UPDATE ON ECONOMIC COSTS OF HURRICANE DEAN IN

UNCLAS MEXICO 004554 SIPDIS SENSITIVE SIPDIS STATE FOR A/S SHANNON STATE FOR WHA/MEX, WHA/EPSC, EEB/IFD/OMA, EEB/IFD/OIA, AND DRL/AWH STATE FOR EEB/ESC MCMANUS AND IZZO AND GRIFFIN USDOC FOR 4320/ITA/MAC/WHA/ONAFTA/GERI WORD USDOC FOR ITS/TD/ENERGY DIVISION TREASURY FOR IA (ALICE FAIBISHENKO) DOE FOR INTERNATIONAL AFFAIRS KDEUTSCH AND ALOCKWOOD NSC FOR RICHARD MILES, DAN FISK STATE PASS TO USTR (EISSENSTAT/MELLE) STATE PASS TO FEDERAL RESERVE (CARLOS ARTETA) USDOC PASS TO EXIM AND OPIC E.O. 12958: N/A TAGS: ECON EAID EAGR ENER PGOV MX SUBJECT: UPDATE ON ECONOMIC COSTS OF HURRICANE DEAN IN MEXICO REF: MEXICO 4512 Energy -------------- ¶1. (U) Pemex has reported that it should complete the inspection of its installations today, August 24. After having examined most of its offshore facilities yesterday, Pemex had not found major damage. Oil and gas production in the Campeche Sound restarted on August 23, and as of 19:00 that day, Pemex had produced 342 thousand barrels of crude in that area. Officials expect production to increase in the coming days. Pemex has reported that it expects to have the 18,197 employees who were evacuated back at their posts on August 24. Mexico reopened the Dos Bocas port on August 23. Tourism -------------- ¶2. (U) Hurricane Dean had a minimal effect on the tourist zones of the Yucatan peninsula. Beaches, particularly those that had not yet been reclaimed since Hurricane Wilma, were further eroded by Dean. The government-run National Tourism Development Investment group (FONATUR) has been put in charge of cleanup in the tourist zones. Secretary of Tourism Rodolfo Elizondo toured the state of Quintana Roo and announced plans for a promotion campaign to encourage tourists to continue visiting the area. He said tourist infrastructure is at 100% and ready to receive the usual number of visitors. Elizondo also announced discussions with the Secretariat of Economy to extend credit to small- and medium-sized tourism enterprises affected by the storm. Agriculture -------------- ¶3. (U) Official reports on the damage to the agricultural sector are still pending. On August 23, the Governor of Veracruz said publicly that agricultural areas sustained the most damage. There are approximately 48,000 hectares of planted oranges, 12,000 hectares of Persian limes, and 2,500 hectares of grapefruit in the affected area. However, there is currently no official damage estimate. The state of Quintana Roo also reported agricultural damage to citrus, bananas, and sugar cane. According to initial reports, nearly 1,000 hectares of sugar cane were affected by the hurricane. Approximately, 25,000 hectares of sugar cane are planted in the region. Visit Mexico City's Classified Web Site at http://www.state.sgov.gov/p/wha/mexicocity and the North American Partnership Blog at http://www.intelink.gov/communities/state/nap / GARZA