Debts, No Taxes

Eight of the leading seaside resort destinations in Mexico are in debt to the tune of 3.7 billion pesos, starting with Cancun, which owes 1.4 billion. Even when converted into dollars, this is a large amount of money, so much that Moody’s and Fitch Ratings advice lenders against lending any more. The borrowed funds apparently were invested in needed infrastructure, but municipal tax collection systems are considered inadequate, making repayment iffy. Meanwhile, tourism to these destinations is setting new records.

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Jimm Budd

Reporting From Mexico City

Member of the Society of American Travel Writers