Update on the situation following cartel leader killing and
thoughts on the potential impact on the tourism market.
MEXICO – Following the killing of Jalisco New Generation
Cartel (CJNG) leader Nemesio “El Mencho” Oseguera Cervantes on February 22,
retaliatory cartel violence has caused travel disruptions across Mexico.
The U.S. Embassy initially issued shelter-in-place orders
for several tourist destinations, especially Puerto Vallarta and Guadalajara,
while other regions of the country appear largely unaffected. Riviera Nayarit
region, which includes destinations like Nuevo Vallarta, Sayulita, and Punta
Mita, also has been affected by the violence. Mazatlán, a popular resort town
on Mexico’s Pacific coast, has also seen disruptions.
On Tuesday, U.S. tourists were evacuating parts of Mexico after the U.S. State Department relaxed its advisory.
Mexico’s Jalisco state government said on Tuesday that “order
and stability have been restored” to the state’s main tourist areas, including
Puerto Vallarta and the Guadalajara metro area.
Ricardo Trevilla Trejo, Mexico’s secretary of National
Defense, said that 2,500 reinforcements had been sent to Jalisco, meaning
roughly 7,000 military personnel were in the state on Monday to maintain
control.
An alert from the U.S. embassy on Tuesday said that public
transportation and business continued to return to normal operations, and that
flight schedules had returned to normal in Guadalajara and many airlines had
extra flights planned in Puerto Vallarta. Grupo Aeroportuario del Pacifico,
operator of the Puerto Vallarta and Guadalajara airports, said they were
operating 95% and 96% of scheduled flights, respectively.
In a statement from Monday night, the Jalisco government
said a strong operational presence from Mexico’s Navy, National Defense
Secretariat, National Guard and State Public Security Secretariat enabled the
partial recovery of mobility and “guaranteed conditions of calm for residents
and visitors.”
“Puerto Vallarta is in safe conditions, with a strong
presence of federal and state forces ready to respond to any possible
contingency,” it said. “Visitors have been safeguarded and properly assisted by
hotels, the airport and tourism establishments.”
The bigger question is how long will the violence last and
how will it impact tourism across the country as headlines continue to show
large-scale coordinated attacks in Jalisco state, including at the Pacific
resort of Puerto Vallarta and the World Cup host city of Guadalajara?
One major Mexican hotel company executive told Hotel
Investment Today they are monitoring the situation day by day and operations
remain largely business as usual, with no major issues to report at this stage.
Hotel consultant John McCarthy of Leisure Partners in Mexico
City said late Monday, “It’s probably too soon to assess any real impact on hotel
performance.”
McCarthy said at the time that the next 36 to 48 hours would be critical in
demonstrating that the government maintains “absolute control over the
situation.”
“From what we know so far, the perpetrators achieved maximum
media impact but without loss of civilian life – at least none that has been
reported,” McCarthy said. “If that remains the case, this will likely be seen
not as a destabilizing event, but as a strong and decisive action by President
Claudia Sheinbaum and her administration.”
McCarthy said tourism markets tend to react more to
prolonged instability than to isolated incidents. “If the response continues to
be firm and effective, the long-term effect on Puerto Vallarta and Mexico’s
broader hotel sector should be minimal,” he said.
Reports suggest the highly visited states of Yucatan,
Quintana Roo and Oaxaca are not among Mexico’s hotspots of violence. Mexico
City does not rank among the most violent states either.
There were reports of narco roadblocks and arson attacks
against businesses in Cozumel, Playa del Carmen, Tulum, and Cancun. But there
do not appear to be any reports of targeted violence against tourists.
Cancún was reportedly facing moderate disruptions with
flight delays and some violence in the area, but resorts remain open for
tourists. Travelers are being advised to avoid off-property excursions.
Mexico City is under heightened security, with airport
and transportation disruptions affecting travelers. However, tourist areas
remain open and secure.
Cozumel is experiencing some localized incidents but
remains largely unaffected, though cruise port operations are uncertain. U.S.
Embassy advisories are in place.
Los Cabos is completely unaffected, with all operations
running as usual.
Truist Securities reported that Hyatt Hotels Corp. has the
highest exposure to both Mexico and Jalisco among the major public hotel
companies in the U.S., followed by Marriott with Hilton, Wyndham, and Choice
having much less exposure.
Using data from CoStar Truist estimated that Hyatt’s total
rooms exposure to Mexico is ~8.5% and Jalisco represents approximately ~1.0% of
total rooms exposure. Marriott’s Mexico exposure is ~3.3% of rooms and Jalisco
is ~0.4% of rooms.
Tourism in Mexico has been on the rise. The country
reportedly welcomed a record 47.4 million visitors between January and July
2025 — a 13.8% increase on the same period in 2024.