UPDATE 1-Deadly Mexico flu outbreak scares away tourists

* Foreign tourists scrap Mexico plans on flu scare

* 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.