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What's New: An Online Update for Frommer's MexicoMexico's economy has weakened in the face of the global economic slowdown, which makes it a smart choice for budget travelers -- ones who pay attention to security issues, especially. By David Baird September 9, 2009 What's New in Mexico As of early 2009, Mexico remains an inexpensive travel destination. The Mexican peso has lately lost some ground against the U.S. dollar, and inflation, though higher than last year, is reasonable by historic standards. The country's economy has weakened in the face of a global economic slowdown, but in contrast to the much of the world, its banking system is stable. The major economic concern is how to reform the state-owned oil industry, Pemex, whose profits are critically important to government revenue. Mexico is a net exporter of oil and natural gas, but oil production has been slipping and refining capacity has not kept up with national demand for gasoline. At present, the government imports gasoline because it can't refine enough of its own oil to meet the country's needs. It pays market rate and then sells it for a lower price to the general public. In the same manner, it is subsidizing the price of tortillas and other food staples after world food prices climbed precipitously last year. Such actions are not in keeping with the president Felipe Calderón's free-market philosophy, but electoral politics have a way of turning conservatives into populists. Public safety and stability have been key issues for President Calderón, and since taking office two years ago, he has launched an aggressive campaign against the violent, well-financed drug gangs that smuggle drugs from Mexico into the U.S. and weapons from the U.S. into Mexico. Reports of running gun battles and gangland executions have filled the newspapers. The death toll is climbing, and includes mostly rival gang members and police officers. Most of the violence has been concentrated in the northern states that border the U.S. and in the northwestern state of Sinaloa. Some violence has spread to other parts of Mexico, but for most Mexicans the drug war is something they hear about on the evening news. But what really upsets Mexicans in the upper and middle classes is the rise in kidnappings and the involvement of corrupt police officers. This hits much closer to home than the drug war; so much so that the public has held large demonstrations of up to 100,000 people cities across the country, demanding government action. President Calderón (of the PAN party), and the mayor of Mexico City, Marcelo Ebrard (of the PRD), the two most important leaders in the country, have pledged to work together to strengthen the judicial institutions and weed out corruption. All of this begs the question; is Mexico safe for the traveler? Most travel specialists say yes, but urge caution and suggest avoiding the border towns where most of the violence between drug gangs occurs. Kidnappings of foreigners without local connections are rare. Even the so-called "express kidnappers," who drive the victim around to different ATM machines until the cards are refused, have not generally been targeting tourists. You can always check the State Dept. website, www.travel.state.gov, to see the latest advisories. San Miguel de Allende & the Colonial Silver Cities Tourism remains strong in the popular colonial city of San Miguel de Allende, despite the economic slowdown. In July 2008, UNESCO designated San Miguel and the nearby sanctuary of Atotonilco as a World Heritage Site for its well-preserved colonial and religious architecture. It now joins the ranks of nearby Guanajuato, Querétaro, and Zacatecas, which have already been accorded this designation. The Rosewood Hotel Group broke ground on a luxury hotel/townhouse project. It will be in the town center, behind the Instituto Allende. It won't be completed until well into 2009. Delta Airlines has cut direct service from Guanajuato and Querétaro to Atlanta. These are two of several flights that have been cut as a consequence of the rise in fuel costs. Museo Diego Rivera (www.diegorivera.com) remains open while undergoing renovation, which will continue into 2009. The museum is adding a few new rooms and galleries. There is also construction on Calle Positos, which gives access to a few other museums and hotels. It is scheduled to last a few months. The restaurant El Abue (tel. 473/732-6242) is under new ownership, and rumored to be closing soon. Michoacán New highway construction has improved access to Morelia. A short toll road cuts 20 minutes or more of the trip between downtown and the airport (ask your cab driver to take the toll route and, if he shows reluctance, volunteer to pay the toll). There are some new sections of the toll road to Mexico City, in the vicinity of Toluca, that shorten the trip from 4 hours to a little bit more than 3. Finally, there is a new toll road that connects with Hwy. 43, and shortens the travel time to/from Guanajuato and San Miguel de Allende. It bypasses Salamanca and saves about an hour. Guadalajara The airport has just undergone a major facelift, adding new parking and increased space for passenger drop off and pick up. The National Ceramics Festival (Premio Nacional de la Cerámica), held annually in Tlaquepaque, is becoming more and more popular with nationals and has grown steadily for the last few years. Last year's festival showcased an astonishing array of pieces of consummate artistry and craftsmanship. For pottery aficionados, this is a great time to visit Guadalajara (late June), and, because it hasn't been promoted abroad, not many foreigners come. Renovation to the Guadalajara Expo Center is nearly completed. It will nearly double the exposition space, a move to attract more national trade shows to what is already a very popular destination. Consequently, it becomes more important than ever to make hotel reservations well in advance, even if you're staying nowhere near the Expo Center. The Southernmost States: Oaxaca & Chiapas Tourists are slowly returning to Oaxaca. This summer's Guelaguetza saw an increase in visitors, mostly nationals, and everything went off without a hitch. For Isla Mujeres & Cozumel, The Caribbean Coast, and Mérida, Chichén Itzá & the Maya Interior, see the online update for Frommer's Cancun, Cozumel, & the Yucatan. Talk with fellow Frommer's travelers on our Mexico Forum today.
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