MercoPress. South Atlantic News Agency

Mexico tourism operators estimate losses could reach 5.5 billion USD

Mexico will experience losses of up to 5.5 billion US dollars this year because of the influenza A/H1N1 virus outbreak which has scared foreign tourists anticipated the Mexican National Tourism Confederation.

“The negative image of the country and extended discrimination of flights and sports because of the epidemic will set back the recovery of our tourism sector”, said Miguel Torruco, president of the Tourism Confederation.

“We estimate losses to range between 1.5 and 5.5 billion US dollars”, added Torruco recalled that last year the industry brought 13 billion US dollars to Mexico. Tourism, remittances from overseas (mainly US and Spain) and oil are the three main sources of international income for the country.

Torruco also warned that keeping jobs given the extent of the crisis will much depend on how quickly tourism activities recover, mainly from the domestic market plus the support and fiscal stimulus granted by the administration of President Felipe Calderón.

The Mexican industry is requesting the federal government to allow 100% tax deductibility on food consumption and zero levies on Mexican companies involved in tourism events and conventions, as already happen with foreign companies.

Finally Torruco demanded the federal government launches a “campaign to promote tourism inside and outside Mexico” appealing to contingency funds or natural disaster funds, a “campaign that should last three years and would demand an investment of 200 million US dollars”.