CANCUN, Mexico, March 23 (Reuters) - Feeling he can now
travel internationally without risking his life,
recently-vaccinated American Brian Sheppard hopped on a plane to
Mexico's top beach resort a few days ago to attend the wedding
of one of his best friends.
Like other major Mexican tourist draws, Cancun's
all-inclusive hotels along wide stretches of white sand beaches
on the Caribbean are benefiting from the steady if uneven global
march of coronavirus vaccinations as Mexico prepares for a
rebound from one of the worst-ever years for its crucial tourism
While the U.S. Spring Break season has so far been
relatively muted in Mexico, summer bookings are seen between
48.7% and 61.5% occupancy at the main tourist destinations, up
dramatically from 2020 when properties stood mostly empty,
according to government estimates.
U.S. travelers in particular are seen feeling more confident
thanks to the increasing application of coronavirus vaccines.
Battered shares of Mexican hotel companies have already
begun to recover as the expectation of sunnier times takes hold.
Shares of Grupo Hotelero Santa Fe, which operates
properties in Mexican beach destinations including Los Cabos and
Puerto Vallarta, have rebounded by more than a third since last
November when they hit a record low.
FibraHotel, meanwhile, with a similar profile of
hotels has fared even better, with its shares up nearly 70%
since May, when they also slumped to their lowest-ever level.
The expected summertime boom is a welcome postcard for
Mexico's ailing economy as tourist spending comprised nearly 9%
of gross domestic product in pre-pandemic 2019.
As he finished dinner at a beachfront restaurant, Sheppard
confessed he almost turned down his friend's wedding invite.
"I was gonna miss it," said the 38-year-old nurse from
Cleveland, Ohio, even after receiving his two-shot vaccine. The
jabs, he said, gave him the confidence he needed to conquer his
fears. "I'd traveled to a few places in my home state, but
nowhere really far away."
The results of a poll from online travel company Expedia
late last year showed half of U.S. residents described
themselves as "hopeful" for travel due to the arrival of
vaccines, a sentiment that spread to Mexican hoteliers.
"The situation looks a lot different now," said Eduardo
Cruz, head of operations for Wyndham Hotels & Resorts in Latin
America and the Caribbean.
Cruz sees even more tourism dollars flowing to Mexico in the
second half of this year, pointing to what he described as
pent-up demand that could lead to a "stampede of travelers."
Some 458.1 million vaccines doses have been administered
worldwide. The United States, home to two-thirds of Mexico's
foreign visitors, has provided its residents with 126.5 million
doses so far, according to figures from Our World in Data, an
Oxford-based research group.
A surge of tourists to Mexico's sunkissed beaches, ancient
ruins and colonial-era cities is expected even as the
governments of the two top sender countries still discourage
U.S. officials require all returning travelers, including
citizens, to test negative for COVID-19 and recently urged them
specifically to avoid going to Mexico for Spring Break holidays.
Canada's government, meanwhile, has temporarily canceled
flights to Mexico. Despite that, Cancun's tourist board is
expecting 300,000 visitors in March, up a third from last year.
For most of the past year, Mexican authorities imposed few
obstacles to willing visitors with disposable income to spend.
That has fed concern that new coronavirus variants, so far
rarely detected in Mexico, could take hold and stifle the
Investors sensing a buying opportunity should proceed with
caution, said Brian Rodriguez, an analyst at Mexican broker
"At these levels, investing in the sector is very
attractive," he said. "But only if expectations are met, and
that will depend on the vaccines and borders reopening."
(Reporting by Noe Torres in Mexico City and Adriana Varillas in
Cancun; Writing by David Alire Garcia
Editing by Alistair Bell)