Impact of Swine Flu Scare On Mexico Economy

In the wake of the swine flu scare many tourists, particularly from the US and Canada, cancelled their flights and Mexico has been recording dwindling tourist inflow since news of the first case of swine flu. As a result, all tourism related business suffered - the airlines, ports, hotels and restaurants and others recorded low business. Consequently, national revenue suffered.

Tourism is third largest contributor (8%) of Mexico's GDP and employs about two million people. The lost to the economy is indeed huge and will take a long time for the economy to recover especially at the backdrop of the global economic recession, low export of cars, falling oil prices.

The swine flu also affected the image of Mexico - it branded Mexico as a country where visitors are likely to catch a deadly flu virus.

Re-banding Mexico - a tough campaign

Nevertheless, the Mexican government is committed to restoring confidence in the economy as well as carving a new image for the country.

The government has, for instance, launched a big campaign to attract visitors back to Mexico - hoping that the spread of the swine flu to other countries would reduce the negative image it has had on Mexico.

David Swan
david.u.swan@gmail.com
http://www.thinkingmoney.org