A significant section of Mexico's economy is tourism. For this reason the drop and recovery of the tourism industry Mexico has gone through since June is of considerable importance to those interested in Mexico real estate in tourist destinations This summer vacation, Mexico's favourite beachfront vacation spots have recovered significantly from the impact of the swine flu travel advisory which virtually halted Mexico's tourism industry in June Areas such as Puerto Vallarta, Mazatlan, and the Playa del Carmen real estate markets were effected by such down turns During the month of July, the Secretariat of Tourism reported that average numbers from throughout Mexico show hotel occupancy at about 70% While these numbers reached up to 80% or more during this period last year, the numbers still show a significant recovery.

Certain destinations are recovering faster than others.For example, Cancun's hotel occupancy rate reached 56% during the week of July 6 to 12, and 64% from the week of the 13^th to the 19^th. The week of July 7^th to July 13^th in 2008 reached 82% occupancy – 26% higher – and 86% between July 14^th and 20^th Cozumel and the Riviera Maya are in a similar situation, reaching about 60% in the first two weeks of July, 2009, compared to the 70% (Cozumel) and 80% (Rivera Maya) of 2008.

While the comparison to last year is concerning, one might also note that this year Cancun saw an 8% increase from one week to another, while last year Cancun saw only a 2% increase This means that while the numbers are still low, they are rising at a faster rate, again indicating that the situation is on its way to recovery All positive news to the Cancun real estate industry.

An exception to the trend is Cabo San Lucas While this destination reached only 62% hotel occupancy during the 2008 summer vacations, so far in 2009 it has already achieved 73% – a 11% increase over the previous summer!

Mexico's federal Secretary of Tourism, Rodolfo Elizondo Torres, mentioned that although tourism from the U.S. has not reached, and will not reach, full numbers during the summer vacations, the numbers are expected to be back to normal during the winter tourist season, by December.

Part of the recovery which has occurred is a result of the programs which the government set up to promote tourism within Mexico. In cooperation with the private tourist sector, the program offered considerable discounts in tourism services and hotel prices While some of these promotions were available until the end of July, many had a reservation deadline for late June.

According to a report from the Bank of Mexico, part of the result of the end of the promotions was an increase in prices, mostly for tourists coming from within Mexico.Tourist packages and hotel charges were raised about 3% between the last half of June and the first half of July, and air fees are up 6.25%, as outlined in the Bank's report Mexican air lines offer tickets from Mexico City to places such as Acapulco, Puerto Vallarta and the Iztapa real estate areas for about 1,400 pesos.

While the price is notably higher than the discounts in June, compared to last year the prices have gone up only about 2.4% Compared to 2008, hotels have a slightly larger increase in prices of about 5% The good news for those still planning their vacations is that tour packages, even after the end of the special deals, have dropped about 6% from last year's prices Also, most other services in Mexico, including clinical analyses, laundry service and caf s, have increased less than 1% – a difference which will hardly be noticed.

It is worth observing that despite this fact that many discounts ended and prices have gone back up since the end of June, tourist numbers continued to increase through the month of July, indicating again that the industry is on its way to recovery Most Mexico real estate destinations are also key tourist destinations, and are largely economically dependent on tourism; for this reason the slow but steady recovery of this industry is good news for owners and potential buyers, guaranteeing a continued maintenance and improvement of services and infrastructure.

Also, as we saw in the price increases resulting from the end of the promotions, on the whole prices have not risen notably from last year, especially day to day items and services which are most important for Mexico real estate owners Finally, it is worth keeping in mind that the Mexican government and private tourist industry's main effort to promote tourism abroad is focusing on the winter season, and the results are still to be seen.

As tourism recovers, and real estate watchers keep an eye on the international recession and its effect on the Mexico real estate market, it seems like recovery is definitely on its way, albeit slowly The current situation offers unique opportunities and interesting solutions for buyers; it also requires extra care in the process of buying While there is no need to hesitate to buy – on the contrary, it could be a good time to take advantage of great deals – it is even more important to find an experienced, reliable broker who will help you find the property that is right for you, and also how to properly protect your interests during negotiations and contract phases.

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Thomas Lloyd, graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years.  Mexico Real Estate Degree & Professional Identificacion Number S.E.P. #5978657. He is the current president of TOPmexicorealestate