Uncertainty in the Mexican economy has led foreign investors to cancel 2 billion pesos (US $105 million) of spending on business travel, an industry spokesman says.

Jaime Salazar, president of the Business Travel Industry Council (Comir), told the newspaper El Financiero that eight foreign companies that had planned to hold large corporate events in Mexico over the next three years have cancelled their plans due to “uncertainty in the financial sector and a lack of clarity from the federal government.”

He added that all events associated with federal agencies will likely be cancelled or significantly reduced.

“As a result, we are expecting a 30% drop in events nationwide in the business tourism sector.”

Salazar said there is a lack of confidence in the Mexican market due to the disbanding of the Tourism Promotion Council (CPTM), and the decision to move the responsibility for tourism marketing toMexico’s embassies around the world.

Comir has attempted to fill the void left by the CPTM’s dissolution and has since been present at several large tourism conventions to try to attract businesses to Mexico for conferences and meetings.

“We have decided to organize pavilions for several of the industry’s most important events, like AMEX Las Vegas, and we won’t stop until the country’s embassies are truly truly qualified to take over promotion.”

Source: El Financiero (sp)