For many entrepreneurs in Puerto Vallarta, the dramatic drop in the flow of domestic and international tourism (low season) involves closing their business for a period of four to five months.
Without tourism, most small and medium businesses cannot survive with only the local market, which is also quiet in the low season. Comments unanimous highlight the fear of not being able to remain open and maintain payroll, rent, electricity, telephone and burdensome taxes.
However, those entrepreneurs who are able to remain open during the low season despite financial turmoil need to watch every dime to cover the fixed assets of the company.
While it is true that one of the first steps that all employers take when entering a recession is to cut not only the funds for advertising but also to downsize to increase the liquidity of the company, these actions can eventually cause the company to lose value and a competitive edge, left in dangerous waters with other companies that have wrongly decided to implement these actions.
The role of advertising in times of crisis is critical. It is a means communicating offers or opportunities that your company offers to customers. It is through advertising campaigns that the market gains confidence in your business, product or service and encourages them to spend consumer dollars with your company, increasing revenue flow. Because of this, companies must maintain advertising campaigns as far as their budgets allow.
However, during part of May, June, July, August and September many restaurant and bar owners that are located in the tourist strip, opt to remodel their businesses and or the lucky prefer to take holidays for one or even two months until better economic times.
The low season for the Port Authority (PA) means the start of the maintenance activities in the berths and facilities to maintain safety guidelines and for the comfort of the thousands of passengers that come back during the high season.
In the end, whatever the economic and employment situation, opportunities for improvement in this tough economic environment are ready and waiting for those willing to work hard, think creatively and succeed.
Jorge Chávez is Senior Editor at Mijo! Brands Mexico.
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