Deadly Mexico flu outbreak scares away tourists

By Jose Cortazar

CANCUN, Mexico (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 cancelled 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 cancelled yesterday. More groups cancelled 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.