Months after the H1N1 flu virus first ripped a hole in Mexico's tourism business, the big question remains: How do you shift the mindset of those who still worry about flu in Mexico?
It's a question on the mind of Edward Steiner, senior vice president of One&Only Resorts in the Caribbean and Latin America. Steiner, based in Los Cabos, said that despite the time that has passed since last spring's medical crisis, "You would be surprised how many people ask if it is safe to go to Mexico now."
He said Mexico and Los Cabos in particular face two hurdles to recovery: One is about perceptions and the other is air service that is now proving inadequate as business is inching back.
As to perceptions, Steiner said tourists too often don't realize how large Mexico is and that a pandemic in one region might not be having much effect in another. In fact, he said, the flu never had much impact on Los Cabos, on the southern tip of the Baja California peninsula. Alberto Trevino Angulo, secretary of tourism for Baja California, said Baja was the last of Mexico's 32 states to have a case of H1N1.
Regarding air service, Trevino said that because of its geography and because 80% of its travel business is international, Baja needs the carriers more than other Mexican destinations do.
However, during the crisis, he said, while local tourism interests tried to be creative in attracting visitors, "the airlines did the opposite; they reduced the number of seats and didn't support any effort" to draw customers. "It is time [for them] to start working with the destination," he said.
Meanwhile, Baja and private tourism interests have grappled with the challenges in several ways.
Steiner said One&Only Palmilla discounted prices to lure visitors after seeing occupancy rates drop to the teens. However, he added, the high-end property, like others in similar situations, has tried to protect long-term price integrity and service quality by keeping discounts within a limited range and throwing in value-added features.
Trevino said Baja and private interests have brought in more travel agents since June, mostly from the U.S., than visited the destination in all of 2008. "The best way to make the point is to bring the travel agents, and they can tell clients about their experiences," Steiner said.
When the H1N1 crisis broke last spring, Baja canceled its marketing campaign to ride out the worst of it.
In late June/early July, the state followed up with its "Travel Tips" magazine and TV campaign which, Trevino said, is meant to "face the situation" while making a pitch for the destination.
In one "travel tip" example, he said, the reader or TV viewer is urged to "Get your shot in Cabo." With that, two young women are shown drinking tequila. Another says, "Wash your hands frequently," and a surfer is shown in the waves touching the water.
The ads are slated to run on the West Coast and in New York through the end of the year.
After that, Trevino said, "it is time to move on." He said new ad concepts are in development.
Looking ahead, Steiner said business has been coming back, though slowly. For One&Only, he said, space is sold out for New Year's but not yet for Christmas. He sees prospects waiting to shop late in hopes of better deals.
Similarly, Trevino said he expected business to return slowly into the new year, but, with continued improvement in arrivals each month, 2010 is expected to be a "good year" for the Cabo region. In addition, he said, the airlines are supposed to restore some capacity in November.
He said it would likely require more time to see a resumption of real estate development in the area, at least until mid-2010.
That slowdown may be the silver lining. Steiner said Los Cabos "was on the way to having lots of additional luxury development," which would have created a very competitive situation at the high end and the potential for real catastrophe for hoteliers anytime events beyond their control caused business to drop.