Is it crime or the economy: Mexico Tourism

Surfers and kayakers are frightened to hit the waters of the northern stretch of Mexico's Baja California peninsula, long popular as a weekend destination for U.S. tourists. Weddings have been canceled. Lobster joints a few steps from the Pacific were almost empty on the usually busy New Year's weekend.

Later in the article:

The Baja California peninsula is known worldwide for clean and sparsely populated beaches, lobster and margaritas and blue waters visited by whales and dolphins. Surfers love the waves; fishermen catch tuna, yellowtail and marlin. Food and hotels are cheap.

News of harrowing assaults on American tourists has begun to overshadow that appeal in the northern part of the peninsula, home to drug gangs and the seedy border city of Tijuana. The comparatively isolated southern tip, with its tony Los Cabos resort, remains safer and is still popular with Hollywood celebrities, anglers and other foreign tourists.

The article is worth reading in its entirety. However, what isn't said is that I think this is due to economic contraction. This makes it so people will latch onto any excuse to cut spending.

What we've seen before is American's are cutting back on 'affordable luxury.' This is going to hit Mexico's vacation resorts hard. Let's face it... if you really have money you're heading to the Bahamas, Hawaii, or the Mediterranean. For the HELOC extracting Keep up with the Jones type... its time to get on that new show "Please buy my house."

Got popcorn?
Neil