Mexico's Acapulco Hopes for Rebound as Virus, Violence Drop

Members of Mexico's National Guard keep watch during the reopening of the beaches and hotels after confinement measures were eased this week, in Acapulco, Mexico July 2, 2020. (Reuters)
Members of Mexico's National Guard keep watch during the reopening of the beaches and hotels after confinement measures were eased this week, in Acapulco, Mexico July 2, 2020. (Reuters)
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Mexico's Acapulco Hopes for Rebound as Virus, Violence Drop

Members of Mexico's National Guard keep watch during the reopening of the beaches and hotels after confinement measures were eased this week, in Acapulco, Mexico July 2, 2020. (Reuters)
Members of Mexico's National Guard keep watch during the reopening of the beaches and hotels after confinement measures were eased this week, in Acapulco, Mexico July 2, 2020. (Reuters)

Mexico’s Pacific coast resort of Acapulco is putting its hopes on a return of tourists as the number of coronavirus cases drops and the violence that drove travelers away slowly declines.

The governor of the state of Guerrero said Friday that hotels will now be allowed to accept guests at 40% capacity, up from 30% previously under pandemic restrictions. Gov. Hector Astudillo bragged that Acapulco has reduced the number of COVID-19 deaths to an average of 9.6 per day and alleviated the overcrowding that plagued the city's hospitals earlier in the pandemic.

The city, once ranked as the fifth most deadly in Mexico, has fallen to 44th place. Homicides were down about 20% in the first half of 2020, compared to the same period of 2019.

President Andrés Manuel López Obrador visited the once-glamorous resort Friday and pledged to fix pollution problems that affect the resort’s famous bay.

“We are going to clean up Acapulco, we are going to clean up the bay so that there is no more pollution. That is my commitment,” he said. In June, heavy rains caused storm drains to overflow, sending sewage and waste into the bay.

Unlike most experts, López Obrador predicted a quick end to the pandemic.

“What I feel — my prediction — is that soon, very soon, we will return to normality,” the president said. “Economic activity is returning, tourism is returning to Acapulco, but I predict that in a month, two months, we will have very favorable conditions.”

Even if those predictions are fulfilled, it will still be a long road back for Mexico’s battered tourism industry. In the first quarter, tourism revenues were down 51.5% and figures for the second quarter are certain to be worse.

With about 800,000 hotel rooms, Mexico's has the world's seventh-largest hotel infrastructure. In 2018, tourism accounted for 8.7% of Mexico's GDP and provided about 2.3 million jobs.

Many of those jobs have evaporated in the pandemic. Even under the best-case scenario, if travel alerts were lifted — Mexico currently has the highest “do not travel” alert from the US State Department — hotels in Mexico would end the year with only about 47% occupancy, on average.



Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
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Washington Urges Israel to Extend Cooperation with Palestinian Banks

A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)
A West Bank Jewish settlement is seen in the background, while a protestor waves a Palestinian flag during a protest against Israel's separation barrier in the West Bank village of Bilin in 2012. (AP)

The United States on Thursday called on Israel to extend its cooperation with Palestinian banks for another year, to avoid blocking vital transactions in the occupied West Bank.

"I am glad that Israel has allowed its banks to continue cooperating with Palestinian banks, but I remain convinced that a one-year extension of the waiver to facilitate this cooperation is needed," US Treasury Secretary Janet Yellen said Thursday, on the sidelines of a meeting of G20 finance ministers in Rio de Janeiro.

In May, Israeli Finance Minister Bezalel Smotrich threatened to cut off a vital banking channel between Israel and the West Bank in response to three European countries recognizing the State of Palestine.

On June 30, however, Smotrich extended a waiver that allows cooperation between Israel's banking system and Palestinian banks in the occupied West Bank for four months, according to Israeli media, according to AFP.

The Times of Israel newspaper reported that the decision on the waiver was made at a cabinet meeting in a "move that saw Israel legalize several West Bank settlement outposts."

The waiver was due to expire at the end of June, and the extension permitted Israeli banks to process payments for salaries and services to the Palestinian Authority in shekels, averting a blow to a Palestinian economy already devastated by the war in Gaza.

The Israeli threat raised serious concerns in the United States, which said at the time it feared "a humanitarian crisis" if banking ties were cut.

According to Washington, these banking channels are key to nearly $8 billion of imports from Israel to the West Bank, including electricity, water, fuel and food.