Oaxaca, Mexico, is slowly recovering from a free fall in tourism, which accounts for 80% of its economy.
The bad publicity from last year’s sometimes bloody conflict between the government and leftist social movements caused tourists who normally come here for world-class restaurants and archeological sites to disappear.
State officials reported a 59% drop off in visitors from the same time in 2005. At its worst, hotel room occupancy was only 12%.
Demonstrators last year wouldn’t allow government employees to work and at one point hog-tied a policeman, splattered him with paint and made him march through the downtown holding a portrait of the state governor, whose ouster they demanded.
“Oaxaca City was filthy and barely recognizable. Tourism plummeted, leaving hotels and restaurants nearly vacant,” said the Herald in Mexico City.
The city lost an estimated US$800 million in revenue, according to the hotel association.
”Restaurants and hotels closed. Many employees in the hospitality industry migrated to the US or nearby tourist spots that also offer a window into Mexico’s rich heritage, such as Puebla,” said The Chicago Tribune.
The tourism business is coming back though it has been slow. Some hotels are offering cut-rate deals and some restaurants have scaled back on hours.
State officials are boosting their promotions budget by a third in trying to revive Oaxaca’s image.
Report by David Wilkening















