The fake economy of the hospitality industry in Oaxaca, Mexico

Tourism is suffering from a colonial town in Oaxaca, South Mexico, and since the civil unrest in 2006. By 2008, he began to report up to the intimidation of pork waste, reporters reporting on drug wars to the US economic crisis and the negative press were confined to just a few harbor cities near the US border, nearly 1,000 miles away. Tourism is the primary industry in Oaxaca that in 2011 new car dealerships are doing a fast business, higher end housing construction is booming and the upper middle class continues to spend as much as the crazy?

Hotel and host owners complain that revenues are the worst since 2007, but the conspicuous consumption continues. Indeed, seizures of hotels, boarding houses and other hotels are declining and most restaurants, traditionally largely contributing to tourists, are experiencing a major economic downturn, but naturally, healthy Oaxaca customers continue to generate good income.

A sustainable theory is that old money drives the economy in the hospitality industry – a fake economy. Most of the hotels and restaurants do not own the real estate they are in, without interest rates (eg without Mortgages). The other common scenario is that these owners rent their families; and in difficult economic times, rents will postpone or justify forgiveness.

This is the exception, not the rule, to meet with an Oaxaca catering business that pays mortgage loans or pays market rentals to a non-related third party. Revenues simply do not come to serve as a kind of debt payment.

Thus, due to unrealized, forgiven or deferred debt, the hospitality industry pays for all the costs of stagnating labor costs and resale materials (handicrafts, clothing and gadgets) for shops, perishable goods and dry products in restaurants.

Some examples to support the dissertation:

• At the end of 2010, a downtown guesthouse closed the door with more tenants in eight years. The owner paid for the market. Other business interests have also been maintained. Other accommodation remained open in business. But another institution does not pay mortgages or fair market rent to an unrelated third party.

• The mother and her son were in a restaurant in Oaxaca. The mother was in a big tourist area, the boy was less, but with a strong local clientele. The mother was hired by an unrelated third party and the boy was inherited by her father. The mother had to close the shop after 15 years because of the rise in rent that did not have enough revenue to cover the costs and a little for himself. His son's restaurant is open. You still enjoy the games.

• An Oaxacan operated a hotel and a handicraft shop. The former was owned by the family and the latter hired in a busy downtown area. As a result of the civil conflict in 2006, he closed the handicraft shop. The hotel remains open.

• An elderly woman in Oaxacan, Spain, has three large, well-known hotels in Oaxaca, one of which is one of her children. He complains about soft tourism, but the family does more than just fine, any reasonable assessment.

• Downtown Oaxaca restaurant has never tried, but at least one wholesale menu review. The tourists took care of it. Opened completely. Finally he changed to an Italian restaurant. The Oaxacans find that they are gravitating towards good Italian dishes, much more than international tourists. The owner of the property is the owner's parents. If the nature of the property did not exist, all reasonable estimates and, on the basis of simple economics, the restaurant would have been closed one year after the opening.

Of course, there are exceptions, but each is based on unique, unique circumstances. As you look at each case situation, it becomes clear that operations are not at odds with the broad promise. For example, some major hotels have hired fees that continue to pay market rents and other costs. There are two main reasons:

1. They are owned by chains that have substantial financial support so they can easily cover a few soft years. They are long-term; if the profits are not realized as expected, then brochure recording, tax incentives, etc. context.

2nd Aggressive price-oriented marketing uses European charter groups and other special interests (for example, they can afford to offer attractive priced packages for volume and three-star musicals. On the other hand, there appears to be a much less negative press than Canada and the United States,

Other, equally reliable explanations for the phenomenon of fake consumption in this fake economy, which are indeed in other areas of the Oaxaca business and entrepreneurial sector (for example, in Oaxaca), are not the same as those in the Oaxaca business. Jewelers, Fast Food Chains, Accounting and Legal Offices in the Private Sector and Owners or Franchisees of Sears, Sam, Fbricas de Francia and Office Depot:

• Politicians and top b civil servants seem to be doing well.

• Cash comes from Oaxaca from other countries, and significantly from Canada, USA and abroad to buy and maintain businesses, so traditional borrowing and debt financing is not necessary .

• There are companies outside Oaxaca with product resources and significant sales, but money never drives Oaxaca residents (eg coffee, cocoa and other plants and their pockets that are produced in other Mexican states, and in Central America, and South America).

In downtown Oaxaca there is a significant amount of primary vacant property that provides additional evidence of a fake economy or, in this case, an inert economic growth phenomenon. Owners of significant economic assets (ie old money families), instead of giving rents on the market or allowing their buildings to remain empty or deteriorate, or leasing the dollar, will only be recognized by retailers at the end of the concession repossession that they can not serve the debts related to their lease. They can not compete with the various financial circumstances – such as those in the hospitality industry – who have been successful for the reasons outlined above, where others have failed.

Despite government statistics, most believe that inflation is around 8-10% per annum. Costs of the goods needed to support the hospitality industry will continue to rise and historic wages need to overcome in order for the Oaxaca residents to survive. This may burden business owners and start resource-reducing – without developing tourism. If not, and hotel and restaurant owners are beginning to raise their prices in order to maintain their livelihood, tourists will completely leave Oaxaca. There are too many other places in the world that offer a rich and reasonably priced holiday for a reasonable and competitive price – and without the media thinking twice about the traveler.

Source by sbobet

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