We’re in the resort town of Cabo San Lucas, Mexico where the tourism industry is trying to climb back from a triple whammy. First, the worldwide economic downturn took a swipe. Next came increased drug cartel violence in places like Juarez. Finally, there was swine flu, which the World Health Organization says has killed more than 100 people across Mexico. None of those deaths has been in Cabo, nor have there been any documented cases of swine flu in this area. The drug violence that’s happened is far from here. Still, walk along any beach or stroll through the marina and it’s clear that business isn’t booming. One of the owners of Cabo Wabo, a famed local watering hole, says business is off 40% from last year.

Hotels are trying to counteract the damage by offering deals. You can get resort rooms here for as low as $129 a night. American Airlines also just started a fare sale on flights to Mexico. Will all this work? Time will tell. The General Manager at the Hilton here says he’s already seen a bump in their business.