REPORT FROM MEXICO—Hoteliers in Mexico are adapting their operating and development strategies as the body count in the drug-torn country rises.
All too often, headlines from Mexico involve headless bodies and revenge killings. During 2010 alone, 15,273 people were killed because of drug violence, according to an AFP report.
Several property-level hotel officials in Mexico declined to speak for the record about how their hotels are dealing with the violence.
Border violence
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George Massa |
HotelNewsNow.com did, however, speak with hotel executives who oversee Mexican operations. George Massa, VP of development of Mexico for Hilton Worldwide, said the company altered its development strategy as a result of the ongoing violence.
“We are shying away from border cities” where violence is particularly intense, he said. Hilton has 22 hotels in the country in primary and secondary markets.
Alejandro Acevedo, VP of international hotel development, Caribbean and Latin America for Marriott International agreed that violence seems to be concentrated along the border.
“The problem is the way these things have happened and how violent they are,” he said. “From the tourist perspective, when you are watching CNN in New York, you can care less whether the violence is in northern or central Mexico—you just aren’t going to Mexico.”
Communicating the message
Marriott is trying to communicate the message that its properties are safe, Acevedo said.
“The thing is, if they’re not convinced they’re not going to come.”
According to the most recent STR data, occupancy in Mexico year-to-date through November was up 9.6% to 55.2%.
Corporate occupancy also could be affected, Acevedo said.
“Even in Cancun, the reality is, when something happens it’s 45 minutes outside the city,” he said. “On the news they say it happened in Cancun because that gets more attention. If you don’t know Mexico, or if you’re sitting in Seattle, you’re saying, ‘I’m not going to send my colleagues there.’”
It’s difficult to communicate the safety message, said Pat McCudden, senior VP of real estate and development, Latin America, for Hyatt Hotels Corporation.
“I don’t think individual hotels or even companies can do it,” McCudden said. “People develop a perspective on a very broad basis. People still talk about Colombia being unsafe. It’s a perception that’s very hard to change.”
A proactive approach
Massa said Hilton is beefing up security at its Mexican hotels. The company also is ensuring that staff members are trained to handle emergencies that might arise.
“We want to make the guest experience as comfortable as possible,” he said. “We dot every ‘I’ as far as security.” Massa declined to specifically say how Hilton hotel occupancy has fared in the wake of the violence, but did say it was in line with other hotels doing business in the country.
McCudden said it might be wise for hotels to work with the tourism board or other national groups in Mexico and seek support.
“An individual hotel company doesn’t have the strength,” he said. “It’s really got to come from a much broader organization.
McCudden added, “The country is for sale for some extent because of that. You can’t move rate because you’re trying to sell roomnights.”
Despite the difficulty involved, Acevedo said Marriott is not going to stop spreading the word that much of Mexico is safe to visit.
“We’ll just keep working on trying to change that image,” he said. “It has to finish sometime.”