Deadly Mexico flu outbreak scares away tourists
* Blow to tourism bodes poorly for Mexican economy
* Some backpackers shrug off warnings, keep traveling (Adds quote, details, previous Mexico City)
By Jose Cortazar
CANCUN, Mexico, April 28 (Reuters) - A swine flu outbreak in Mexico is scaring away foreign tourists and hotels across the country are reporting cancellations, dealing a blow to an important engine for the Mexican economy.
Mexico is one of the world's top vacation destinations and foreign tourists spent more than $13 billion last year visiting its sandy beaches, colonial towns and pre-Columbian pyramids.
But as fear spreads over the flu outbreak that has killed 149 people, cruise ships have canceled stops at Caribbean resorts like Playa del Carmen and Cozumel. Land-based tour groups were also calling off trips to the area's beaches.
"A group of 150 people canceled yesterday. More groups canceled today," Sara Ruiz, the tourism secretary in the state of Quintana Roo where Cancun is located, told Reuters.
Tourism accounts for about 8 percent of Mexico's economy, which is already in recession because the U.S. economic crisis has led to a collapse in demand for its exports.
Several countries have issued travel alerts to Mexico, and some flights out were reported to be overbooked.
"They are really rushing to get out," said Alexander Kittler, 32, a flight attendant for Lufthansa who was between flights in Mexico City.
Some of his colleagues bought supplies of food and water as they arrived at Mexico City's airport before holing up in their hotels until they could leave. One said she planned to wear surgical gloves on the flight back.
The United States, Canada and the European Union have advised against nonessential travel to Mexico, and Cuba has suspended all flights to and from the country.
Canadian tour operator Transat AT (TRZa.TO) (TRZb.TO) said on Tuesday it was postponing flights to Mexico until June 1. Carnival Cruise Lines (CCL.N) said it canceled Mexico stops for three of its cruise ships due to the swine flu alert.
One flight to Mexico City from New York on Saturday evening was nearly empty.
TOUGH BACKPACKERS UNDETERRED
Mexico City's hotel association said about 60 percent of the capital's hotels have reported cancellations due to the epidemic, caused by a never-before-seen virus with elements of swine and avian flu.
Only a handful of foreigners could be spotted in Mexico City's historic center, which normally brims with tourists, as everyone from police to taco vendors wore surgical masks to ward off the virus.
British tourist Guy Waddington, 29, had just gotten off a bus from a backpacking trip through northern Mexico and was looking for a pharmacy. He plans to leave Mexico on Wednesday.
"My parents texted me and told me to buy a mask," he said.
Mexico's tropical beaches are major destinations, but foreigners also flock to the capital to visit colonial churches, museums, Aztec ruins and tequila-soaked cantinas.
Shares in airport operators rebounded on Tuesday after plunging the previous day. Mexican operator GAP (GAPB.MX) rose 3.35 percent after nosediving nearly 14 percent on Monday.
Some hardcore backpackers would not be deterred, however.
Roberto Landi, 29, of Italy was about to start a three-week trip through southern Mexico and Central America. He survived a trip to Taiwan during Asia's 2003 SARS pandemic and said thought the death toll in Mexico was not to high given that the crowded capital alone has a population of some 20 million people.
"I feel OK and I want to keep on traveling," Landi said. (Additional reporting by Jason Lange and Luis Rojas Mena in Mexico City; Writing by Jason Lange; Editing by Eric Walsh)
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