Storms pummel Mexico tourism

Dan Grech Oct 26, 2006

TEXT OF STORY

SCOTT JAGOW: We’re just a few days from the end of the hurricane season. It’s been pretty quiet at least in the states. Mexico has seen a couple of bad storms and there’s another one about to make landfall. It’s just a tropical depression but could cause some flooding. The storms have been bad for tourism, but there is a silver lining. From the Americas Desk at WLRN, Marketplace’s Dan Grech reports.


DAN GRECH: In the past two months, the Mazaltan area has been hit twice by major storms. So has Cabo San Lucas.

Storm surge and heavy rains flooded large areas, forcing many businesses to shut down.

But University of Florida economist David Denslow says whatever damage the storms caused will be overshadowed by an economic rebound in the coming weeks.

DAVID DENSLOW: “After an initial period of restoration and recovery, then employment rises. It rises because of the reconstruction of the infrastructure that’s now required.”

Denslow has documented this rebound effect in Florida, but he says it should be the same for Mexico.

DENSLOW:“They are in the North American continent. It’s a place where labor is cheap. Nobody’s going to allow them to languish.”

Despite this rebound effect, businesses like resorts, retailers and restaurants are still trying to make up for lost revenue after tourists fled the stormy weather.

I’m Dan Grech for Marketplace.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.  

Need some Econ 101?

Our new Marketplace Crash Course is here to help. Sign-up for free, learn at your own pace.