What happens when paradise gets quiet? In Tulum, the answer may come with a price tag of 76 million pesos.

Facing what officials called a “temporary liquidity need,” the municipal council of Tulum has approved the request for a short-term, unsecured loan. The vote took place quietly, but the implications echo across a town now grappling with plummeting hotel occupancy and rising service demands.

The mayor, Diego Castañón, was quick to clarify: this doesn’t mean the municipality will take on the debt. “Just because we have it doesn’t mean we’ll use it,” he said during the session. Still, the approval marks a notable shift in the financial posture of one of Mexico’s fastest-growing, and lately, most economically challenged, destinations.

Tourism volatility pushes Tulum to the brink

The move comes amid a steep and unexpected slump in the tourism sector. In May 2025, hotel occupancy rates were at a respectable 77.7%. Today? They’re down to as low as 30% in the beach zone and a staggering 15% downtown, even during what’s supposed to be high season. For a city whose heartbeat is tied directly to tourism, these numbers aren’t just disappointing; they’re alarming.

Municipal leaders say this dip is not just a seasonal hiccup. The downturn appears to reflect deeper volatility in the region’s travel trends, a potential hangover from overdevelopment, rising prices, or changing traveler behaviors across the Riviera Maya. The need for basic public services, meanwhile, hasn’t paused. In fact, as Tulum’s population booms, so do the demands on lighting, security, infrastructure, and social programs.

“We’re growing fast,” said one city staffer off the record. “But growth without stability means you run out of road before you reach the destination.”

Credit now, payment before the exit

The proposed loan is a quirografario, an unsecured, short-term credit. It would need to be repaid before the current administration ends, possibly within 12 months or slightly more. Castañón emphasized that the measure is precautionary.

“Everything will be handled transparently. Nothing will be hidden. Don’t be afraid… we need to have vision. More vision,” he said during the council session.

But critics point out that a lack of clarity remains on when, how, or if the funds would be drawn. While the mayor painted the approval as a flexible safeguard, others are reading it as a warning sign: Tulum, once flush with cash and global hype, might now be borrowing just to stay afloat.

Quiet absences and divided politics

The session saw its share of political theater, though much of it happened in the shadows.

Members of Movimiento Ciudadano, including regidores Jorge Portilla and Edgar Tun Cámara, did not attend. Neither did key figures from the ruling bloc, such as Rifka Queruel of PT and David “Fili” Tah Balam of MORENA. The only notable crossover? Genny Yasmín Maza Sánchez, a former Movimiento Ciudadano member, now participating independently.

For a vote involving millions in public funds, the silence from several political actors was telling. Whether it reflected dissent, caution, or strategy is up for interpretation.

A look back to justify the future

To calm concerns, Castañón drew on historical comparisons. He reminded residents that when his predecessor, Marciano Dzul, took office, the administration inherited a tax-related debt of 70 to 80 million pesos, plus a 50-million-peso labor settlement. Both were paid without financial collapse.

“This loan represents just 3 or 4% of the municipality’s income,” the mayor argued. “It’s not something that will hurt our finances.”

It’s a compelling comparison, but one that hinges on context. Tulum’s current fiscal picture is shaped not just by local revenue, but by unpredictable tourism flows and growing infrastructural strain. What was manageable a few years ago may no longer be a simple equation.

Credit as a survival tool or risky patch?

Short-term credit, especially of this kind, isn’t unusual in Mexican municipalities. It’s often used to stabilize budgets during low-revenue periods. But critics argue that using such loans for current expenditures, payroll, public services, maintenance, can create a dependence that’s hard to unwind.

“It’s like putting a bandage on a wound that keeps opening,” said a local economist, who asked not to be named. “You can cover it up for now, but unless you treat the cause, it won’t heal.”

There’s also concern about transparency. While Castañón promised openness, some citizens remain skeptical. In a town where construction booms coexist with neglected infrastructure, where luxury real estate thrives beside darkened streets, talk of “vision” isn’t always convincing.

Tulum’s crossroads, and the human angle

In the center of Tulum, Mario, a small hotel owner, watched his bookings disappear over the past few months. “We used to be full without even trying,” he said. “Now I have rooms empty, even on weekends. I lowered prices, added bikes, and gave free breakfasts. Nothing’s working.”

Mario isn’t alone. Across the city, from beachfront cabanas to taco stands, the downturn has begun to hollow out daily life. Some say it’s temporary. Others aren’t so sure.

“The tourists are still there, but they’re changing,” said Sandra, who manages a rental agency. “More cautious, spending less. And there’s competition from everywhere, even outside Mexico.”

The bigger picture: Riviera Maya in transition

Tulum’s challenges are part of a wider regional shift. Playa del Carmen, Cancún, and other parts of the Riviera Maya have also faced fluctuations. But Tulum’s growth, unregulated in parts, heavily marketed abroad, and hitched to a luxury image, may have made it especially vulnerable.

The timing couldn’t be worse. With mega-projects like the Tren Maya promising to reshape mobility and access, and environmental debates heating up, the town is under the spotlight. Decisions made now, including how to manage public funds and communicate with citizens, will echo long after this administration ends.

What’s at stake for Tulum?

At its core, this isn’t just about a loan. It’s about what kind of future Tulum wants, and whether that future can be built without mortgaging the present.

Credit may provide relief, but it also raises questions: Who benefits? Who decides? And how does a town that’s long sold an image of paradise deal with the less photogenic parts of survival?

The Tulum Times will continue tracking this story, not just the numbers, but the lived impact behind them.

“We’d love to hear your thoughts. Join the conversation on The Tulum Times’ social media.”
What would you do if your town had to borrow millions just to stay on its feet?