MEXICO CITY - Adios, Cancun?
The plunging U.S. dollar already has forced many Americans to give up vacations in Europe. Now, the dollar has lost a tenth of its value against the Mexican peso since January, meaning that beach trips to Acapulco, Puerto Vallarta and other sunny points south of the border are quickly becoming more expensive, too.
The dollar's value had been stable for years in Mexico, even as it fell against other currencies like the euro. But on Monday, after months of steady decline, it hit a six-year low of 9.67 pesos. Although it had recovered slightly by Wednesday, the dollar's continuing weakness could have an effect on tourism, migrants and the $347 billion in trade between the two countries.
"We stopped going to Europe because of the falling dollar," said tourist Ronald Scott Braithwaite of New Haven, Conn., as he visited Mexico City's Metropolitan Cathedral with his wife. "Maybe if the dollar keeps going down we won't be able to come here, either."
The sagging exchange rate means American retirees in Mexico have to pay more for rent and migrants can't send back as much money to their families. Tourists also get fewer pesos per dollar at the ATM, and labor costs for U.S.-owned manufacturing plants have gone up. Eventually, the cost of Mexican fruits and vegetables could rise.
Because of the weaker dollar, an American retiree renting a house for 10,000 pesos a month is paying $98 more a month than in January. A 1,000-peso-a-night hotel room that would have cost a tourist $91.45 then now costs $101.21
http://www.azcentral.com/arizonarepubli ... o0807.html
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