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reprinted from:
Discouraging Tourism
Copyright 1999 San Diego Union-Tribune Mexico's plan to impose a $15 fee on cross-border tourists runs counter to the notion of economic integration between Baja California and California or between Tijuana and San Diego. Sure, the United States charges Mexicans $45 to apply for a U.S. tourist visa, but maybe that's a bad idea, too, in the border region. If we really want to facilitate a free exchange of goods and services along the border, thus improving not only the economies of both sides but also sales taxes and other government revenues as well, the United States and Mexico shouldn't raise new impediments to cross-border travel. We should lower them. For Americans taking a weeklong vacation to Cancun, a $15 tourist fee might not be much of a deterrent. At least it wouldn't be a serious roadblock to travel, since much more money is already being spent on such a trip. But visitors to Baja California spend only an average of $24 per trip. An extra $15 would persuade a lot of those travelers to stay home. How about going to Puerto Nuevo for a lobster dinner? A $15 per-person fee might make such an outing too expensive for a weekend date. And who would be the loser, besides the erstwhile patron? The restaurateur loses customers, Baja and Mexico City lose taxes, and the Mexican tourist industry loses exposure. The same scenario holds true for cross-border business ventures, cultural exchanges and other binational meetings. Any deterrent to easy access across the border can only have a dampening effect on the commerce of goods, services and even ideas. The federal government in Mexico has suggested exempting tourists who travel no more than 15 miles from the border. But what about San Diegans going to Ensenada, or other tourist locales beyond 15 miles? Such an arbitrary figure will only hurt destinations that lie just beyond it. Mexico and the United States should consider tourist fees to be trade barriers. In the era of NAFTA, we've seen free trade create more economic opportunity on both sides of the border. We've seen an increase in Mexicans and Americans crossing the border for business, shopping, culture and a host of other reasons. The benefits are undeniable. So the two nations should work together to chart a future for lower tourist fees. Perhaps an exclusion could be drawn up for border states on both sides of the line. Or such fees could be restricted to air travelers. The border fee proposed by Mexico will have a short-term impact of hurting tourist businesses near the border. But the long-term impact will be an overall negative for economies on both sides. Mexico City should rethink its proposed fee, which is scheduled to begin on July 1. At
the same time, Washington should study whether its tourist fee has a contrary effect on
tourism and trade. Both sides should strive for freer legal travel across the border, not
more restrictions. In the News |