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Cozumel’s Cruise Ship-Dependent Economy

Cozumel’s cruise ship-dependent economy

The COVID-19 pandemic helped uncover the susceptibility of Cozumel Mexico’s cruise ship-dependent economy. This stresses the need to further expand Cozumel’s economy, develop more housing and use the Scuba Diving/Snorkeling industry better. A down economy over the recent 2 years points to an economy that is not repairing itself. Relying on just one industry for inhabitants’ incomes is an unsound proposal.

Many people are not getting their usual income and this has created a mass migration of people to find new ways to make money. This situation will not correct itself overnight, but with sound planning, they can manage it.Cozumel, like many other cruise ship destinations, is heavily reliant on the U.S. economy, making it susceptible to any downturn. To counter this, the island must diversify its economy by developing landbased activities and tourism besides cruising. However, Cozumel is still likely to feel the impact of a prolonged economic downturn in the U.S. In 2007, before the great recession, Cozumel had an unemployment rate of only 2.9%, yet when the recession hit in 2008, this number shot up to 4.4%.

A big difference between Cozumel’s economic situation and that of places like Cancun and Puerto Vallarta is that Cozumel does not have a single primary industry that could serve as an alternative for the people in case of an economic downturn. Cozumel Mexico is the second-largest cruise ship port in Latin America, with many cruise ships calling at the port daily. The cruise ship industry is very important to the economy of Cozumel, Mexico. Its high-profit margin can characterize the cruise ship industry in Cozumel, very low unemployment rate (only 3.9% in the most recent available data), and high disposable income per capita compared to other cities in the Caribbean and Mexico. However, the cruise ship industry is not immune to the U.S. economy. 

This means that if there is a major drop in the economy, this would be felt throughout the entire island. In order to have a stable economy, Cozumel must work with the government to develop more housing and welcome more scuba divers, so that its inhabitants do not have to rely on their cruise ship jobs to make money. Since Cozumel is very susceptible to economic changes in the U.S. economy, it is also susceptible to coronavirus. This has made the island’s people become a lot more aware of the need to prepare for any future economic changes and how to survive them.

Cozumel is the perfect place for scuba diving and should not soley rely on the cruise ship industry for its income. With crystal clear waters and an array of spectacular sea life, Cozumel offers some of the world’s best scuba diving. By transitioning away from its dependence on the cruise ship industry and towards the scuba diving industry, Cozumel could become a prime destination for divers and travelers alike.

Scuba diving has the potential to bring in more revenue than the cruise ship industry. Not only would this increase the number of long term visitors to Cozumel, it could also create more jobs and income for the local population. The island could also benefit from more extensive dive sites, with local businesses offering services such as dive tours, gear rentals, and dive courses.

The switch to a bigger scuba diving industry would also provide a much-needed boost to the island’s economy. With an increasing number of longer term visitors, local businesses could benefit from the additional income, leading to an overall improvement in the local economy. Not only that, but the switch could also create a more sustainable and ecologically friendly form of tourism.

Written by Stingray Villa Cozumel

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