at Tourism Vancouver.
 

However, 16 of the 22 countries in the Caribbean Tourist Organization saw a decline in European visitors between January and April. Several suffered a double digit fall.
 

In already drug-troubled Mexico, Mexican airline Mexicana de Aviacion recently filed for bankruptcy ending weeks of speculation over the future of the company.
 

The largest airline in the country failed to reach agreement with unions over cost cutting measures, having proposed to cut up to 40 per cent of pilots and crew.
 

Mexicana confirmed flights would continue to operate as normal while finances were restructured despite a suspension of ticket sales. Travel experts say passengers scheduled to fly Mexicana will want to check their flights.
 

Developments harming Mexico include US aviation regulators (the US Federal Aviation Administration) downgrading Mexico’s safety ranking, effectively restricting its airlines from partnering with American carriers or expanding service between the two countries.
 

“While Mexico has been responsive to the FAA’s findings and has made significant improvements in recent months, it was unable to fully comply with all of the international safety standards," the FAA said in a statement.
 

Downgraded from Category 1 to Category 2 rating, Mexico "either lacks laws or regulations" to ensure air carriers comply with International Civil Aviation Organization (ICAO) standards, or its civil aviation authority is "deficient" in some areas.
 

The new category means "Mexican air carriers cannot establish new service to the United States, although they are allowed to maintain existing service," the FAA said.
 

“Mexican tourism has taken a lot of hits recently and this latest development won’t help matters. In the past couple of years the combination of the global economic crisis, the swine flu epidemic and worries over violence caused by drug cartels has had the popular vacation destination fighting for tourism dollars,” said wire services.
 

By David Wilkening