From cartels to street vendors: Here’s who stands to profit (or not) from World Cup tourism in Mexico
From Cartels to Street Vendors: Who Gains and Who Gets Left Behind in Mexico’s World Cup Surge
From cartels to street vendors – As the vibrant hues of Mexico’s flag—green, white, and red—fill the streets of the capital, preparations for the World Cup’s opening match are in full swing. This Thursday, Mexico City will host the tournament’s debut, marking a significant moment for the country’s sports culture and economic landscape. While the event promises to transform urban spaces into hubs of excitement, it also raises questions about who will truly benefit and who may find themselves sidelined. The potential economic impact is substantial, with estimates suggesting the nation could earn around $3.7 billion (MX$65 billion) from the tournament, of which tourism alone is projected to account for nearly half. This influx of visitors, however, is not without its challenges, particularly for local businesses and criminal groups alike.
The Economic Ripple Effect in Mexico City
The tournament’s arrival is already creating waves of opportunity. In neighborhoods like El Zocalo, the central plaza of Mexico City, vendors are adapting their offerings to cater to fans. Stalls and kiosks now feature unofficial but eye-catching World Cup merchandise, from keychains shaped like soccer balls to whimsical plush toys depicting Mexican presidents in national team jerseys. These items, while not sanctioned by official sponsors, are drawing crowds and boosting sales for local entrepreneurs. At restaurants and cafes lining the plaza, managers are adjusting their strategies to capitalize on the event. For instance, Salon Corona, a well-known spot for live soccer viewing, has seen its usual clientele replaced by fans from across the globe. Manager Miguel Laguna anticipates a 45-50% increase in customers during the tournament’s month-long run, emphasizing the potential for sustained revenue.
Even in less bustling areas, the impact is felt. Alejandro Gonzalez, owner of Garage Burger in a quieter residential district, notes that his business is preparing for a surge despite not being in a traditional tourist zone. He’s investing in sports-themed decorations, such as football-shaped balloons and ice coolers, to draw attention. “It’s like I tell people, we have to seize that moment,” Gonzalez says, highlighting the competitive drive among local businesses to attract visitors. Meanwhile, Juan Carlos, an organ grinder near the presidential palace, welcomes the global attention, citing the traditional barrel organ as a draw for tourists. “We are here because this part of the city, the barrel organ, is a classic of the city,” he explains, while wearing his signature beige uniform and kepi cap.
Cartels and Organized Crime: A Profitable Side Deal
While the spotlight shines on businesses and fans, it also illuminates opportunities for criminal networks. Security analysts predict that cartels will exploit the tournament’s popularity to boost their earnings. One of their primary strategies this summer is extortion, targeting businesses frequented by World Cup visitors. Though the matches themselves are expected to avoid direct confrontation with criminal groups, the surge in tourism may make local enterprises more vulnerable. In resort towns like Cancun and Puerto Vallarta, where matches are not held but still benefit from day-tripping fans, extortion has been a recurring issue. These cities have seen criminal groups siphon revenue from restaurants, nightclubs, and hotels, often operating with little oversight.
Victoria Dittmar, a senior researcher at the think tank InSight Crime, points out that the tournament’s economic success could deepen the relationship between local businesses and organized crime. “These local businesses have become highly profitable, especially for localized organized crime groups,” she states. The influx of visitors may also create new avenues for cybercrime, as officials warn of scams targeting unsuspecting fans. One such threat involves counterfeit goods and fraudulent services, including fake tickets for the 13 matches Mexico will host. Additionally, hackers could deploy deceptive apps or websites that mimic live broadcasts, using them to install malware on users’ devices. “The purpose of these platforms is not to provide entertainment, but to compromise the personal and financial information of victims through tools capable of stealing banking credentials, monitoring device activity, or integrating it into bot networks used for illicit activities,” the Mexican government adds.
Challenges for Smaller Businesses
Despite the overall economic optimism, some small business owners in Mexico City are wary of the tournament’s effects. Nayeli, a kiosk manager in El Zocalo, fears that large-scale events like the “fan fest” zone established by organizers could overshadow her modest enterprise. The fan fest, which includes a giant screen, stages, and market booths with licensed vendors, is designed to enhance the fan experience. However, Nayeli worries that such setups may lead to street closures, disrupting the flow of customers to her business. She recalls similar disruptions in past events, where the focus on large-scale attractions diverted attention from smaller, local operations.
For Nayeli, the challenge is not just about visibility but also about the shifting dynamics of customer behavior. While the fan fest may attract a broader audience, she questions whether her business will remain competitive. “It’s hard to imagine how small businesses like mine can keep up when everything else is so well-funded,” she says. This concern reflects a broader tension between the tournament’s large-scale economic potential and the local businesses that have long thrived in Mexico City’s bustling areas. The organizers’ efforts to create immersive experiences for fans could inadvertently push smaller vendors to the margins, despite their strategic locations.
Building a Resilient Economy
Yet, not all local businesses are feeling the pressure. Some, like Gonzalez’s Garage Burger, are taking proactive steps to ensure they remain relevant. By incorporating sports-themed elements and promoting their unique offerings, they aim to stand out in a crowded market. This approach mirrors the strategies of other small enterprises in the city, which are leveraging the tournament’s visibility to attract customers. The challenge, however, lies in balancing innovation with the traditional charm that has made places like El Zocalo iconic.
As the World Cup progresses, its economic influence will likely extend beyond Mexico City. The tournament’s impact on tourism could ripple through rural areas and smaller towns, creating new opportunities for local economies. However, the presence of criminal groups and scammers underscores the need for vigilance. The Mexican government has issued several warnings, urging the public to avoid unreliable third-party vendors and stick to officially accredited sources for goods and services. These measures aim to protect consumers while also ensuring that the benefits of the event are distributed more equitably.
The World Cup’s return to Mexico is a double-edged sword. On one hand, it promises to revitalize the tourism sector, offering a platform for local businesses to thrive. On the other, it highlights the growing influence of criminal networks in capitalizing on the event’s popularity. As fans descend on the country, the streets will be alive with activity, but the question remains: will this surge in tourism translate to long-term growth for all stakeholders, or will some be left out of the economic gains? For now, the answer lies in the bustling markets, the gleam of fresh paint on restaurant walls, and the cautious optimism of business owners navigating a new era of opportunity and challenge.
