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Economy

Mexico Tourism Continues Despite Drug Violence


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Despite countless reports of escalating violence due to the war on drugs in Mexico, the tourism board is reporting a two percent growth in International tourism in the first quarter of 2009. This news comes as the U.S. is taking steps to help quell the violence and assist in bringing an end to the turmoil. Secretary of the U.S. Department of Homeland Security Janet Napolitano is visiting the San Diego-Mexico border today and is scheduled to go to Mexico and speak with Mexican President Felipe Calderón. She has gone on record saying that the Department of Homeland Security will be adding additional resources to the border to tackle the problems with arms trafficking.

The continued rise in tourism comes as a surprise amidst travel warnings and the economic downturn. However, the state of the U.S. economy may be what is helping to drive tourists to the area. Vacationers may be selecting Mexico over other locations, because it is a cheaper alternative to other destinations. Instead of staying away from the entire country, tourists can pick up their map to Mexico and vacation with care to the areas that have been spared from the majority of the violence. Popular vacation spots, such as Cancun and Los Cabos, are hundreds of miles away from the hotspots where violence has been most prevalent, like Tijuana or Ciudad Juarez.

However, even though the violence has been less prevalent in hotel and resort areas that cater to tourists, the drug cartels have pervaded the entire country. For anyone going to the area, whether for a spring break excursion or a business trip, caution should be exercised. Acts of violence can erupt anywhere in the country, and just being aware of that reality can make a difference in how to plan and prepare for a trip into Mexico. 

Wednesday, April 1st, 2009 Economy, Travel No Comments

Dubai Economic Slowdown Leaves Foreign Workers Stranded


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For the last decade or so Dubai became a true boomtown. With unparalleled growth in both real estate and tourism, the city became one of the most popular destinations in the Middle East and was developing a reputation as a playground for the rich and famous on the Persian Gulf. As the global economic slowdown hits the region, all that is changing.

In recent years, development was constantly increasing. Resorts, luxury Dubai hotels, sports and entertainment venues, high rise apartments, and countless restaurants and shops were built or under construction to support the influx of both residents and tourists. The UAE’s support of foreign business saw an increase in business travelers as well.

A large number of those employed to build these projects were foreign workers. Construction workers from all over the Middle East and Southeast Asia flocked to the area’s booming job market. A majority of the now unemployed workers come from Pakistan and India and they don’t have the money or the ability to return home. Many companies are holding workers passports hostage in order to ensure that they have a ready-made workforce once the economy swings back up.

Over half of the UAE‘s development projects are on hold. This represents $582USD billion of investment. While a handful of the projects are moving forward with help from the recent $10 billion Abu Dhabi bailout, most projects are at a standstil, leaving all those foreign workers stranded.

Groups such as the UN International Labor Organization estimate that hundreds of thousands of unskilled foreign workers are now unemployed in the Gulf region. Lured by the promise of the building heydey, they are now forced to cram into tiny apartments with dozens of other men and hope for the best. The corporate practice of keeping worker passports prevents them from finding work with other companies in the area as well as from returning to their homelands to look for work.

Some experts are hopeful that the economy can stabilize following the bailout as well as an influx of $20 billion to the sovereign bond program. There is also the chance that oil prices will rebound. However, the effects of these changes will take time to trickle down and whether some foreign workers will ever be rehired remains a big question.

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Saturday, March 7th, 2009 Economy No Comments

Thailand Airports Slash Landing Fees


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The Ministry of Tourism and Sport in Thailand recently announced that six of Thailand’s airports will lower their landing fees effective March 1st. The new, significantly lower fees should help boast the stalled tourist trade through the busy summer season.

The failing global economy has resulted in decreased tourism throughout the world. This has hurt popular destinations such as Phuket and Bangkok. The six airports affected operate under Airports of Thailand and include Bangkok, Phuket, and Chiang Mai’s airports. Fees at Phuket and three other airports will drop between fifty and ninety percent while Bangkok’s two airports will lower landing fees by twenty percent.

The Director of the Phuket International Airport was excited by the announcement. The island saw air traffic fall over sixteen percent in January 2009. It is hoped that the airlines will pass on their savings to passengers, resulting in lower fares to Phuket and other tourist hot spots. Much of the island’s economy, such as Phuket best hotels, restaurants, and other tourist-dependent businesses have been struggling.

The lower fees will be in affect through the end of September.

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Friday, February 27th, 2009 Economy, Travel No Comments