Travel Security - Drug violence scares off tourists to Mexico

HEADLINE: Drug violence scares off tourists to Mexico

SUMMARY: Despite the bulk of drug-related violence being far removed from Mexico’s tourist destinations, fear is driving away visitors and threatening a crucial industry, already battered by last year's swine flu outbreak. Gory news reports of daily shootouts between drug cartel hit men are fueling concerns that Mexico is increasingly unsafe, even if most of the violence is along the U.S. border, far from top tourist areas. The number of international tourists flying into the Pacific beach resort of Acapulco fell by almost a quarter in the first three months of this year. The U.S. State Department has warned against nonessential travel along the U.S.-Mexico border, especially in the violent cities of Ciudad Juarez and in Tijuana, where hotel occupancy rates have dropped to around 30 percent.

STORY LINK: http://www.reuters.com/article/idUSN1323416220100413?type=marketsNews

ANALYSIS: The accounts of drug-related skirmishes and violent acts in Mexico are regular spots in the news. What is not typically reported is that the majority of these acts occur in a ribbon along the northern border with the U.S., and for the majority of Mexicans, life is pretty much status quo.

Hotels and other tourist-dependent businesses report significant declines in revenue and traffic. These reports vary widely with each business and destination. A significant percentage of the drop in Mexico’s tourist economy can also be attributed to the slumping U.S. economy and the H1N1 flu outbreak.

The liaise-faire attitude of American tourists partying in Mexico has shifted to a more guarded mindset. The precautions needed now to vacation in Mexico should be similar to visiting any U.S. city that has pockets of high crime. Tourists account for a very small percentage of victims in these conflicts. When you are
booking a destination, it is important to pick a location away from the known hot spots as you would in the U.S. Like being in an unfamiliar city, you should travel in numbers, keep to the main streets and exercise additional caution venturing out at night. Before you select a hotel, pick an established company that has and wants to keep a positive reputation. Contact them directly and ask questions about their security measures, private security guards and medical facilities.

Business travelers need to take additional precautions as they could be viewed as a potential kidnapping victim or a target of opportunity. The risk of kidnapping is a very real problem and adequate procedures need to be in place. Companies need to have plans in place for their employees and visitors. Kidnappers want money, not the person. Kidnapping procedures need to be rehearsed and individuals need to be trained. Contracting with executive protection professionals is a huge step in prevention. Hiring reputable U.S. companies with experience in Mexico is a logical choice. If you engage with a Mexican-based security company, U.S. laws and regulations
will be worth little.

Many financial institutions provide this coverage for key employees. The loss of key personnel can be just as devastating to a company as a natural disaster, catastrophic fire or large criminal activity. Companies that operate in Mexico, have a supply chain linked to Mexico or employees working near the hot spots of the
border region, need very detailed business continuity plans and training to address the various threats and vulnerabilities that come with operating there.

--Scott Watkowski, Firestorm franchise principal