(Bloomberg Opinion) — “Go back to your country,” shouted the angry mob, hurling threats and insults at terrified diners.
A recent protest against gentrification and foreign visitors in Mexico City suddenly turned violent, leaving 46 establishments vandalized and shaking both residents and tourists. The formal excuse may have been protesting against rising rents and unchecked commercial development in the city’s trendiest neighborhoods — but the result exposed a more sordid reality: Mexico may not be the oasis of tolerance and friendship to foreigners that we all have thought.
While Mexico’s capital isn’t alone in suffering a revolt against tourism, the xenophobic tone of the early July march — with the inevitable “gringo go home” as loud leitmotif — left an indelible mark. Less than a year from the start of the World Cup at the Azteca Stadium, the images of helpless eaters and restaurant staff attacked by hordes without any intervention from authorities or security forces is hurting Mexico City’s reputation as one of the world’s most diverse cosmopolises. This requires quick and effective repair. Unfortunately, the feeble response of the city government, which appears more interested in using gentrification as a political tool to fight the opposition-run borough where the events took place, suggests this conflict is only starting. A second march is planned for July 20.The city’s food and hospitality industry has been put at the center of the dispute, perhaps due to its visibility compared with other possible “villains” in this story such as real estate developers. Long a fantastic destination for foodies and cultural tourists, Mexico City emerged from the pandemic as one of the winners of the digital nomad boom. Its restaurants — from haute cuisine to street stands — are not only pillars of one of the world’s most exciting food scenes but a growing symbol of Mexico’s soft power; they helped draw more than 14 million visitors to the city in 2024. Just last month, Richard Hart, considered one of the top international bakers, opened his first venue outside Europe in the city’s Roma Norte district, boasting that Mexico “is on fire.”
That’s why punishing restaurants for the city’s gentrification, as radical groups did during the march, is not only unfair and wrong: It damages a key industry at a time when Mexico’s private investment is nosediving, jobs are being destroyed and more than 30,000 formal firms have disappeared nationwide in the past year. I get the complaints about higher food prices and the displacement of some traditional mom & pop eateries for fancy restaurants catering for visitors looking to discover the next big dining hype. But in a huge city with 60,000-plus restaurants, bars and cantinas, there are options for every budget and palate.
In fact, the industry’s image is celebrated thanks to its entrepreneurial spirit, creativity and private investment, which have helped it to overcome the daily obstacles imposed by the government. Talk to restaurateurs in the city and you’ll hear grumbles about the bureaucratic permitting process, recurrent demands to make payments to avoid arbitrary closures, cost increases and difficulties in finding qualified workers. With the number of international visitors falling 3.5% last year and the hotel occupancy rate hovering around 65%, it’s also hard to argue that the city suffers from over-tourism.
Despite having more locations, the overall sector still hasn’t recovered its 2019 levels, and it faces a difficult combo in the form of lower consumption, faster inflation and a recessionary environment, says Jack Sourasky Olmos, Mexico City’s head of Canirac, a restaurant industry association.
“The neighbors’ complaints are legitimate, but we can’t use gentrification as an excuse to criminalize an entire sector. We were all attacked simply for operating a restaurant in a tourist area,” he told me. “This will scare tourism away.”
With all the big problems that Mexico faces, from insecurity and feeble rule of law to a complex relationship with Donald Trump’s White House, some may disregard this conflict as insignificant. Wrong. Mexico ranks sixth among the most visited destinations by international tourists thanks to its beautiful beaches, with the industry representing almost 9% of the country’s GDP. Mexico City positioned itself as a cosmopolitan destination, home of top events such as Formula One races and the Day of the Dead celebrations. Reversing that strategy would be bad business and a blow to the city’s prosperity.
Some of the contempt expressed during the march, particularly against Americans, may be the inevitable backlash of the anti-migrant, anti-Mexican rhetoric dominating the US. As a foreigner living in Mexico City for almost a decade, I always felt welcomed; I have only words of gratitude to my fellow chilangos for their hospitality (well, except when they are behind a wheel…). But polls show that the resentment against foreigners is real: According to a survey by Alejandro Moreno for El Financiero newspaper done before the protests, 51% say the arrival of foreigners is harmful for the city; 41% say it’s beneficial. Politicians shouldn’t fuel this resentment further or encourage polarization for cheap political gain.
Of course, you don’t need violent images to realize that the gentrification debate triggers intense passions. Since the march, I must have read in the local press more than two dozen columns referring to it, from nostalgic views of a city that’s not coming back to more analytical pieces that provide solid technical arguments. As I wrote last year, the solutions to gentrification require dispassionate analysis: They involve serious urban planning, heavy investments in transportation and better provision of public services. But above all, Mexico City has to build more houses and increase their density by erecting higher residential towers: Last year, only 1,157 homes were produced in this district of more than 9 million people, according to official records. Say what you want about gentrification, but with such low construction levels, it’s impossible not to have a housing crisis.
None of this is the fault of restaurants, hotels or real estate developers, which are simply used as scapegoats. Instead of giving in to prejudices and parochial impulses or turning a blind eye to the excesses of protestors, those who care about the capital’s character need to focus on practical solutions that benefit its general welfare.
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This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
JP Spinetto is a Bloomberg Opinion columnist covering Latin American business, economic affairs and politics. He was previously Bloomberg News’ managing editor for economics and government in the region.
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