By Carola Rico
In this edition we share interviews that we continue to conduct with a variety of businessmen from San Miguel as part of our economic analysis for 2022.
Daniel Velázquez, president of the San Miguel Hotel Association, pointed out that the increase in the cost of LP gas has been a strong blow for the union. The 30 percent increase has pushed lodging rates slightly higher than last year’s.
He pointed out that adjustments to the minimum wage for the entire workforce have also been a factor in the 8 percent increase in the price of rooms.
Velázquez noted that the Omicron variant has caused impediments in the supply chain, with bottlenecking in production and services. He expects inflation to remain high for at least the first six months of the year. The sector hopes that once activities are restored to a normal level, these problems and their effects will be resolved. All these factors have pushed inflation higher than before the pandemic.
He anticipates that the first two months of the year will be complicated because of more cases of the omicron variant and Covid 19. These will reduce travel as people avoid visiting other places. Velázquez is confident that starting in March we will experience a better economy because of more tourism. It is hoped that by that time weddings and important town festivals will be reinstituted.
Velázquez recalled that last year hotels and lodging in general had a 38-40 percent occupancy rate; this year the industry hopes for a 10 percent increase to 42-44 percent occupancy with average rates.
He stressed that despite everything, new hotels continue to open in San Miguel. This shows that there is confidence for the future and the present in our heritage city. Velázquez emphasized that the hotel industry is working hard to continue to make this a safe and pleasant destination.
Silverio Rodríguez, a businessman from San Miguel, states that he has experienced inflation and economic problems ever since he can remember. But this time it has been different because of new technology and the pandemic. He related that after 28 years of running a business in the gastronomic sector, he has learned that the macro-economy is cyclical. Although it is true that this year will be complicated, it is also true that for those who see problems as challenges, it minimizes the difficulties.
Rodríguez started in 1993 with a pizzeria, of which there were only four in the city of around 70,000 residents. Today there are more than 180 pizzerias, and almost 200,000 residents. The way things look for San Miguel de Allende, he believes this year there will be many more.
This is what is expected, but not all in the gastronomic field will be successful. He emphasized, that this year will be one that will respond best to new ways of doing business. He stressed that it is essential to continue improving every day, offering the products and services that customers require. It is also, without a doubt, important to adapt to change and to find a way of offering and selling products and services, regardless of the size of the business.
Rosalba Rangel Bautista (on the featured image) is in real estate. She says that during the first months of the pandemic there were no declines in property and real estate sales. She explained that her office continued to work the same way, because media and social networks facilitate negotiations and the showing and sales of property in this area.
The Rosalba Real Estate office has been in San Miguel for more than 30 years. Many clients are from abroad, but there are also national and local clients. Rangel did not deny that this year could be complicated because of the current wave of infections and the rise in prices. However, she emphasized that it is important to adapt to this new way of life, and pointed out that the whole issue of the pandemic has changed the way of life and how we interact, not only here, but throughout the world.
