BajaNomad

As tourists avoid traveling to Mexico, Tijuana suffers

BajaNews - 6-12-2009 at 02:01 PM

http://www.etaiwannews.com/etn/news_content.php?id=953713&am...

Trips across the border have dropped by 55 percent since early 2008 in a massive blow to Tijuana's economy

By Rosalba Ruiz and Denisse Salazar
2009-05-20

Avenida Revolucion is nearly a ghost town now, with the global economic crisis and drug cartel violence slamming the Mexican tourism industry. With the swine flu scare, even more tourists are staying away.

On April 27, the Centers for Disease Control and Prevention issued a travel alert recommending U.S. travelers avoid all nonessential travel to Mexico. Even before that, the U.S. State Department, for more than a year, had a travel alert in place because of Mexico's drug cartel violence.

For 37 years, the Mendez family sold crafts, leather goods, and knickknacks in six stores here, along Avenida Revolucion, a popular shopping thoroughfare for tourists in this border city.

But now, as fewer Americans visit, Andres Mendez is struggling to keep open the last of his shops, Montealban Curios.

"I used to invest about US$5,000 to US$6,000 a week in merchandise and make anywhere from US$20,000 to US$25,000 a week at the most profitable store," said Mendez, coordinator for Ceturmex, an Avenida Revolucion merchant association. "Last year, we had almost no profit. Now, we're almost in the red."

Similar stories float through the restaurants and other businesses along the 10-block avenue, now filled with for-rent signs.

About half of all businesses along the street have closed, according to the Tijuana Convention and Visitors Bureau. Trips across the border have dropped by as much as 55 percent since early 2008, a massive blow to a city economy that depends on tourism and commerce for more than half of its revenue.

In early 2007, Mexican President Felipe Calderon declared war on the country's drug traffickers. The military and federal police took up a big role, and bloodshed increased as the government battled drug cartels, the cartels battled each other for territory and people within the cartels fought for leadership roles.

Since then, the drug wars have claimed about 8,000 lives in the country, according to various news reports. Tijuana, a city of two million residents, has had more than 200 homicides so far this year, although it's unclear how many can be attributed to the drug war.

But merchants, authorities and tourism officials say tourist areas are not where the violence is taking place.

"Downtown Tijuana and Avenida Revolucion are safe zones. There's a lot of security," said Juan Coronado, marketing director for the Tijuana Convention and Visitors Bureau. "If there are soldiers (in those areas), it doesn't mean that there's something bad happening; it actually gives residents peace of mind."

On a recent afternoon, Gordon Hall was walking on a mostly-empty Avenida Revolucion with two friends from the area. He says he hasn't seen many Americans lately, except for those who live in Baja.

"It's the violence, but it's also the American government telling people not to come over here because it's dangerous," said Hall, a La Jolla, California, art gallery director who visits about once a week. "It's the violence and our recession, both of which we caused."

Hall says that every time he talks to Americans, they ask him if it's safe to go to Mexico.

"I tell them that if they stay in the tourist areas, they're probably safe and not to worry," he said.

When the flu outbreak started making headlines a few weeks ago, some nations temporarily banned flights to and from Mexico, some U.S. and Mexican airlines waived fees for passengers who wanted to change their itineraries, and cruise lines canceled port stops.

"This is more significant, because during the drug cartel violence, there was the perception that the violence was restricted to the drug cartels. Right now, there is a perception that the swine flu virus is indiscriminate and anyone can become infected," said David A. Shirk, director of the Trans-Border Institute at University of San Diego.

The World Health Organization is not recommending travel restrictions related to the virus.

"Scientific research based on mathematical modeling indicates that restricting travel will be of limited or no benefit in stopping the spread of disease," said the organization's website. "Historical records of previous influenza pandemics, as well as experience with SARS, have validated this point."

At least one major bus tour company suspended its trips to Tijuana: Coach America in Anaheim, which offers day tours to various tourist spots in Southern California and Baja California, canceled tours three weeks ago until further notice to Mexican stops, including Tijuana. Despite the alerts, some people are traveling.

"A lot of people, like friends, said not to go, but there are cases in California as well," said Miriam Zavala, 26, of Los Angeles, who was recently aboard a bus headed to Tijuana to see her sick grandmother.

Merchant associations of Avenida Revolucion and government officials have been meeting frequently to discuss how they're doing and what they can do.

Last month, they launched the campaign "Tu eres la revolucion" ("You Are Revolucion") - the first campaign that exclusively promotes the avenue to locals and Southern Californians.

Efforts by Baja California include working with a U.S. marketing firm to restore a safe image of Baja California and Mexico, so the U.S. Department of State won't renew the drug-related violence alert. In addition, more auto lanes will be available for tourists crossing into the state from the U.S.

"The economy, I think, won't be a big issue. I see it as an opportunity," said Baja California's tourism secretary Oscar Escobedo, referring to the U.S. recession. "People have less money, and since things are worth half here, it's a good thing. We're betting that this year will be a turnaround."

Mendez, the shopkeeper, plans to stay open.

"It's been almost 40 years since we started in the business. We don't want to go. We're staying," he said. "Tijuana has given us a lot, and this time, Tijuana needs us. We'll stay to improve what we have to offer to tourists."

"The economy, I think, won't be a big issue. I see it as an opportunity," said Baja California's tourism secretary Oscar Escobedo, referring to the U.S. recession. "People have less money, and since things are worth half here, it's a good thing. We're betting that this year will be a turnaround."

Udo - 6-12-2009 at 03:45 PM

Fernando
You are in the know in TJ.
We both attended the Baja by the Sea Expo. Everyone did a terrific job in presenting Baja to the public.
Here is my suggestion:
Offer the US tourists free parking or perhaps just a free bus ride to TJ via the Mexicoach.
Jana and I have done this several times based on your previous suggestion
and had a great time. The bus ride back was extremely short because we don't have to wait in the car line, plus the busses have their own US Customs line (very short)

arrowhead - 6-12-2009 at 04:18 PM

I was in TJ a few weeks ago and stopped to have lunch at Cafe La Especial before going back across the border. It was closed. Only the little take-out window up on the street level was open. Bummer.

Frank - 6-12-2009 at 04:24 PM

Las Rocas was offering transportation


$69* dollars
Round transportation for two from San Ysidro,CA - Las Rocas -San Ysidro,CA** plus One Night in a Standard Room (191 sq ft) - With 180 degrees ocean view, private balcony and some of them with terrace.

$89* dollars Round transportation for two from San Ysidro, CA - Las Rocas -San Ysidro,CA** plus One Night in a Gaviotas Suite (267 sq ft) - Unforgettable romantic rooms, some of them offer high brick dome ceilings. All of them with 180 degrees ocean view, fireplace and private balcony.

Woooosh - 6-12-2009 at 04:49 PM

This story from Taiwan did a better job than the LA Times. Even so...

"Trips across the border have dropped by 55 percent since early 2008 in a massive blow to Tijuana's economy"

(If trips by car are down 55% why all the effort to shorten the wait times to get back? With less traffic the lines returning must be shorter. My recent crossings tell me that is the case. 40 minutes for me to cross Wednesday at 11am- last year it would have been and hour and 40 minutes. )

--------------

"I used to... make anywhere from US$20,000 to US$25,000 a week at the most profitable store," said Mendez, coordinator for Ceturmex, an Avenida Revolucion merchant association.

(He was making over a $1 Million profit at one of his six locations alone?! I think he'll survive just fine on his savings for a while if he hasn't been kidnapped since he opened his mouth about his money)

-------------
"Downtown Tijuana and Avenida Revolucion are safe zones.

(since when?)

-------------

"If there are soldiers (in those areas), it doesn't mean that there's something bad happening; it actually gives residents peace of mind."

(Maybe TJ residents feel safer with soldiers present but Americans know where there is smoke there is fire. We have never seen soldiers deployed in a US city- let alone put them in a tourist zone and then declare it's safe. We figure if it were safe the soldiers wouldn't be needed. To us this just logic just doesn't compute)

DENNIS - 6-12-2009 at 04:59 PM

Quote:
Originally posted by Woooosh
"I used to... make anywhere from US$20,000 to US$25,000 a week at the most profitable store," said Mendez, coordinator for Ceturmex, an Avenida Revolucion merchant association.

(He was making over a $1 Million profit at one of his six locations alone?! I think he'll survive just fine on his savings for a while if he hasn't been kidnapped since he opened his mouth about his money)





Again, it needs to be pointed out that "these people" [:lol:] have a habit of talking in Pesos which would drop our preconceived notion of a million quite a bit. A lot of money none the less.

fishbuck - 6-13-2009 at 05:24 AM

Man I need to get to Adelitas as soon as possible. Maybe they dropped their prices.;)
And if the line is shorter coming home... perfect!

k-rico - 6-13-2009 at 07:14 AM

The article said:

"a massive blow to a city economy that depends on tourism and commerce for more than half of its revenue."

1/2 its revenue? What does "and commerce" mean?

I find the idea that tourism composed half of the "city economy" hard to believe. TJ is a huge city and the American tourists seldom ventured far away from walking distance of the border.

The gringo buying lunch, a few beers, and a black velvet painting of Elvis or a "Sako" watch composed half the economy?

longhairedbeatnik - 6-13-2009 at 09:03 AM

If we drive by and not stop for 3 hours, it will cause problems with the economy. I used to stop at most of the towns on my way down but no more as security is now a large issue for me.
The US put soldiers in New Orleans after Katrina but we all did not rush down to visit because there was a reason for the soldiers, it was not safe to go there.
Take care of the crime and other crap and we will all go back and visit but I think it is beyond repair at this point.

Terry28 - 6-13-2009 at 09:36 AM

I'll go..less people means uncrowded waves to me and a shorter wait time a the border!!

Woooosh - 6-13-2009 at 10:28 AM

Quote:
Originally posted by DENNIS
Quote:
Originally posted by Woooosh
"I used to... make anywhere from US$20,000 to US$25,000 a week at the most profitable store," said Mendez, coordinator for Ceturmex, an Avenida Revolucion merchant association.

(He was making over a $1 Million profit at one of his six locations alone?! I think he'll survive just fine on his savings for a while if he hasn't been kidnapped since he opened his mouth about his money)





Again, it needs to be pointed out that "these people" [:lol:] have a habit of talking in Pesos which would drop our preconceived notion of a million quite a bit. A lot of money none the less.


Come on Dennis- The only math they ever get right is dollars and pesos or the conversino of one to another (sometimes get it right).

For tourism to really be 50% of the Tijuana economy- his $1 Million Dollar profit in his best store must be true. If he's the big cheese and not making that as head of the merchant association then who is making the 50%? Or its all a lie.

DENNIS - 6-13-2009 at 10:39 AM

Quote:
Originally posted by Woooosh
(sometimes get it right).




And, give it right. I can't imagine this man giving the whole truth and nothing but the truth about his income to a reporter from Taiwan. They don't even tell all to their own accountant.
Can't say as I blame him.

Woooosh - 6-13-2009 at 11:07 AM

Quote:
Originally posted by DENNIS
Quote:
Originally posted by Woooosh
(sometimes get it right).




And, give it right. I can't imagine this man giving the whole truth and nothing but the truth about his income to a reporter from Taiwan. They don't even tell all to their own accountant.
Can't say as I blame him.


True- it was Taiwan. But people talk honestly and openly when they think no one is really listening. They let their guard down and get off-message. I think he used that opportunity to be honest- not knowing US readers would catch it. It takes thousands of shops, clinics and restaurants all making that much profit for TJ to say 55% of its income is tourist based. IMHO the real number is more like 15%.

If what you say is true, when merchants lie and distort economic conditions like this- nice guys like FDT blindly run to help and champion their cause for nothing. They have him out trying to shorten border lines that don't even exist any more- outside of the normal morning commute. A lackey for helpless millionare shopkeepers we are then lead to believe.

If the shops do make that much money, and I believe he was accurate and they do (or they wouldn't be so vocal or powerful), they can well afford to bus their own customers over from San Ysidro to Revolution- can't they? Even Taxi vouchers would work- probably even cheaper than busses. They are sitting on piles of cash- they just don't want to spend it to stay in business and pay for their own solution.

It's the mexican tradition to play the helpess unfortunate victim of circumstance in nearly all situations. Why break with tradition?


Check this story out from Yesterday. A Mexican official got caught telling the truth when he thought no reporters were around. But there were tape recorders...

http://www.nytimes.com/2009/06/13/world/americas/13mexico.ht...

[Edited on 6-13-2009 by Woooosh]

Bajahowodd - 6-13-2009 at 01:08 PM

Makes a great headline, but can you blame the mayor? He's kinda naked in the trenches.

sd - 6-13-2009 at 01:29 PM

Check airfare for LAX-SJD for this July 4 weekend. Alaska Air is approx $800 RT.

It's not just Mexico. The entire travel industry is slow with the economy. I don't see any discounts being offered from the Baja places I haved stayed. And my favorite bills US Dollars, so no advantage for $$ vs. Peso.

So a 3 night holiday weekend costs;
Air $800
Airport transportation $80 each way from SJD to hotel
LAX parking $50
3 night hotel with meals $550
2 day panga $600
Bait $40
Tips $150

It's a great place but not a cheap weekend trip.

CaboRon - 6-13-2009 at 07:55 PM

Quote:
Originally posted by Frank
Las Rocas was offering transportation


$69* dollars
Round transportation for two from San Ysidro,CA - Las Rocas -San Ysidro,CA** plus One Night in a Standard Room (191 sq ft) - With 180 degrees ocean view, private balcony and some of them with terrace.

$89* dollars Round transportation for two from San Ysidro, CA - Las Rocas -San Ysidro,CA** plus One Night in a Gaviotas Suite (267 sq ft) - Unforgettable romantic rooms, some of them offer high brick dome ceilings. All of them with 180 degrees ocean view, fireplace and private balcony.


A 191 sq/ ft room is only ten by nine feet .... literally a cracker box .....

LosCabosbound - 6-13-2009 at 10:06 PM

Actually its almost 10 feet by 20 feet and the view is great.
10 feet by 9 feet is 90 square feet. :?::?::?: