Friday, January 16, 2026

Cancún at the limit: tourism agency declares no more space for hotels

The National Tourism Promotion Fund (Fonatur) will seek to put an end to the construction of new hotels in Cancún, Quintana Roo, because the Caribbean coast resort city is starting to suffer from a lack of water supply.

“We don’t want to frighten away investment but we don’t agree [with] … overexploitation,” said Fonatur chief Rogelio Jiménez Pons.

According to a report by the newspaper El Financiero, Jiménez will ask the council of Benito Juárez, the municipality where Cancún is located, to stop granting construction permits for new hotels in the city, which the federal government first established as a tourism destination 50 years ago.

If local authorities refuse, Fonatur will cease to provide funding for upkeep of the resort city, one of eight destinations developed and maintained by the federal agency.

A report made public in January said that Fonatur planned to spend just over 1.1 billion pesos (US $50.3 million) this year on maintenance at the eight destinations, and that just under a quarter of that amount would go to the two Quintana Roo destinations – Cancún and Cozumel, a Caribbean island off the coast of Playa del Carmen.

Jiménez said that the resources earmarked for Cancún could go to other Fonatur destinations such as Huatulco, Oaxaca. The Pacific coast resort town does have room for more hotels, he said.

The Fonatur chief also said in February that the Cancún hotel zone doesn’t have the capacity to support new developments.

Jiménez said that Fonatur had offered land in other destinations to developers of two hotels because the Caribbean coast resort city is unable to provide the services that new rooms would require, such as water and drainage.

The two projects the tourism fund is trying to stop are the US $1-billion, 3,000-room Grand Island mega-hotel and the 500-room, US $95-million Riu Riviera Cancún, whose construction was halted in 2016 due to environmental concerns but subsequently got the green light to proceed.

Despite Fonatur’s intention to stop new hotel developments in Mexico’s premier tourist destination, hotel chain CEOs told El Financiero that they had no plans to cancel expansion in Cancún.

“We know that there are challenges, and taking that into account, I reiterate that Hyatt maintains the same expansion plan in the country. … We have projects that we are analyzing in the destination [Cancún],” said Camilo Bolaños, Hyatt’s vice president of development in Latin America.

Cancún currently has just over 37,000 hotel rooms but an additional 6,000 are already in the pipeline for the city’s hotel zone.

If Fonatur is successful in stopping new developments, investors could leave Mexico altogether and pursue projects in other Caribbean destinations such as the Dominican Republic and Aruba.

Source: El Financiero (sp) 

Have something to say? Paid Subscribers get all access to make & read comments.
Mexican peso bills and coins with a wallet

Mexican peso hits its strongest level against the dollar in over a year

1
The peso closed at 17.65 to the dollar on Thursday, its strongest position in over 18 months.
US soldiers look out over an arid valley

NYT: US is pressuring Mexico to allow US troops to fight cartels

12
New reports show that post-Venezuela, the US is ramping up pressure on Mexico to allow US military action — even as some US lawmakers seek to block such actions.
Valeria Palacios

Veracruz student Valeria Palacios wins the World Education Medal

1
With artifical intelligence and robotics, the 19-year-old college student from Veracruz tackled a range of social and environmental problems facing her community.
BETA Version - Powered by Perplexity