Party in Cancun?

Over the past few months, hurricanes have been a major problem facing the United States. The damages caused have been devastating to many. But as hard as it is for the US to recover, it is probably going to be more difficult for Mexico.

As Cancun was hit by hurricane Wilma, it took a huge loss to its tourism industry. According to an article by MSNBC, tourism in Cancun makes up about half of all tourism revenue in Mexico. Estimating that it will take Cancun at least 2 months to restore the hotels to their pre-storm conditions; will they be ready for holiday vacations? If they can’t fix their problems within this time frame, these hotels could lose out on huge amounts of revenue during the winter tourist season.

Other than lost revenue, are there any other consequences of this storm? How will tourists react? Will they travel somewhere else (substitutes), or will they cancel their vacations all together? What does this do to other industries (compliments) connected to tourism in Cancun (airlines, restaurants, souvenir shops)? Who will suffer more from this storm: the hotels or the little shops that sell their products to tourists?