Is Cancun Losing Visitors to Other Destinations?

Cancun hotel occupancy is holding steady, but room rates are down.

According to a report in Reportur, travelers have opted for other destinations around Mexico, which is causing a shift in the dispersal of U.S. visitors around the country.

Destinations with the highest occupancy include Nuevo Vallarta with occupancy recorded at 88.5 percent between January and March. Next door, Puerto Vallarta had room occupancy of 87.2 percent. The Riviera Maya was at 83.5 percent and Cancun was slightly lower at 81 percent. Los Cabos’ room occupancy was at 76.9 percent.

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While visitors may be traveling to other destinations in Mexico due to an increase in airlift, there are other growing concerns that U.S. travelers are opting for other countries over Mexico for their vacations instead. A subsequent report in Reportur indicates Quintana Roo hoteliers are beginning to worry that they are losing market share to the nearby Dominican Republic and Jamaica.

"Security measures in the state have to be reinforced and work hand in hand to reduce the violence that is being generated in areas that are not centered on tourism," Roberto Cintron, president of the Association of Hotels and Motels of Cancun and Puerto Morelos, told the news outlet.

Hoteliers insist the area is safe, especially the Hotel Zone.

“The hotel zone of Cancun is one of the safest places in the city. It is true that there have been some incidents in recent times, however, the hotel zone is still a safe destination for tourists,“ said Francisco Morla, director of Bedsonline for Latin America, to Reportur.

It might not just be security that is driving travelers away from Mexico to the Dominican Republic, however. Like Cancun, the D.R. has an incredible amount of luxury offerings from which visitors can choose-also at a good price point. The country has also recently made it easier for U.S. visitors to get into the country.

Visitors were required to pay a $10 fee when arriving at the airport. The fee isn’t going away, but it will now be incorporated into airfare, streamlining the arrival process in the Dominican Republic.