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 News Around the Republic of Mexico | March 2006 
Mexico City Officials Now Say U.S.-Owned Hotel Will Not Be Closed
 E. Eduardo Castillo - Associated Press
| | Waiters wheel out two tables of food through the front doors of the Sheraton Maria Isabel Hotel in Mexico City Wednesday, March 1, 2006. (AP/Gregory Bull) |
Mexico City – Mexico City officials said Wednesday they would not immediately close a major U.S.-owned hotel for alleged code violations – a sharp reversal that sent a wave of relief over tourism and government officials who feared the shutdown would cost hundreds of jobs and hurt investment.
The announcement, during a joint news conference with borough officials and representatives of the Sheraton Maria Isabel Hotel, appeared to be the result of private negotiations aimed at avoiding embarrassment for either side while allowing the hotel to continue operating.
On Tuesday, Virginia Jaramillo, leader of the Mexico City borough where the hotel is located, announced that the 755-room hotel was in violation of city building codes and as a result would have only 24 hours to move its guests and close.
The actions came several weeks after the hotel kicked out 16 Cuban officials attending a Feb. 2 meeting with U.S. oil executives, citing pressure from the U.S. Treasury Department.
The Treasury Department said the hotel had to expel the Cubans to avoid violating the long-standing U.S. embargo against the communist-ruled island. But most Mexicans were angered by efforts to apply U.S. laws here, and the expulsions caused widespread resentment.
Jaramillo originally suggested the hotel was targeted for closure because of residents' complaints of code violations. But on Tuesday, she made it clear the inspection and complaints both originated in the hotel's decision to expel the Cuban delegation.
On Wednesday, however, borough officials performed a quick about-face, saying that the hotel had been able to produce documents validating some of their methods of operation and would be able to correct other alleged violations shortly. They also said they had granted the hotel's request for 72 hours to comply, starting Tuesday afternoon.
“The hotel will remain open,” said Osvaldo Librizzi, spokesman for Starwood Hotels & Resorts Inc., which owns the Sheraton.
Librizzi added that the corporation, which owns 22 hotels in Mexico, is willing “to maintain a good relationship with authorities.”
Jaramillo's move to close the hotel appeared to harken back to the long-standing pro-Cuban stance of her leftist Democratic Revolution Party, and threatened to tarnish efforts by Mexico's left to depict itself as moderate and business-friendly ahead of the July 2 presidential elections, critics said.
“They have used absurd pretexts to justify the closure of the hotel, like saying the restaurants lack a braille menu, or that 10 percent of stairs lacked anti-skid strips,” Tourism Secretary Rodolfo Elizondo said in a statement Tuesday.
President Vicente Fox's spokesman, Ruben Aguilar, said Wednesday the president was concerned about “the repercussions for the City of Mexico, for the country in general and especially for how the decision to close this business will affect the workers.”
“This decision not only puts at risk the jobs of the people who work there, but it affects the tourism sector's image and probably could discourage investment,” he said.
Aguilar said the government would intervene if necessary, but added, “We hope this will get resolved today and there will be no more problems.”
The 755-room hotel was operating normally Wednesday morning, with guests coming and going through front doors once again open to the public.
Fox: Hotel Closure Damages Mexico
Wire services
President Vicente Fox´s office on Wednesday said efforts to shut down a major U.S.-owned hotel that expelled Cuban visitors could hurt Mexico as a whole and said it considered intervening to help resolve the crisis.
Meanwhile, a spokesman for the precinct where the Sheraton María Isabel Hotel is located said the hotel had until Friday to resolve alleged code violations - a change from Tuesday´s announcement that the hotel would have only 24 hours to comply with the city´s demands.
Business groups and the federal government criticized precinct leader Virginia Jaramillo for slapping a temporary closure order on the hotel for the code violations, several weeks after the hotel expelled a delegation of Cuban officials.
Fox´s office is concerned about "the repercussions for Mexico City, for the country in general and especially for how the decision to close this business will affect the workers," Fox spokesman Rubén Aguilar told a news conference.
"This decision not only puts at risk the jobs of the people who work there, but it affects the tourism sector´s image and probably could discourage investment," he said.
Aguilar indicated the government was ready to intervene if necessary, but added, "We hope this will get resolved today and there will be no more problems."
The 755-room hotel was operating normally Wednesday morning, with guests coming and going through front doors once again open to the public.
The precinct´s apparent use of seldom-applied regulations to punish the U.S.-owned hotel threatens to tarnish efforts by Mexico´s left to depict itself as moderate and business-friendly ahead of the July 2 presidential elections, critics said.
"They have used absurd pretexts to justify the closure of the hotel, like saying the restaurants lack a braille menu, or that 10 percent of stairs lacked anti-skid strips," Tourism Secretary Rodolfo Elizondo said in a statement Tuesday.
The harsh reaction by city officials may backfire.
Leftist presidential candidate Andrés Manuel López Obrador - the former mayor of Mexico City who, like Jaramillo, belongs to the Democratic Revolution Party (PRD) - has gone to great lengths to avoid being labeled a radical, and has stressed that "we don´t have differences with businessmen."
The closure could damage Mexico´s image, business leaders said.
"This is regrettable. This is not the image countries like ours want to be sending abroad," said Jesús Nader, president of the Mexican Association of Hotels and Motels.
Associated Press writer Lisa J. Adams in Mexico City contributed to this report. |
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