Mexico City Emerges from Swine Flu Shutdown

As one of the world's most frenetic capitals slowly returns to normal, residents in Mexico City are breathing a sigh of relief after a five-day economic shutdown aimed at containing the swine flu. The city's streets are once again filled with people heading to work, and vendors are setting up their stalls, but the crisis has left a lasting impact on the economy and the nation's psyche. The government has announced a $1.3 billion stimulus package to aid in the recovery, but for those in the informal economy, the statistics mean little. The tourism industry is facing a significant downturn, with cancellation rates soaring to 70 percent and hotel occupancy rates plummeting.

Key Takeaways:

• The five-day economic shutdown in Mexico City aimed to contain the swine flu has come to an end, but the city's economy is still reeling from the effects.
• The government has announced a $1.3 billion stimulus package to aid in the recovery, which includes tax breaks and funds for businesses, including hotels and restaurants.
• The crisis will cost the country about $2.2 billion, or reduce GDP this year by 0.3 to 0.5 percentage points.
• The tourism industry is facing a significant downturn, with cancellation rates soaring to 70 percent and hotel occupancy rates plummeting.
• For those in the informal economy, like juice vendor Mario Antonio Figueroa, the statistics mean little. "We live day by day," says Figueroa, who sells juice for about 75 cents per glass.
• The stigmas associated with the swine flu will be hard to fight, especially in the tourism industry, with Mexican Tourism Minister Rodolfo Elizondo anticipating a 43 percent decline in tourism revenue this year.
• Mexico has faced diplomatic repercussions due to the crisis, including the temporary cancellation of flights from Cuba and Argentina, as well as the quarantine of dozens of Mexicans in China.
• Not all normalcy has returned, with it still unclear when gyms, movie theaters, and bars will be allowed to reopen.

Statistics:

• The government has announced a $1.3 billion stimulus package to aid in the recovery.
• The crisis will cost the country about $2.2 billion, or reduce GDP this year by 0.3 to 0.5 percentage points.
• Tourist cancellation rates soared to 70 percent, and hotel occupancy rates plummeted to 15 percent in Mexico City.
• Sixty-four port calls were canceled for cruise liners, meaning the loss of up to 134,000 passengers who could have stepped in Mexican territory to purchase food and souvenirs.
• Four conventions were canceled, which would have brought in 47,000 visitors.

Sources:

• The Christian Science Monitor
• Alfredo Coutino, senior economist for Latin America at Moody's Economy.com
• Mexican President Felipe Calderon
• Mexican Finance Minister Agustin Carstens
• Mexican Tourism Minister Rodolfo Elizondo